All companies with a logistics department have the same cost centers, but the way in which expenses are allocated is different for each and not always functional. In addition, sometimes costs are not properly calculated, with the risk of not having an overview of how much the warehouse costs and investing in an inefficient way.
Let’s see together the main cost categories of the warehouse.
Order management
This type of costs includes all the movements concerning the preparation and shipment of orders. The main component is the workforce employed in the selection of goods and in the order processing, as well as the management of any related problems.
This category also includes costs relating to machinery used in the execution of various activities. In a nutshell, these costs include all those related to the movement of goods.
Storage
Storage costs include those related to the storage of raw materials and products, specifically the rental of premises, consumption (such as water and electricity), security measures, specialised personnel and management software.
Administration activities
Any movement of raw materials or goods is closely related to the need to produce, send and, in general, manage documents such as orders and invoices, important activities that have their own cost.
If they are not managed wisely, warehouse costs can increase to the point of becoming excessive for your business.
For this reason it is appropriate to take action upstream, defining how the warehouse works so as to have all the data to put in place an optimization strategy that can increase warehouse performance and allows you to save.
Our company has developed a free check up that gives you an overview based on technical data about how much your logistic area is in compliance with regulations and what can be done or integrated to optimize performance and reduce costs.
LogiCheck is free until 30/04/2020: don’t miss the opportunity to understand how your warehouse works and identify an effective strategy to get the most out of your logistics department.
Find out more at https://www.logicert.it/ and request your free LogiCheck!
