Selecting warehouse location – things to consider

There are many factors that impact running your business. One of the main things that affect conducting your business is the location of your warehouse. Selecting warehouse location can make a huge difference in how efficient, effective and productive your job will be. It also affects the overall success of your company. There is no doubt, selecting the right location of a warehouse can significantly enhance your ability to operate better. When you have a warehouse at a good location, it will be easier for you to compete in the market and effectively serve customers. So, when you start selecting a location for your warehouse, make sure to take enough time. Then, take the advice from our experts from shipping and logistics companies and consider the following criteria. You will need to take some notes and compare them against all the available options. Let’s see how to do it!

Get ready for selecting warehouse location

Starting your business and selecting a warehouse location for the first time? This could seem like a simple task. The truth is, this task requires considering many factors. For instance, if you choose a warehouse location near your office you may think this was the best option for your business. But, what if the selected warehouse is far away from the customer base lives? Or your warehouse is too expensive because of its location? For these reasons, you will need to take all the following factors into consideration. So, our experts from a warehouse in Saudi Arabia will remind you of the most important factors you should think about.

Person working on selecting warehouse location
Find out what to know before selecting warehouse location.

Calculating a budget is an inevitable part of the tasks in front of you. So, one of the first things you should do is to find out the costs and tax rates of potential warehouses you will choose from. Still, the costs you will need to pay for warehouse expenses are not the only criterion to keep in mind. Hidden costs of the warehouse could offset any savings on cheap rental rates and for that reason must be considered. So, before you opt for and warehouse Riyadh, make sure to calculate all potential costs. Nevertheless, don’t let yourself select the small or too large warehouse because of the price. Getting too large warehouse could seem like a needless cost for the first few months, but it can be a savior once you get more products. So, make sure to know your business plan and consider it when selecting a warehouse.

Proximity to roads, highways and traffic flow are important for selecting warehouse location

Selecting a warehouse location that is centrally located relative to customers, suppliers and carriers will be the right step for you. Considering these things will help you reduce shipping costs. Also, accessibility to main roads and highways will help you deliver your products faster. The location of your warehouse will impact your cooperation with transport companies in Riyadh, especially if trucking is the basic mode of transportation. So, opt for a strategic warehouse placement and you will do a lot for running your business operations in the terms of logistics.

Before you select your warehouse location, keep in mind the overall customer experience. Well, faster deliveries and reduced shipping costs are what your customers will appreciate. This will lead you to happy and loyal customers. If you are not sure what factors you should consider, here are some of them:

  • Accessibility to highways and exit ramps as well as highway inter-connectivity;
  • Public transportation penetration;
  • Road safety and conditions;
  • Average traffic speed and volume;
  • Usual traffic peak hours;
  • Proper roads signs and signals (check them when selecting warehouse location).

Building availability and expandability

Whether your business grows or shrinks you will need to find a way to adjust accordingly. Sometimes you will be able to keep the same warehouse and decrease your costs. On the other hand, selecting a new warehouse location could be the only option for you in some cases. Before you start looking for a warehouse far away from the current one, make sure to check is there any available warehouse near you. According to our logistics service KSA experts, this could help you avoid high moving costs, but you will be able to get what you need.

Spacious warehouse
How available warehouse building is?

There are many benefits of moving your warehouse within the same area. Firstly, you will be able to retain your utilities and workforce. Secondly, you will minimize the frustration of customers and carriers while trying to find the new location of your warehouse. Are you able to move to a smaller or a large warehouse near you? This will be a fast and affordable solution. So, if you are selecting warehouse location for the first time, make sure to check the availability of other warehousing options around you. In case there are no other available warehouses near you, check expandability options. What if you will need soon additional warehouse space to accommodate your growing business? It would be perfect to have expandability options.

Consider utilities

This is the last aspect important for selecting warehouse location. For sure you will want to know all about availability and cost of utilities. This will be meaningful for conducting your business. There is no doubt, some warehouses are more dependent on utility than others. If you own or rent a refrigerated warehouse, keep in mind they are more dependent on water and electricity. The important thing easy to overlook is internet and communication services. For that reason, make sure to check not only speed and link-type but also all associated costs. If there is no availability of internet, you should know that installation could last to even three months.

Unifi switch
Check the internet availability and speed.

Consider all aspects and compare them

After you gather all important information about the potential warehouses, selecting warehouse location can start. So, take time to compare crucial details before you opt for a certain warehouse. Whether you are running your business within Saudi Arabia, Europe, the United States of America, or internationally, be wise when choosing a warehouse location.

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