ACCOUNTING FOR THE COST OF STORAGE OF A UNIT OF GOODS

The increase in the number of orders, the expansion of the range, the emergence of new sales channels indicate the positive development of the online store. Work brings profit, and this, of course, is a reason for happiness. But there are nuances. In parallel with the increase in sales, the business owner needs to ensure the availability of the product, maintain the standard of customer service speed and take care of delivery. All this is related to the cost of a unit of storage.

There comes a point when the business gets so big that the owner doesn’t want or doesn’t have time to run it on their own. It is necessary to make a choice – to hire people or to outsource activities. It is worth studying the rules of both options and making sure that the client is satisfied and the online store makes a profit.

When making a purchase decision, store customers pay attention to the price and speed of order processing, the availability and assortment of goods, timeliness and low delivery costs. For the client to return, such factors must be at a high level. What elements of logistics should be paid attention to? It all comes down to seven basic rules (7R):

• the correctness of the product;
• its sufficient quantity;
• ideal condition;
• suitable storage location;
• time control for order processing;
• presence of a client base;
• reasonable prices for products;
• optimization of logistics processes.

Proper customer service starts from the moment an order enters the store panel. In order for the customer to return, everything possible must be done to ensure that he is satisfied with the services at every stage of order processing. Does this mean that today the warehouse does not have the ability to work quickly and efficiently without the support of Warehouse Management Systems? Not necessary. It all depends on the scale of sales, the size of the warehouse and the experience of storekeepers.

All entrepreneurs are aimed at increasing profits and optimizing costs. This applies to every department of the company, but is most noticeable in logistics. What are the main costs associated with a warehouse? It all depends on the industry and the specifics of the company. However, in e-commerce, most of the costs are similar. Sales planning will directly depend on the following costs:

1. Rental of warehouse space or creation of a warehouse, and then expenses for its maintenance – technical inspections, purchase of stationary equipment (racks, pallets, packaging machines), maintenance of access roads and parking, purchase of mobile equipment (forklifts, vehicles) and others, such as collectors and IT systems.
2. Maintenance costs – To ensure safety, all equipment must be checked regularly. This mainly concerns the control and repair of racks, the correct order of appliances, lighting, etc.
3. Media bills must also be paid at the warehouse. Electricity, gas and heating – these costs can be high, especially if there is no warehouse adapted to standard storage conditions, or the goods stored in it must be kept in special conditions.
4. Rental, removal of old equipment or consumables – some items cannot be disposed of in standard trash cans.
5. Other costs associated with goods and their storage – maintaining the uninterrupted movement of resources, the cost of storing products, the costs associated with their lack of rotation or lack of space for new arrivals.

Some aspects that seem insignificant at first glance can later become a big burden on the company’s budget. Therefore, already at the initial stage, it is worth thinking about optimizing and reducing the cost of a storage unit.

You can take advantage of the experience of organizing the fulfillment process from the specialists of our company. We know how to make life easier for the owner of an online store and help bring his business to a new level.