Did you know that businesses that use automated cost calculation tools, like Excel templates, can reduce operational costs by up to 25%?

With warehouse cost calculation in Excel, you can easily track and manage costs such as rent, utilities, labor, and freight. This custom template provides a clear breakdown of your expenses, helping you make informed decisions.

Step-by-Step Guide to Calculating Warehouse and 3PL Costs with Excel

You can find below the link that you can use to calculate both warehouse and 3PL costs. 

GET YOUR CALCULATOR HERE

This template simplifies the process, helping you save time and money while offering clear insights into your logistics. It allows you to streamline your budget management and supports informed decision-making, optimizing efficiency and driving your business forward. 

The following pie chart illustrates the typical breakdown of warehouse costs. Understanding these proportions can help businesses identify areas for potential cost optimization and make informed decisions about resource allocation.

As shown in the pie chart, rent and labor typically constitute the largest portions of warehouse costs, accounting for 40% and 30% respectively. Utilities make up 15% of the total costs, while freight and insurance represent smaller but still significant portions at 10% and 5%. 

This breakdown highlights the importance of optimizing space utilization and workforce efficiency to manage warehouse expenses effectively. Businesses may want to focus on negotiating better lease terms or implementing labor-saving technologies to reduce their two largest cost factors. 

Additionally, exploring energy-efficient solutions could help lower utility costs, which represent the third-largest expense category.

Steps for Calculating Warehouse Costs

Follow these simple steps to effectively calculate your warehouse costs.

1. Input your warehouse’s total square footage and the monthly rent cost per square foot.
2. Enter the monthly wage cost for your warehouse staff and the number of employees working in the warehouse.
3. Add the total monthly costs for utilities such as electricity, water, and heating.
4. Input the number of shipments processed monthly and the average cost per shipment (including transportation fees).
5. Don’t forget to input the monthly cost for warehouse insurance coverage.
6. Once all the inputs are added, the template will automatically calculate total freight costs, warehouse rent, labor, utility, and total monthly operating costs.
7. The template will also display the average cost per shipment and operating cost per square foot, helping you optimize your logistics strategy.

Steps for Calculating 3PL Costs 

Now, let’s go through all the necessary steps to calculate 3PL costs for your business.

1. Start by inputting the cost to unload and check inbound containers or pallets. Then, enter the number of containers and pallets processed per month.
2. Input the cost per pallet per day, the number of pallets in storage, and the number of days the inventory is stored.
3. Enter the outbound handling cost per shipment and the total number of shipments processed per month.
4. Add the picking, packing, and order shipping price per order, along with the number of orders fulfilled monthly.
5. Don’t forget to include any additional fees for managing transportation.
6. The template will automatically compute the total inbound handling, outbound handling, and order fulfillment costs.
7. Finally, review the total all-inclusive 3PL costs, which include inbound, outbound, and fulfillment expenses. This allows you to clearly understand how much you are spending on third-party logistics.

What Features Does the Free Excel Template for 3PL Cost Calculation Offer

This sheet is designed to handle the complexities of 3PL costs while providing instant access to a user-friendly experience. Some of its notable features include:

• An intuitive interface that allows for easy data input and analysis.
• Predefined formulas and functions that automate calculations, saving you time and reducing the risk of errors.
• Flexibility to customize the template to match your specific requirements and business needs.

How Does the Template Simplify 3PL Cost Calculation?

The template simplifies the cost calculation process by providing a structured framework. All you need to do is input the relevant data.

• Scenario: Imagine managing multiple shipments, each with varying transportation, warehousing, and administrative costs. Manually evaluating the total expenses for each shipment can be time-consuming and prone to errors.
• Solution: Simply input the data for all costs related to shipment:
  • Transportation 
  • Warehousing 
  • Administrative 
• Automation: It will automatically calculate the total costs for each shipment using predefined formulas and functions. This automation:
  • Saves you time
  • Reduces the risk of errors common in manual calculations
  • Provides accurate and reliable cost data
• Comprehensive Analysis: You will also be able to:
  • Generate reports, charts, and graphs based on the calculated data
  • Gain valuable insights into your expenses
  • Make data-driven decisions for better cost management

This is a valuable tool for simplifying calculations. Its intuitive interface, predefined formulas, and customization options make it a powerful asset for managing your supply chain expenses. You can also:

• Streamline your cost calculation process
• Save time and reduce manual efforts
• Make informed decisions that drive your business forward

What Are the Time-Saving and Financial Benefits of Using This Excel Template

There are significant advantages for businesses that calculate the costs this way. Here  are some of them:

Automated Calculations

Say goodbye to manual number crunching. The template gives you instant access to necessary information and automates the process, ensuring accurate calculations for: 

• Warehousing,
• Transportation
• Handling

This automation not only saves valuable time but also reduces the risk of costly errors.

