10 Tips For Building The Temporary Warehouse Your Company Needs

There are different reasons why building or expanding a warehouse it needed, and this can include the growing business needs that have to be met, going into new markets, replacing old and obsolete equipment so as to avoid bottlenecks. Below are the 10 practices on the creation or expansion of a temporary warehouse.

  1. Have the numbers that justify the project.


The numbers and budget will determine whether the upgrade you want is feasible because it needs to be framed by the IRR. When calculating whether doing this will provide positive returns, use conservative numbers that can be able to withstand anything from surprises to fires. Some of the considerations to the IRR include ownership, location, equipment, lifespan, and construction.

  1. Giving yourself enough time

Many projects tend to take a little longer than it was expected, and having this in mind will help you plan adequately and avoid having any surprises down the road. Doing it right means taking time. You should not be in a rush to decide on the equipment vendors or forgetting to factor in the learning curve for a new equipment or process. Many times, the learning curve for new equipment can take a little longer than expected.

  1. Deciding whether to Build or Renovate (Always remember about location, location, location)

Deciding if you are going to build or renovate is one of those difficult decisions to make, but it is important to take a good look at the budget. There instances when renovating an existing location is not the best of options, even if it is going to cost you a little less. Just like any other real estate deal, the location will play the biggest part. Asking the questions below can make it a little easier.

What is the right place for suppliers, employees, and customers?

What will it cost to put in rail?

Which location has the best access to the interstate?

Which location will give me the best tax rate?

Always go with a location that will be able to maximize the answers to each of the above questions and provide the highest IRR.

  1. Thinking about the square footage and maximizing space.

You will need to find out the cost per square footage. The average for industrial locations is $85 for every square foot. And the next question is how can you make the best out of every square foot? Every square that is empty will be putting both you and your customer at a disadvantage. The next is what can be done to move the inventory fast through the building. A good rule of thumb s ensure that finished goods should be turned over in no more than two weeks and the inventory should not stay for a period longer than 90 days.

  1. Involving every stakeholder.

Involving every stakeholder from the outside and inside is a good idea because it will help you prevent any problems that blow up the budget. When the design period has ended, there should be a clear consensus that prevents any major issues such as incorrect equipment layout from taking place. When there is no buy-in, then that is a guaranteed problem. This will involve going to the city officials with the plans. You should do this early and tell them the number of jobs that are going to be created as a result of this. Make use of a project management team, even if the team is the property manager who is leasing the building.

  1. Mobilizing the team.

Having this scale of investment can be much easier when you have a team you trust. It is one thing when you have new equipment, but what will make the true difference is the team. This boils down to developing a good work culture that promotes smart decision making, entrepreneurialism, and learning on the job.

  1. Taking your time with the latest technology.

Timing matters when it comes to the selection of the right equipment. What you can find this year might be different in the next one year, and there are a lot of factors that need to be considered, and this includes automation possibilities, process time, installation, and manufacturing practices.

  1. Vetting the contractors.

It is not always the best ideas to choose an established vendor when you want to save time and money. One benefit you stand to get when you hire a new contractor is that they are motivated to do a good job because they are interested in getting other opportunities for building expansions or other equipment. This is an opportunity they cannot afford to waste, and you will be getting technology, value, and capability.

  1. Never forget your existing customers.

When you are building a new location, you should have your current customer in mind so you don’t end up losing any during the process. You should communicate with them early and accurately. Outsourcing to other locations can help you retain your customers.


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