What is the real cost and risk of moving to a new warehouse?

 

Moving a warehouse involves much more than transporting inventory.

 

The potential costs include:

• Reputation: Service disruption, delays and the learning curve.

• Sunk Cost: Existing investments that cannot be relocated and the cost of moving inventory.

• OPEX: Potential overlap between the old and new operations.

• CAPEX: New infrastructure, equipment and facility upgrades.

 

A structured migration plan helps management understand these costs before committing to the move and provides greater control over the transition.