Procedure: Relocating to a New Fulfillment Center

Relocating your warehouse is a significant undertaking that, when executed properly, can enhance scalability, reduce costs, and improve service quality. To ensure a seamless transition, consider the following comprehensive checklist, which incorporates best practices from industry experts and insights from Syncware's warehouse relocation guide.

✅ Reasons to Relocate

• Scale Operations: Accommodate higher order volumes.
• Enhance Fulfillment: Improve speed and shipping rates.
• Address Performance Issues: Resolve challenges with existing 3PLs.
• Strategic Positioning: Place inventory closer to customer hubs or ports.

📝 Pre-Move Preparation

• Develop a Transition Plan: Outline clear timelines and responsibilities.
• Inventory Audit: Identify and resolve discrepancies.
• Notify internal teams and partners: Inform internal teams and partners about the move.
• Facility Readiness: Ensure new warehouse access and operational utilities.
• Shelving Installation: Install and label shelving in the new facility.

🚚 Inventory Transfer Strategy

• Phased Transition: Begin shipping from the new warehouse before ceasing operations at the old one.

  Restocking Approaches:

  • Ship all new inventory to the new warehouse.
  • Split restocks between both locations with meticulous tracking.
• Monitor remaining inventory in the old warehouse to avoid backorders

🔗 Systems Integration

• Platform Integration: Connect the new warehouse with all relevant platforms (e.g., ERP, e-commerce, shipping tools).
• Integration Timelines: Confirm schedules with your fulfillment provider.
• Inventory Dispatch: Avoid sending inventory to the new location before integration is complete.

🕒 Update Supply Chain Timings

• Lead Time Recalculation: Adjust based on the new warehouse's distance from manufacturers.
• Adjust Reorder Points (ROPs) to prevent stockouts or overstocking
• Vendor Communication: Ensure suppliers are aware of the new delivery address.

💵 Review Costs & Shipping Rates

• Cost Evaluation:
  • Storage fees.
  • Pick & pack rates.
  • Shipping costs.
  • Kitting/bundling fees.
• Run a cost-benefit analysis to ensure the move supports your profit margins

➕ Value-Added Services Consideration

• Service Review:
  • Kitting.
  • Returns processing.
  • Custom packaging.

📢 Customer Communication

• Delivery Updates: Inform customers of potential changes in delivery times.
• Policy Revisions: Update shipping policies and estimated delivery windows on your website.
• Proactive Support: Offer assistance for orders during the transition period.

📍 Factors When Choosing a New Warehouse Location

• Shipping Zones: Select a location near your largest customer base to reduce delivery times and costs.
• International Fulfillment: Expand globally by choosing warehouses in target markets (e.g., UK, Australia).
• Import Logistics: Opt for warehouses close to manufacturing origins (e.g., Texas for Mexico, West Coast for China).
• Real Estate Costs: Compare regional storage rates and balance against potential shipping cost increases.

🏚️ Old Warehouse – Access Removal & Closure Steps

• Inventory Records: Download inventory history from Sitnsell for documentation.

  Access Revocation:

  • Sitnsell – remove user access.
  • Amazon – change account password.
  • Walmart – change account password.
  • ShippingEasy – change account password.
  • Other platforms – review and secure access as applicable.
• Closure Announcement: Prepare and send an official warehouse closure notice.
• Inventory Segregation: Set aside products designated for shipment from the new warehouse.

🏗️ New Warehouse – Setup & Transition

• Shelving Completion: Ensure all shelving is installed.
• Label Application: Apply labels to all racks.
• Inventory Scanning: Scan all transferred merchandise into the new system.
• Order Fulfillment: Begin processing pending orders from the new location.

🚚 Final Inventory Procedures

• Inventory Unlisting: Initiate this step three days before the final shipping date.
• Inventory Clearance: Remove all inventory records from the Sitnsell interface once shipping concludes.

⚠️ Important Notes

• Logistics Responsibility: Sitnsell will not be involved in the logistics of the warehouse move.

  Inventory Scanning: A product not scanned to the shelf cannot be sold.

  New Warehouse Requirements:

  • Ensure internet connectivity and network setup.
  • Install shelving with appropriate labels before merchandise arrival.
• Transition Timing: Coordinate the "going out" from the old warehouse to align closely with the "going in" at the new warehouse.

By adhering to this comprehensive checklist, you can facilitate a smooth and efficient warehouse relocation, minimizing disruptions and positioning your business for continued success.