8 May 2023

Is Warehouse Location the Key to a Successful Supply Chain?

by | posted in: Logistics, Public Warehousing | 0

Is Warehouse Location the Key to a Successful Supply Chain?

“Location, location, location” has been repeated so many times that it’s become something of a joke, but it should still remain a mantra for most people who are serious about their business. Warehouse location can connect you with your customers and fellow businesses – or leave you stranded, miles away from anywhere. Ideal warehouse location is just as important as the location of your stores, customers, and competing supply chain providers. Here’s what location can mean for supply chain businesses, and why the ideal location can make a huge difference to your business and its future accomplishments.

Is Warehouse Location the Key to a Successful Supply Chain?

Location Impacts Rental Costs

Location can have a significant impact on the rental costs of your warehouse. Most companies try to reduce rental costs without having to compromise on the quality, security, or size of the warehouse option. Some areas just cost more than others, and having your warehouse in the priciest location isn’t always the best for seeing your business go forward.

An ideal warehouse is still in a central location but priced lower in lease costs than this area’s highest real estate and business properties.

If you aren’t paying too much, there’s money for the important things.

Location Could Connect Companies-to-Companies

If your warehouse is in just the right location, it could have the potential to connect you to essential contacts. The location of your warehouse connects companies to one another, and choosing a warehouse location that is close to other companies which you could need for raw materials and other things could lead to future profit increases.

Business-to-business could turn your biggest competitors into your most useful allies, but your warehouse has to be located close to the right businesses – or you’re too far away for them to include in their supply.

Location Links to the Best Routes

The fastest supply chains are the ones that maintain the best routes. This can only be possible for the supply chain company that has its distribution warehouses in the best location. The best warehouse locations are close to the main route that they have to follow for most of their deliveries or dispatches.

Imagine that your warehouse is located on the other side of town, where your fleet has to make it through peak traffic to get anywhere. Now imagine that your warehouse was just around the corner from the highway that leads straight to your delivery points.

Don’t give this important supply chain advantage to your competitor. Move your warehouse location to the most ideal point to increase efficiency and reduce transportation costs. Alternate routes can also be easier to access in the event of emergencies or traffic jams, but only if your warehouse is in the best place possible.

Strategic warehouse locations link you to the best routes!

Location Lowers Travel Costs

Gas costs fluctuate, and this is one of the most important costs for any supply chain company – and because the price can become volatile overnight and throw your entire budget off, the right location can help your business to cut down on its travel costs.

A warehouse in the best location means that you aren’t spending as much on gas per mileage, even if the price of gas should change. If you were further away and set in another location, you would have to pay more to get to the same destination point.

Location Means Quicker Supply

Large supply chain companies like Amazon are successful because they have warehouses in the best locations. There’s a lesson to be learned from how fast they can supply their customers with items from these warehouses.

Ideal warehouse location means quicker supply, giving companies who have it one of the strongest advantages a shipping company could hope to have.

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