Warehouse site selection can be a complicated process. We leverage expansive networks and industry knowledge to aid Customers in selecting a strategically placed warehouse site that is optimal for your specific distribution program.
Companies focus on reducing their ocean freight cost, warehousing, Inland Transportation and Distribution costs without paying attention to the costs associated with having the wrong warehouse location.
For most companies, owning or leasing manufacturing, warehousing, transportation, and retail facilities represents the largest fixed-cost element of their businesses. Despite this financial and competitive importance, too few companies have a strategy to continually assess and optimize their supply chain networks to ensure they are meeting their
A site in a business-friendly location with convenient access to transportation resources can give your supply chain a major boost. Other factors—such as distance to suppliers and customers, and access to a suitable workforce—matter as well.
To choose the perfect location, you need to understand your operation and consider how the variables affect your company’s situation, then carefully weigh each location’s pros and cons.
Companies don’t usually design logistics networks; they inherit them as a result of earlier mergers or acquisitions, or simply evolve them piecemeal as operations expand.
Business priorities dictate which factors receive the most weight in site selection calculations. Consider, for example, a location that offers many different transportation options at competitive rates, but is a two-day drive from most of the nearest supplier. The shipper may decide it can’t live with that much distance.
Site selection often requires balancing all the variables. Part of the exercise is trading off costs and service levels
Companies often take into account over 100 factors when analyzing a new site location in order to determine what the right fit is for them. These factors can include: transportation costs, access to major markets, utilities, taxes, employee training, incentives, labor rates, and many more. The warehouse site selection process varies between industries and even among companies within industries.
Why Warehouse site Selection Important
The business initiatives that drive the need for warehouse space include:
- Reduce transportation costs
- Improve customer service levels
- Support store system growth strategy
- Consolidate facilities due to mergers or acquisitions
- Introduce new product line(s)
Professional 3PL companies can usually assist in site selection. 3PL Companies can also offer a complete warehousing solution to reduce cost. In Conclusion, it is a wide decision to work with 3PL or PL Companies to choose the right warehouse location.
As a leading third party logistics provider, we assist our clients with site Selection