7 Key Considerations When Choosing a Warehouse Location for Your 3PL Business

Finding a 3PL warehouse service provider is crucial for every business during the expansion stage. In fact, the demand for warehousing has increased over the years. The boom in eCommerce has benefitted distribution agencies, warehouse units and shipment zones with ample opportunities to grow and magnify.

Necessary technology and storage spaces are crucial for every business to grow. Warehousing is not about selecting any random place to organize the products to be shipped. There are a lot more in it that could determine the pace and capability of your business. An in-depth understanding of the location is mandatory to set up your warehouse for safe storage purposes.

Criteria for Choosing a Warehouse Location 

With the growth of eCommerce, the need for warehousing has increased abundantly. The expanding businesses need the support of 3PL Warehousing services to enhance customer satisfaction through timely delivery and proper assistance. Hence, choosing a warehouse considering the locality specifications is essential for a business to strengthen the delivery services and safe storage.  

Understanding the business requirements and the company’s unique needs is crucial in determining the warehouse site. Every 3PL service provider must research the company’s core functional area to understand their expectation and storage needs. Here’re some essential selection criteria for choosing the right warehouse location for 3PL:

Read more: On-Demand Warehousing: Top Benefits & Use Cases To Enhance Your Business

Proximity to Shipment Area

Sooner the better! The receivers are eagerly waiting for the package. Slight negligence on delivery will disappoint the customers. It is always ideal to keep the warehouse closer to the shipment zones to avoid transportation delay. Ensure that the area is well connected to major transportation hubs.

Infrastructural Amenities

Warehouse infrastructure is an important factor to be considered while selecting the location. Depending on the nature, size, and type of the products to be shipped and stored, the warehouse should have the necessary storage capabilities. Infrastructural requisites should be inspected before fixing the location. Also, factors like cleanliness and environmental safety should be cross-checked before you finalize the plot.

Seasonality of the Stock 

3PL service providers engaged in the shipment or storage of seasonal products should consider public warehouse services as an alternate option. This will help to save money by choosing a short-term storage solution. In a nutshell, the seasonality of the products should be scrutinized if you are planning to set up 3PL warehouse services.

Availability of Labour Force and local Amenities

Ensuring the availability of labour force and social &and civic infrastructure is necessary before you confirm the location for the warehouse. The lack of nearby amenities will delay your shipment and affects proper storage. So, always make sure that the area is equipped with basic facilities and labour force.

Locate your Customers

To expand the customer base, it is vital to be prompt and time-bound in your service. You won’t be able to generate a cordial relationship with your customers if you cannot maintain proximity. Identify where the majority of your customers are located and choose a warehouse from where you can easily reach up to your customers.

Checkout Location regulations and Policies

A background check of the site is necessary to ensure the policies and regulations of the area. Make sure that the type of warehouse you are planning to design will be compatible with the demography and geography of the locality you have selected. Getting permission from the local regulatory bodies and understanding the policies are necessary to run a warehouse in any locality.

Compare Pricing and Realty Market

Before you confirm the locality, compare the charges and facilities offered in nearby areas. Accessibility and amenities should be firmly considered before fixing the terms and conditions. So, take a brief roundup on the realty value of the areas to make sure that you are not being overcharged.      

Recommended Reading: Integrated logistics and supply chain coordination

Let’s Begin the Location Hunt

For every 3PL service provider, choosing the right warehouse site is crucial to improve their business. With the rise in eCommerce markets, the need for well-equipped warehouses has become a necessity. Selecting the best location is the primary requirement. Location advantages determine the pace of order fulfilment and customer satisfaction. Therefore, every 3PL service provider must find it is necessary for every 3PL service provider to find the best location that will magnify the business visibility and order fulfillment goals.