What are the Most Common Warehousing Fees?
Warehousing companies have differing warehousing fees and some are more straightforward than others, but in general there are similar practices by all reputable companies. Storage, warehouse volume, and services utilized will discussed to help you get a handle on common ways a company is charged by the warehousing vendor.
Storage charges include rates for goods stored in the facility. This can vary based on how much inventory is needed for different seasons if the business’s sales are indeed seasonal by nature. Most businesses have some products selling in higher quantities at different times of the year so this charge reflects products total inventory usually on a monthly basis.
Warehouse volume charges should be understood as the amount of the warehouse used specifically for one company. This volume charge could include space needed in case of emergencies such as flooded areas, or sudden requests for products that require extra space to ensure clients get the products in a timely manner, and other contributing factors that can vary even based on geographical location of the facility.
Warehousing companies can have many warehousing fees available and depending on the company needs some of these services won’t be utilized. Different technologies for inventories and shopping cart integration exist that may benefit one company, but not necessarily another. Heavy equipment may be needed by one company and not another. Warehousing companies have to offer many different services to try and stay competitive and be able to meet the needs of different types of companies.
Companies should investigate billing practices carefully and ensure there are no hidden fees or variables like the ones listed above that would directly them.
There are many variables that can come into play. Commonalities usually do exist in warehousing companies billing practices, but can also vary based on the type of products and needs of the company employing them.