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Tips for Calculating and Renting a Warehouse

Tips for Calculating and Renting a Warehouse

In this article we will try to estimate in calculating a warehouse for rent with the available data as below:

  • Type of industry: Oil
  • Sales per month: 2,500 tons, the type of packaging of goods is drums and cartons with a composition of 80%: 20%.
  • The capacity of receiving goods: 4 containers per day and delivery of 10 ankle trucks and 2 built up trucks.
  • Required facilities: Canteen, driver's room, charge forklift and warehouse for promotional items and bottles.

Can we determine how much warehouse area should be used only with the data above?

Are you sure you can use these data?

Is that data sufficient to determine how much warehouse area will be used and how long the lease should be suppressed?

Another question, where is the warehouse? In the north, east or west?

There is a simple method that can be used in determining how much warehouse area is needed and other methods for making warehouse layouts, equipment work equipment and selecting staff who will carry out the work.

The following is one of these methods, among others: 

1. Determine the storage and outgoing capacity.

2. Determine the area of ​​the warehouse

3. Make the layout of the warehouse

4. Find the location of the warehouse

5. Determine the rental price and length of rental

6. Complete with operational support tools

7. Choose staff and training

Now, let's look at the following explanation.

  • Determining the storage and exit capacity 
  • The database used is the database described above

The main key is from sales data per month, it can be determined how many rounds of goods must be stored in the warehouse after the deposit turnover days are known (usually multiples of months, 30 days or there are also 45 days and 7 days)

Calculate the average filling per normal pallet so that you can know how many pallets must be stored, how many come in and how many go out per day or per month.

If this number has been met, it means that the first step in determining the most difficult warehouse has been completed.

Important note:

Don't forget, also specify the type and size of the pallet to be used, whether the size is 1 X 1.2 Meters (America) or 1 X 0.8 Meters (Europe).

Determining the area of ​​​​the warehouse 

The number of pallets stored does not mean anything to determine the size of the warehouse area to be rented. A second calculation is required to determine how large the warehouse will be if the pallets are stacked or placed on racks.

The desired level of racking is also taken into consideration and will have a direct impact on the size of the warehouse area to be rented.

Important note:

Don't forget to add 3.10 M to the size of the aisle between the shelves for safe maneuvering of forklifts and other warehouse equipment.

The average warehouse height in Indonesia is 9 meters below and 12 meters above. While the newer warehouse standards are 12 M below and 16 M above.

The type of rack that is commonly used is selective and if there are not many types of goods and the average delivery is per pallet, then also consider using a double deep rack so that it has more load capacity.

Creating a warehouse layout

The most important thing about a warehouse layout is determining where to enter and exit goods and the desired pallet arrangement. Add also the need for preparation of goods after receipt and before delivery, the extent of which of course depends on the number of shipments and receipts of goods and the schedule for sending and receiving goods.

Important note:

The average warehouse size in Indonesia is 23 MX 48 M. In and Out should be done on different doors and have unidirectional grooves (meaning not back and forth).

Finding a warehouse location

Look for the easiest location access and there are other alternatives. If there is a traffic jam on the road, measure how long it will take to deliver goods from the factory or distributor to the warehouse.

The warehousing facilities that must be available vary depending on the needs required.

Usually the more complete the existing facilities, it will affect the amount of the rental price.

Important note:

The easiest way to find a warehouse is through referrals from a rack or forklift rental company. Likewise, to draw a warehouse layout, a racking company will provide very meaningful assistance.

Determining the rental price and the length of the lease

“How much do you have to pay?” That is a difficult question and is dependent on the ability to negotiate and the sharpness of information obtained from references. 

The calculation between a larger area for a standard warehouse size and a rather small area with a warehouse height of up to 16 M, for example, will be very different and need to be used as a basis for decision making.

Important notes: 

Usually landlords will provide a range of offers between 5%-15% of the final price offered. The amount of rental between 1 year, 2 years or 3 years also has a significant difference.

Pay the rent per period of 3 months with the amount of the deposit value 3 months in advance. Usually landlords will ask for 1 year + 1 month deposit, try to calculate which one is more profitable for the company's budget.

Equip with operational support tools

To operate a warehouse with an international scale and high standards, make sure that all equipment and supplies in the warehouse already have proper test certificates.

Not many players in logistics provide racks, forklifts, coolers, generators, pallets and other equipment. It's just that one thing to watch out for is the length of procurement time which usually takes quite a long time.

Important note: 

Racking is equipment that usually takes the longest time, which is around 8-12 weeks of delivery and 3-4 weeks of the installation process.

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