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How Important is It to Invest in Storage Facilities in Dubai

A close look at the past decade will show anyone how much Dubai has changed. Its amazing growth shows a path fueled by efficiency and sustainability, making the future exciting for those in and around Dubai.


This is an especially exciting period for business owners and investors in Dubai. With the region rising mightily after some economic issues the past years, there is no other way to go but up. You also have to remember that the entire region is preparing for Expo 2020. The entire focus is on the field of logistics, so you can expect an influx of new opportunities.


on demand warehousing

This is why it is necessary for businesses to start thinking about possible changes they need to make to embrace this growth. Assessing your need for storage facilities in Dubai, as well as other logistical factors, is key in preparing for things to come.


Why Invest in Storage Facilities in Dubai?


Some business owners may think that they have no need for a warehouse for rent – they see it as additional cost. In reality, it can be considered as an investment towards further growth.

What good would additional storage facilities do for you?


Here are some of its major functions:

  • Proper Storage of Goods and Products

Of course, the most basic function of a warehouse would be storage. Take note, however, that we are putting emphasis on the word “proper”. You see, merely having space where your goods, equipment and materials will fit is not enough. There are a number of considerations.


For example, do your products require a specific temperature range for them to stay in top condition? The number of products you store in a single storage area could also affect product quality and proper workflow.

storage facilities in Dubai

When you invest in a proper storage facility, you also ensure that nothing is compromised. You can stay true to your guarantee that the best products will land on your customers’ hands when they need it because of the right storage choice.


  • Seamless Movement of Goods

Products do not just stay in storage – they go from one point to another. Although some may think that the only thing that matters is having a proper workflow in place, if your storage is not optimal, it can create a disruption in the process.


A good storage facility should help you create a system that allows goods to be transferred from one place to another in an orderly manner. There are also storage facilities in Dubai that already have warehouse management systems in place, or you can use one of your own. It all depends on what your needs are.


  • Protection Against Loss or Theft

Security is one of the major concerns business owners have, especially when they have a large inventory. It’s amusing that some even fear the growth of their business, because they feel that they would have to worry more about theft and pilfering when they start catering to a larger audience and start stocking up on goods.


In reality, it’s not the size of your inventory that encourages this. It’s the lack of proper system in the way you handle your inventory.


This is why it is pertinent to make sure your storage facility is secure. Just because you feel that your goods are not as valuable or expensive as that of other businesses does not mean that it’s not going to invite thieves in. A good storage facility allows you to create an optimal security system in place. In fact, you can find a third-party warehouse for rent that provides amazing security as well, giving you more value for the money you’re investing.

This is why we don’t see storage as an added cost; rather, it is an investment that makes your entire business more efficient.


Aside from these major functions, other storage facilities may offer other services that could leave you in an even more convenient standing. For example, there are some storage facilities that also offer packing and shipping services at an additional cost.

You may want to think about this if you pay other third party vendors to take care of this service for you, since most of the time, bundled services under a single vendor could prove to be the more practical option.


Make sure you double check all other services that your chosen storage facility offers. Even if you already have an in-house team working on those tasks for you, it wouldn’t hurt to compute which option would be more practical – continue paying for your own overhead expenses, or outsource the tasks and free yourself of the time and effort that you put into it? Remember that this time and effort can be transferred towards other tasks that you feel you could not outsource to anyone.


Factors to Consider When Looking for a Warehouse for Rent


Now that we’ve established what a storage facility’s major functions are, let’s talk about the next step – choosing the right warehouse.


You can use the best warehouse management system (WMS) in the market. A WMS is a software that allows you to have better control over your warehouse or storage operations. But if your storage facility is all wrong for your specific needs, even the most efficient system will fail you.


What factors should you consider in choosing the right warehouse?


  • Capacity

This is one of the most basics things to consider, but sadly, a lot of businesses fail to see its importance. The size of your storage area matters because it ensures that there is enough room for the right inventory at the right time.


