Why Warehouse Location is Crucial

The real estate mantra, "location, location, location" has become a truism, but the importance of location when choosing a warehouse is perhaps less well known.

While the location of a home is crucial to our security, enjoyment, and peace of mind, the location of a warehouse can directly affect the well-being of your business. Whether you're looking to purchase or rent your own warehouse, rent space from somebody else, or utilize 3rd party logistics, the location that you choose can make or break your ventures. Here are three reasons why location is king when choosing a warehouse.


People want their stuff fast. Preferably a little bit faster than humanly possible. The location of your warehouse can affect the speed of your supply chain in two ways:

Proximity to receiving

Simply put, the closer that your warehouse is to the place where goods arrive, the sooner that those goods can be processed, stored, and shipped out. If you receive products from overseas, warehouses close to piers and marine terminals will be able to receive those goods quickly. If, on the other hand, you utilize freight rail services, be sure to choose a warehouse close to rail terminals. Warehouses that are going to be receiving goods by road should be easily accessible from main shipping arteries.

Proximity to customers

With two-day, next-day, and even same-day shipping becoming the norm for online retail giants like Amazon and WalMart, the shopping public is accustomed to receiving their goods quickly. If you expect your warehousing partner to ship goods-to-person, it is vital that they be as close as possible to the customers who are going to be buying your products.

If you're not planning to ship good directly to retail customers, you may think that you can slack a little bit on this. No so! The ability to move goods quickly is at a premium across today's supply chains. Having your warehouse close to your customers is an important business consideration, no matter who those customers are.

To visualize the ideal location for your warehouse, identify the geographic areas with high concentrations of your customers. The closer that your warehouse is to those locations, the sooner that your products will get to your customers. Ask potential warehouse partners about delivery zones, and be sure that the fastest delivery zones match up with where your clients are.


As you are likely well aware, every time that you need to move goods through space, it costs you money. A warehouse situated close to receiving centers, close to customers, and/or close to shipping partners can help to minimize these costs. Cutting down on the frequency and distance that your products need to move can save you money in the long run over a less expensive but less ideally situated warehouse.

Labor force

A warehouse situated close to a strong labor force is more likely to be able to meet your needs than a warehouse that is scrounging for staff. Long commutes can depress retention among warehouse staff, and high turnover in a warehouse can easily make for a higher error rate. Warehouses with access to a large labor force are more likely to be able to hire skilled workers, or workers who will benefit from quality training. If workers are scarce, warehouses may end up paying higher wages for lower quality workers, passing on the cost and risk to you.

The Overflo advantage

With over 2,000,000 square feet of space across 10 locations in Baltimore and Washington, DC, Overflo is well situated for your warehousing needs across the eastern seaboard and beyond. Contact us today for a free rate quote!

For more information contact us at Overflo or call at 1-800-626-0616.

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