There is a multitude of reasons one may need to build or expand a temporary warehouse which can include business growth, replacement of obsolete equipment, challenging new markets, as well as avoiding bottlenecks. Below you’re going to find 10 of the best practices to create or expand a warehouse.
Understanding The Budget For The Temporary Warehouse Project
One of the first aspects to understand before a major upgrade can ensue is to ensure that the numbers and the budget all add up. It is important to see that there will be a positive return on investment even with the possibility of unforeseen circumstances. Some considerations that need to be made to the IRR can include equipment, location, construction, ownership, and lifespan.
Time Is Of the Essence With Temporary Warehouse Structures
If there is any given in the construction industry is that many times projects are always going to take longer than expected. However, this can be a good thing and it is understandable to take your time with this type of project. This is the perfect time to slow down and research all equipment vendors, contractors, and other construction assets. Many times, there is going to be a steep learning curve involved in this process that must be learned.
Building Or Renovation?
If you are considering a warehouse for your business, the decision to either build or renovate can be a difficult one to choose. There are going to be times that a renovation is simply not going to suit your long-term goals, even if it is a less expensive alternative.
Many times, the decision solely rests on the location, the following questions will help to answer this question:
- Where is an ideal location for customers, suppliers, and employees?
- Which area has the best access to the interstate and other roadways?
- What would be the cost of a rail system?
- What location would be the best for a low tax rate?
- Maximum Space And Square Footage
One of the most important aspects of any temporary warehouse is the available amount of space and square footage. With this in mind, you must ask yourself how you can get the maximum amount of space from the square footage available? When available square footage is left empty, it is putting you and the customer at a disadvantage. One of the next questions you will need to ask is how fast inventory can be moved throughout the building. Typically, inventory should never be More than 90 days and finished goods should be moved within two weeks.
Involvement Of Stakeholders

Another element is to involve every stakeholder from outside and inside of the company to ensure any fires that might burn your budget. Once the design has been finished, there should be a general view that allows any major issues which could slow down the business from happening. If there is not a buy-in, they’re more than likely will not be any problems. This also includes any officials being involved with your plans. Take the time to approach city officials early to discuss the number of jobs that can be created. This will allow you to turn around permits at a much faster rate.
Ask For Outside Assistance
It is essential to understand that managing this is going to be a full-time position and that can be difficult if you already have a full-time job. With this in mind, it is wise to hire a dedicated project manager to ensure the job proceeds in an efficient manner. Many of these people are not only experts on design and construction, they typically have good connections with city officials. The project will have a greater chance of success with a product management team, even if that same team leases the building.
Mobilized Teams

This type of project has a greater chance of success when you have a team you trust. You can have the best equipment; however, it is the team that will make this project happen. This happens through the process of encouraging smart decision-making, entrepreneurialism, and on-the-job learning.
Patience with Technology
When you are in the process of choosing equipment, the right timing is essential. Technology changes at incredibly high speeds and what may be available today is not going to be available tomorrow, this includes automation, installation, and processing.
Choosing the Best Contractors
If you’re looking to save time and money it is important not to choose established vendors. In addition, you will find that many new contractors have the drive to do a better job to ensure that they have the chance for other opportunities and expansions. Wally is an excellent opportunity for them and their company, it allows your company to receive an incredible value.
Remember Your Existing Customers
While you are in the process of building a new location, it is important to remember your current customer base, so that you do not lose them in the process. Take the time to focus on communication early in the process and accurately describe the situation.