How To Set Up a Distribution Center

Planning to set up your own distribution center? So your business is getting bigger and bigger—congratulations to that! For sure, there are more demands for your products, that is why you need to have a distribution retail system. Actually, the most successful businesses, even those simple ones that are involved with buy-and-sell, have their own distribution directory. Grocery stores have their food center; clothes shops have their mart center, etc. 

For whatever purpose it may be, setting up your own distribution center can be a piece of cake if you know your target locations already. And yes, it should be somewhere where your target end-consumer, wholesale, and retail clients are near. Well, that is just the beginning of the real hard work in setting up a distribution center. Here are the complete steps you need to undergo before you can have that big sign of your business’s progress:

  1. Consider the merchandise you will be distributing. This will be the major determinant of the location, size, and design of your distribution center. For instance, if you will be setting up a food center, then the distribution warehouse should have a refrigeration system. But if you are only planning to stock up some RTWs, then it’s okay not to have those fancy refs. 
  2. Decide what your target clients are for your distribution center. You may want to limit your offerings to retailers only. For that, a smaller distribution center will do. But if you are planning to supply for wholesalers and your local and even international clients, then perhaps a bigger warehouse will be needed. By determining your target clients, you will be able to know also the perfect location for your distribution center.
  3. Survey for a perfect distribution center location. Now that you know the merchandise to distribute and the clients to whom you’ll distribute the items, it’s time to survey for some places where your distribution center should be located. If you are planning to distribute for your international clientele, then maybe having your warehouse near international shipping companies is a good choice.  Also consider the vulnerability of the place to natural calamities. Although it is true that there is no safe place against nature’s wrath, at least there are some spots where typhoons and hurricanes don’t attack much. 
  4. Hire an architect and engineer to lay out the plan of the warehouse. Work with these people well and make them understand your specific requirements for the distribution center. For instance, should it have refrigerators, should it have a second floor, or should it be accessible for trucks? These people will know the perfect warehouse design to cater to all your needs.
  5. Set bidding for contractors who can set up your distribution center. These contractors are willing to outbid one another. But don’t take that as a great benefit because significantly low price means low quality of materials as well. Make sure that when they bid, the contractors will only bid down to the least possible price of the project.  After that, you’ll have to choose the contractor to set up the distribution center. 

You don’t need to actually build a building, as renting a place will do just fine. This can even be a cheaper alternative especially if you’re planning to have the distribution center in that area for only five years or less.


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