Why invest in a storage warehouse property?
Some business owners may think they do not need a warehouse to rent. To them, it is an additional cost. In reality, we can consider it as a property investment in the markets. In commercial real estate, it is the type of building you can buy or lease in a designated city. There are thousands of entrepreneurs who invest in them at any price.
What good would a storage warehouse do for you?
Proper Storage of Goods and Products
The essential function of a warehouse is space. But you need more than an industrial warehouse space for your goods, equipment, and materials. For example, do your products require a specific temperature range for them to stay in top condition? The number of products you store in a single storage area could also affect product quality and proper workflow.
A commercial real estate agent gets a property type of such with a better location when investing in a proper industrial space. You should hire the service of a commercial real estate agent to help you find this property type if available in different square feet. You want to be sure that the best products will get to your customers on any day.
Seamless Movement of Goods
Products do not just stay in warehouses, they go out to your customers. Although some may think that the only thing that matters is a proper workflow in place, if your space is small, it can disrupt the production process.
A good industrial storage warehouse should create a system that allows goods to be transferred easily to another location in an orderly manner. There are also storage buildings with warehouse management systems in place. It all depends on the type and price listings. It is advisable to browse different sites to search for new ones up for sale. There are many available almost for free.
Protection against Loss or Theft
Security is a major concern for every business owner, especially those with a large inventory. It’s amusing that some are skeptical about the growth of their business because they feel that they would have to worry more about theft. Imagine when they need to serve a larger audience and start stocking up on goods.
In reality, it’s not the property type that encourages this, but a lack of a proper system in the way you handle your inventory. I was in the office of a CEO who runs a logistic business in the center of my street. He asked me several questions about expanding his small warehouse. So it is pertinent to make sure your industrial warehouse space is secure even if you feel your goods are not as valuable or expensive as other businesses. A good industrial warehouse space creates an optimal security system in place.
Therefore, industrial warehouse spaces are not an added cost. It is an investment that makes your entire business more efficient. Aside from these major functions, other storage facilities may offer some services through their team that could leave you in an even more convenient standing.
Factors to Consider When Looking for a Warehouse to Rent
You can get a warehouse management system (WMS) in the market. A WMS is a software that gives you access to your warehouse or storage operations. But if your storage facility is all wrong for your specific needs, even the most efficient system will fail you.
What factors should you consider in choosing the right warehouse?
The size of an industrial warehouse is one of the basic things to consider. But sadly, a lot of businesses cannot see its importance. The spaces for lease matter. You want to be sure that there is enough room for the proper inventory every day. Sure, the bigger the warehouse, the more expensive for you.
Figure out how much inventory you need to store. This will give you information on the size of your storage options.
Location is another thing that affects your overall costs, but the efficiency of your supply chain process. Where are your suppliers located? What about your stores and customers? Are your goods and materials coming in through the ports or major highways? Is your warehouse of choice accessible to these areas?
In choosing the location, consider areas easily accessible to clients, suppliers, and distribution points. Find out the convenient routes in and around the area that will link all drop-off and pickup points. This allows you to maximize your resources more efficiently.
Storage facilities may offer a lot more than just storage. And if you decide to go for a storage provider who also includes other add-ons to their service, you may end up saving a lot more money.
What additional services do warehouse companies give?
Some of them offer packaging and branding. Some also offer transport services, which means you can save yourself from the trouble of purchasing and maintaining your trucks or vans. For some warehouses for rent, they also offer inventory and warehouse systems. Some have their additional security in place. While others may take add-ons as additional costs, look at them from a unique perspective.
Some business owners feel things like warehousing do not require any technology. You couldn’t be more wrong if you believe the same thing.
Software like Warehouse Management Systems (WMS) can be pretty helpful, especially if you’re preparing for further growth. Tools like these can make your entire workflow more efficient, saving you a lot of workforce and time. The tracking and reporting tools that the facility has in place will also be a good thing to find out.
How will your business look like a few years from now?
If you feel that your business would double its size in just a few years, then it makes no sense to settle for a warehouse that can barely handle your existing inventory. Always think bigger than your current needs. You also have to remember that you deal with peak seasons a few times a year.
If you’re choosing a warehouse during the slow months, and your current storage can handle nothing more than your current stocks, what do you plan on doing when the demand for your products doubles or triple?
Yes, it’s beneficial to find out who your storage provider’s other clients are. This can say a lot about their storage services and how effective they can be for you.
Are their clients smaller or larger than your business? If all the businesses they cater to are smaller than yours, what’s your guarantee that they’ll be able to handle an enormous load from your business?
You may also want to check the problems that other clients may be encountering. Are they known for their efficiency in meeting deadlines and client demands? This means every part of their system is efficient, their warehousing options included. But if under their client listing, you see businesses known for late deliveries and frequent stock issues, look for other options.
With your entire inventory stocked in a single place (unless you plan on dividing your stocks across different storage facilities), it is important to know what the risks are. Is the structure’s integrity still intact? Is the storage facility found in a high-risk area?
Find out what kind of insurance coverage you can opt for. Although some things are unavoidable, like accidents and acts of God. But knowing that you have something in place to take care of the risks could lessen the blow somehow.
Choosing a suitable storage facility should not be a rash decision. It takes a lot of research to arrive at the best choice. So why do other businesses fail at this part of the process? A lot of logistical mistakes occur when businesses underestimate the importance of their on-demand warehousing choices.
It should not even be a cause for debate, your storage facility dictates whether way your business thrives or dies. So it is essential to understand your choices.
You do not need to worry about the warehouse to use. We help retail market and e-commerce businesses choose warehouses in line with their needs at an affordable budget. In the end, we want to satisfy your customers. Jordan Ketchens, the CEO of 3PL Bridge, gets you the best industrial warehouse spaces for purchase or lease.