How to Select the Best Site for Your Distribution Facility

Selecting the ideal location for your distribution facility is one of the most critical and time-consuming steps in the planning process. Once you've identified the prime geographic area and secured management approval for your strategic distribution network plan, the focus shifts to choosing the right community and site.

This guide outlines the key steps, considerations, and resources to streamline the site selection process and ensure your distribution operations can meet both current and future needs.

Narrowing Down Potential Communities

Before diving into detailed site searches, it's essential to narrow your list of potential communities. Conducting thorough research beforehand will save significant time and effort. Consider leveraging these resources:

• Real Estate Brokers
• Brokers are connected to multiple listing services and can provide insight into available properties. Keep in mind their compensation is tied to successful transactions, which may introduce bias.
• Utility Companies
• Utility providers often have large service areas and can provide unbiased recommendations for industrial sites. Be aware that regional sales teams may prioritize their territory’s revenue growth.
• Government Agencies
• State and local development agencies, as well as chambers of commerce, are excellent sources of information. However, confirm that the community aligns with your needs before relying heavily on their guidance.
• Consultants
• Consultants offer objective, expert advice to save time. Ensure the consultant you choose is independent and aligned with your business goals.

For more insights into strategic site selection services, check out how Tompkins Solutions can help you identify the optimal location for your facility.

Conducting Site Visits

Once you've narrowed your list of communities, schedule visits to evaluate specific sites. Before each visit, prepare a checklist tailored to your operational needs, including:

• Zoning requirements
• Topography and storm drainage
• Utility infrastructure
• Building specifications (e.g., floor load, lighting levels, and clear height)

Assign grades to each site based on how well it meets your criteria, and prioritize sites that align with your long-term operational goals.

Learn more about the importance of warehouse design and automation in maximizing your facility's performance and adaptability.

Considering Foreign Trade Zones

For companies engaged in international trade, Foreign Trade Zones (FTZs) can offer significant advantages. FTZs are secured areas legally considered outside the U.S. for customs purposes, allowing goods to be stored, processed, or manufactured duty-free.

Advantages of FTZs:

• Customs duties and taxes are paid only when goods enter U.S. commerce.
• Goods exported from FTZs are exempt from duties and taxes.
• Merchandise can remain in an FTZ indefinitely.

Additional Considerations:

• FTZs are typically located near ports of entry and provide access to multiple transportation modes.
• Sub-zones may be established for companies requiring a unique setup but must demonstrate public benefit (e.g., employment generation).
• Certain activities, such as manufacturing firearms or alcoholic beverages, are prohibited within FTZs.

If your company plans to export products, thoroughly evaluate the viability of using an FTZ as part of your operational strategy. You can also explore how supply chain integration services can streamline your operations and improve global competitiveness.

Future-Proofing Your Distribution Operations

The right facility location will provide the flexibility needed to adapt to changing demands and operational growth. While it's impossible to predict the future, selecting a site with versatile design capabilities will help safeguard your investment.

Need assistance finding the ideal site for your distribution operations? Contact us today to learn how we can support your site selection process and optimize your supply chain for success.

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