Perhaps years ago, while choosing the size and layout of the current warehouse and choosing or building your establishment, a business did a thorough logistics network assessment. And perhaps over the years, the warehouse has been a valuable asset to the company. However, since it moved in, a few things have undoubtedly changed. The clientele has evolved along with altering stock. The business now has different needs. It is a huge matter to know how you can determine whether it’s appropriate for your company to relocate to a new warehouse. Think about and assess some crucial areas of your company and warehouse operation to select the best choice.
Your company’s expansion
You can’t fit 10 pounds of potatoes in a five-pound bag, as the phrase goes. Although it may seem apparent, the same may be true for your warehouse. The “capacity trinity” can be referred to as the three different ways in which your warehouse’s effective operating capacity can exist.
Outbound freight costs and your customer’s expectations
Your companies have to deal with “the tyranny of now” more than ever. Customers of all kinds are requesting quicker deliveries, often on the same day as their orders. Delivery times are mostly determined by proximity, and if your consumers don’t pay for shipping, sending your goods across greater distances will raise your shipping expenses. Therefore, the location of your warehouse has a significant impact on your operating costs as well as the happiness of your customers, regardless of the outward transportation modes you use.
Moving to a new warehouse for rent bang bo (โกดังให้เช่า บางบ่อ, term in Thai) that is strategically advantageous and well-designed can benefit your company greatly. Sales are expected to increase and freight costs to decrease as a result of shorter delivery distances and quicker delivery periods to your consumers. Additionally, ensuring that the warehouse is built with efficient e-commerce order selection, handling, and shipping in mind will probably lead to additional decreased operating costs, such as the cost of labor and space.
Costs of your inbound freight
The location of your warehouse might also have a significant impact on your inbound freight expenses if you pay your suppliers to ship their goods to your warehouse. The pace of delivery from your suppliers to your warehouse is impacted by proximity just like deliveries to your customers. Therefore, even if your suppliers cover the cost of your inbound freight, the location of your warehouse will probably determine how quickly you may get products from them.
Costs of your labor
The labor market in your community is dynamic. Your workforce is likely getting harder to find, hire, and keep with each passing year. In most geographic locations, labor costs are steadily rising, although in some local markets, pay growth has been more pronounced than in others. Without a doubt, the biggest operating expense for the majority of warehouses is labor. One of the biggest potential advantages of shifting to a new warehouse is that your company can choose a site where qualified labor is more easily available, competition is lower, and salaries are comparatively reasonable. This is because local market conditions can significantly influence labor availability and pricing.
