Expanding a warehouse business comes with great opportunities, but it also requires careful planning and consideration before moving forward. There are several key factors to evaluate when looking to open an enlarged or additional warehouse facility. Taking the time to thoroughly assess your current operations and future needs will pay dividends down the road. By thinking through details such as inventory requirements, staffing, equipment, systems, and layout, you can set your expanding warehouse business up for success. This article outlines 5 things companies should consider when looking to grow their warehouse footprint.
Carefully evaluate the types of material handling equipment required to operate an enlarged facility efficiently. This includes critical tools like forklifts and order pickers. For instance, adding used order pickers from a reputable supplier like Lisman Forklifts can provide cost savings over new equipment. Make sure expanded equipment capacity aligns with inventory volumes. Also, factor in equipment maintenance, charging or fuelling stations, and safety protocols.
Next, take stock of your current inventory and storage needs. How much product are you housing now, and how much inventory do you expect to hold in the next 1-3 years? This will help determine the ideal expanded square footage. Also, factor in inventory turnover rates. Slower-moving products will require more long-term storage capacity. Make sure to account for future inventory growth so you don't outgrow an expanded facility too quickly.
An expanded facility means ramping up staff to help manage increased operations. Consider how many additional warehouse workers, order pickers, forklift operators, and management personnel will be needed. Outline job descriptions and shift schedules. Plan to scale up staff gradually so new hires can be properly trained. Also, budget for recruiting costs, training, uniforms, safety equipment, and other HR needs when expanding headcount.
Expanding the physical footprint will also require scaling up technology capacity. Look at whether current warehouse management systems and ERP software will need to be upgraded or replaced to support larger operations. Assess if hardware upgrades are needed, like industrial printers, scanners, tablets like the iPad Pro 11 inch used, and laptops. Boosting internet connectivity speeds and bandwidth may be required to sustain more users and devices. Cybersecurity protections also become more critical for larger businesses.
When expanding to a larger facility, re-map layouts and workflows to optimise material movements. Consider implementing more efficient storage methods like pallet racks and mezzanines. Improve picking and replenishment flows by arranging fast-moving items near shipping areas. Adjust aisles to accommodate increased forklift traffic and turn radii. Mark clearly defined zones, lanes, and hazards. A well-planned layout in an expanded warehouse saves time, effort, and accidents. Consider hiring a logistics consultant to help re-design layouts.
Expanding a thriving warehouse business takes strategic planning, but can take you to the next level of operations and profitability. Determine current needs versus future goals, assemble the right staff and equipment, optimize the facility layout, and choose scalable technology systems to support smooth growth. With careful upfront consideration, your company can expand successfully.
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