Warehousing services pricing procedure – summary of the lecture delivered as a part of the Logistics Development Program from EBA

On November 12 the lecture on Warehousing Logistics and Supply Chain was delivered under the Logistics Development Program organized by European Business Association in general partnership with ZAMMLER GROUP. During the lecture Ruslan Pereverziev, the Contract Logistics Director of ZAMMLER Company being the Speaker explained the basic concepts of the Supply Chain and components of effective supply chain, outlined the differences between the 3PL operator and the other logistics market players. All the Participants made themselves aware of the full range of warehousing services, key features of various types of warehouses, warehousing equipment and the costs required for its operation. “For example, the average price of the loader used for warehousing operations ranges from Euro 15 000 to Euro 20 000 while the warehouse complex requires dozens of the loaders. The average price of the warehouse management program that should be developed, tested and launched ranges from Euro 150 000 to Euro 200 000. Reach truck costs from Euro 30 000 to Euro 40 000” – stated the Speaker. Furthermore, Ruslan Pereverziev specified the factors impacting the setting of the customer price: “The service price usually includes: overall service execution time and the period of time while no profit was earned (for example, the order waiting period), salary rate (remuneration per unit of time or unit of work), overhead and the other expenses” – told the Speaker. The Participants got an understating of the crucial aspects of successful cooperation between the customer and logistics operator, the importance of complete information provision by the customer and the seasonal factors influencing the warehouse operator activities. “During the peak season the amount of goods handled at the warehouse complexes increases by 30-40% in comparison to the ordinary course. Fasion: the number of orders significantly changes four times per year depending on the new season collections and the sales. Household: the number of orders increases in spring and decreases in autumn  –  the season when the gardening equipment is of high demand and the chain stores actively procure the goods for their warehouses. Print Publishing: the product demand increases before the beginning of the school year and drops by the summer” – stated Ruslan Pereverziev. The Participants of the Program were familiarized with the tools for the warehousing operations monitoring, case picking procedure, Key Performance Indicator (KPI) system, their classification and importance to logistics.