Warehousing

The very basic warehousing costs are for receipt, handling and dispatch (commonly referred to as RH&D); however, there are usually additional warehousing costs depending on the type of goods and services that you require. Some of the usual, additional warehousing costs are as follows:

Transport: there will be additional costs to bring the goods to the warehouse for unloading. If the goods are containerised, the container will also have to be restituted (returned empty) which incurs additional costs against your warehousing. Haulage costs are incurred again on distribution.

Storage: if goods are staying in the warehouse, then there will be storage costs associated with renting the space they are in. Palletised goods will usually be rated per pallet per week but dedicated area rental and storage by weight are some other warehousing storage cost options.

Handball / Rework: If goods arrive in the container as loose fill (unpalletised boxes or bags), then there will be a fee for the pallets, wrapping and manpower to make these into palletised goods. Alternatively, if pallets arrive in bad condition and need reworking, these costs can also apply here.

Pick and Pack: If your goods all arrive in the same load, and go out in the same load, then there is very little handling to be done inside the warehouse. If, however, your load requires smaller amounts from several shipments in storage, the warehouse may charge for the extra handling.

At Cory Brothers, we have cost-effective warehousing wherever you need it. Contact us for more info.

Bonded warehousing is where the goods are imported and stored in a HMRC approved location, without the import Duty and Vat being paid. These goods are “under bond” and must not be removed from the warehouse unless the taxes are paid or they are transferred to another bond site.

In order to be a bonded warehouse, the warehouse must separate an area which will be dedicated for bonded goods and file for bonded status with HMRC. Once the approval is given, the bonded warehouse will be assigned a supervising HMRC office who will be responsible for their audits.
HMRC grants separate permissions to the bonded warehouse for each commodity (by customs tariff code) that the bonded warehouse wants to store. This code must be used on the customs clearance and copies of the paperwork must be sent to the warehouse before removal from the port.

When dispatching goods from the bonded warehouse, a new clearance must be made for the exact amount of packages, weight of the cargo and value that is being sent out. The number of packages and weight for the whole shipment must match on the clearance out, but the value can be higher.

Cory Brothers are fully HMRC compliant as per our AEO status, please contact us for more info.

Warehousing facilities fit into 5 different types: distribution centres, private warehousing, public warehousing, automated warehousing and climate-controlled (cold store) warehousing. Inside these types of warehousing facilities there are other criteria such as food or dangerous goods safe.

Distribution centres are very quick turnaround warehousing facilities such as postage or airfreight terminals. Private and public warehouses are longer term warehousing facilities that are either solely owned and filled by a company or owned by a 3rd party warehousing provider with multiple clients.

Automated warehousing is for goods that require very little manpower, or supervision, and are operated almost completely by technology. Climate-controlled (cold store) warehousing contains refrigeration units that keep goods, such as pharmaceuticals or foodstuffs, at certain temperatures.

Any of these types of warehousing facility can also registered as bonded warehousing with HMRC, where the taxes are suspended on the importing of the goods until they are removed from bond on departure. Bonded warehousing helps traders to control cash flow when stockpiling their goods.

Cory Brothers has warehousing facilities for any of your needs. Get in touch to find out more today.

Modern warehousing is where stock management and tracking technology has been installed into the everyday running of the warehouse. With modern warehousing, stock can be located quicker, inventory can be immediately checked and any movements of stock are trackable.

Modern warehousing involves the use of warehouse management systems (WMS) that allow for products to individually identified with SKUs (Stock Keeping Units) and individual shipment references assigned to allow full identification of what stock is left from which shipments.

In recent years, many modern warehousing facilities have upgraded to include barcode scanning capabilities. This is where unique labels are attached and scanned as each item is receipted. The barcodes are then scanned on any internal movement or dispatch to automatically update the WMS.

Cory Brothers have a network of modern warehouses, fully integrated with our Cory+ freight software so that you have total visibility. Get in touch for more info.

It is important to control the cost of warehousing as any ongoing additional costs can quickly affect your profit margins. If your goods are in a competitive market, factoring in the cost of warehousing and having a smaller profit margin can mean there is little room for additional warehousing costs.

Having larger amounts of goods stored also make it important to control the costs of warehousing as this is a big weekly cost. Without a plan to move the goods on within a certain timeframe, warehousing costs can quickly become unmanageable and severely affect your bottom line.

Cory Brothers provides cost-effective warehousing around the globe. Get in touch for more info.