Whether you are a major corporation or a small business owner, renting warehouse space is a decision that you will think about along the way. In the supply chain, warehousing is essential since it acts as the central location for keeping goods, supplies, or machinery. However, beware that picking the incorrect warehouse may have expensive and long-lasting effects.
Understanding the possible drawbacks of warehouse properties for lease is crucial for making an informed choice. We’ll go over typical blunders to steer clear of when leasing warehouse space and provide advice to help you discover the most suitable spot for our company’s requirements.
Make Sure to Evaluate and Allot Space
How you use space will depend on the kind of business you operate- whether it be seasonal, online retailing, or storage for old gear. You might want a location where you can welcome contributors if you’re a nonprofit. If your business is for-profit, you might want your staff to visit your warehouse. How you use space might also be influenced by the goods or services you provide. So evaluate and reassess these as you might not need a lot of room for individuals to move about if you want team members to visit your warehouse to replenish supplies.
Overlooking Accessibility and Loading Areas
Shipping and receiving products might be delayed due to sluggish operations caused by insufficient loading docks and poor accessibility. This can affect the effectiveness of your supply chain, thus it’s one of the things to avoid when renting a warehouse. Therefore, make sure the warehouse has enough room for vehicles, dock doors, and loading bays. The design should facilitate the simple transportation of products and commodities.
Not Communicating Fees or Costs with Your Landlord
Nobody likes unforeseen costs, particularly when they have committed to a deal that may last anywhere from a few months to many years. Verify everything that is and isn’t covered by your rent before signing anything. Next, find out what extra costs you might anticipate. Such as taxes, insurance, cleaning fees, landscaping, maintenance fees, and others. Make sure you have communication with your landlord in which they are liable as well as the fees the renters should be responsible for, make sure it is in your contract.
Not Planning the Location
The general operation of a warehouse environment could be significantly impacted by its geographic location. Being near suppliers and customers reduces transportation costs and ensures on-time delivery. Its accessibility considerations are crucial for distribution and transportation networks, moving goods is expedited by easy access to ports, main roads, and other transportation hubs, which would improve the effectiveness of the supply chain.
Renting a warehouse would be a wise yet costly decision. Regardless, it is a good investment for your growing business, there is never anything wrong with upgrading, just make sure that with your upgrade, you will utilise every part and make the most out of it. Careful planning is essential before committing to a warehouse rental, consider factors such as inventory volume, order fulfilment process, future growth projections, and specific needs of your company.
