We’ve all heard the phrase, “location, location, location” when it comes to choosing the right home. For certain—just like finding that dream home which will increase in value while satisfying your family’s needs—there are many areas to consider before deciding on a warehouse facility location. But, is location the most important factor when it comes to convenient, efficient, and profitable warehousing and supply chain management?
Taking a step back to examine the big picture is key to choosing the ideal warehouse location. This examination should be initiated long before any leases or building permits are signed. Comprehensive research must be carefully conducted which fully analyzes the scope of your company’s warehousing procedures, methods of distribution, labor force capabilities and, of course, your clients’ needs. Securing the optimal location requires you to take the following factors into consideration.
Access to Highway, Airports, and Railways
Like your family home, many factors come into play when deciding on your warehouse facility home. Cost is only one of the important ones. Choosing land for your warehouse facility in the middle of nowhere—even though the price is almost too good to be true—is probably not the wisest decision. In order to ensure the smooth, cost-efficient flow of goods, your warehouse should have airports in close proximity, access to rail lines in good working condition, and easily accessible roads and interconnected highways. Choosing a location without evaluating highway congestion patterns, exit ramp placement, peak traffic hours, and road safety conditions can result in increased accident rates, fuel consumption and wasted time. All of these variables can negatively affect transportation costs and hinder your ability to stay competitive.
Local Government Regulations
Another area of concern is the number of rules that govern logistics in the United States. Local and sometimes regional laws dictate motor carrier weight and size allowances. Depending on the state you choose to operate from, various taxes and tolls become an issue and add up quickly. These regulations can limit your logistics capabilities and drive up operating costs.
Affordability of Labor Force
No matter where you decide to build your warehouse, you will want to know the labor costs involved in recruiting specialized logistics and supply chain management talent. It may be difficult to attract and retain quality employees in areas with a large concentration of logistics, 3PLs and warehouse operations. To entice the best talent, you may have to pay more in salaries than in other locations or run the risk of high turnover rates.
Proximity to Suppliers
Smart inbound logistics in the supply chain involves reducing the cost of raw materials wherever possible without sacrificing quality. The cost of transporting materials from your supplier is usually costly; especially when purchasing in bulk. Choosing a warehouse location that’s near your supplier minimizes transportation costs and potential disruptions due to flight delays or traffic accidents. Being close to your supplier gives you the flexibility to manage any delivery issues quickly and at much less expense than if your warehouse is across the country.
Location is a key factor in the manufacturing, fulfillment, and transporting of just-in-time products to end users. JIT Services has six strategically placed locations to facilitate the smooth transfer of products safely and timely to their destinations. JIT Services warehouse highlights:
Huntsville, AL Locations (Corporate)
- Humidity and temperature controlled storage areas
- Multi-tenant facilityWh
- 40,000 and 30,000 sq. ft. warehouse spaces
- Located in Jetplex Industrial Park
- Complete temperature control
Indianapolis, IN Locations
- 44,000 and 77,000 sq. ft. warehouse spaces
- Customer cross-dock and value-added programs
- Ships to Delphi, Macy’s, Amazon and more
Nogales, AZ Location
- 100,000 sq. ft. warehouse space
- Vendor managed inventory
- Cross-docking and finished goods distribution
- Pre-delivery inspection and testing
- Use of Inventory Management System and Continental’s SAP System
Guadalajara, Mexico Location
- 40,000 sq. ft. warehouse space
- Value added serves: inspection, sub-assembly, rework and kitting
- Vendor managed inventory programs for Continental Automotive and Flextronics
JIT Services recognizes the need for detailed research into the importance of streamlined, fully functional logistics sites. For a warehouse partner that takes the big picture of logistics into consideration, contact JIT Services today for supply chain consulting!