Storage and warehouse logistics – what to do before renting?

Once they start their business, business owners face the challenge of preserving materials, products, or documentation, which is why there is a need for a warehouse. We wrote about the advantages of renting warehouse space in our previous blog Warehouse rental: smaller storage to better opportunities. If your company is facing a similar challenge of archiving products, there are a few things you need to consider before you decide to build or rent a warehouse.

Product and inventory management

Each warehouse must ensure good inventory management, which implies pre-defined own requirements for warehouse logistics and space. The warehouse can be used for the short-term purpose of archiving goods in transit or for a longer period to create working stocks that are used for long-term planning or product distribution. Inventory has a cost that includes the cost of items and storage, which means space rental, human resources, and materials. A good inventory management system requires the right balance between cost and demand response.

To determine stock per item, you’ll need the following information:

• estimated monthly consumption of the item;
• frequency of orders to replenish stocks;
• standard order delivery time.

Stocks in the warehouse usually act as a buffer zone between the actual intake of quantities, which usually takes place periodically, and the needs, i.e. the delivery of the same, which are usually regular or unexpected, i.e. often urgent. Therefore, inventory management implies managing the appropriate level of inventory in the warehouse for regular needs, but also in emergency situations.

Choose a warehouse according to your needs

When choosing your custom warehouse, it is important to pay attention to various components such as design, security measures, access, size, ventilation, location, and utilities. The very decision of whether you want to use product storage services depends on several factors. To begin with, you need to weigh the benefits of holding inventory versus the costs, and then consider uncertainty, lower costs, and emergencies. It often happens that deliveries are delayed or there is an increased demand for a certain item in a very short period of time. So is necessary to ensure sufficient quantities of stock in time. Bear in mind that bulk purchase prices and larger quantities of orders are generally more favorable. In addition, fluctuations and unpredictable situations are frequent occurrences in internet trade and e-commerce businesses. That is why it is important to think about such situations in advance and prevent them.

Safe product management

When entering into a warehouse rental, you must be sure that the goods have been received and inspected upon delivery. The organization of the warehouse space must enable efficient storage, compliance with safety standards, and sufficient space for delivery and packaging. It is also important to optimize the method of stacking the goods and adapt the system for easy tracking of incoming and outgoing packages, as well as product expiration dates. Some products, such as food sweeteners, must meet all standards and regulations.

Sustainability and investment in space

When talking about investing in space, it is important to consider warehouse management tools you should implement. This includes the use of standardized documentation for warehouse and inventory management, such as waybills. Adequate professional staff, which includes both security guards and loaders, is extremely important. They greatly facilitate the entire process and save time. In the event that independent space rental is not an option, there are various other alternatives. Some of these include sharing storage space with other companies or NGOs. It is only important to clearly demarcate space, control, and obligations right from the start. Do not forget to provide a sufficient amount of material necessary for the functioning of the warehouse and take care of safety measures in order to reduce risks and dangers.

What else should you pay attention to when choosing a warehouse?

In addition to the above, one of the essential elements that you shouldn’t forget in any case is accessibility to the transport infrastructure. Access to the warehouse should be easy for cars and trucks in all weather conditions. Simple handling of stocks must be ensured inside the warehouse. Special attention must also be paid to the adequate establishment of hygienic conditions and the control of insects and pests. Also, it is necessary to organize the utility network, which means having a space for a storekeeper, a sanitary facility, and a space for garbage disposal. Lighting must be installed in the warehouse and its surroundings. The warehouse must be the right size, that is, it must have sufficient capacity to meet the requirements of temporary or transit storage. The area must be secured with protective equipment and an alarm system.

Other storage methods

For some businesses, storage spaces are not the best alternative. In that case, it is good to think about alternatives – containers or old halls/spaces. The amount of storage capacity will depend on the type of storage required. The items and quantities that need to be disposed of are based on needs within a certain period, buffers with commodity stocks, stocks for unforeseen situations, and product life. Note that to determine the size of your storage space and be sure of how much of it you need, you should use volume and floor space as reference points, not the weight of the items to be stored. Additional space needed for loading, unloading, and return, as well as ventilation, should also be taken into account. The height of the storage area depends on the type of item and the packaging. Usually, a height of 2 meters is suitable for most items. Anything above that is dangerous, but it can also threaten the stocks at the bottom.

 

Special permits for storage

Before you start looking for storage space, check if your product requires a special storage permit. You mustn’t store food products with chemicals of any kind, including cement. Medicines and medical supplies require a separate building or room, usually under the jurisdiction of a pharmacist. Fuel and spare parts also require a separate warehouse, preferably near the workshop. In addition to meeting the MTU, inspections also check other documents, such as good manufacturing practices.

 

Find a warehouse that suits you

Regardless of whether you are just starting a business or you need storage space, consider two things. What specifications do you need and whether your product meets special requirements and documentation? If your business is just starting out or you are a small or medium-sized entrepreneur, it is definitely a cheaper, more economical, and more profitable option to rent storage space. It provides professional staff to whom you can completely transfer the entire concern about logistics. In case you need such or any other service in the field of e-commerce and business consulting, please contact us.