Do you need additional flexible warehousing to help you cope with surges in demand or a period of growth?
You might be wondering how much pallet storage costs. Fortunately, warehousing is a highly cost-effective way to reduce operational spend while benefiting from exceptional additional services like our Warehouse Management System (WMS).
We've taken a close-up look at the factors affecting the cost. Read on for all you need to know…
Understanding pallet storage
Pallet storage is a simple and efficient way to store bulk product. Pallets are stacked on the floor or in pallet racking, where forklifts can pick them for quick order fulfilment. In this scenario, warehouse companies will total up the number of pallets used to calculate your storage costs.
If you run a business that requires more pick bins, you will need to spend more.
Factors influencing pallet storage costs
External warehousing is a great way to deal with periods of seasonal demand or high growth.
On average, you can expect to pay between £1.50 and £5.00 per pallet per week. However, there are a few areas to take into account when budgeting.
Number of pallets
As you might expect, if you need pallets in bulk, you can expect to pay less.
Length of time
Pallet storage is a cost-effective solution for long-term storage. So expect to pay more if you only need to warehouse goods for a week or so.
Type of pallets
UK companies tend to use standard CHEP pallets measuring 1200mm x 1000mm. However, European companies are more likely to ship their goods using EURO pallets measuring 1200mm x 800mm.
Pallet size can obviously impact the number of pallets than can be stored and the cost of storing them. Non-standard pallet heights above 1.6m can also incur additional storage costs. Of course, you could opt to have your goods re-palletised, but you'll need to weigh the expense against the additional costs of storing non-standard pallets.
You'll also need to factor in the weight of the goods you're storing. As a result, warehousing services for handling, moving and storing heavy goods can work out more expensive than standard palleting.
Stacked or racked?
Block stacking is cheaper than racking, but any cost savings can be offset against increased handling costs. You could also experience more stock damage if your pallets are stacked rather than racked.
Storage rates are like house prices – the better the location, the more you pay. So warehouse location has one of the most significant impacts on storage costs. For example, if your warehouse is close to a major city like Dublin, you can expect to pay higher pallet storage costs.
Most warehouses also price in the risk of storing your goods. So you can expect to pay higher storage rates for fragile goods that require special handling and hazardous items that may need specialised IBC storage. Technical services like cold storage can also impact your overall costs.
Movement of goods
Using the same company to store, pick and distribute your goods can help keep your warehousing costs affordable. Your RH&D costs (receipt, handling and dispatch) will be factored in if you frequently call pallets and replenish your stock. Otherwise, you could find you're paying over the odds while your inventory sits in the warehouse
Titan Solutions can handle it
Don't get caught out when you're weighing up the price of warehousing. It's easy to calculate pallet storage costs without looking at all the other factors, which could cost you extra in the long run.
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