Sure, the bigger the warehouse, the more expensive it also is. However, if you have boxes of products blocking entryways and piled up dangerously just because you want to fit in more products into a small space, you end up losing more in the long run. You could end up with damaged products. You may also end up losing time, simply because it is harder to find things in an unorganized storage space.


Figure out how much inventory you need to store over a period of time. This will help you find out how big your storage options should be.


  • Location

Location is another thing that does not just affect your overall costs, but the efficiency of your supply chain process as well. Where are your suppliers located? What about your stores and customers? Are your goods and materials coming in through the ports, or through major highways? Is your warehouse of choice accessible to these areas?


You may have found a great warehouse on one side of town, but if all your suppliers and stores are on the other end, you may end up spending more in gas and manpower, not to mention the time you waste in travel.


In choosing the location, consider areas that are easily accessible to clients, suppliers, and distribution points. Find out if there are convenient routes in and around the area that will link all drop-off and pick-up points. This allows you to maximize your resources more efficiently.



  • Value-Added Services

As mentioned earlier, storage facilities may offer a whole lot more than just storage. And if you decide to go for a storage provider who also includes other add-ons to their service, you may end up saving a whole lot more money.


What additional services do warehouse companies give?

Some of them offer packaging and branding. Some also offer transport services, which means you can save yourself from the trouble of purchasing and maintaining your own trucks or vans. For some warehouses for rent, they also offer inventory and warehouse systems. Some have their own additional security in place.


While others may see add-ons as additional costs as well, you may want to look at it from a different perspective. Think about it. With a lot of other tasks out of your way, you can focus on other more important things, like operations, or your finances.



  • Technology

Some business owners feel that things like warehousing do not really require any technology. You couldn’t be more wrong if you believe the same thing.


Software like Warehouse Management Systems (WMS) can be quite useful, especially if you’re preparing for further growth. Tools like these can make your entire workflow more efficient, saving you a lot in manpower and time. The kind of tracking and reporting tools that the facility has in place will also be a good thing to find out more about.


Although some storage facilities may not have the latest in warehouse technology, some are already updated and can give you the best of modern warehouse tech. Find out whether your warehousing options offer any form of technology, and see what these can contribute to your business.


  • Scalability

How do you see your business a few years from now? If you feel that your business would double its size in just a few years, then it makes no sense to settle for a warehouse that can barely handle your existing inventory.


Always think bigger than your current needs. You also have to remember that you deal with peak seasons a few times a year. If you’re choosing a warehouse during the slow months, and your current storage can handle nothing more than your current stocks, what do you plan on doing when the demand for your products double or triple?


Although you do not necessarily have to lease a warehouse that’s bigger than your current need, you may want to check in advance if your chosen storage provider can offer more space when the need for it arises.



  • Existing Clients

Yes, it’s extremely helpful to find out who your storage provider’s other clients are. This can say a lot about their storage services and how effective they can be for you.


Are their clients smaller than your business, or larger? If all of the businesses they cater to are smaller than yours, what’s your guarantee that they’ll be able to handle a bigger load from your business?


You may also want to check the problems that other clients may be encountering. Are they know for their efficiency in meeting deadlines and client demands? This means every part of their system is efficient, their warehousing options included. But if under their client list you see businesses known for late deliveries and frequent stock issues, you may want to look for other options.



  • Risks

With your entire inventory stocked in a single place (unless you plan on dividing your stocks across different storage facilities), it is important to know what the risks are. Is the structure’s integrity still intact? Is the storage facility found in a high-risk area?


Find out what kind of insurance coverage you are entitled to as well. Although some things are unavoidable like accidents and acts of God, knowing that you have something in place to take care of the risks could lessen the blow somehow.


storage facilities in Dubai

Choosing the right storage facility should not be a rash decision. It takes a lot of research to arrive at the best choice. So why do other businesses fail at this part of the process? Truth be told, a lot of logistical mistakes occur when businesses underestimate the important of something like their on demand warehousing choices.


It should not even be a cause for debate – your storage facility dictates whether way your business thrives or dies. This is why it is important to really understand the choices you are making, and how you make them.


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