Comprehensive Freight Cost Analysis

The freight cost analysis template in this Excel sheet is specifically designed to help you quickly assess and compare transportation costs across different shipments. It provides you with detailed insights that allow you to make better decisions regarding your freight and third-party logistics providers.

Tailored for Specific Needs

Whether you manage a small warehouse or multiple third-party logistics (3PL) relationships, you can customize data to meet your business needs. It’s flexible, allowing you to adjust, add or remove fields, and adapt them as your business evolves.

Cost Efficiency

By using spreadsheets to automate your cost analysis, you can better manage your budget. You will get a clear breakdown of various expenses like: 

• Handling
• Storage
• Transportation

This way, you can easily track where your money is going, identify opportunities for cost savings, and improve your overall logistics strategy.

Quick Reporting and Insights

With built-in reporting features, you can easily generate detailed summaries or graphs from the template. This helps you quickly spot trends or inefficiencies in your logistics, allowing you to make data-driven decisions that improve both operational efficiency and financial outcomes.

How Can I Customize the Excel Template to Fit My Specific Business Needs

To get the most out of these sheets, consider the following tips: 

Adjust Metrics

Try and modify key fields such as: 

• Rent
• Labor
• Freight
• Handling costs

Simply update the input values based on your latest estimate, and your total expenses will be automatically recalculated. This adaptability ensures that your cost calculations are always up-to-date and accurate.

Add or Remove Fields

If your business involves additional logistics expenses that aren’t covered by the default template, you can easily add new fields. You can insert custom rows and columns without disrupting the existing formulas. 

Integrate Specific Reports

Many businesses need reports that provide insights into various logistics operations. This way, you can easily create custom charts or graphs to visualize your data. For example, you can generate monthly or quarterly reports to track key metrics like total transportation costs or warehouse utilization rates. This gives you a clear overview of your operations and helps you make data-driven decisions.

Tailor it for Multiple Locations

If your business operates multiple warehouses or works with several third-party logistics providers, you can expand the template to account for multiple locations. You can create individual sheets for each warehouse or provider, or add summary fields to aggregate data across all locations. This makes it easy to track overall performance while still monitoring specific details at each site.

Simplify for Easy Sharing

If you’re collaborating with a team or external partners, such as logistics providers, the Excel template can be simplified for sharing. You can hide unnecessary tabs, lock certain cells to prevent accidental changes and create a user-friendly version that others can use to input data or review specific sections. 

Start Simplifying Your Warehouse and 3PL Costs

Using the Excel template for warehouse cost calculations provides invaluable insights into your third-party logistics expenses. By automating the calculation process, you will save time, reduce errors, and easily identify cost-saving opportunities across various aspects of your operations. 

Whether you’re managing your own warehouse or working with a third-party logistics partner, this Excel tool will help you optimize your operations. Start using the template today and unlock the potential to boost both operational and financial performance.

FAQs

How does warehouse pricing work?

​​Warehouse pricing typically depends on a combination of factors such as the size of the warehouse, the location, and the services offered. The price is often calculated per square foot, with additional fees for labor, utilities, and equipment. Some warehouses may offer different pricing models, including long-term leases, short-term rentals, or flexible pricing based on seasonal demands.

What is included in total warehousing costs?

Several key expenses contribute to the overall operation of a warehouse. These include rent or lease payments for the physical space, labor costs for employees managing inventory and daily operations, and utility costs such as electricity, water, and heating. Additionally, warehouses incur insurance costs to protect inventory, maintenance costs for equipment and facility upkeep, and freight or transportation expenses for inbound and outbound shipments. 

What are the fixed costs of warehousing?

These costs refer to expenses that remain constant, regardless of inventory levels or warehouse activity. These include rent or lease payments for the warehouse space, salaries for full-time employees like warehouse managers or supervisors, and utility bills, such as electricity and water, that tend to remain stable over time. 

How do you calculate warehouse carrying cost?

They are calculated by adding up all the expenses related to storing and managing inventory. These costs typically include the capital costs associated with purchasing or financing the inventory. Together, these factors form the total carrying cost, providing a comprehensive view of the expenses involved in maintaining inventory within a warehouse.

What percentage of warehouse cost is labor?

Labor can account for a significant portion of total warehouse costs, often ranging from 50% to 70%. This includes wages for warehouse staff, managers, and anyone involved in handling, storing, and shipping inventory. The exact percentage will depend on the size of the warehouse, automation levels, and geographic location.