Users Online
· Guests Online: 16
· Members Online: 0
· Total Members: 188
· Newest Member: meenachowdary055
· Members Online: 0
· Total Members: 188
· Newest Member: meenachowdary055
Forum Threads
Newest Threads
No Threads created
Hottest Threads
No Threads created
Latest Articles
02_06 - Choosing a Warehouse Location(TBD)
02_06 - Choosing a Warehouse Location(TBD)Business Management and Finance Courses » Udemy - International Logistics & Transportation in Supply Chain. 2023-5 |
| Categories | Most Recent | Top Rated | Popular Courses |
�
| ||||
 | Uploader | Date Added | Views | Rating |
| Superadmin | 31.05.17 | 201 | No Rating | |
| Description | ||||
| 02 - What is Export Import and How to Plan a Shipment Udemy - International Logistics & Transportation in Supply Chain. 2023-5 0 00:00,060 --> 00:02,190 Choosing a warehouse location. 1 00:02,370 --> 00:09,960 Location plays an important role while selecting any kind of property, be it for business or residential 2 00:09,960 --> 00:10,520 property. 3 00:10,530 --> 00:17,130 If you are planning to buy an apartment, you will always make sure to evaluate the area carefully by 4 00:17,130 --> 00:23,610 understanding the local market, the availability of transport facilities and the transport connectivity 5 00:23,610 --> 00:24,660 to the city centre. 6 00:24,690 --> 00:30,600 Similarly, while choosing a warehouse, it is very important to consider and evaluate many important 7 00:30,600 --> 00:34,290 points as owning a warehouse can be a costly affair. 8 00:34,290 --> 00:41,220 And if you fail to evaluate and choose a wrong location for you warehouse, it won't do any good to your 9 00:41,220 --> 00:41,840 supply chain. 10 00:41,880 --> 00:47,630 As these companies don't compete against each other, their supply chains do compete against each other. 11 00:47,640 --> 00:53,760 So for your company's success and the success of your supply chain, it is very important to choose 12 00:53,760 --> 00:57,090 a perfect location for warehousing your product. 13 00:57,280 --> 01:04,110 So it is very important to take out time, analyse all the important criterias for selecting a perfect 14 01:04,110 --> 01:09,780 location for your warehouse, take down notes and compare all the options available, and choose the 15 01:09,780 --> 01:15,960 best suited option for your product and also considering the location of your customers. 16 01:15,960 --> 01:16,800 So here are some. 17 01:16,800 --> 01:22,830 important point which we will discuss as this points are very important to consider when selecting 18 01:22,830 --> 01:24,060 a warehouse location. 19 01:24,180 --> 01:29,760 So first and foremost, when selecting a location, we need to consider the rent and taxes for leasing 20 01:29,760 --> 01:32,080 a warehouse in a particular location. 21 01:32,100 --> 01:36,270 Also, you need to consider the cost of the property if you want to own a warehouse. 22 01:36,270 --> 01:42,720 But just the rent should not be the only thing that you need to consider because you may get a warehouse 23 01:42,720 --> 01:48,780 available at cheaper and options, but the location of that warehouse will be far away from your customers 24 01:49,110 --> 01:52,140 and the city centres where you need to deliver the goods. 25 01:52,170 --> 01:53,940 In case of domestic deliveries. 26 01:53,940 --> 02:00,600 Similarly, in case of international deliveries, the proximity to the airport, railways and ports should 27 02:00,600 --> 02:06,940 be considered as if you only go for a cheaper rent option and you believe that you can truck your products 28 02:06,940 --> 02:13,520 to the airport, railways and ports, and suddenly there is an increase in global crude oil prices 29 02:13,530 --> 02:20,730 Then the fuel cost for trucking the goods to to the ports, airport, warehouse, all for the domestic delivery, 30 02:20,730 --> 02:23,550 will offset the money you have saved on rent. 31 02:23,670 --> 02:30,390 So it is very important to make decisions and consider the hidden cost while selecting a warehouse location. 32 02:30,480 --> 02:36,300 Also, the availability of workforce as your warehouse requires staff to operate and that staff should 33 02:36,300 --> 02:37,170 be skilled enough. 34 02:37,170 --> 02:44,130 As the availability of staff is less, you need to pay higher salaries and if there is a high availability 35 02:44,130 --> 02:46,530 of workforce, the salaries will go down. 36 02:46,560 --> 02:48,570 But salary is not the important point. 37 02:48,930 --> 02:54,990 The skills of the people also matter a lot of smooth functioning of the warehouse because unskilled labor 38 02:54,990 --> 02:56,550 will tend to make mistakes. 39 02:56,850 --> 03:03,000 And mistake comes with costs like low customer satisfaction, and our business of warehousing is totally 40 03:03,000 --> 03:04,860 dependent on customer satisfaction. 41 03:04,860 --> 03:11,100 So it is very important to consider the availability of workforce and at what cost and whether the workforce 42 03:11,100 --> 03:14,430 available is skilled enough to operate develop smoothly. 