Storing manufactured products and agricultural produce before transporting them to consuming points is a work. For many people, a warehouse is just a storage point but from an experts perspective, it is a complex process in which, warehouse construction cost, safe storage, material handling compatibility and owning all play a major role. Not all produce can be stored in a similar building. For example a cold storage warehouse will need a lower ceiling, while a warehouse for process machinery may require taller vertical space.
There is still some equipment such as electric transformers and earth-moving equipment that may require an open yard with fuelling facilities. Open yard doesn’t mean lesser complexity; it has its own complex nuances.
Warehousing as a Business Service
Large manufacturing and supply-chain businesses have their own warehouses but smaller operators usually use warehousing businesses for stocking and distribution of their products. Warehouses that offer warehousing as a service are much preferred even by big manufacturing companies and merchants because it is comparatively cheaper than a and maintaining a warehouse on their own.
In the warehousing as a service business model, users pay warehouse operators for what they use which is based on multiple criteria. It can be for the space used, the time for which it is used and any additional services that the operator provides. For example an agricultural-produce company in North Karnataka and South Maharashtra where agriculture is a dominant activity, merchants will want the operator to provide special protection from rodents and a food storage business may want a cold storage along with packing facilities.
Operating a warehouse is no mean job and requires warehouse building design that is compatible with potential customers’ expectations.
Constructing a Warehouse – Criteria to Consider
Warehouse construction cost: The profitability of a warehouse is mostly dependent on the construction cost. If the expenditures on construction is high then the rate of return (ROI) will come down drastically and may even become unviable. For good returns keep warehouse construction cost at its minimum through prudent selection of the type of construction. It is normal for operators to closely examine the “warehouse construction cost per square foot” criteria before deciding the building type.
Cold storage warehouse construction: Cold storages once used to be all-concrete structures, but are fast shifting to pre-engineered steel buildings due to the minimised construction cost and quicker project implementation time frame. This means operators can start to deliver services faster and more effectively.
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