A lot of businesses, especially ones that operate on a smaller scale, do not have the space at their place of business to store and send out products to customers. When this is the case, they often look for an external warehousing company to provide this service. There are lots to think about when you are choosing a warehouse; after all, it is going to be a significant business expense, and if you get it wrong, it’s going to cost you dearly. Here, we look at a few important things to think about before you enter into a contract with a warehouse.

1) Does it have enough space for your business needs? 

This, of course, is the most important thing of all. If the space is too small, it is not fit for purpose and, well, what is the point? 

You need to ensure that you can fit everything that you need in there with enough space for any overfill. You also want to make sure that it is not too big at the same time, as empty space is not cost-effective for anyone. Make sure that you consider the future of your business and any expansion plans. If needs be, can the warehouse host a growth in storage needs, or will you need to find somewhere new when the time comes? 

It would help if you also considered the loading areas and whether there is enough space there. If you are having goods picked up and delivered via normal couriers or 7-tonne trucks or vans, it probably won’t be an issue, but if you need an 18-wheeler or need to empty shipping containers, then you need to make sure that there is enough space for the trucks to enter the bays for loading and maneuver. 

2) Is it a suitable environment?

As well as making sure there is enough space, you need to make sure that the area that you are renting is appropriate for your needs. Perhaps you need something that is temperature controlled or need low lighting to protect the goods that you are storing? Some warehouses have a central operating system which they maintain and control, while others have units which are controlled by the individual, and it is up to them to maintain them. Make sure this is made clear to you beforehand.

3) What is included in your rental cost?

Each warehouse comes with different things included in the rental cost. In some, you are only paying for an empty space, and you need to source your own admin staff, forklift driver hire, inventory systems, and utilities. In others, all of these things are included. It all depends on what you need from the space, but make sure you know before you sign anything, so you don’t get stung for any hidden extras when it is too late.

4) Where is it located?

This is one of the most fundamental things to think about. Where it is will impact on the efficiency and ease in which your products can be accessed. Remember, if it is tucked away down a country lane with no GPS access, your delivery and pick up drivers may really struggle with finding it. Ideally, you want it close to transport routes such as motorways, railways, and shipping ports, although this will naturally increase the price.

Smaller businesses that operate on a local scale may want to consider premises that are close to the company headquarters or primary customer base, while larger, national, or global scale companies will need to find a spot that will make regional demand easier to manage.

5) Is their shipping process efficient and straightforward?

As we mentioned above, some warehouses offer an inventory and shipping service, which can be useful. However, it is important to make sure that their processes and systems align with yours. If you specify a particular delivery period to your customers, you need to check that they are able to fulfill that; otherwise, you can run the risk of damaging your reputation, and, depending on the industry you are in, hold up essential supply chains. 

6) Do they have a good reputation?

Most of us check out independent reviews and do our research on a company that we are intending to do business with before signing anything, and this is precisely what you should be doing when looking for a warehouse. Ask around to see if there are any recommendations or places to avoid in any networking groups that you may be in, and check review sites such as Google and Yell. It is important to remember that excellent service often goes unremarked on, but bad service is pretty much always commented on, and how a company deals with and responds to issues is the most important thing of all. 

7) How secure is the warehouse?

 One of the biggest concerns you should have when looking for a warehouse is how safe your products are, especially if you are sharing the space with others. After all, you are potentially storing hundreds of thousands of dollars of goods or equipment in there – you want to make sure it is safe! Check what sort of security they provide- do they have CCTV or security guards monitoring the area? Discuss their protocols for things such as fires, floods, and burglaries, and the steps they are taking to prevent all of these and protect your goods.

The ideal warehouse for your business will be determined by a wide range of factors, all of which need to be taken into account. 

Don’t sign a contract with one until you have visited it and are happy with everything they are offering. After all, they are providing a valuable – and often costly service – make sure that you choose the right one for you.