Determining Warehouse Storage Space: Accurate Calculation vs. Unnecessary Charges
When renting or leasing a warehouse, one of the major concerns is understanding the storage space requirements and ensuring that you are not being charged for excess space. This article will explore the nuances of accurately determining the space required for storage and how to avoid unnecessary charges.
Accurate Methods to Determine Warehouse Storage Space
There are several accurate ways to determine the storage space required for a warehouse. The most common approach involves accurately measuring the dimensions and doing the necessary calculations. Additionally, building plans can be a valuable resource for understanding the space available for operations.
1. Measure It and Do the Math
To determine the exact amount of storage space needed, you should start by measuring the area of the warehouse. This includes the footprint of the space, as well as any additional areas required for operations such as machinery movement and stock handling. Use precise measuring tools and follow the dimensions provided in the building plans. Once you have the measurements, calculate the total area in square feet or square meters. This will help you understand the space you need to store your inventory.
2. Consult Building Plans
Building plans can be a more detailed and accurate way to determine the available space. These plans often include detailed dimensions and layout of the warehouse, including any designated areas for machinery, walkways, and operation equipment. By carefully reviewing these plans, you can get a more precise idea of the usable space and how it can be utilized for storage.
Inaccurate Methods to Determine Warehouse Storage Space
While there are accurate methods, it's also important to be aware of ways that can result in inaccurate or higher than necessary charges. Here are a few examples:
1. Ask the Owner
While the owner of the warehouse may provide an estimate, this method is often less reliable. Warehouse owners may not have an accurate understanding of the exact space requirements, and their estimates can be inflated to ensure a higher lease cost.
2. Ask the Real Estate Agent
Real estate agents, especially those working on commission, may have an incentive to inflate the space requirements. They want to ensure that the lease fee is higher, which benefits them in the short term. To avoid this, consult multiple sources and cross-check the information obtained from the agent with other reliable sources.
Understanding Warehouse Tariffs and Storage Cost Calculation
The cost of warehousing can be calculated in several ways, including tonnage, area, and package basis. The choice of the method can impact the cost and accuracy of the fee. Here’s how to ensure that you are not being overcharged:
Gross Area vs. Net Area
Gross Area includes the actual area of the warehouse plus any additional space for operations such as machinery movement and stock handling. It is generally a more comprehensive measure and can result in higher charges. On the other hand, Net Area is the actual space occupied by the stored inventory, without including additional operational areas. This can be a more precise measure, but it is crucial to understand which area is being charged.
When reviewing the terms of your tariff, clearly define whether the charge is based on gross area or net area. If you are concerned about being overcharged, get the measurement confirmed in your presence and politely request clarification without appearing knowledgeable about the charges. This approach can help in resolving any discrepancies and ensuring that you are paying only for the space you need.
Ware: A Revolution in On-Demand Warehousing
Given the challenges of accurately calculating storage space and avoiding unnecessary charges, businesses are increasingly turning to innovative solutions such as Ware. Ware offers an on-demand warehousing model, allowing businesses to pay only for the space that they use on a daily basis. With a network of over 862 warehouses across the country, Ware provides flexible storage to meet the cyclical needs of businesses, eliminating the need for long-term, inflexible contracts.
Ware is not a traditional 3PL logistics provider. Instead, it offers a streamlined, efficient solution that connects businesses with flexible storage options to warehouse operators with available inventory across India. The platform aims to virtualize space, enabling businesses to dynamically customize their requirements based on their fluctuating needs, leading to better cost management and increased operational efficiency.
To learn more about Ware, visit the Warenow website or call 9818895456 for further assistance.
By understanding the accurate methods of determining storage space and taking advantage of innovative solutions like Ware, businesses can optimize their warehousing operations and reduce unnecessary costs. Whether you are a small business or a large corporation, the right approach can make all the difference in your supply chain management.