Audit a warehouse storage quote before signing

Define the billing unit

Storage may be billed per pallet position, cubic metre, bin, square foot, or item, and may use daily, weekly, or monthly snapshots. Ask how partial periods, peak inventory, and non-standard pallets are treated.

Create a month-by-month pallet forecast rather than multiplying the opening inventory by an annual rate. Include expected receipts, sales, seasonal peaks, and slow-moving stock.

Add movement and service fees

Inbound and outbound pallet handling, container unloading, labelling, put-away, pick-and-pack, cartons, order fees, returns, cycle counts, EDI, account management, and carrier handoff may outweigh storage. Capture which services are included and the minimum monthly invoice.

Long-term storage, oversized items, hazardous goods, weekend labour, and urgent orders often have separate rates. Mark each as included, excluded, or scenario-dependent.

• Use a representative order profile.
• Model a peak and a normal month.
• Check annual price increases and exit charges.

Compare cost with operating fit

Normalise total cost per order, per unit, and per pallet-month, but score cut-off times, accuracy, integrations, claims, and capacity separately. The cheapest model is not useful if the service cannot support the promise made to customers.