A reliable distribution warehouse is crucial to running a successful business. The benefits include order fulfilment, faster shipping, on-time delivery, and inventory management. However, there comes a time when you need a new distribution warehouse, from loss of benefits to business growth. Here are 4 signs it might be time for your business to choose a new distribution warehouse.

1. Inefficient Layout

Sometimes, the warehouse layout no longer meets the needs of your business. Plus, a poor layout makes it difficult to efficiently locate and fulfill orders. Imagine a customer placing an order that is due to arrive at their house in 5 days, but you cannot locate the order until the fourth day. The delays that come with an inefficient layout can damage your reputation.

Storage overload is another example of a layout that does not meet your needs. While reorganizing, you may accidentally misplace an order that is due to be shipped out tomorrow. Additionally, you can lose money on important items if your warehouse is not set up for accurate inventory management.

2. Location and Accessibility

If your trucks cannot access your distribution warehouse, it is time to relocate. Otherwise, you increase the risk of shipping delays because they cannot efficiently load and unload your products.

Additionally, your warehouse may be located farther from your usual customer base, causing longer delivery times than necessary. Choosing a distribution warehouse closer to your customers allows you to keep your promise of on-time delivery. Start by determining where most of your customers are located. Then, look for a warehouse that is in or close to the area.

3. Financial Impact

A poorly located distribution warehouse also impacts your business financially. A farther location may require you to increase your shipping costs. Unfortunately, this may cause customers to choose another business. This is especially true for customers who factor shipping fees into their budget. Relocating allows you to maintain or lower your shipping costs, making it easier to gain and retain customers.

Furthermore, an inefficient layout and workflow can increase the labor costs. This is because of the time spent on order picking or increased travel times. When you relocate closer to your customers, all parties can save money on orders.

4. Business Growth

While there may not be an issue with your warehouse, you need to ensure the warehouse can grow with your business. For instance, increasing your inventory may require a bigger location to accommodate your new products. A larger customer base may also require a bigger storage space because more people are placing orders.

In addition, you may need a warehouse with specific capabilities, like temperature control. While this may not have been an issue with previous products, a new product line may require special accommodations. This way, you can ensure your customers are satisfied with their order.

There are several reasons why you may need a new distribution warehouse. An insufficient layout or a poor location can disrupt daily operations. Then again, you may need more space or specific accommodations for your products. Upgrading your distribution warehouse allows you to continue growing your business.