A warehouse business will only be lucrative if you land a strategic location. A strategic location provides favorable conditions for a business to thrive and stay afloat for the longest time possible. In other words, choosing strategic location creates a whole lot difference in as far as convenience and profitability are concerned.
Other things that will contribute to the success of a warehouse business include the storage space and facilities. For instance, a racking system will create more storage room, which means that you can serve a sizeable number of customers to reap maximum profits.
So, back to the location, what criteria should you follow? Well, take a look at the following:
- Roads and Highways
Road transport is the most affordable and reliable transport network in most parts of the world. Having a warehouse next to a big road such as a highway means that there is adequate infrastructure to support your business. Clients will be finding it easy to access your warehouse. Workers will also be making it to work on time, something that will boost overall productivity.
- Workforce availability
A warehouse cannot operate without a reliable workforce. You must, therefore, consider a location with labor availability. Casual work positions will be best if they are filled with the locals from around. You can also go with a boltless rack Malaysia to ease the work of your employees or cut on the labor force to save on salary expenses.
- Rent, rates, and taxes
Different places will attract varying rent, rates, and taxes. It will help if you choose a location that favors tax incentives. In that instance, you can decide to have your warehouse in a localized place so that you and other players in the industry can have stronger bargaining power.
- Utility cost
You may also want to consider the cost and availability of utility. Remember, depending on what goods you are dealing with; the warehouse may attract varying utilities. For instance, a refrigerated warehouse is more dependent on electricity and water.
- Proximity to airport or seaport
Lastly, it would help if you understood that handling imports and exports are more profitable than handling domestic goods. Moreover, local products will unlikely be stored for long because the location has ready consumers. Furthermore, most clients will be either be shipping goods or using cargo planes to ferry the same. In that case, it makes sense if you are at closer proximity to the ports so that you can cut on the cost of transport, especially if it is at the clients’ expense. Clients are also businessmen like you, and they’ll, therefore, prefer to cut costs as much as possible to maximize their profits too. If you don’t give a nearby solution, they’ll go ahead to look for an alternative warehouse.
If you take your time to score all the above aspects before setting up a warehouse business, then you’ll definitely make a kill out of it.
