Calculating warehouse space needed??

littlebites

Can anyone one help me out here?
I`m about to start looking for a warehouse to rent,its for a start up business and I`m trying to calculate the size needed. I want to store approx 250 pallets but i`m hoping to double that figure in 12mnths.
Anyone know what square footage I should be looking at?
Office space isn`t important, only need room for a couple of desks.

Thanks!

Shambo

You are asking at a good time, as half of the freight warehouses in Ireland are empty!

I'd say you'd need about 3000sq feet, however what I would do is talk to a few freight providers - don't say you need 3000sq ft, just tell them the number of pallets- and let them come back to you.

They will usually give you a rate per pallet per week, plus a charge in/out (i.e offloading it into the w/house and loading it out)

Also, if you are importing the pallets, talk to the freight company bringing the goods in to Ireland as the chances are that they will have a warehouse that needs filling, and also it wil save you money as there will be no additional charge for delivering to a third party w/house

But one key element to consider is deliveries, make sure whichever company you decide to let handle your warehousing actually has th ecapabilitie sto deliver to your customers (unless of course you will be collecting the goods and delivering them yourself)
PM me if you have any other questions.

MidlandsM

Well, The Standard pallet size is base 1000mm x 1200mm
(1m x 1.2m or 40” x 48”) , so times 250 if you are going to have them all on the ground.
Will you have any racking?

littlebites

Thanks Shambo - I`ll be outsourcing the collections\ deliveries.

Midlandsm -Yeah I plan to store the pallets myself using racking to go about 3 pallets high so I can cut down on floor space.

I just want to make sure as best I can that I don`t end up paying rent on a place thats too big for what I need but I also what to have space for additional stock as the company grows. Having had a quick look on daft the difference in rental prices for similar sized property is amazing and I reackon i`ll need about 250 spaces to begin with and if everything goes to plan this should double in a year to 18months.

Thanks again

RUDOLF289

Hello Littlebites,

a few things to consider.

1) Running your own warehouse entails (probably) a lease for 12/24/36/48/60 months or longer. That is fixed cost
2) In addition you will require handling equipment, at a minimum a forklift, which again means a lease of some description, again fixed cost
3) You suggested racking to 3 high. That is poor utilisation. Most warehouses can accommodate 4 and 5 high with narrow isles, creating economies of scale

Regardless of whether you are succesfull or not and utilise the warehouse to it's maximum capacity, you will need to pay the bills. Also, extricating yourself from those commitments if things don't work out as planned may be difficult. Using a 3rd party (possibly with distribution "attached") means you would use the warehouse space on the basis of number of pallets stored per week. No need to worry about scaling your warehouse to meet the requirements of the business. That's somebody else's problem.

Obviously the advantage of having your own warehouse is that you can do the work involved yourself, or at least supervise it. If the work that needs to be done is complicated and/or labour intensive, that might make sense.

I am a freight forwarder, 30+ years in the business and based on my experience I would never, ever, enter into a warehousing commitment. I would subcontract to specialists. As Shambo said, there are so many people at the moment that are organising indoor soccer tournaments (instead of storing product) that it would make sense to take a look at this option. If you want some assistance and independent advice (I am not selling, I don't own any warehouses) I can help you source the best possible solution at the most economical cost.

Feel free to drop me a PM

Regards,
Rudolf289

antoinolachtnai

I would definitely try to find a company that will take care of the warehouse part for you. You will be too small for it to be worth your while handling it yourself.

littlebites

RUDOLF289 - Thanks for all the advice,its a great help.

I don`t want to go into too much detail as to what exactly I`m doing but basically I`m going to store and distribute stock for a large I.T. company.I thought about going down the 3rd party route but I want to rent my own warehouse as I need to have full control of the operation as it will involve picking,route planning etc..

I based the racking on it being 3 high for no reason other than the fact that the pervious warehouse I worked in had 4 high and as the roof was pitched only about 30% of the 4th level was usable.
I have done costings including rent\ rates\services\staff\elec etc.. so I have a good idea of my outgoings and I know whats coming in.

So basically I want a warehouse that can hold 250\500plts with a small amount of office space.Thats were calculating the square footage comes in.I suppose the best thing to do is go view a few places around 3000\5000sq feet?

RUDOLF289

Hi Littlebites,

have sent you a PM

Cheers,
Rudolf289

BarryM3

Hi littlebites

For 250 pallets you will need at least 5000sq feet. Don't forget that you will need picking, packing and marshalling space