WHAT FACTORS AFFECT THE NUMBER AND SIZE OF A COMPANY'S STORES?
The answer to the question that we raise on this occasion is not included in a paragraph since there are several and diverse factors to take into account when deciding whether to design a large central warehouse or several smaller stores.
FACTORS AFFECTING THE NUMBER OF WAREHOUSES NEEDED IN A COMPANY
The factors that affect the number of warehouses required in a company are those that affect the total cost of the distribution. It is about the following:
· The maintenance costs of the customer service level.
The first two factors (storage costs and inventory costs) are increasing if the number of warehouses is increased.
The first two factors (storage costs and inventory costs) are increasing if the number of warehouses is increased.
However, the other factors (costs of storage, inventory, transport, lost sales and maintenance of the level of customer service) decrease as the number of warehouses increases.
Therefore, the total cost curve presents a minimum, which is the one that fixes the optimal number of stores for each case.
FACTORS THAT AFFECT THE SIZE OF THE WAREHOUSES NEEDED IN A COMPANY
When establishing the sizes of a warehouse, the aspects that must be assessed are those listed below, establishing the priorities that are determined according to each particular case:
1. The object of the warehouse and the level of service and maintenance desired by the customers.
2. The size of the market or markets served.
3. The number of references of the warehouse.
4. The dimensions of the stored products.
5. The handling systems used.
6. The expected level of production.
7. The possibility and interest to establish economies of scale.
8. The size and the way of sending the orders.
9. The types of shelves used.
10. The distribution in the plant of the goods.
11. The requirements of picking areas and corridors.
12. The office area in the warehouse.
14. The docks, parking lots and access areas.
FACTORS THAT AFFECT THE LOCATION OF A COMPANY'S WAREHOUSES
Attending to their dedication the warehouses can be private or public.
In the case of private warehouses, these are obviously for the exclusive use of the owner. On the contrary, the public warehouses are dedicated to providing the storage service to third parties, renting the facilities.
When looking for the best location for our warehouse, the aspects that must be considered will be different depending on the warehouse that we are designing private or public.
Palletized Racking System
· Nature of the environment
· Quality and variety of transporters that serve in place
· Quantity and quality of available labor
· Salary characteristics of the area
· Quality of industrial land
· Nature and costs of services
· Government benefits and restrictions
· Characteristics of the installation
· Availability and proximity to transport terminals
· Other companies that use the warehouse
· IT and telecommunications infrastructure
· Type and frequency of inventory reports
Once you have decided if you are going to have a large central warehouse or several smaller stores, it is time to plan and design the storage areas.
