The purpose of this document is to determine the fundamental factors that influence the maintenance costs of warehouse buildings and to provide reference indications for the design of efficient warehouses in maintenance that contribute to improving business performance. Design/methodology/approach: relationships between factors and indicators of building facilities maintenance costs are examined using regression analysis of a data set collected from approximately 100 distribution warehouses leased by a leading transportation provider worldwide.

1. Factors that Affect Warehousing Costs
1.1 Abstract
The purpose of this document is to determine the fundamental factors that influence the
maintenance costs of warehouse buildings and to provide reference indications for the design of
efficient warehouses in maintenance that contribute to improving business performance.
Design/methodology/approach: relationships between factors and indicators of building facilities
maintenance costs are examined using regression analysis of a data set collected from
approximately 100 distribution warehouses leased by a leading transportation provider
worldwide.
1.2 Introduction
All companies with warehouses bear the same costs, but they are calculated differently. The
purpose of this is to present a costing system that affects warehousing. Since there is a monthly
charge for storage space, there is a monthly charge for space management (storage). The work
involved in processing materials as they arrive and leave the warehouse is included in the time
management component. Whether you are simply providing warehouse services for your
business, what is presented here will allow you to isolate and analyze the impact of warehouse
costs.
1.3 The Cost of Various Types of Warehouse Storage
Some warehousing costs are often overlooked or misallocated because the analyst is unsure what
they are related to. The cost models presented here are designed to ensure that no element is
overlooked. Each user must customize the models and make their own decisions about the
allocation of administrative costs.
1.3.1 Manipulation
All costs associated with moving products to and from the warehouse should be accounted for in
the processing cost center. The most important component is the labor used to process the
product as it moves through the distribution center. Processing includes all costs associated with
equipment used to process products in the warehouse, such as the depreciation of equipment and

2. the cost of fuel or electricity to power the equipment. Other handling costs include truck or rail
car delays, maintenance supplies, and garbage collection.
1.3.2. Storage
Storage is expressed as a monthly cost because it is related to the cost of the premises, and these
costs usually accumulate each month. Storage costs are associated with “stored items”. These
costs will be incurred regardless of whether any product has been moved. Storage costs are the
total cost of locating a facility if the entire building is to be used.
1.3.3 Operations Management.
These costs are incurred to support the operations of the distribution center. These costs would be
eliminated if the facility were closed. Linear supervision, administrative services, information
technology, supplies, insurance, and taxes are included.
1.3.4 Administrative Costs in General
This category includes costs that have not been incurred for a specific distribution center.
Non-operating personnel, general administrative expenses.
1.4 Which Cost Factors to be Consider
For example, using poor-quality packaging can increase the overall cost in terms of the
percentage of products damaged in transit. Other factors that can affect the cost of logistics
include:
1.4.1 Fare - The cost of actually moving a product from one point to another is the largest
factor in the total cost of the supply chain, typically 50% of the total cost. This includes, but is
not limited to, costs directly related to transportation, such as fuel or transportation costs,
insurance, etc.
1.4.2. Product Protection - As noted above, one of the functions of packaging is to protect
the product from damage during transit. Packaging inadequate to protect the product will result
in costs associated with damage to or destruction of the product; on the other hand, packaging
that provides more protection.

3. 1.4.3 Loading and Unloading Costs - Moving a package, such as moving it from a
wagon to a truck, increases the shipping cost of the product. Packaging design and shape can
increase or decrease this cost.
1.4.4 Warehousing Costs - Depending on the specifics of a particular batch of goods, it may
take some time for storage before continuing on the way. Product storage costs may vary
depending on the packaging used. Packaging that provides adequate weather protection may
allow batches of certain types of goods to be stored outdoors or in warehouses where there is no
climate control.
1.4.5 Administrative Costs - Tracking costs, allocation of resources for shipping and
handling, contact with suppliers, coordination of operations, etc. Contribute to the cost of
logistics. Environmental protection costs. Environmental factors can affect the overall logistics
value of a business. This can take the form of landfill resource costs, fuel costs, and other similar
costs. These costs can be specific - quantifiable in dollars - or more subtle, such as total costs for
the environment.
1.5 Start Using Logistics Warehouse Services
Building a logistics provider model Some private warehouse operators conduct their business in
the same way as public warehouses. In-house storage and handling costs are determined and the
warehouse manager is responsible for operating profitably at set rates.
1.6 Conclusion- The study provides insight into the main factors that influence warehouse
operations in the supply chains of small manufacturing companies. The results of the study are
limited to small businesses in the state, so the findings cannot be generalized to medium to large
businesses operating in other parts of the country with different business environments.