Warehouse location considerations are the main factors which

Large enterprises existing warehouse location there are many problems, how to optimize it, and in the optimization of the same time to achieve both cost reduction and to ensure that demand is a complex issue. Below I will unravel the factors to consider the location of the warehouse, I hope to help you.

Warehouse siting considerations

Circulation of the reasonable layout of the transit warehouse, as long as the factors to be considered is the cost of services, procurement costs is an important factor in the dominant, should be in line with the planned, according to the principle of scale, in accordance with the needs of the development of the market economy, in line with the objective rules of the circulation of goods, the reasonable setup and deployment of warehouses, so that the size, structure, volume and distribution to adapt to the production and circulation of the needs. Need. This is conducive to the rational organization of logistics, reasonable and comprehensive, scientific formation of the warehouse network, there are many factors affecting the main factors should be considered are the economic environment, the natural environment and the policy environment factors.

Other factors in the location of the warehouse

Site selection issues also need to consider other factors, first of all, to determine the location of the establishment of the factory or distribution center. Transportation involves relatively fixed problems in different cities. If you receive your goods by railroad cars and trucks to receive your goods, then the railroad and highway factors will be the main considerations; if you receive goods only a truck or not yet a truck capacity, as a parcel of transport and too heavy, or require a specific time of arrival, air transport becomes the way we rely on, in which case our focus is different.

Secondly, we need to consider the issue of cost. Mr. Jack Boyd of Boyd Company Limited, as a senior consultant, has done a lot of practical research on the development of warehousing industry in the top 50 logistics service friendly cities in the United States as evaluated by Logistics Today and provided a report on the comparative analysis of the operating costs of warehousing and distribution centers in these top 50 cities. The report provides a comparative analysis of the cost of operating a warehouse and distribution center in these top 50 cities. As might be expected, the top 10 cities with the lowest costs for building a warehouse or distribution center are all concentrated in the Southeast, while the high costs are in the East and West. Of all 50 cities, New York was the most expensive to build. To construct the cost model, Boyd assumes a 350,000-square-foot warehouse with a complementary workforce of 150 that transports goods by road for a national market. The types of workers range from secretaries to forklift drivers a*** about 16, which constitutes the basic payroll for operating a distribution center, and Boyd applied the methodology to the 50 cities in his study and made appropriate comparisons. Other basic costs include energy, heating and air conditions, and transportation costs. Building comparisons include installment loan costs and property income taxes. If a lease model is used, it includes the cost of substitute leases for the various amenities and equipment mentioned above. boyd talks about the fact that most local customers are choosing to build the appropriate amenities and equipment instead of leasing them, and at the same time, fewer rather than more amenities are being adopted. It is also interesting to note that more and more non-warehousing functions are appearing in distribution centers, ranging from cash registers and payrolls to call centers and customer service centers. Cost factors are also contributing to this trend. At the same time, companies are finding that they can move many management functions from the office to the production line. As a simple comparison, the cost per square foot inside a warehouse is $5, whereas in a white-collar office building it costs $20 for the same square footage." In the future, staffing positions in warehouses will look more and more like information and technology-focused companies," Boyd explains, adding that inside a modern warehouse, you'll not only see forklift drivers, but also software engineers and resident representatives from other partner companies that were originally housed in the company's headquarters." The large number of staffing needs and technology demands made the analysis of staff costs here one of the factors in deciding where to locate the warehouse." However, the warehouse's most basic function remains shipping and receiving goods. To highlight this, Boyd assumes an outbound transportation cost in his model to differentiate between the various types of origin-destination types.

Boyd's outbound model includes 10 cities as destinations that have "consumer markets that are well-served throughout the United States". The underlying assumption in the calculations was that a truck with a capacity of 30,000 lbs. would be shipped at $1.46 per mile by a private overland carrier. In the model, New York, Miami, Los Angeles, San Diego, Oakland and San Francisco remain the cities with the highest transportation costs. Similarly, continental center cities such as Kansas, St. Louis and even Memphis have a strong advantage in transportation costs nationwide. So what about Cleveland and Ohio, recognized by Logistics Today as one of the most logistics-friendly cities? In Boyd's modeling of building, leasing, and outbound transportation costs, they slipped right down to the mid-20s. In contrast, Gary, Indiana, which is ranked 29th in the National Directory of Address Options, soared into the top 10 in all three of Boyd's calculation models.

One thing to point out is that there is no single tool that gives a perfect blueprint for growth when it comes to locating a warehouse, and the expansion of business around a warehouse site creates a corresponding increase in the size and construction of the building, as well as the labor requirements. When we look beyond the basic, holistic approach offered by logistics site selection consultants to one based on realistic cost considerations, we are getting closer to our goal.

