Whether you intend to buy a new building or look for a lease, it’s important to consider various factors. After all, the location of your warehouse will have a strong impact on everything. From the workers to the visitor, everyone will be influenced. For this reason, you should make a realistic approach to choosing the location of the warehouse. Below, we have mentioned what you need to be mindful about
The first question is, “where are my customers?”. If your customers are located close to your current office, your warehouse has to be around it. However, if your customers are spread all over the country, the location has to be a midpoint for everyone.
However, if your customers are located in North America and your services are in the South, it won’t make any sense. So always acknowledge the location of the customers before choosing the warehouse location.
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Proximity to Transportation
What modes of transport do you usually use to ship and receive goods? Train? Air? Rail? Or trucking? Depending on what you choose, consumer expectations will always be high. They would always want to receive their order at the earliest possible. Customer satisfaction should be your top priority.
So choosing a warehouse located near the primary mode of transportation will help reduce the shipment charges. Customers will be angry If the shipment charges are very high.
Once you have identified the customer case, you need to know the supplier network. You will be supplied goods from them. The proximity to suppliers will have a strong role in choosing a warehouse location. The closer the suppliers, the lesser the risk of any disruption.
This holds true for international and domestic suppliers. Always know your supplier and see how far or close they are before working with them. Check out the available industrial properties near the supplier’s locations.
It’s not always possible that the building you like is readily available. Yes, it is a little frustrating, after lots of research, to still not be able to lay hands on it. Yet the options are diverse, and you will have many things to choose from. If you find a facility near your location, it will be a big relief.
You need to be wise enough when choosing the right building. It needs to have all the necessary facilities. A building should facilitate the needs of the workers.
Do not forget every area has a different tax structure. After all, the tax structure and incentives will have a strong impact on warehousing costs. Directly and indirectly, the overall expenditure will get affected. So when going through the warehousing locations.
It’s important to be mindful of business-related taxes. This is inclusive of the franchise tax and the inventory tax. And also consider the personal tax for the employees. Know the tax structure of a new place before choosing it as a suitable location.
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