Deduction of storage cost
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 shipment to customers. If it presents a value beyond the forecast, it may lead to an increase in the final price for the customer or low profitability. That is why it is important for companies to analyze the cost of storage and understand how this value is strategic in their financial transactions.
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 related 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 activities carried out in the warehouse. A periodic cost that usually involves professionals such as managers, coordinators, supervisors, lecturers 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 investment value at the time of purchase is divided by the number of months that the assets will be used until they are replaced.
pallet replacement
Palletizing is widely implemented in the optimization of warehouse spaces. Pallets also need to be included in the depreciation calculation.
The cost of storage and the price of the product
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 market numbers, or directly affecting your profit margin.
Reduce process time (order picking and shipping, supply, for example). Águia Sistemas has a vast catalog of solutions to streamline all your warehouse processes.
In any case, the importance of good inventory management is clear so that process costs do not negatively impact the financial health of the company. Get in touch with us for more information, enjoy and also make a quote.