The main challenges of managing an industrial warehouse and how to overcome them in free trade zones 

Managing an industrial warehouse sometimes becomes a complex challenge due to several factors, such as efficient inventory management, resource optimization and logistics management. However, operating a warehouse in a free trade zone provides advantages that allow overcoming these challenges. The important thing is that businessmen and organizations know some steps to make the most of the benefits of free trade zones.  

The first thing worth noting is to indicate some figures that reveal that Colombia is at the forefront with its free zone infrastructure, as the Free Zones Association of the Americas reveals in its report, 'Free Zones Statistics of Iberoamerica 2022', which highlights very revealing data and indicates that we are a strong country in the use of this type of platforms. 

For example, the document informs that free trade zones in LATAM exist since 1923, where Uruguay is the nation with the oldest regime in the region. Colombia was born in 1958, even before Brazil. 

Colombia ranks fourth among the countries with the highest number of companies operating under the free trade zone regime, with a total of 929, only surpassed by Panama, Chile and Uruguay. 

It is also noted that free trade zones in the region generate close to one million direct jobs and an estimated 1,600,000 indirect jobs, that is, 2,600,000 formal jobs. Colombia is also a leader in this area: 

Source and image credit: Iberoamerican Free Trade Zone Statistics Report 2022

Now that we have contextualized the importance of free trade zones and what they mean for Colombia and the region, let's analyze the main challenges of an industrial warehouse. industrial warehouse in a free trade zone. 

1. Efficient inventory management is one of the main challenges in managing warehouses in an industrial park. Maintaining a balance between excess and shortage of inventory is critical to avoid unnecessary costs and supply chain disruption. 

In a free zone, the companies that are established will have a different customs control and a better visibility of the flow of goods. In addition, the existence of simplified customs procedures and the possibility of storing goods in bonded warehousing facilitate a more efficient inventory management. In other words, an advantage for those who take warehouses in an industrial park. 

2. Optimization of resources: good management of warehouses in industrial parks includes optimizing available resources, such as storage space and manpower. In free trade zones, companies have access to modern facilities adapted to their logistical needs. 

Many companies install specialized infrastructure, such as automated storage systems and state-of-the-art technology, which allows for better use of space and greater process efficiency. In addition, free trade zones are attractive for investment, which facilitates the hiring of qualified personnel specialized in the management of an industrial warehouse.

3. Logistics management is a critical aspect in the operation of an industrial warehouse. Coordinating the transportation, reception and dispatch of goods in an efficient manner is a highly complex challenge. However, in free trade zones, integrated logistics is encouraged, as they are strategically located with close access to ports and airports. 

At the same time, in these areas, there are often specialized logistics companies that provide highly efficient transportation and distribution services, which facilitates the logistics management of warehouses in an industrial park.

4. Customs and tax advantages: it is necessary to be very attentive to the processes to really take advantage of the significant customs and tax advantages for the companies that operate in them. You must have everything in order for these benefits to be applied and not make a mistake that leads to penalties.  

You might be interested in: 

Discover the difference between free trade zone and free port to maximize your commercial opportunities.

More alternatives to take advantage of an industrial warehouse in free trade zone

According to data from the Ministry of Commerce, Industry and Tourism, as of February of this year, exports from free trade zones represented 11.33% of the value of goods exported from free trade zones, an increase of 5.85 p.p. over the same period of the previous year. 

In that order of ideas, imports up to February 2023, meant 6.06% of the value of merchandise entries to free trade zones, in this case, a small increase of 0.43 p.p. than the same period of the previous year. Free zones are on a positive path in Colombia. 

To further strengthen this highway with more lanes, companies that set up in free trade zones can adjust some processes and continue to increase their productivity. 

• Research and planning: before using an industrial industrial warehouse in a free trade zone, it is essential to conduct thorough research and develop a solid plan. That is, to know the regulations and specific requirements, in addition to understanding the tax and customs laws that allow making informed decisions on the strategic location to choose the warehouses in industrial park and the types of activities that can be performed.

Zona Franca de Occidente provides this research and planning service through its Master Plan line, so that organizations know in detail the process to be carried out, with this they will have complete information and will not be alone in the transition path to establish themselves in a free zone. 

• Space optimization: Once settled in one of the industrial park warehouses, it is important to optimize the available space. The internal layout of the industrial warehouse must be carefully evaluated to maximize storage capacity and facilitate efficient logistics operations. Consideration should be given to the use of shelving, organization systems and inventory tracking technology to maximize space and streamline processes.
• Diversification of activities: warehouses in an industrial park do not have to be limited only to the storage of products. They can be used to diversify your activities and add value to your business. There is the alternative of considering the incorporation of value-added services, such as packaging, labeling, assembly or even light production activities. This broadens the range of complete solutions for customers, allowing them to differentiate themselves from the competition.
• Efficient logistics: The strategic location of warehouses in industrial parks facilitates efficiency in the supply chain. This advantage can be maximized by having efficient logistics. It is advisable to evaluate available transportation routes, customs services and delivery times to optimize logistics operations and ensure customer satisfaction.
• Collaboration and networking: it is an environment conducive to establishing business connections and establishing strategic collaborations. Participating in events, trade fairs and meetings with other companies in the free trade zone is functional. These interactions open up business opportunities, facilitate knowledge sharing and generate synergies that drive your company's growth. 

It should be emphasized that the negotiation between companies operating in free trade zones is an advantage that few businessmen are aware of.

• Compliance with regulations: Although free trade zones offer tax and customs benefits, they also imply compliance with specific regulations. Make sure you know and comply with all the regulations in force, both in the warehouses in the industrial park and in the country of origin of the products. This will avoid legal problems and allow you to take full advantage of the benefits offered.

In Zona Franca de Occidente we offer you the one that best suits your needs and projects. Find out more details and contact us for specialized advice. Choose the best warehouses in industrial park available in the market.