| When additional warehousing or storage capacity is | | | | Although this option scores low on risk and |
| required there are many options a company can | | | | commitment, the costs could sting when they |
| take, each with differing pros and cons. When extra | | | | eventually show themselves! |
| capacity or a change to existing warehousing | | | | OPTION 4 |
| configuration is required in a recession the pros and | | | | If all these options are non-appealing you could |
| cons need to be taken more seriously, particularly in | | | | consider a complete relocation to the 'perfect' site |
| relation to cost, risk and commitment. | | | | with the 'perfect' warehouse. This option is of course |
| So, just what choices are there ? | | | | a very last resort and would need a strong portfolio |
| OPTION 1 | | | | of other business reasons to warrant it. Not to |
| First option might be to consider a new build on site | | | | mention the fact that it goes off the scale on our |
| as an investment solution. If cash flow and growth | | | | cost, risk and commitment measure. 'Risk' is probably |
| are strong this might be a worthwhile consideration. | | | | the strongest contender here with the possibility of |
| In a recession, however, it is risky and scores high on | | | | customer and employee losses through major change |
| cost, risk and commitment. | | | | causing insecurity and mistrust. |
| OPTION 2 | | | | OPTION 5 |
| Secondly, what buildings, facilities and space you | | | | Thankfully, there is a fifth option that eliminates the |
| currently have? Would a refurbishment of existing | | | | costs of off-site hiring and the risk and commitment |
| facilities and some site reconfiguration create the | | | | of building or relocating. If you can hire a temporary |
| warehousing space you require? | | | | on-site warehouse for a short period during a |
| Refurbishment and improvement projects can | | | | refurbishment project, why not hire one longer term? |
| become problematical when operational capacity is | | | | In these current times of economic uncertainty this |
| affected. This is when you need a temporary building. | | | | option barely registers on our measure allowing |
| With the ability to deliver and install in days a | | | | companies to quickly and easily expand warehousing |
| temporary building can provide the essential | | | | space with no capital outlay, no commitment and low |
| replacement warehousing, storage or operational | | | | cost. |
| space while existing buildings are out of action. Once | | | | The benefits come with the simplicity; light, modular |
| you have your new warehouse the temporary | | | | and quick to fit or dismantle buildings anchor to the |
| building can easily be dismantled and returned. You | | | | ground as opposed to requiring civil works. As a |
| would never know it had been there. | | | | longer-term warehouse however they still fit the bill |
| OPTION 3 | | | | meeting all British Standards for structural integrity |
| Our third warehousing option is a temporary off-site | | | | equivalent to a permanent building and coming with a |
| warehouse. In a recession good deals can be had as | | | | ten year guarantee on the aluminium frames. |
| more and more warehouses stand empty and | | | | CONCLUSION |
| unused. That said, there are disadvantages to hiring | | | | During this recession a temporary on-site warehouse |
| off-site. Security is a key issue. Although no one with | | | | is most certainly the best option when so many |
| 'sort after' or valuable goods would choose a | | | | businesses are unable to foresee or predict future |
| warehousing site that was slack on security, you | | | | growth. |
| can't beat knowing everything is under one roof - | | | | Once we start to move out of the recession |
| yours! Many companies choose to retain warehousing | | | | temporary on-site warehouses still have an important |
| on site for this reason alone. Furthermore, although | | | | role to play for UK businesses. Keeping a business |
| sq m charges of off-site warehouses may look | | | | lean and mean on low overheads and the ability to |
| appealing there are, as always, hidden costs. The | | | | expand and retract operations at the drop of a hat |
| additional transport costs will add up, not to mention | | | | will keep you healthy and ahead of the competition in |
| the logistical headache of co-ordinating the two sites | | | | recession, recovery or growth. |
| and relevant staff. | | | | |