(1) Proper Location:
For effective movement of goods and cost saving, warehouses should be established at places, which are convenient to both the buyer and the seller. These warehouses should be set up near railway stations, major highways, seaports and airports, where goods can be loaded and unloaded conveniently. It is also recommended to have godowns in open places so that the vehicles can move around easily.
(2) Use of Mechanical Appliances:
In the warehouses, mechanical appliances should be used to load and unload the goods. It not only results in safety of men and material but also reduces wastages in handling goods and overall handling costs.
(3) Sufficient Space:
For an ideal warehouse, adequate space should be covered for maximum storage and to keep the goods in proper order. Each trader (big or small) would want that all of his merchandise should be accommodated in one warehouse so that he need not travel to different places to manage the loading and unloading of his goods.
(4) Proximity to the Market:
The warehouses should be established at a place where market for raw materials and for selling finished goods is as close as possible. This is the reason that big warehouses are close to commercial places or bus stands.
(5) Parking Facility:
Parking along road, public places in the urban/suburban areas continue to be a harrowing experience for the traders who visit from outstations. Hence, in warehouses, proper arrangements should be made inside the premises to assist quick loading, unloading and safe parking.
(6) Safety Measures:
A warehouse, which basically is used to store eatables or perishable goods like bread, butter, fruits, eggs and vegetables should be equipped with proper cold storage, moisture resistance etc facilities. Further, efforts should be made to secure the warehouse against possibilities of theft and damage from heat, rainwater, insects, pests and fire. The use of fire extinguishers, safety alarms, budgets and round the clock security arrangements should be there to secure warehouses from unforeseen mis-happenings.
The warehouse location, layout, construction and maintenance should be done in such a way that ensures maximum storage of goods at minimum expense.
(8) Proper Management:
If warehouses are not managed properly, all the money spent will go waste. Mismanagement may lead to theft, loss, errors and omissions of goods stored by various traders. Hence, a strict control over the warehouse is essential on permanent basis. A permanent officer should be appointed for proper arrangements of incoming and outgoing goods.