7 Factors to consider when looking for Warehousing Solutions
Times are changing, today’s customers want one day or even same-day delivery of their products, and warehouse management is a critical aspect of an organisation for achieving this goal. As it helps in the distribution and movement of goods, having a well-planned warehouse management system gives the organisation a competitive edge. Selecting a warehousing solution can be a challenging task; Organisations are strategically planning to fulfil their specific warehousing needs, and also ensuring that they don’t increase the cost for warehouse setup. In this article, we will show you seven factors that organisations need to consider when looking for a warehousing solution, without further ado, let’s get started.
1. Location: The location of a warehouse is not just a placement decision but it’s more of a strategic one, as it impacts the price, distribution cost and other aspects. Organisations need to analyse and consider many parameters such as, whether the location is reasonably located near the customers to ensure that the delivery time is less and the process is cost effective. Organisations also need to ensure whether or not there are adequate transportation facilities available for the movement of goods. Organisations which have the right warehouse in the perfect locations would be able to reach their customers with efficient delivery time and optimum cost.
2. Experienced workforce: Skilled and efficient labour is the key for proper warehouse management even for the tasks in the warehouse which have been automated. Availability of skilled labour is as important as selecting the right location for the warehouse, as the products and machinery in the warehouse will be handled by the labour force. So it is crucial to select a warehouse in which the workforce is skilled and efficient.
3. Storage Requirement: Before selecting a warehouse, supply chain operators must access the availability of space in the warehouse, the type of products that can be stored in the warehouse in order to ensure that the warehouse is best suited for the organisational needs. In addition, supply chain operators must also know the total space in which the building was designed, the maximum amount of space that is available in the building for operations and the amount of space required by the organisation to carry the warehouse operations efficiently and effectively.
4. Technological advancement: In today’s competitive world, having a well-planned warehouse management system gives the organisation a competitive edge. Technological advancement can simplify the process of shipping, tracking, planning, warehousing and fulfilment requirements through a single panel. Supply chain operators can respond to the changing conditions by utilizing the artificial intelligence and data accuracy capabilities. With the help of warehouse management system organisations sales, channel and warehouse facility will be aligned, which in turn will reduce cost and make use of resources efficiently.
5. Lease Agreement: It is important to understand all the legal aspects that are included in a warehouse lease before choosing a warehouse. It is good to have a better understanding about the group responsible for different requirements. It is always better to sign the lease on conditions being delivered, which will eventually help in understanding delays related to leasing which will not slow down the future process. It is also important to emphasize the type of rental contract of the warehouse. If your products are season based, you should choose a spot which has seasonal warehousing. In the same stride, if your products are based on the time of the year, the warehouse should be able to offer the space depending on the demand of the product. All the aspects should be mentioned in the rental contract clearly before you sign.
6. Client Profile: It is important to consider the profile of the warehouse client as well. The warehouses that are used for handling storage for small companies are not equipped to handle big companies. Similarly, if the warehouse handles established brand’s products, and your company is mid sized, you should not pay for needless services and ensure that they serve you with the same service as big companies receive.
7. Access: It is also important to consider the accessibility of the warehouse which will reduce the chances of your orders to get delayed due to the orders not leaving the warehouse. When the warehouse is being chosen, it is important to ensure that it meets specific requirements that are required by your storage goods. For example, if you are actively involved in import and export, it is a huge advantage if you choose a warehouse close to a major port as it will have the necessary equipment needed for your business. It is important to consider the following aspects to ease the access to your warehousing facility:
- Public transportation access
- Safety and road condition
- Type of traffic
- Road signs