Grade-A logistics parks – will they become the first choice?
Grade-A warehouses have become the preferred choice given the fact that developers take care of all the aspects – from strategic location, to construction, compliance, safety protocol, etc., thus allowing customers to focus on their core business.
Wednesday November 25, 2020,
4 min Read
Grade-A warehouses have gained prominence and became a buzzword in the warehousing industry over the last decade, but the deeper question is, what are the benefits of operating from a Grade-A warehouse and taking it even further, why should a customer even choose a Grade-A logistics park in the first place?
Here we are examining several crucial factors which beget the question and understand different facets of a customer’s end to end journey.
Most obvious is more storage and processing capacity as Grade-A buildings come with higher roofs, stronger flatter floors and more processing docks with wider dock aprons for bigger trucks.
Location and accessibility
Long lasting impact in providing superior customer service comes with choosing the right location.
Grade-A parks are strategically located – typically in the micro-markets, in close proximity to transport hubs and are well connected to the national and state highways, all this keeps the throughput high and the transportation cost low. While the area chosen is ideally a low seismic zone, it should also be close to various utilities such as hospitals, police stations, fire stations, etc.
A good location and accessibility also keep employees’ travel time and costs low and thus makes your warehouse a preferred place to work.
Compliance ensures that a warehouse is constructed as per the protocols chalked out by the National Building Code and in accordance with good design principles.
In a Grade-A logistics park the developer ensures a minimum common safety and compliance standard is enforced across, thus reducing risk of losses and disruptions and adding to the adequate long term benefits.
Premium construction grade/quality
Warehouses and amenities in modern logistics parks are built to last, and accompanied with regular maintenance, can easily serve your business for 30-plus years. The delivered built quality is extremely important as cost of repairs always turn out to be expensive and disrupt operations.
On-time and on-spec delivery
Grade-A developers with the right construction capabilities and strong financials will ensure that you get your warehouse as per promised specs within the timelines you expect. That enables you to plan your business, manage transition and growth.
Delays or sub-par deliveries will disrupt and hamper business, leading to cost overruns, affecting service to the market and increase competitive pressures.
Expansion and scalability
Grade-A logistics parks are equipped to accommodate future expansion and consolidation of operations in the same park. Efficiencies of scale reduce management overheads, leading to reduced supply chain costs and upturn business profitability.
Sufficient parking spots for employees and trucks are a norm in Grade-A spaces. The absence of designated parking spots can lead to congestion and blockades. All of this increases the cost of transportation and eventually the cost of operations and business.
A distinctive advantage in a larger logistics park vs. a standalone building is that you have access to spill-over flexi-parking slots on demand, which is otherwise unavailable in a standalone building or would have been created by losing constructible space and thus increasing rental cost.
Common area maintenance
Grade-A developers charge a common area maintenance fee to maintain the common infrastructure like roads, common area lighting, sewage and water treatment – all of this lends to eventually better efficiencies. If the developer is progressive and installs solar lighting, not only does it help in reducing the electricity costs but also cuts down on your environmental footprints. In the near future companies would be integrating park management and maintenance on a tech-enabled platform, to streamline maintenance manoeuvres.
Safe and hygienic work environment
Grade-A parks are built to furnish a safe and hygienic work environment. Today we have a greater reason to factor this in, if we would like to follow the social distancing norms even after the lockdown relaxes or ends. The infrastructure too is designed to ensure your goods are well secured.
The above mentioned points safely qualify that far-sighted businesses would choose to operate out of a Grade-A logistics park as in the long run, functioning out of a space that is built to last will turn out to be one of your most profitable decisions.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)