How Do You Calculate Warehouse Storage Costs?
Having the ability to properly calculate and report the actual warehouse storage costs is a key to financial planning as well as logistics and inventory planning. There are many factors which must be considered when calculating these expenses. Capturing this data can be challenging, but it is critical if a company is to know its true costs and profit, and determine where improvements can and should be made. Step 1 Measure the outside walls of the warehouse. This should include all areas of the building on which you are paying rent and which are considered a part of the warehouse. If the building is oddly shaped or has been expanded multiple times, this task can be somewhat time consuming. Once you have completed the measurement, calculate the number of square feet in the warehouse. For this example, we will say the warehouse is 175 feet deep and 230 feet long. This results in a total of 40,250 square feet (175 X 230 = 40,250). This is the first number you will need to complete your sto
