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Thread: Things to consider when establishing a warehouse

  1. #1
    Silver Member Alexandoy's Avatar
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    Default Things to consider when establishing a warehouse

    For a warehouse planner,
    1. the first in the list is the location of the supplier and the location of the customers as well. Usually, the warehouse is situated nearer the supplies than to the clients. Especially with old warehouses here, that is the norm.

    2. Second in the list is the expenses involved particularly the cost of real estate (land is very expensive in the city) vis--vis the distance of travel (presumably the trucks for delivery).

    3. Third item is the government regulations. Warehouses in the city are complaining about the truck ban and other government regulations that hinder the business.

    What more can you add?

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    Default Re: Things to consider when establishing a warehouse

    I think you have focused on the basic points, and reinforcing the fact that location is important is never too much. Apart from expenses and regulations, we also need to consider the technology associated with the warehouse, as many times (depending on the line of business we are in), we really need a lot of technology, and that many times has associated expenses.

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    Default Re: Things to consider when establishing a warehouse

    I think you have got the basics, but there are a couple that I would add. I'd add the first to location, but I think it is important enough to qualify as its own point:
    1a. Transport links. It is part of location, but easy access to river, rail, and airports can be as important as road transport.

    and also

    4. Disaster Recovery. If something goes wrong with that warehouse, how easy will it be to recover, how well can the rest of the network cover for it, etc? It is as well to plan that from the early stages.

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    Default Re: Things to consider when establishing a warehouse

    Well I do not have all that much experience with the planning, but I sure know that a faulty design and the failure to consider the shape of your materials can result in some awkward moments. See my last job as a prime example.

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    Default Re: Things to consider when establishing a warehouse

    Hey I want to share my experience of working in warehouse for 2 years. During my job I got a project name Search free Count free in which we have to make arrangements so that any product can be found in 30 seconds and be counted in 5 seconds. The purpose was to reduce time. After a number of audits we got success in achieving required time.

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    Default Re: Things to consider when establishing a warehouse

    Quote Originally Posted by Alexandoy View Post
    For a warehouse planner,
    1. the first in the list is the location of the supplier and the location of the customers as well. Usually, the warehouse is situated nearer the supplies than to the clients. Especially with old warehouses here, that is the norm.

    2. Second in the list is the expenses involved particularly the cost of real estate (land is very expensive in the city) vis--vis the distance of travel (presumably the trucks for delivery).

    3. Third item is the government regulations. Warehouses in the city are complaining about the truck ban and other government regulations that hinder the business.

    What more can you add?
    if you are a third party logistics provider, then there are more things to consider

    1. yes location is important, bases on travel distance/time of goods, for pick up and delivery and employees (manpower) as well
    2. yes, you are right the rental itself, if the cost will based on budget, or it will compensate the physical condition of the warehouse,
    3. government regulations, truck ban and bgy. regulation in terms of road accessibility, working hours.

    4.flooring- its condition if less expense for improvement in-case applied with rubber floor
    roofing- high ceiling is best, esp if you will go into racking system
    lighting system, water, phone connection, accessibility

    5. length of contract with client and warehouse owner.. longer is better

    others that needs to be considered
    if flood prone or not
    if floor is elevated (uneven area) or with pole in the center
    if items requires with loading bay (heavy items)
    if WHSE is located in elevated area or road congestion going to warehouse from main road
    safety of the staff working in the warehouse
    multi channel CCTV is a must
    consider also space for staging area and loading area
    if WHSE has existing office, consider office physical condition
    if with racking, if racking can go as much as 4 high (excluding ground stack) and side wall is concrete
    if warehouse internal areas are clean or not, if needs cleaning, who will shoulder the cost?
    for electrical lines, must have copy of electrical line/plans, needs checking specially WHSE aging 10yrs++
    parking area is needed for office worker (motorcycle or ca) best if its outside the WHSE so space inside will be utilize for storage
    we'll less priority but also important is "RESTROOM" and sewerage/drainage system, this is usually forgotten
    also WHSE door condition if sliding gate type, roll up doors etc..
    size of WHSE door opening

    there are so many to consider but it boils down to "how much per month"?

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    Member Plus pramod's Avatar
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    Default Re: Things to consider when establishing a warehouse

    Visit to Synchronized.in and collect the more information about warehhouse

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    Default Re: Things to consider when establishing a warehouse

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    Default Re: Things to consider when establishing a warehouse

    I agree with the location and to add with it, you must also consider the accessibility and storage area.

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    Default Re: Things to consider when establishing a warehouse

    Nice Topic, the important thing is that while establishing a warehouse

    Some important topic need to check.

    F-Flow - logical sequence of operations within the warehouse
    A-Accessibility - whether or not we can get to the product
    S-space - When considering how to use the available space the maximum should be allocated to operational storage and stock processing purposes.
    T- Throughput- Where not only looking at the categories of product parting through the warehouse but also the nature of the product and its velocity through the flow

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