Loading... Please wait!

National Courier Service | Same Day Delivery Management Specialist

warehousing Archives - Connecticut Courier Service, Expressway Courier

renting-a-warehouse-1200x675.jpg

Renting a warehouse for the first time is an exciting yet overwhelming thing. You’ve finally built up a business enough that you need to manage your own stock, but how do you find the best warehouse for your requirements?

Getting your warehouse management wrong could cost you significant amounts of cash. Errors in picking, packing, and distribution affect your profit margin and can also damage your reputation.

Before you sign your first warehouse lease it’s essential to make sure you’re getting the right space for your stock and logistics needs. 

Essential Questions to Ask Before Renting a Warehouse

When you conduct a site visit to a potential warehouse space, keep this list of questions close by. Make sure you have every single one answered to your satisfaction before signing the lease!

1. Are Special Stock Requirements Catered For?

Do you handle perishable goods, for example, that require constant refrigeration? Find out if the warehouse has the potential – or is already equipped – to handle these unique requirements.

Consider the security of your stock, too. Hazardous materials, for example, will require special storage zones and secure access. You’ll also need to check there’s room for safe evacuation if something goes wrong with these products.

2. What Equipment Comes Included?

Warehouse leases vary depending on the business model. Are you renting an empty warehouse that requires you to lay out significant capital to invest in all of the equipment? Or will you rent space in an already-equipped warehouse?

An equipped warehouse is ideal when you’re testing the waters for a new project or business. You’ll take advantage of existing RFID tracking and picking robots, for example, to learn what works best for your business model.

However, if you’re looking to expand from your existing in-house stock management and distribution, it could be time to invest in your own warehouse equipment.

If you only need storage, picking, and packing for a short period of time consider renting an area in an equipped warehouse and fulfillment center instead. This will reduce your annual overheads while you benefit from the expertise of a qualified logistics and fulfillment company.

3. Is There Room to Expand (But Not Too Much Excess Space)?

You don’t want lots of unused space – but there needs to be plenty of room to expand. Look at the ceiling height, too: how much can you safely stack vertically? Storing items like this reduces the square meterage you’ll need for the same amount of stock.

You need room to move around the warehouse safely, too. This includes clear receiving and distribution zones: putting these areas too close together risks confusion in stock and a build-up of pallets in high-traffic areas. 

4. What Are the Estimated Annual Running Costs?

The annual running costs of a warehouse quickly mount up. How much will it cost to provide heating, air conditioning, refrigeration services, and electricity to your warehouse?

The average running costs vary from city to city, too. Electricity for a warehouse in Oakland costs an average of $314,208 per year – almost double that of Denver. Make sure you take this into consideration when finding the perfect location for your warehouse.

5. Can Staff Commute and Park Easily on Site?

It’s great having the perfect warehouse – until you realize your staff can’t easily get to it.

Your business runs as much on your staff as your stock, so make sure that your warehouse location and amenities draw talent to your business, too. Free car parking, easy public transport access, and staff break areas are all things you’ll need to consider before you sign a warehouse lease.

6. What Zoning Permissions Do I Need?

Industrial warehouses are cheaper but don’t be fooled: if you’re a retailer, you’ll need to have the permission to use the warehouse as a retail stock center.

Check the current zoning permissions for the warehouse you’re interested in. If it’s not the right one for your business, find out if there is a possibility of having a change of zoning permission granted – and if the landlord is willing to do this.

7. Can Delivery Trucks Easily Access the Site?

You need to get your stock in and out efficiently and without logistical issues. A loading bay that backs onto a busy road or a tight corner, for example, will cause unnecessary delays.

Your warehouse needs to be near access routes that the largest trucks you employ can use. If you’re only delivering small packages in a mail delivery van, for example, then you won’t need room for 18-wheeler trucks. 

You’ll also need to check the turning circle on-site and whether you’ll be expected to share the dock or access roads with other companies. Their delays could become yours, so take this into consideration if you have to share.

Finally, consider your stock and the dock type. A loading area exposed to the elements is harder to control in inclement weather; a closed loading area can take extra essential square meterage from your warehouse operations.

8. What Is the Floor Load Limit?

If you want to install very heavy equipment or stock it’s essential that you check the floor load limit of your potential warehouse and loading bay.

Check with the landlord if they’re willing to have heavy loads installed or floors upgraded to handle them.

9. Who Is Responsible for Warehouse Building Maintenance?

You’re responsible for running the business from the warehouse, and your own equipment, but what about the rest? Find out exactly what you’re responsible for when it comes to building maintenance.

Does a building maintenance contractor come included with your rent? How will building repairs be completed? What are the timescale expectations for repairs? All of these will impact the success of your business operations, so it’s essential you know who handles what.

10. What’s the Minimum Lease (And Can I Arrange a Buyout)?

Longer warehouse leases are more cost-effective and ideal for established businesses investing capital in their own warehouse machinery. 

However, you may only need a short lease while your business grows or to handle seasonal requirements. Find out what the minimum lease is and the terms of payment.

Things change over time, too. If you suddenly have to move warehouses, such as unexpected exponential business growth, find out if you can add a buyout clause to the lease.

