Choosing the geographical location for a warehouse system is one of the crucial decisions for managers. Planners need a comprehensive plan for their supply chain connections. This can become a vital advantage, helping businesses operate efficiently, especially during difficult times like the Covid pandemic, when supply chains are disrupted.
Core factors when deciding warehouse locations
Design structure and warehouse space:
An optimal approach to layout is designing based on operational needs and the role of the warehouse in the business supply chain. Managers need to understand that old warehouse buildings are not suitable for scalability and stable inventory. Many key factors can impact or limit machinery, such as ceiling height, aisle width, columns, etc., which can restrict the flow of raw materials and finished products.
Warehouse space and structure are essential factors
From the design structure, businesses can determine the necessary warehouse space for actual needs. This way, businesses can save time and money during peak periods.
High-quality labor force:
The labor force issue is always a vital concern determining a business's success. When warehouses are located where there is an abundance of high-quality labor, companies can save on recruitment costs, training costs, and employee welfare. Moreover, it contributes to building better stability and corporate culture. Therefore, warehouses should be chosen in densely populated areas and large cities with abundant and diverse labor skills.
One of the areas you might consider is Tan Thuan Export Processing Zone, ...
Customer base and segmentation
Warehouse location needs to be strategic for target customers. A good location helps increase service quality, delivery times, and operational efficiency. This not only helps businesses retain loyal customers but also attracts more potential customers.
Additionally, businesses need to consider the nature of the area and the nature of the industry. For heavy industrial businesses, it is necessary to choose a relatively distant location from the city center. However, for light industry, high-tech industry, or green technology businesses, a location closer to the city center provides a strategic competitive advantage.
Transportation and logistics network
Which transportation mode plays a critical role in your business operations? Once you identify the primary method, you have half the answer to where you should locate your warehouse. Logistics and transportation systems are crucial for the operations of manufacturing and distribution businesses. Any disruption in the value chain can cause serious losses. Therefore, accessibility and diversity of logistics and transportation systems are important considerations when deciding on warehouse locations.
Warehouses need easy access to transportation and logistics systems
Regulations and legal frameworks
Before renting a warehouse, managers need to pay attention to local regulations and legal frameworks. Many regions focus on developing certain industries and restrict others. Understanding the regulations helps businesses avoid many troubles and develop their operations with peace of mind.
Taxes and rental rates
Tax rates and rental prices are always the most concerning factors when deciding warehouse locations. However, managers are advised to choose an optimal supply chain option in terms of overall costs rather than just focusing on low rent. A central location, with minimal logistics costs, abundant labor, combined with a reasonable rental fee, can maximize profits for the business.
See more: Things to consider when choosing warehouse services
Tan Thuan Export Processing Zone - an excellent warehouse for businesses right in the city center
Warehouses in Tan Thuan Export Processing Zone pride themselves on gathering all the core conditions, helping businesses enhance efficiency and supply chain effectiveness with reasonable fees right in the city center of Ho Chi Minh City.
Overview of Tan Thuan Export Processing Zone
- The warehouses in Tan Thuan have a prime location, unaffected by surrounding facilities (such as funeral homes, prisons, etc.). Tan Thuan Company is located in Tan Thuan Dong Ward, District 7, Ho Chi Minh City, with a prime location 13km from Tan Son Nhat International Airport, 2km from Tan Thuan Port, and only 4km from the city center of Ho Chi Minh City, making it very easy to access customers or interact with partners.
- Electricity and water are fully available, with surveillance cameras and fully equipped fire-fighting systems, regularly inspected to ensure optimal quality.
- Procedures for renting office buildings at Tan Thuan are quick, with no hassle, satisfying and pleasing customers.
- In Tan Thuan, there are many large companies that create a diverse ecosystem, providing many utilities, thereby supporting and developing companies together, ensuring the welfare of employees.
- Especially, the land fund can meet the area requirements of your business right in the city center.
Contact Tan Thuan now for advice when you need us!