Let us dwell on some of the important aspects while property selection that can severely impact your business.
Due to the surge in e-commerce and logistics business and the setting up of new manufacturing units, especially during the pandemic period, the demand for warehouses and storage spaces has increased manifolds. It plays an integral part within the supply chain of the business and directly affects everything from managing inventory to delivering orders to your customers. Selecting the right warehouse has a huge impact on your company’s operational effectiveness, efficiency, and profit margins. Here are the 5 mistakes that you should avoid before renting a suitable industrial space in Singapore.
Not Well Connected Location:
To enjoy greater comfort in receiving and distributing goods, select the right warehouse that is located close to transportation hubs and other carrier services as it will streamline the process of shipping your products to your customers.
Points to keep in mind:
- If you own a small business, then you should select an industrial storage space near your office or your target market.
- However, if you own a larger company, then you should select warehouses that are able to fulfill your needs and requirements.
- And, if you cater to customers in a scattered geographical region, then choose a more centrally-located warehouse.
Due to their proximity to major highways like Ayer Rajah Expressway, West Coast Highway, East Coast Parkway, Tampines Expressway, and Pan-Island Expressway, many warehouses have become popular industrial properties in Singapore. Selecting the right well-connected location for your industrial space allows you to meet the customer expectations by delivering the products faster to them.
Calculate The Space Required:
For selecting a warehouse facility, you not only need to consider its storage capacity but also understand its layout, size, and facilities that can help you utilize your new workspace better.
In case you are manufacturing or storing large and heavy items, then measure the maximum ceiling height, floor loading, electricity capacity, and column-to-column measurements that the space can fit in. Whereas, in case of storing perishable items or hazardous materials, ensure that the facility has proper ventilation, air-conditioning, sprinklers, and security.
If you are involved in light trade activities then, B1 industrial space for rent is suitable for you whereas, for those involved in heavy trade activities, B2 industrial space is suitable.
The manufacturing units like clothing, small-scale electronics companies, and others should ensure that there is enough space for production, conveyor belt (if in use), packaging, and delivery station.
Technology And Software
The storage facility that you decide to rent should be well equipped with the technology and software that you would need to track inventory and order shipments. The latest fulfillment software makes the warehousing operations easy to handle. It automates the various activities such as the order fulfillment process, including collecting orders, keeping a track of shipments, managing inventory items, packaging, and labeling products at workstations, and delivering goods to customers.
Most of the rented warehouse storage in Singapore uses technology that allows you to connect your storage facility with your sales channels so that whenever a customer places an order, it will be automatically routed to your warehouse where the processing will start immediately. Also, warehousing software allows you to track order fulfillment in real-time.
Workforce Availability And Maintainance Of Warehouse:
The physical location of the warehouse is very important for a proper supply chain, but its demographics are also crucial for the availability of skilled labor. Understand your labor needs as people in different locations have different skills and accordingly the price of the place changes. One should always consider the supply and demand of the workforce. Understanding the workforce also impacts your employee retention and productivity rate.
You are responsible for your business and your equipment, but what about the maintenance of the warehouse? You should know exactly what you are responsible for when it comes to building maintenance.
Is a building maintenance contractor included in your rent? If there is a need for building repair then how will it be completed? You must know all these things as they will affect your business operations.
Also, make sure that the landlord has well inspected and repaired all the units before you sign the lease agreement. You need to make sure that all the units are working effectively and efficiently.
Proper Documentation And Understanding Of Rent Agreement:
Before finalizing a warehouse for your business, the person should go through the rental agreement or lease agreement thoroughly. The agreement should be as per the norms for renting an industrial property in Singapore. If there is disagreement on a single clause, it should be cleared before signing it, so that there are no issues later on.
In the last few years, there has been a sudden increase in the demand for a warehouse for rent in Singapore. The responsibility of choosing a warehouse facility for your business comes with great challenges. You should select a warehouse or a storage capacity that enables you to cater the demands of the market efficiently. Hopefully, this article will help you find a suitable storage space for your business.