September 9, 2019
The next few postings on this blog will focus on warehouse location and design, which are critical to the success of a warehouse.
Where to locate your warehouse or plant is a decision to be made based on several factors. Clearly, being situated near major customers is a good idea, if possible, but if your major customers are scattered across the country or continent, this consideration loses some significance.
Access to the transportation modes that you most frequently use for receiving or shipping is another important consideration. The varying cost of labour in different markets is also a factor that can affect the decision.
A location decision should be made only after assessing and weighing service capabilities and costs associated with the different locations under consideration. Understand what your customers expect from you and how they prioritize those expectations: What do they need most from you? Make sure their priorities are an integral component of the decision-making process. Determine where you’d be best situated to meet their primary expectations. Whether you’re known for providing the best-price or the fastest service, play to your strengths as you plan a relocation or expansion.