A buyout clause allows you to buy the lease out in a shorter time period than the time left on the lease; you could also see if you could exit the lease by finding a subcontractor for it.

Find Warehouse Services in Connecticut 

Renting a warehouse becomes easier when you’re dealing with experts in logistics and fulfillment. They’ll understand exactly what you need from your warehouse services – and if you need your own warehouse, or if a distribution service would be better for you.

Speak to our team today to find out if you’re ready to sign your first warehouse lease – or if a fulfillment center would suit your business better.


types-of-warehousing-1200x800.jpg

When you offer products rather than services, you need a storage solution.

After all, those items don’t just materialize on their own. They have to come from somewhere and you may not have the amount of space you need for your storefront to hold onto your excess supply.

Or, maybe you don’t have a physical store because you’ve taken your business online. In that case, you definitely need a home for your products.

This is where a warehouse facility comes in handy (it’s also quite necessary if you’re an online retailer). But what you probably didn’t realize is that there are a few different types of warehousing options that suit different needs.

If you’re in the market for warehousing, then keep reading to learn the options out there and what will best suit your business and storage needs.

The Importance of Warehousing

The demand for many products out there is irregular, meaning that not all consumer-driven goods are consumed daily. However, there is still a need for a supply of these “irregular” goods at hand. This is where warehousing comes in handy.

Another thing to consider is that there are a growing number of online retailers with no physical stores. As you may have guessed already, they’re not storing their products in their garages.

Warehousing provides a central location for receiving, storing and distributing products. They offer advantages for both online retailers as well as physical vendors. One of those advantages is the capability of increasing inventory. 

Whether or not there is a consistent need for the products you offer, you want to be prepared for those times of need. Having a warehouse as an extension of your business will ensure that you will always be able to provide for your customers.

There are Different Types of Warehousing

If you’ve never used a warehousing facility before, you’d be surprised to learn that there are several different types. From a business standpoint, the type of storage space you want comes down to your storage needs and preferences.  

If your needs require receiving, storing, and transferring a high volume of goods, you’ll want to look into a distribution warehouse. This type of warehouse will allow you to receive items from a number of manufacturers and store them temporarily.

If you accept online orders, a consolidated warehouse is ideal. Once items are received in a consolidated warehouse, they are broken down for further distribution.

long term warehouse is what you’ll want if long-term storage is your primary need. These typically fall under the category of private warehousing.

Automated warehouses involve robotic technology that has automated capabilities to assist with product movement. These can range from small warehouses with conveyor belts to three-story facilities with robots handling everything. 

There is also climate-controlled warehousing which suits the needs of storing perishable items like food, or temperature-sensitive items that damage easily with humidity like medications, etc.   

These are just a few examples of the sub-categories of warehousing available to suit individual business’ needs. Apart from these sub-categories, there are about four actual types of warehouses.

1. Private Warehouses

Private warehouses are owned by individual manufacturers, producers, wholesalers, etc. for the use of storing their own goods. This means that the individual owner has a say in the types of warehouse layouts that will fit their storage needs. 

In other words, they’re built to fit the commodities.

For example, farmers will need storage that can keep perishable food items like eggs and produce fresh. And so, their storage facility would be built as cold storage. This will enable the farmer’s company to meet the supply and demand of the food industry.

These types are also referred to as closed warehouses due to their security.

2. Public Warehouses

What is a public warehouse? It’s a warehouse that is licensed by the state. Their methods of operation and their rates are regulated by the government. Although they are under government regulations, they are usually owned by any member of the public.

These types of warehouses serve as independent units to store goods for a fee (or rent). They are mainly constructed via shipping routes, like railroads, main roads and shipping docks. 

These warehouses are more or less a short-term, economical solution.

3. Bonded Warehouses

Bonded warehouses are warehouses that are duly licensed by the government. This means that they can accept imported goods to store. They operate under the supervision and control of customs authorities. 

The types of bonded warehousing include government-owned facilities, privately managed facilities, public bonded warehouses, bonded yards (for stables and corrals), etc. 

One of the advantages for those who utilize this type of warehouse is that they do not have to pay duties on imports upfront. They only pay per quantity removed when it’s ready to be distributed or sold.

4. Co-Operative Warehouses

The co-operative refers to a warehouse or warehouses that are owned collectively by a group. This group acts as members who store their goods for a comparatively low fee. In other words, it’s like a private warehouse, only there are a number of people who utilize it rather than just one business alone.

These are usually used by groups of small farm enterprises who share in production as well as distribution. 

Non-members can also store their goods in these warehouses, but for a much higher fee. 

Which is Right for Your Business?

The types of warehousing out there are not a one-size-fits-all solution. If you plan on joining the world of drop-shipping, you won’t be utilizing a Co-op or dock facility. But you should take the time to view your options to see what is the most cost-effective and accommodating for your storage needs. 

There’s plenty to consider, so in the meantime, don’t hesitate to reach out with any questions or concerns. We’ll be more than happy to tell you all about the services that we provide. Or, just fill out some quick information to get a free quote today!