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Checking out a warehouse before you sign

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A proposal tells you what a warehouse says it does. A site visit tells you what it actually does. An hour on the floor, the dock and in the office will show you more about an operator than any slide deck, as long as you know what to look at. The sections below follow the order of a typical tour, so take notes as you go and compare buildings side by side afterwards.

Before you go

Send the operator your product profile ahead of time: product types, pallet sizes and weights, storage conditions, monthly inbound and outbound volumes, order profile and any regulatory requirements. The tour can then concentrate on the areas that would actually handle your goods. Ask to see the space they propose to use, not a showcase area.

Site, building and docks

Work out the distance to your main customers, suppliers or port of entry in driving time rather than miles. Check that trucks can reach a major highway without going through residential streets or over weight-restricted bridges, and that the yard has room for trailers to wait and turn, plus drop-trailer parking if you need it. Ask about local labor too. Can the operator staff a second shift or a peak season? If the site is in a flood zone, ask what happened in the last major storm.

Inside, clear height comes first. The usable height under beams, lights and sprinkler pipes decides how many levels of racking fit. Wide column spacing allows efficient rack layouts and aisles. The floor should be flat and free of cracks, since uneven floors are a hazard for tall racking and narrow-aisle trucks. On the racking, look for load capacity signs, undamaged uprights, beam locks in place and column guards at aisle ends. Check the roof and walls for water stains, daylight through gaps and birds inside. Pick faces and labels should be easy to read at every level.

At the dock, count the doors and ask how many are free at peak times. Look for levelers, seals or shelters, and restraints that lock trailers in place. There should be an appointment system for inbound and outbound trucks. Ask whether inbound goods are checked for count and damage before the driver leaves, and whether photos are taken. Freight should go to a defined staging area, not pile up in the dock aisles.

Temperature, fire and security

For anything temperature-sensitive, ask what setpoints the rooms run at and what the alarm limits are. Find out how temperature is recorded, how often, and whether you can get at the data. Someone has to receive alarms out of hours; ask who, and how quickly they respond. Ask whether the space has been temperature-mapped and when that was last done, and whether there’s backup power or a plan for a long outage. Our guide to cold storage temperature zones explains what good monitoring looks like in more detail.

The sprinkler system has to suit the height and type of storage. Systems are designed to standards such as NFPA 13, and a design that suits low-piled cartons may not protect high-piled plastics. Sprinkler heads should be clear of product, with the required clearance above the top of stored goods. Fire exits and extinguishers should be unobstructed and marked.

Watch the forklifts. In the US, OSHA requires operator training and evaluation for powered industrial trucks, so ask how operators are trained and evaluated. Pedestrian walkways should be marked and separated from forklift traffic, and battery charging areas ventilated and kept clear.

On security, look for a fenced perimeter and a controlled gate. Ask whether cameras cover the docks, the yard and high-value areas, and how long footage is kept. Note how visitors and drivers are signed in and supervised, whether there’s a caged or locked area for high-value goods, and whether the alarm is monitored around the clock.

Food safety

If you store food, beverages, cosmetics or pharmaceuticals, the facility should be registered with the FDA where required and follow the applicable current good manufacturing practice rules. Ask whether it holds a certificate under a GFSI-benchmarked scheme, and ask to see the most recent audit report.

There should be a written pest control program, with bait stations mapped and checked. Allergens, chemicals and non-food items should be kept apart from food, and there should be a clear gap between stored product and the walls for inspection and cleaning. Ask about the recall procedure. It should be tested, and it should trace lots in both directions.

Systems and people

Ask which warehouse management system they use and how it will connect to yours, whether by API, EDI, file transfer or portal. Every pallet and location should be barcoded and scanned at each move. Find out how often cycle counts are done and how inventory accuracy is measured, whether the system can track lot numbers, expiry dates and serial numbers if you need them, and what reports you’ll get and how often. The warehouse KPIs guide covers which measures to ask for and how they should be defined.

Then the people:

  • Who will be your day-to-day contact, and who backs them up?
  • How long have the site manager and supervisors been in place?
  • What does staff turnover look like, and how is peak season staffed?
  • Do the people on the floor seem to know what they’re doing and why?

Red flags and follow-up

What you see What it may mean
Product stored in aisles or on the dock for no clear reason The building is over capacity
Damaged racking left in use Weak safety culture and a risk of collapse
Pallets without labels, or handwritten locations Poor inventory control
Evidence of pests, gaps under doors Food safety risk
Sprinkler heads blocked by product Fire protection compromised
Managers unable to share accuracy or on-time figures They may not measure them
The space you will use isn’t available to see It may not exist yet, or may be shared

Write up your notes the same day, while the details are fresh. Chase anything the operator promised to send, such as insurance certificates, audit reports and sample reports, and call their references. Once you have a shortlist, compare the contract terms; the public warehousing page goes through the clauses that most often cause disputes. Operators are listed by region in the warehouse directory.

Common questions

Why visit a warehouse before signing a contract?

A tour shows what a proposal can't: how clean the floors are, whether the racking is damaged, how the dock runs and how staff behave when nobody has prepped them. Most of the problems that later turn into claims are visible on the day.

What is clear height and why does it matter?

Clear height is the usable height from the floor to the lowest overhead obstruction, such as beams, lights or sprinkler pipes. It sets how many pallet levels the building can rack, and so how much product fits on each square foot.

Which food safety certifications should a food warehouse hold?

Many food buyers ask for certification under a scheme benchmarked by the Global Food Safety Initiative, such as SQF or BRCGS storage and distribution. In the US, a warehouse that holds food should also be registered with the FDA.

What are the red flags on a warehouse visit?

Damaged or unlabeled racking, product stored in aisles, blocked fire exits or sprinklers, pests or droppings, careless forklift driving, and staff who can't explain how inventory is counted.

Should I ask for references?

Yes. Ask for two or three current customers with a similar product and volume, and ask them about accuracy, communication and how problems got resolved.

Sources

  1. 29 CFR 1910.178: Powered industrial trucks (OSHA)
  2. 21 CFR Part 117: Current Good Manufacturing Practice, Hazard Analysis, and Risk-Based Preventive Controls for Human Food (eCFR)
  3. NFPA 13: Standard for the Installation of Sprinkler Systems
  4. Global Food Safety Initiative (GFSI)

If something here is wrong or out of date, please let us know.