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Warehouse IQ > Saving Money on Your Warehouse Expansion

Saving Money on Your Warehouse Expansion

Posted byd5admin April 15, 2012June 26, 2021
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Expanding your warehouse may seem like a massive – and expensive – task.  However, there are ways you can cut down on some costs without cutting down on your business. A warehouse is essentially a storage system, so upgrading a warehouse is about needing more space. Working in a cramped warehouse can affect your productivity so it pays to have a bit of room to move, especially if your business is doing well.

Moving Warehouses

Moving warehouses can be tedious and also very expensive – but not as expensive as losing business due to a lack of capacity. Serious consideration needs to be made before you decide to move warehouses:

●      Are you utilising your current warehouse to its full potential?

●      Will it cost more to find a new warehouse or to expand your current one?

●      Should you expand to a second location?

●      Can you find a new warehouse to lease for less money?

If you are considering moving warehouses then you should plan to move as little stock as possible. You will also have to dedicate time and money to setting up the new warehouse before you can use it so make sure you allow for a cross-over period.

Clearing Out Excess Stock

Before you move warehouse or start an expansion, clear as much stock as possible. This is a good time to have a sale or even offer some special deals for your biggest customers. This will increase loyalty and promote your new warehouse.

Warehouse Sharing

Another way to save money on your warehouse upgrade is to share space with another business. Any space that you cannot utilise can be sublet to another business. It also means that you could generate more orders, if the business you share with is similar.

The important thing about upgrading your warehouse is to make sure you do it properly the first time. It is better to spend a little bit extra and do it properly than save some money in the short term and then incur costs for more changes in the future.

Using Modular Buildings

Using portable buildings to cover your short-term warehouse office needs can be a good solution to save you money.  This could simply mean adding a smaller, secondary warehouse rather than building a massive extension. If you choose a modular building, you can expand your storage and business needs as they are required rather than expanding too quickly or not enough.

While modular buildings are not for everyone, they do offer the option to expand further at a later date. They are more flexible in design than other warehousing solutions and much more cost-effective than a big construction project.

 

 

Posted byd5adminApril 15, 2012June 26, 2021Posted inMove a Warehouse, Warehouse Best PracticesTags: modular building, portable buildings

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