43 03:14,670 --> 03:18,660 Another point is the availability of roads, highways and traffic flow. 44 03:18,660 --> 03:24,840 And this is your most important point to consider when you are planning for a warehouse at a remote area 45 03:24,840 --> 03:29,190 as your warehousing and remote area will require, tracking and the condition of the road matters a 46 03:29,190 --> 03:35,100 lot for smooth journey of your cargo from the warehouse to your customer, or in case of export and 47 03:35,100 --> 03:36,980 import to the airport seaport. 48 03:37,350 --> 03:43,770 Also, you need to consider the availability of highways and the traffic flow as if your trucks with 49 03:43,770 --> 03:49,570 cargo, if they are stuck in traffic, there are heavy chances that the truck won't reach the seaport 50 03:49,590 --> 03:55,650 on time or the airport on time, and they will miss the flight and ship again a loss rate as this will 51 03:55,650 --> 04:02,430 affect the customer satisfaction and the slots reserved on the airplane and the ship will be wasted and 52 04:02,430 --> 04:05,700 you need to pay the penalty to the shipping lane and the airlines. 53 04:05,700 --> 04:07,230 Same goes for the railways. 54 04:07,410 --> 04:12,750 So analysis when it comes to selecting a perfect warehouse location is very important. 55 04:12,750 --> 04:19,530 Even you need to make sure that your warehouse are in close proximity to your suppliers, as if your 56 04:19,530 --> 04:23,470 suppliers are available in close vicinity to your warehouse. 57 04:23,490 --> 04:25,440 This will cut the transportation costs. 58 04:25,740 --> 04:32,160 You not transportation costs can go up to 40% of the final invoice value of your product. 59 04:32,310 --> 04:35,510 So it is very important to consider the transportation cost. 60 04:35,520 --> 04:42,150 If you save the transportation cost by making smart decision, your profit margin on every product can 61 04:42,150 --> 04:43,650 increase tremendously. 62 04:43,980 --> 04:50,790 Also, local environmental factors should be considered because you won't let your warehouse expose 63 04:50,790 --> 04:54,120 to natural disaster or flood zone even. 64 04:54,120 --> 04:58,470 You need to consider that your warehouses are not located near the residents. 65 04:58,470 --> 04:59,640 Because at times. 66 05:00,370 --> 05:06,280 warehouse can be very noisy and if the residents nearby have a problem with it, this can lead to disputes. 67 05:06,290 --> 05:11,720 And lastly, it is very important to consider the availability of other alternate option incase. 68 05:11,960 --> 05:19,220 If you have to leave a warehouse as businesses grow and shrink and we as business person need to mold 69 05:19,220 --> 05:22,670 ourselves according to the business condition and market conditions. 70 05:22,940 --> 05:29,390 So if you own a huge warehouse and suddenly your business faces a loss and you plan to go for a smaller 71 05:29,390 --> 05:34,700 warehouse just because your production has dropped, you need to make sure that there are smaller warehouses 72 05:34,700 --> 05:39,860 available nearby to your current warehouse because you cannot keep on changing the places. 73 05:39,860 --> 05:42,740 And if you do so, it will affect your employees. 74 05:42,770 --> 05:44,290 You need to hire new employees. 75 05:44,300 --> 05:50,210 If your old employees are not comfortable to travel a longer distance or at a different place altogether 76 05:50,210 --> 05:55,570 and hiring new employees is easy, but training them requires time, effort and money. 77 05:55,580 --> 06:01,280 So before leaving any warehouse, you need to make sure that there are more options available in vicinity 78 06:01,280 --> 06:02,630 in case of emergency. 79 06:02,960 --> 06:07,140 You can move from one warehouse to another warehouse as soon as possible. 80 06:07,160 --> 06:10,870 Also, the availability of utility and the cost of utility. 81 06:10,880 --> 06:17,450 Say for example, if you are in cold chain business, that is frozen product, you need a refrigerated 82 06:17,450 --> 06:21,770 warehouse and refrigerated warehouse require a supply of electricity. 83 06:21,770 --> 06:23,900 And electricity comes at a cost. 84 06:24,200 --> 06:28,700 So the cost of electricity per months, along with a proper supply of water. 85 06:28,910 --> 06:34,160 And lastly, Internet, the supply of unfiltered Internet should be available. 86 06:34,220 --> 06:39,100 So this are all the important point which you need to consider before choosing a warehouse. 87 06:39,110 --> 06:45,680 So please take our time to understand the most strategic location for your customer as the impact of 88 06:45,680 --> 06:52,130 this decision of choosing a warehouse will be long lasting and it has long lasting effect on your finances, 89 06:52,160 --> 06:55,490 the operation, and the competitiveness of the company. | ||||
Ratings
Comments
No Comments have been Posted.
Post Comment
Please Login to Post a Comment.