Understanding how to deduct the cost of storage in logistics centers

Companies that do not have their own structure need to live with the cost of rent in their budget

The cost of storing a product refers to the expenses that the company has in the flow of its goods, from receipt to dispatch to customers.

If it presents a value beyond the forecast, it can lead to an increase in the customer’s final price or low profitability.

That’s why it’s important for companies to analyze the cost of storage and understand how this value is strategic in their financial movement.

Check below the different types of costs and how they impact the price of products:

Structure rent and other costs

Companies that do not have their own structure need to live with the cost of rent in their budget. One of the main expenses, but still not the only one linked to the structure. In the calculation it is still necessary to include bills such as electricity, water, taxes and maintenance.

Labor

It obviously refers to the payroll of employees directly linked to the activities carried out in the warehouse. A periodic cost that usually involves professionals such as managers, coordinators, supervisors, arbitrators and assistants.

Depreciation of machinery and equipment

The company’s assets inevitably depreciate over time. This process is called depreciation. To calculate its cost, it is necessary to be aware of what the useful life of these equipment will be. Thus, the total value of the investment at the time of purchase is divided by the number of months that the assets will be used until their replacement.

Pallet replacement

Palletization is widely implemented in the optimization of warehouse spaces. Pallets must also enter into the depreciation calculation.

Storage cost and product price

The final price of the products must include the cost of storage. However, care must be taken so that the value is not too high, thus extrapolating the market numbers, or directly affecting your profit margin.

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Anyway, it is clear the importance of good inventory management so that the costs of the processes do not negatively impact the financial health of the company. Contact us for more information, enjoy and also make a budget.