What are the components of storage costs?

Warehousing cost refers to the sum of all kinds of elements invested by warehousing enterprises in the form of money to carry out warehousing business activities. Storage cost is an important part of logistics cost, which directly affects the level of logistics cost. Most storage costs do not change with the inventory level, but with the number of storage locations. Storage expenses include warehouse rent, warehouse depreciation, equipment depreciation, loading and unloading fees, goods packaging materials fees and management fees.

Composition of storage cost:

Different from the inventory cost, the storage cost of commodities mainly refers to various expenses of commodity storage, one is the investment in storage facilities and equipment, and the other is the consumption of live labor or materialized labor in storage operations, mainly including wages and energy consumption. According to the expenditure of goods during storage, the storage cost can be divided into the following categories:

(1) Custody fee

Goods maintenance and storage costs of stored goods, including: shelf and container costs of stored goods, real estate tax of warehouse space, etc.

(2) Wages and welfare expenses of warehouse managers

The wages of warehouse administrators generally include fixed wages, bonuses and various living allowances. Welfare expenses can be extracted according to the standard, generally including housing provident fund, medical care and retirement pension expenses.

(3) Depreciation or lease fees

Some warehousing enterprises undertake warehousing business with their own warehouses and equipment, while others undertake warehousing business with warehouses and equipment contracted and leased from the society. Fixed assets of self-operated warehouses need to be depreciated every year, and fixed assets contracted and leased to foreign countries need to pay rental fees every year. Storage fee or lease fee is an important fixed cost of storage enterprises, which constitutes one of the costs of storage enterprises. The fixed assets of warehouses are extracted year by year according to the depreciation period, mainly including the depreciation of infrastructure such as warehouses and yards and the depreciation of machinery and equipment.

(4) Repair cost

It is mainly used for regular overhaul of equipment, facilities and vehicles, and can be extracted according to a certain proportion of investment in equipment, facilities and vehicles every year.

(5) Handling fee

Loading and unloading freight refers to the loading and unloading expenses incurred during the storage, stacking and storage of goods, including the operating expenses of loading and unloading equipment and the expenses of loading and unloading workers.

(6) Management expenses

Management expenses refer to all kinds of indirect expenses incurred by warehousing enterprises or departments to manage warehousing activities or carry out warehousing business, mainly including insurance, office expenses, personnel training fees, travel expenses, entertainment expenses, marketing expenses, utilities, etc.

(vii) Loss of storage

Refers to the expenses that storage enterprises need to pay due to the damage of goods during storage. The reasons for the loss of goods generally include the storage conditions of the warehouse itself, the human factors of managers, the physical and chemical properties of the goods themselves, and the mechanical damage during handling. In practice, the responsibility should be included in the cost reasonably according to the specific situation and the institutional standards of enterprises.