Even if you’re just looking at moving to a bigger location because your business has grown so rapidly, I recommend you think hard about whether or not you really need the space before you make a final decision.
Do You Really Need More Warehouse Space?
- Am I using my current warehouse space to the fullest?
- How can I improve my warehouse management?
- Is it worth the extra cost to get a bigger warehouse?
To find out if you’re using your warehouse space to the fullest, you can analyze your inventory to see how quickly you fill orders and if you keep too many products in stock. This analysis also helps you figure out how to manage your warehouse better. By reorganizing your warehouse and improving your inventory management, you can save a lot of space and put your money to better use.
It’s common sense to run a cost-benefit analysis on any business decision you make. If you decide your business is expanding fast enough that you need to invest in more office or storage space, then go for it. But if you learn that you still have plenty of room to grow in your current location, don’t worry about making a change yet.
Cut Out the Fat
If you’re considering moving into a bigger warehouse, think about what you really need instead just what you want. What price will you have to pay to enjoy an extra benefit? Can you live without it? By paying close attention to how you use what you already have, you can avoid a costly mistake.