What are the components of warehousing costs?

Warehousing costs refers to warehousing enterprises in the development of warehousing business activities in a variety of elements of the input to the sum of monetary calculation. Warehousing costs are an important part of logistics costs, logistics costs have a direct impact on the high and low. Most of the warehousing costs do not change with the level of inventory changes, but with the number of storage locations and change. Warehousing costs include warehouse rent, warehouse depreciation, equipment depreciation, loading and unloading costs, cost of goods packaging materials and management fees.

Composition of warehousing costs:

Unlike inventory costs, the cost of warehousing goods mainly refers to a variety of expenditures for the custody of goods, part of which is the investment in warehousing facilities and equipment, and the other part of the warehousing and storage operations for the consumption of live labor or materialized labor, mainly including wages and energy consumption. According to the goods in the custody of the process of expenditure, can be divided into the following categories of warehousing costs:

(a) storage costs

for the storage of goods by the expenditure of goods maintenance, storage and other costs, which includes: for the storage of goods, shelves, containers of the cost of the expenses of real estate taxes on the warehouse site, etc..

(ii) the warehouse management personnel wages and welfare costs

Warehouse management personnel's wages generally include fixed wages, bonuses and a variety of living allowances. Welfare costs can be drawn on a standardized basis, generally including housing funds, medical and retirement pension expenditure.

Warehousing enterprises have their own ownership of warehouses and equipment to undertake external warehousing business, some of which are contracted to the community leased warehouses and equipment to undertake external business. Self-operated warehouses need to draw depreciation of fixed assets each year, contracted leased fixed assets need to pay annual lease payments. Warehousing or leasing fees is an important fixed costs of warehousing enterprises, constituting one of the costs of warehousing enterprises. On the warehouse fixed assets according to the depreciation period over a period of years, mainly including: depreciation of infrastructure such as warehouses, yards and depreciation of machinery and equipment, etc..

(d) repair costs

Mainly for equipment, facilities and means of transportation for regular overhaul, can be withdrawn annually at a certain rate of investment in equipment, facilities and means of transportation.

(E) handling and transportation costs

Handling and transportation costs refers to the goods into the warehouse, stacking and out of the warehouse and other aspects of the loading and unloading costs incurred, including the operating costs of the handling equipment and the cost of handling workers.

(F) management costs

Management costs refers to the warehousing enterprise or department for the management of warehousing activities or carry out warehousing business and the various indirect costs incurred, mainly including the insurance of warehouse equipment, office expenses, personnel training costs, travel expenses, hospitality, marketing costs, utilities and so on.

(VII) warehousing losses

The process of storage of goods damaged and the need for warehousing enterprises to pay the costs. The reasons for the loss of goods generally include the storage conditions of the warehouse itself, the management of human factors, the physical and chemical properties of the goods themselves, the handling process of mechanical damage, etc., in practice, should be based on the specific circumstances, in accordance with the enterprise's system of standards, responsibility for reasonable costing.