7) An agreed departure date from which the agreed minimum will be placed the customer`s request and storage requirements are known to be unpredictable and to counter a purchase or purchase contract to Expresses Ltd that allows our customers to purchase goods on an agreed date. Before proceeding with the necessary steps to reduce your storage costs with contractual agreements, it is important to understand what is included in these costs. A company`s accounting costs define the cost of managing the stock over a longer period of time. First, there are the costs of the company to finance its inventory. Second, the costs of aging and inventory damage, as well as the high cost of ruined inventory. Third, there are storage costs related to lower sales due to low inventory or inventory inaccuracy. Fourth, inventory management entails other costs and, finally, transportation costs for inbound shipments of raw materials and parts, as well as freight coming out of finished goods. 4) Reduce delivery times – Spike`s requirements (depending on storage) can be covered with stock in stock and then replenished There is nothing worse than ringing your supplier and they have no stock. This causes delays in the timeliness of your products, a message of apology to the end customer to inform about a delay and may prevent you from collaborating with that supplier. When companies estimate these costs, they often find that their storage costs vary between 30% and 40% of the available storage value. As a result, most companies charge a standard monthly storage fee of 3% on their stock. These 3% cover all of the inventory cost items mentioned above.
Therefore, the focus should be on reducing this monthly fee by 3% through good contractual agreements. How will this be done through the use of supply contracts such as framework contracts? We know how important it is to provide our customers with a reliable and flawless supply of inventory. Precise readings are kept for each component to allow for immediate recall and immediate reporting. We are accredited and all inventory control processes are compliant with the British Standards Institution – BSI. In short, customer service is the priority of everything we do and we will do everything in our power to meet the needs of customers with intelligent stock management. Admittedly, the top is just one example. However, when it comes to reducing your storage costs with contractual agreements, it`s really about identifying your company`s biggest storage reducers and using your flat-rate orders to reduce the impact. In addition, it is so important that it accepts the sharing of this burden with your supplier, as it ensures that your seller respects the responsibility described in the agreement. If the agreement is entirely structured in your favor, you never receive the type of service from your lender to make it work. A good rule of thumb is the follow-up of quarterly framework agreements for which your company agrees with 4.5% storage costs for the duration of the quarter.