What a warehousing company charges usually varies based on the company and their capabilities. There are many factors that can affect the total charge for storage, handling your product, and administrative fees.
Storage includes not only the goods that are held at the warehouse facility, but also the cost of the facility itself. If your product are going to utilize the whole facility then the total cost for the facility is included in the charge. Usually this charge is a monthly expense.
Handling includes expenses for moving your products. This would include receiving, inventory being placed in warehouse, fulfilling orders, and shipping. This also usually covers the costs of the machinery and technology associated with the process from start to finish.
Administrative components include, supervision and management, supplies, insurance, staff, IT, and taxes. These influence the overall cost of running the warehousing company and are factored into your overall charge for the warehousing service.
Best Way to Compare Warehousing Charges
The best way to compare warehousing charges is to look at the capabilities of the companies and see who has the best technology and which maximizes efficiency. Also, think about future expansion needs to ensure you choose the right company with the resources to handle your business needs now and in the future. The total charges do vary, but with competitive offers from multiple warehousing companies you are sure to come out ahead.