Determining your warehouse’s size is crucial in your design build strategy. It will typically affect various aspects, such as the technology you will use, the amount of inventory you can store, and the cost of land. Therefore, it is advisable to prioritize deciding on the size of the facility before proceeding with other aspects. Furthermore, it is also crucial to ensure that the size of your new facility is appropriate, because building a warehouse from scratch might result in the wastage of capital. Similarly, renting or buying too small of a warehouse may require a costly redesign or expansion if you run out of space down the line. With that in mind, here are a few tips to help you choose the right size warehouse, whether you are an e-Commerce business or just want some extra industrial storage.
Find out how Much Inventory You Plan to Keep
When renting a warehouse, it is important to consider the amount of inventory needed to keep your business running. This will determine the portion of space required to store inventory. Once you clearly understand your current inventory needs, explore ways to optimize the space dedicated to inventory. For instance, you can utilize AS/RS automated storage and retrieval systems along with rack-supported structures to optimize your space. You can also consider drop-shipping larger items to save space and reduce the amount of inventory space needed to keep your business going.
Know how Much You Plan to Grow Your Business
If you are expanding your business to meet the rising demand, chances are high that you are looking for extra storage space to keep inventory. So, keeping your business growth in mind while renting a warehouse is crucial because overlooking this factor may lead to costly redesign, expansion, or construction of another facility to keep up with the growth. However, if the growth is anticipated to be rapid, renting a warehouse or industrial storage space that exceeds your current requirements is better. On the other hand, if you expect slower growth, go for a warehouse that fulfills your current storage needs and requirements.
Consider how Your Products Flow Through Operation
The movement of goods and products through a unique set of processes, from their arrival in the warehouse to their shipment as part of a customer’s order, is a fundamental aspect of every operation. Although no two operations handle their products exactly the same, these processes are crucial in determining how much space pieces of equipment like sorters and conveyors will occupy in your warehouse. Therefore, learning about the flow of products and goods is essential before deciding on your desired warehouse size. Furthermore, by gaining a deep understanding of the current flow of products, you can identify more efficient ways of doing things, reducing the total order cycle time and the required space for the facility.
Determine the Size of Your Current Industrial Storage
Assessing the size of your current facility is an important step in determining the size of the warehouse you need. How much space do you currently have, and is it being used efficiently? Do you think your current facility has too much or too little space? By evaluating the strengths and limitations of your current facility, you can determine whether your new facility should be of a different or similar size. If your current facility is consistently running out of space, then it may be necessary to opt for a larger new facility to accommodate similar demands and throughputs. On the other hand, if there is a lot of empty or wasted space, a smaller facility may be just as if not more cost-effective and productive when it comes to utilities, property costs, and taxes.
When looking for a warehouse or industrial storage space for rent, determining the size of a new facility is a critical step to keep business operations going. This decision will significantly impact future ones, such as the type of technologies and systems implemented, the number of employees to hire, and more. Thankfully with the help of the tips shared today, you can easily find a warehouse that meets your size needs and requirements.
Find the Best Industrial Storage for Your Company with the Help of Schwarz Properties
Whether you are looking to expand your business or just starting out, finding the right size warehouse for your company is crucial. The team at Schwarz Properties can help you find a warehouse that fulfills your business needs. You can check out our website or call us at (336) 625-6076 for more information on renting a warehouse.