Underground Journal

How to Choose the Right Commercial Warehouse for Your Business

Most businesses do not have ample space for warehousing needs, requiring the assistance of a rented storage facility. Storing your goods in a commercial warehouse is essentially entrusting your business to a third party that is totally separate from your company. Choosing the right commercial warehouse is picking out an ally in protecting your business. Here are some guide questions that can help you in making your decision:

1. What are your warehousing needs? Warehouses provide short-term and long-term storage of goods. Warehouses that provide short-term storage are called distribution centers. The warehouse serves as a landing area of goods, which are to be shipped out quickly. With long-term warehousing, or contract warehousing, storage space is being rented out for a fixed term, usually six months at minimum. If you’re a warehousing newbie, it is advisable that you get a lease with the shortest term in order to test drive the services of the warehouse.
2. How strategic is the location of the warehouse? Ideally, a commercial warehouse should be located near an airport, a seaport or a rail line. The shorter the transit of goods from one distance to another, the less stress it incurs. Study the distance between the warehouse and the point of destination. Are you providing materials to factories? If so, it might be more profitable to choose a warehouse that is near the factory to minimize transportation costs. Also consider how far the facility is from your company building since shuttling from office to warehouse has costs, too.
3. Are the warehouse equipment complete and in optimal working condition? Goods are mostly locked in crates and boxes, allowing for little to zero inspection so only efficient equipment must be used to keep goods in their proper condition.
4. What kind of ventilation does the warehouse have? Different goods require different ventilation and temperature. Warehouses maintain a certain degree of warmth, cold and humidity to protect the entrusted goods.
5. Is the warehouse equipped to withstand disasters such as earthquake, floods and fire? Additional structures are required to prevent goods from getting damaged in times of calamities. The warehouse should also adhere to building codes set by the district.
6. How tight is the security in the warehouse? Are their surveillance cameras that cover the entire facility? It is also wise that you know who has access to the warehouse and what kind of access they have.
7. Does the cost fit in your budget? Cost is usually computed by square foot. Apart from the storage space, you also have to factor in the taxes. Conduct a cost study, especially if you’re warehousing for pure cost purposes, instead of profit.

(0) Comments Permalink