Location matters when it comes to business. Whether it’s physical or virtual or both, it’s important to have a presence where your clientele are present. – Hendrith Vanlon Smith Jr, Popular American banker, and author
True to the words of a popular American banker and author, the location of a warehouse plays a critical role in the success of any commercial venture. Apart from reducing time, effort, and costs, it helps to streamline the whole process. Several key factors like distance, storage requirements, flexibility, supply chain logistics, environmental conditions, transport network, and other requirements should be considered while selecting the location for the warehouse.
One company that has made each one of its warehouses a profit center is Amazon India. It has established and successfully maintains over 70 warehouses all over India. The location of the Indian Amazon warehouses makes all the difference. The warehouses are located near population centers so it makes it easier to deliver online orders quickly and stay ahead of the competition.
Distance
The location of the warehouse is critical for the success of the business. The distance between the warehouse, manufacturing facility, the end-users, and customers need to be taken into consideration when selecting the location.
Accessibility
The location of the warehouse should be accessible by roads and highways if trucking is the main transportation mode. Apart from road transportation, if the business ships nationally or internationally then it should have clear access to railway links and ports. Multiple transportation options will be ideal. It provides businesses with the flexibility to intake and distribute goods.
Also, a warehouse location that has good transport links makes it easier for the employees to access the workplace.
Flipkart’s warehouse near Hyderabad is a perfect example. Ideally located on the outskirts of the city, the well-connected warehouse not only makes it easier to sort and deliver products but also uses the local workforce to take care of its staff requirements.
Storage requirements
The size, capacity, and infrastructure facilities available at the warehouse should meet all the specific requirements of the business. It should also take into consideration the immediate future plans of the company. Adequate care should be taken to ensure that the warehouse has the right size to store all the goods properly and safely. Not to forget the other special requirements like cold/warm storage, fire-resistant fittings, extra security, etc.
Another important feature of the storage part is the layout of the warehouse. Ideally, it should fit the type of operation conducted within the warehouse. The layout should allow the workers to easily store and maneuver around the warehouse.
Supply chain logistics
A warehouse location, easily accessible by the business’s supply chain partners helps boost business efficiencies and reduce costs and delivery times. This will also attract more potential partners to the company.
Environmental conditions
Finally, make sure that the warehouse is located in a safe locality. If the warehouse is located in an area prone to natural disasters, it may lead to major disruptions. Choose a place that is safe to operate.