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Understanding Storage Charges

A guide to better understand storage charge calculations

Updated over a year ago

Definitions

Bin Storage: 18” x 12” x 11” - Storage bins for smaller items

Shelf Storage: 19” x 42” x 23” - Standard shelf spaces for cases

Lane Storage: 19” x 88” x 18” - Larger shelf “lanes" for cases and picking larger units

Pallet Storage: 48” x 40” x 54” - Pallet storage

Tag: Tags are virtual containers that store inventory items. Every item must be assigned to a tag. Tag types include: Pick, Pallet, Case, Item, and Bin.

Bin: Tags are assigned to bins, which are (usually) the physical space inventory is stored in. Bin classes include: Receiving, Consumption, Pallet, Case, Item, and Bin.


Background

Storage charges are invoiced on a monthly basis. The amount of the total storage charge is determined by the type of storage that your SKU's take up in our warehouses. Storage costs are minimized by storing your products in their most efficient configuration.


Details

Storage Rates - Below are base storage rates by type of storage:

Storage Fee Type

CAD

USD

MEX

Bin

0.200

0.200

2.667

Shelf

0.333

0.333

4.000

Lane

0.667

0.667

5.333

Pallet

1.333

1.333

13.333

Monthly Charge Calculation - Below are monthly charge calculations by type of storage:

Storage Fee Type

Monthly Charge Calculation

Bin

(# of Total Bins) x (Bin Storage Rate) x (Days in Month)

Shelf

(# of Total Shelves) x (Shelf Storage Rate) x (Days in Month)

Lane

(# of Total Lanes) x (Lane Storage Rate) x (Days in Month)

Pallet

(# of Pallet Tags) x (Pallet Storage Rate) x (Days in Month)

Note 1: 'Bins' here refers to anything with a Bin Class = 'Bin'. 'Shelves' here refers to anything with a Bin Class = 'Shelf'. 'Lanes' here refers to anything with a Bin Class = 'Lane'.

Note 2: Inventory in Pick tags are not charged any storage fees, as they are in the process of order fulfillment.

If you need any additional help regarding this topic, please reach out to us at info@ordergrid.com.


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