As a basic principle, companies need to ensure that the operations are as efficient as possible, increasing throughput as much as possible while maximizing the capacity and utilization of the space before opting to move to a new facility. It is critical that the operations have truly taken advantage of the existing facility, due to the high cost of relocating distribution center operations.
Relocating a facility can, at times, be inevitable, but the disruption of business and impacts on labor mean that you must at first be sure that you have maximized the existing facility. In addition, most major markets are at record levels of warehouse occupancy rates, and lease costs are at all-time highs. New warehouses being built on speculation are large centers that may not be suitable for small to moderate-sized businesses.Read More >