Whenever I tell a friend, colleague or family member about my job as soon as the words "supply chain" are muttered I immediately see glassy eyes followed by a yawn or two. Little do they realize that every time they discard or recycle a carton of milk they are completing the end of the supply chain cycle. Without supply chains consumers would be stuck using products that they had to make or grow with their own two hands. Still not excited, well visit often and eventually you will be.
Of all the
fearful factors that business owners and logistics managers have to deal
with, one of the things they dread the most is idle inventory.
As if supply chains aren’t boring enough as it is (or so people
think!), the term idle inventory just exudes negativity. No company,
whether mom and pop sized or international corporation sized, is ever
content with anything business-related being idle or stagnant.
Movement is a
universal mission for businesses of all shapes and sizes because it
encompasses so many variations of change. Obviously, expansion and
upward financial growth are the most well-received forms of movement
within a business model, but lateral moves and tactical turns can also
be highly regarded.
desired directional shifts starts with the implementation of effective
strategies and changes. Improving the movement of goods and inventory,
for example, means the current storage strategy needs to be assessed.
Often times, after a thorough review, businesses realize that commercial
warehouses are basically the secret to storage success. In the long
run, leasing or owning a storage facility of this magnitude equates to
Commercial warehouses have gained an increasing amount of attention over the years,
and for good reason. These specialized storage structures are
beneficial to companies across all niches and industries, they can be
used for a variety of purposes and functions, and they can store
virtually any type of inventory.
In order to
effectively incorporate commercial warehouses into your business
operations, a number of factors must be considered. One of the first,
and most important questions that needs to be answered before anything
is signed or spent is – How do you choose a warehouse location?
Picking the Place for Productivity
why location plays such a significant role in warehouse management is
because the storage facility will serve as a central hub, or at least
that should be a primary goal. Deciding which warehouse location will be
best for your business depends on the answers to these questions:
· Will goods be delivered to the warehouse facility, picked up, or both?
· Will boats be used to receive and export goods?
· How far will drivers typically be traveling in order to distribute your inventory?
· What kinds of trucks will be accessing the building?
· How congested is the city where the warehouse buildings are?
· What does the economy look like in the designated city?
· What is the tax in the potential region?
· How many, if any, major interstates are easily accessed from the location?
· Where is the rental or leasing company located in relation to where the storage buildings are?
additional square footage or more warehouses are needed in the future,
will the particular location be able to accommodate those expansion
warehouse space is not a quick-fix business solution. It requires a
significant amount of time, research, and patience. In addition to the
geographical location, you must also consider factors such as short and
long term costs, customization options, lease terms, and the reputation
of the warehousing company.
Remember – Slow and steady wins the race,
especially when picking warehouse space!
This guest post was written by previous Supply Chains Rock contributor Kaitlyn Nakagoshi - Web Content Manager for The Ruthvens,
a family-owned commercial warehouse company in Lakeland, Florida.
Kaitlyn is a native Floridian who graduated from the University of South
Florida with degrees in Business Management and Political Science. When
she's not writing copy pages or blog posts, Kaitlyn enjoys hot yoga,
online shopping, golf, college football Saturdays, and brunching on
Sundays. She lives in Tampa, but hopes to soon trade in her east coast
roots for a San Francisco zip code. Follow her on Twitter @TampaKaity.