Storage costs

Storage costs are all those that must be incurred by companies to keep their stocks in a warehouse.

Storage costs

That is, the cost of storage is that which is directly related to the task of safeguarding the stock of merchandise in a given space.

Storage costs are varied and can be fixed or variable . The latter increase or decrease depending on the amount of merchandise deposited.

Types of storage costs

The types of storage costs are:

  • Infrastructure costs: They are fixed. We refer to those derived from the physical space where stocks are stored. We refer to the rent (or depreciation in case it is owned by the company) of the building and / or its facilities (such as tools, storage systems and software ), maintenance expenses, insurance, taxes and financial expenses (if it has been resorted to financing to cover these costs).
  • Management costs: They are fixed and variable. Thus, it includes those costs destined to the administration of the warehouse, without including those tasks of handling stocks. Includes indirect staff (including all labor costs such as Social Security ), office supplies and public services (water and electricity).
  • Operation costs: They are variable and correspond to the handling of the merchandise. This is where the personnel who work directly transport and deposit the products (including all labor costs such as Social Security), various materials, equipment maintenance expenses, insurance, obsolescence expenses (in the event that life ends) useful part of the stock).

Likewise, it should be noted that other costs may arise, such as those derived from breakages, damages or erroneous inventory records.

Factors influencing storage costs

Factors influencing storage costs include:

  • Variety of products and quantity for each one.
  • Stock size and shelf life. Thus, the management must be more diligent in the case of perishable goods.
  • Seasonality In some sectors, demand increases significantly at certain times of the year.
  • Location. This, because if the deposit is located in a remote area of ​​the city, the rent will probably be lower than in a central location in the city, which is more in demand.