Tuesday, September 26, 2023

5 Key Considerations for Choosing the Right Warehousing Solution

Did you know that 12% of companies become unprofitable once their distribution costs are counted?

When it comes to running a business, it only takes one bad decision to ruin your company.  One such decision is not choosing the best warehouse for your business.

Keep reading to learn what is most important to consider when choosing your warehousing solutions.

1. Location

Location is essential.

A good warehouse location will increase the speed, ease, and efficiency of product delivery, storage, and distribution.  Time is money, so the faster and easier it is to get products in and out of the warehouse, the more profit you will gain.

To maximize profit, here are some important factors to consider:

  • Proximity to convenient transportation hubs
  • Customer location
  • Company size

The closer a warehouse location is to a port, railway, or motorway, the faster goods can be delivered to and distributed from the warehouse, quickening how fast customer orders can be fulfilled. 

The size of a company is also an important factor in deciding warehouse location.  A small company may benefit from focusing on its primary customer population over convenient transportation methods.

Large companies will benefit from warehousing solutions, such as Foxconn Logistics, that provide easy access to a variety of transportation hubs, increasing the reliability and convenience of sending products over a long distance.

2. Access

Along with location, it is also important to consider how easy it is for you and others to access the warehouse.  

Companies should also consider how much time necessary employees need to reach a warehouse’s location and how often employees need access to the warehouse.  Depending on a company’s product, it may not be necessary to have quick and easy access to the warehouse location.

3. Timeframe and Seasonality

There may be times when a company needs a temporary warehousing solution.

This may occur for businesses that sell seasonal goods.  In these cases, a public warehouse may be ideal.

Public warehouses store products for a monthly fee.  However, the prices of a public warehouse can rise drastically depending on the amount of storage left.

If a company needs a more long-term solution, contract warehousing is may be a good option.  Contract warehousing requires a contract-by-contract commitment from companies to pay for a specified amount of time, making it ideal if a company needs extra storage for a long period of time.

4. Capabilities

Not all warehouses offer the same services.  Some offer climate control, while others specialize in handling fragile items. 

When considering various warehousing options, it is important to keep the product in mind.  The best warehousing solution for a company will have the appropriate capabilities to help preserve the quality and sellability of products.  Every broken phone or piece of spoiled food is a deduction of profit that can build quickly when a warehouse is unable to provide proper storage for a product.

5. Technology

Not only are different warehouses capable of storing and handling different products, but they have varying levels of technology as well.

Some warehouse solutions will provide drones and 3D printing, while others provide packaging, delivery, and tracking services.  Such technologies provide companies an easy and efficient way to make sure that everything is running smoothly and that customer orders will be fulfilled in a timely manner.

Choosing the Best Warehousing Solutions

Choosing the right warehousing solution is an important part of a successful company.  The best warehouses will help build your company’s reputation as reliable and efficient, while using the wrong warehousing can severely damage your business.

If you found this article helpful, be sure to check some of our other blog posts.