Three factors to consider when choosing a warehouse location

Sunny Worldwide Logistics  is a logistics company with more than 20 years of transportation experience, specializing in markets such as Europe, the United States, Canada, Australia, and Southeast Asia. It is more of a cargo owner than a cargo owner~

The location of a warehouse has a huge impact on a company's efficiency and success. This is a big decision and should be considered carefully before settling on a location.

When choosing a warehouse location, you must consider the following three factors.

1. Close to airports, train stations and ports

You can have the biggest and best warehouse in the world, but if you are far away from airports, train stations and ports, it will be difficult for your warehouse to be successful.

Transportation of goods received or shipped from the warehouse needs to be considered in the decision-making process. If most of the goods you store need to be transported by air, then you need to arrange to be as close to the airport as possible. If this is not feasible, then you want to consider a location that has easy access to motorways and direct access to the airport. This will reduce transportation costs and increase efficiency.

2. Labor Availability and Labor Costs

Geography will determine the types of employees that can be hired and the salaries they can expect. If you are in a location with a low supply of labor, this will drive up wages because these workers will be in high demand and increase operating costs.

One way is to outsource and use companies such as third-party logistics that can collect your goods, transport them, pack and unload them, etc. This way, you can use your employees when you need them and don't have to worry about their skill levels because they're all trained on the job. This is important because if your employees lack skills, this will result in lower quality customer service and reduced productivity and profits.

3. Rent and utility bills

Rent and utility costs will vary greatly from location to location, and you'll have to figure out how much it will cost you to operate in a warehouse each month. Sometimes there are hidden costs, so be sure to do your homework. Super-cheap rentals can come with a few headaches, so don't be fooled by the initial low cost.

There is no point in paying too much rent just to have the “best” location as this will greatly impact profit margins. Essentially, one has to assess whether the cost is worth it, because on the one hand higher rents are the result of a good location, but whether the location is enough to increase your income is worth considering.

There is a lot to consider when choosing a warehouse location, however, the three points explored above are crucial and should be considered carefully when determining the best warehouse location.