If your business requires you to have a warehouse then it is significantly important to find the right facility for storing your products. It can be an overwhelming task to find the right warehouse, which fulfills all your business requirements. While you are on your search for the right warehouse, there are few mistakes which you should avoid. This article discusses 10 warehousing mistakes to avoid for making a confident choice about a warehouse.
1. Picking without visiting physically
No matter how highly recommended the warehouse is- you can’t rely on others’ word of mouth. You and only you know the needs and requirements of your business; therefore, no one else can look into this matter as deeply as you can. It is of paramount importance to pay a visit physically to the warehouse. Even though you might have seen what the facility looks like, or what are the features and services it offers, you can get a better idea about the warehouse once you see it for yourself. A physical visit gives you a fair idea about available equipment, space, temperature, security, and cleanliness to meet your standards. You can see how the staff handle the stock, and how efficient they are.
2. Overlooking the warehouse location
Picking a warehouse at the wrong location can be one costly mistake. Ideally, the warehouse should be located nearby your business office or closer to the market/customers so that the accessibility is easier. You might also want to consider its location in relation to the port or airport as it will help reduce transportation costs.
3. Wrong kind of warehouse
Different types of warehouse facilities deal in different types of businesses. A warehouse ideal for a B2B business is not suitable for a B2C business. So, before signing a contract with the warehouse, pay a visit physically to know the operations they deal in. This will give you a good idea about operation processes and execution.
4. Overpaying warehouse fees
Warehouses charge you under the pretext of various services. The typical charges include initial setup, inbound handling, storage, and pick and pack. If you have got storage space in a warehouse for products that aren’t going to be sold any time soon, you are actually overpaying for the storage space. Efficient and effective inventory management allows you to determine which products you must take off from the warehouse to save the additional storage cost. If anything gets damaged or is lost under the warehouse’s watch, you must ask for compensation. You can also use your insurance policy to lower these kinds of risks.
5. A Vague Plan
While signing a contract with a warehouse about storage, you must have a concrete plan. It must clearly outline the terms of service, pricing, and any special requirements. If you want special services such as forklift reno or pallet racks, you must talk about that before signing the contract. This will help you avoid any bitter or undesirable situation down the lane.
6. Being Presumptuous
It is significant to discuss the details of your required services before availing services of the warehouse so that you know that you and your picked facility are on the same page. Both parties, you and the warehouse, must clearly know what orders to be fulfilled. If you have any special requirements such as handwritten notes, capturing serial numbers, or wrapping products in specialized paper, then make sure that the staff at the warehouse clearly knows it.
7. Negotiating too hard
Yes, it is your right to negotiate to settle for the lowest possible storage rate. However, pushing too much and pressing for too much discount may backfire. You can get a cheap quote while losing some complimentary services, or while compromising the quality of services. So, do negotiate, however, within a certain limit.
8. Picking a Small Warehouse
Before you decide on a warehouse, it is important to ask about the size and storage capacity of each warehouse. While some warehouses quote really less prices for being new or because they have a small facility; you must consider your business needs. Currently, you might not require that much storage space, however, as your business grows you will need more storage. Therefore, it is imperative to realize your business needs in the future so that you need to relocate after few months.
9. Report Generation
A good warehouse management system will help you with business by preparing reports to manage your stock. If, as a newbie, you find it daunting to prepare reports, you can ask the warehouse to supply these reports in the frequency that you need them (daily, weekly, monthly). At times they charge an extra amount for this. But, it’s worth the entire headache you have to go through preparing reports.
10. Overlooking experience
If you can’t afford the risk, before signing a contract with the warehouse, you must consider the number of years they have been in this business. If a warehouse is too new, you might want to avoid them as they may be too inexperienced and you might experience some hiccups along the way. On the other hand, if a facility has been in business for too many years, it might still be using old procedures and technology.
If you are looking for reliable warehouses in Sparks NV, Lawson Inc. is highly reputable with a wide range of services including forklift Reno. To get a quote, give us a call.