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Jracking (China) Storage System

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The Cost Budgeting Method For Warehouse Racking

- Aug 10, 2017 -

Warehouse cost refers to the sum of money calculated by the warehousing enterprises in carrying out various elements of the warehousing business activities. Due to the cost of warehouse racking is an important part of logistics cost, it has a direct impact on the logistics cost.


1. Preservation fee. For the maintenance and storage of goods for storage of goods, it includes the storage of goods, the cost of the containers, the property tax of the warehouse, etc.


2. Warehouse management staff salaries and benefits. The salaries of warehouse managers generally include fixed salaries, bonuses and various living allowances. Welfare fees can be extracted according to standard, including housing fund, medical treatment and retirement expenses.


3. Depreciation or rental fees. The fixed assets of the self-owned warehouse need to be extracted each year, and the fixed assets of the external contracting lease shall pay the rental fee each year. Warehousing or rental fees are an important fixed cost of warehousing enterprises, which constitute one of the costs of warehousing enterprises. The fixed assets of the warehouse are extracted in the year of depreciation, mainly including the depreciation of the infrastructure such as the warehouse, the storage yard and the depreciation of machinery and equipment.


4. Repair costs. It is mainly used for the regular repair of equipment, facilities and transportation tools, and can be extracted annually according to the investment of equipment, facilities and transport vehicles.


5. Handling charges. Loading and unloading fee refers to the loading and unloading of goods, such as warehousing, stacking and unloading, including the operation cost of handling equipment and the cost of handling the workers.


6. Administrative expenses. Warehouse management cost refers to the enterprise or department for management, warehousing activities or to engage in a variety of warehousing business of indirect expenses, mainly including the insurance premium of warehouse equipment, office, personnel training, travel, entertainment, marketing fees, utilities, etc.


7. Storage loss. It refers to the cost of the goods damaged in the preservation process. The cause of loss of goods generally include warehouse itself safekeeping conditions, management of human factors, the physical and chemical properties of the goods itself, mechanical damage, etc., in the process of handling practice, should be based on specific circumstances, according to the system of the enterprise standard, distinguish responsibility included in the cost reasonably.

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