When it comes to choose to relocate a warehouse or find a new warehouse space, there is a lot to take into consideration. Before you begin, you need to understand how the warehouse planning process works so you will be able to select the best facility to suit your operational needs.

Finding a new warehouse is one of the biggest decisions you will make for your company. There are a lot of complexities involved during the buying or leasing process, which can be confusing and overwhelming. While price is important, it is not the only factor that should be considered.

This guide will discuss all of the steps that are involved in the identifying and planning process so you will be able to purchase a new warehouse that meets your business’s needs.

Selecting a New Warehouse: Factors to Consider

The following factors should be carefully evaluated during your warehouse search: costs of warehouse operations, location, and space.

Cost

One important factor that must always be considered when you are looking to buy or lease a new warehouse is cost. Rather than determine the cost of operating in a certain area, most companies bargain shop, which can lead to problems later on if the cost of operating in a particular area isn’t feasible for their business.

The first question you need to ask before you select a space is whether it’s more important to minimize the costs of transporting goods efficiently and safely at the lowest possible cost for your customers, or to keep the cost of your total square footage down. The nature of your business will depend on what’s best for your company.

Location

Another factor you will need to consider is the location. You should ask yourself the following questions in order to determine the best location for your new warehouse:

  • Will the location be easy for employees to find during their commutes?
  • How long will it take to get your goods to the facility?
  • Is there a carrier close to the facility?
  • Will the supplier have a difficult time transporting goods to your facility?

The answers to these questions will assist you in finding a suitable warehouse location. You want to make sure this location fits your company’s needs as well as the needs of your customers.

Facility Requirements

Does the facility come equipped with the tools you need to pass routine inspections? Most warehouse facilities require a sprinkler system that is sufficient for the commodity you are storing, for example. Some other important considerations include:

ADA Accessibility/Elevators – Does the facility include elevators to comply with the Americans with Disabilities Act for disabled persons?

Zoning -Will you be able to get a variance if the desired location isn’t zoned for your type of business?

Fire Sprinkler Systems – Does the facility contain sprinklers that comply with local fire codes?

Humidity/Temperature Controls – Does the facility have humidity and temperature controls?

Space

When determining space requirements for a new warehouse, you should consider all of your needs from your present needs to future expansion. Warehouse space is often determined by maximum tonnage and volume in terms of the amount of storage space you will need for your products.

You will need to calculate 70% of your total warehouse space for storage so that the remaining 30% can be allocated for office space, in addition to ventilation, and passageways. In addition, you will need to make sure that you have enough space to accommodate seasonality into your daily warehouse operations.

What to Avoid When Selecting a New Warehouse

  • Not involving key warehousing staff or top management in the process of acquiring a new warehouse
  • Failure to consider future needs when selecting a new warehouse
  • Failing to calculate goods transport costs from the facility to the customers
  • Not taking future developmental changes into account in the new facility
  • Not taking the warehouse’s long-term value into consideration
  • Not determining any additional space requirements your facility may need
  • Not taking the needs of your warehouse staff into consideration in terms of sanitation, noise protection, lighting, ventilation, heating, and air-conditioning, etc., when searching for a new warehouse
  • Failure to factor in shipping and receiving areas when determining the amount of space your warehouse needs

You will also need to determine how much your overall operations would cost when relocating to a new warehouse. Your company’s bottom line will determine its decision regarding the new facility. If your new warehouse meets your budget, space, and location needs, your processes will be more efficient and lead to improved revenue and reduced operational costs.