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Technical Paper

On the use of cost budget method for warehouse racking

Date:2015-07-27    【size:Big Middle Small

Warehouse Cost is the sum of all kinds offactors in storage during business activities. Because the cost is an importantpart of the logistics cost which has a direct impact on logistic cost.


1. Custody fee. For the storage of goods,the cost of maintenance, storage, etc., it includes for goods storage racking, thecost expanses of container, the real estate tax of warehouse site, etc.

2. Staff wages and benefits. Staff salariesgenerally include fixed wages, bonuses and any kinds of living subsidies.Welfare fees can be extracted according to the standard, generally includingthe housing fund, medical and pension expenses, etc.


3. Depreciation charge or rental fee. Thefixed assets of private warehouse need to be extracted from the depreciationexpense each year, and the fixed assets of foreign contractual lease arerequired to pay the rental fee. Storage fee and rental fee is one of theimportant cost of storage enterprises. On the basis of thedepreciation of the fixed assets of the warehouse, the main points includingstorage, storage site and other basic facilities of the depreciation ofmachinery and equipment, etc.


4. Repaircosts. Mainly used in equipment, facilities and transport facilities of theregular repair cost. Each year, it can be extracted from the amount ofinvestment in equipment, facilities and transport.


5. Loading and unloading costs. Unloadingfee is refers to the cargo warehousing, stacking, and ex-warehousing such aspart of the loading and unloading costs, including the cost of handlingequipment operating costs and porters.


6. Management costs. Cost managementrefers to the storage enterprises or departments for warehouse managementactivities or carrying out warehouse business, including warehouse equipmentinsurance, office expenses, staff training costs, business travelling expenses,entertainment expenses, marketing costs, utilities, etc.


7.Storage Loss. It refers to the storageprocess of goods damage and the warehousing enterprises needs to pay the cost.The cause of loss of goods generally including warehouse storage conditions,personnel management, human factors, physical and chemical properties of thegoods, handling in the process of mechanical damage etc., In actually,according to the specific circumstances, in accordance with the enterprisestandard system, clearly define the responsibilities and included in the cost.


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