Nowadays, most companies prefer to locate their warehouses close to the center of the market or closer to the market in order to balance cost and speed. And while this is not a cost increase due to facilities near low-cost markets such as Melbourne and Birmingham, when they weigh the added impact of traffic congestion in New York, Atlanta, and other major markets, they find that they are limited to choosing between the Lehigh Valley, Payne, or Atlanta, Georgia.

Security is becoming increasingly important to the final decision, and Boyd emphasized that the events of 9?11 also had an impact on the issue of site selection, not, of course, the fear that there will be another terrorist attack, but rather how to reduce the potential for sabotage to occur, such as a freeway or other underground facility. Many of the choices for construction sites were made after the end of important infrastructure or large factory facilities in the area.

Warehouse site selection elements

(a) the basic principles

According to the company's current business characteristics of the warehouse site selection of the basic principles:

1, as close as possible to the end of the market, in order to improve the city's goods distribution efficiency, reduce distribution costs; or to close to the target customer base and the core customer base for the best

2, must have the extensibility. When the company's business expansion, the warehouse can not move in the original location of the case of area expansion;

3, must be separated from the office space, with independent operation

(B) traffic conditions

1, the warehouse should be as close as possible to the transportation hubs, traffic arteries;

2, the warehouse around the road is smooth and easy for motor vehicles to enter;

3, a fixed parking lot in the location where the warehouse is located, and the core customer groups. Warehouse location has a fixed parking lot, convenient for motor vehicles;

(C) the surrounding environment

1, the requirements should be as far as possible to choose the warehouse leased property or industrial areas, logistics > Logistics Park with 24-hour security guards on duty;

2, the requirements should be as far as possible to choose the location of the warehouse surroundings are relatively simple to avoid the foreign population mingling Living area;

3, a detailed grasp of the local traffic control situation whether the warehouse vehicles in and out of the impact;

4, a detailed understanding and grasp of the warehouse belongs to the property of the power supply;

5, the warehouse terrain must be higher than the surrounding terrain, there is a good drainage, in order to prevent catastrophic weather caused by water, landslides or mud flow force majeure risk;

2, on the back of the reverse, the logistics park is equipped with 24-hour security guards. p> Second, on the back

Whether it is inventory, transportation, or site selection decisions, first of all, customer service must be the overall goal. When making decisions, to achieve the lowest total cost of logistics under the premise of meeting customer requirements. Inventory, transportation, site selection decisions are mutually influential. You should refer to here is the warehouse layout and site selection led to the inventory, transportation between the benefits of the reverse phenomenon. Such as in the warehouse layout decisions, reduce inventory strongholds and minimize inventory, is bound to make inventory replenishment becomes frequent, which will certainly lead to an increase in the number of transportation.

Precautions before renting a warehouse

1, geographic location. When renting a warehouse, location is very important. The location of the warehouse can be comprehensively evaluated according to your industry, size and customer location. Noisy, polluting, as far as possible to choose a little bit off the place, because if it is a complaint, you have to be prepared to be the relevant departments to check, anyway, the money is not less. Large scale, must be convenient transportation, factory door should be a little wider, so that in and out of the goods more convenient.

2, to remember the site visit. In the rental of warehouses, can not just listen to others to describe, but to go to the field to see the room, see the specific location of the warehouse and the surrounding environment to meet their own requirements, in the decision to rent. When you rent it, you should remember to check the warehouse right documents, sign the contract and prepare a copy of the flow.

3, pay attention to the type of warehouse, not all warehouses can be rented. Warehouses are divided into ordinary warehouses and bonded warehouses. Bonded warehouse is not allowed to sublet, sublet to others to operate, can only operate their own bonded goods warehousing business, that is, for others to store, keep the goods. Ordinary warehouses, on the other hand, can operate both leasing business and warehousing business. If the violation of the bonded warehouse leased out, the enterprise will face fines and even revocation of the "bonded warehouse registration certificate" of the penalty.

The cost of leasing a warehouse

1, leasing a warehouse is generally built by the lessor in accordance with the lessee's requirements of the warehouse, or the lessee to find a suitable warehouse according to their own requirements. The lessee's costs are more concise, usually just pay the lease fee on a regular basis. And the maintenance cost of the warehouse is the responsibility of the lessor.

2, the rental cost of leased warehouses belongs to the cost of warehousing, it will change with the market supply and demand, subject to the market available for leasing the supply of warehouse space and demand constraints. In addition, if the enterprise stops leasing the same, the costs associated with leasing warehouses will disappear.