Trucking: transportation cost vrs warehouse cost, inbound freight, x square

Question
Jim, if i am in a warehouse at exit 10 NJT paying $4.50/sf, is it worth going to exit 8A and paying $3.50/sf? i have 25 loads going to Port Elizabeth/week?
thanks

Answer
Dan, this is the classic trade off question in logistics.
I don't have enough specific info to answer your question but with these few variables you can do a simple analysis in Excel.
Build two scenarios and do an annualized cost estimate.
Warehouse - cost x square feet (adjust to the actual size you will need to pay for + any other facility related taxes and other costs)
Transportation - get quotes from your carrier(s)from both origins.  Don't forget the inbound freight analysis.
Annualize all costs and compare total logistics cost for the two alternatives.  If the estimates are close you can then consider other soft issues to make your final decision.
Hope this helps.