A warehouse is a crucial component of the supply chain management of any company. Maintaining the products under safe and timely delivery to sales locations or distributors is a vital segment of a warehouse. A business that ignores the warehouse solution will always face trouble competing with other organizations. Delays in shipments, the perishability of items, and inadequate product delivery- all contribute to poor warehousing operations. Therefore, knowing the variables influencing warehousing procedures when choosing a warehouse for your company is always beneficial. The transportation management system of an organization also depends on the capacity, geographical location, and efficiency of the warehouse.
A Typical Overview of a Warehouse
A warehouse is a sizable structure where produced items or raw materials may be kept before being distributed for sale. Typically, products from the manufacturing facility are delivered to a warehouse and distributed to various merchants based on market demand. There is a must for businesses to establish a presence in warehouses to succeed in particular demand areas. Apart from the movement of commodities, it also keeps records of what to make and quantity to produce and shares information at different levels. The supply chain management system also determines the location of the warehouse.
Every company strives to increase the effectiveness of its supply chain warehouse to meet its goals. Factors relating to warehouses are important in achieving supply chain goals like market expansion, market penetration, transportation management system, and customer service. Thus, a company must make several choices regarding the plan, location, and design before choosing a warehouse. Site selection and product quality have a significant impact on supply chain management. The choice of a warehouse location affects capital expenditure, operating costs, and customer service.
Necessity of a Warehouse
Warehousing is the most vital component of supply chain strategy. Various dimensions of the supply chain, such as shorter lead times, flexibility, and profitability, can be easily achieved through warehousing. It has been noted that organizations are economic enterprises, and the primary objective of an organization is to maximize the stakeholders’ profit. The success of an organization depends on its optimal location. It became unavoidable for organizations to lay stress on determining the perfect location or place among the different alternatives for selecting and setting up the warehouse.
To locate the best locations among the many location options, careful research should always come before investing in setting up and developing a warehouse. A warehousing location assessment must consider several aspects, including adequate space, customer service, good traffic links with suppliers and significant markets, simple highway access, proximity to railways and airports, and competent personnel. Warehouse selection is one of the most challenging jobs as it is a one-time process and, once implemented, cannot be reversed. One wrong decision might lead to a disastrous impact and even financial loss for the organization. Before setting up the warehouse, you must choose the optimal location for your warehouse.
Factors to Consider While Selecting a Warehouse Location
People prefer to choose the warehouse company in India which can be easily accessible. So, here in this section, we will briefly study the factors you must keep in mind while choosing the warehouse location.
- Types of Products
Warehouses keep goods secure and in good condition for longer by providing cover, safety, and ideal circumstances like the perfect temperature. Warehouses may experience issues due to factors such as unfavorable temperatures, changing seasons, weather, temperature variations, and shifting market demand. As a result, while choosing a warehouse, seasonality needs to be taken into account.
- Access
Any public warehouse provider interested in contracting with or prepared to transform into a sizable distribution center must be easily reachable from main highway networks. Let’s also assume that the business does most of its material importing or exporting. In that instance, warehouses should also be closer to major ports and have strengths tailored to the kind of product being made or stored. Consider the following factors when choosing a warehouse to transport goods to or from the facility.
- Connectivity to national highways & exit ramps
- Easy transportation access
- Moderate traffic volume & speedÂ
- Less traffic in peak hours
- Useful road signals and signsÂ
- Road security and conditions
Congested highways, roads, and improper signaling can increase fuel consumption and accident rates. Such phenomena also consume a lot of time, resulting in late delivery to the customers.Â
- Storage Area
The company must ensure that the warehouse’s location is suitable for and can accommodate the needs of the business if it has stringent storage and firefighting standards for commodities that are hazardous or flammable or even in the case of food items. An ecommerce order fulfillment or logistics company needs to be aware of the differences between handling products that need a chemical system and those that only need a water-based system. These businesses ought to be aware of any nearby streams or other bodies of water in order to take the environment into account.
Conclusion
Here we have gone through the prominent reasons you have to take care of while choosing the most suitable location for your warehouse. However, there are certainly more reasons, such as Technology, risk, processes, employees, Association Memberships, etc., you have to consider while choosing a location for the warehouse. Capacity and structural requirements need special attention while selecting the warehouse.Â
AAJ Supply Chain Management is an ideal option if you are looking for a warehouse in India. You can trust the technology and experience of the AAJ SCM. They provide you with the most reliable and suitable warehouse facilities.Â
AAJ Supply Chain Management
