Warehouse rental
Warehouse rental and storage cost recharging: how do logistics service providers structure this process?
For logistics service providers, storage is rarely just a matter of renting out square metres. In a professional warehouse, costs arise from space utilisation, handling, staffing, administration, quality control and other additional services.
That sounds simple, but in practice, recharging storage costs is often complex. One customer may use pallet locations, while another pays per m³ per day. Bulk goods require different units of measure than consumer goods, and Value Added Services such as labelling and repacking must be recorded separately.
A good setup does not start with the invoice, but with the operation. What is being measured? Which agreements are stated in the customer contract? And can the WMS reliably capture this data?
What does recharging storage costs mean?
Recharging storage costs means that a logistics service provider invoices the costs of warehouse space and related activities to the customer using that capacity. This may involve fixed warehouse rental, variable storage costs or activity-based costs.
In practice, multiple models are often combined. For example, a customer pays a fixed monthly amount for reserved space, plus variable costs for inbound, outbound, order picking and additional work. During seasonal peaks, bulk storage or temporary inventory, this may be supplemented with a daily rate or volume-based rate.
The goal is not to make every movement unnecessarily complicated. The goal is to allocate costs to the right customer in a way that is fair, verifiable and reproducible.
Which cost components are usually recharged?
The exact price structure differs per logistics contract, but most storage invoices consist of a combination of space, time, handling and services.
Storage space
The basis is often the use of warehouse space. This can be calculated per pallet location, per m², per m³, per location, per tank, per silo or per bulk zone. For standard pallet storage, a rate per pallet per day, week or month is common. For bulk goods, a rate based on volume, weight or a specific storage unit is usually more appropriate.
For dry bulk, this may involve silo content, big bags or floor storage. For liquid bulk, tank capacity, compartmentalisation, cleaning and product compatibility play a larger role.
Time in storage
Storage costs do not arise only because goods are present, but also because they occupy capacity for a certain period of time. That is why the reference date is important. Some service providers calculate based on daily inventory positions. Others work with weekly positions, monthly positions or average inventory over a period.
For variable storage, the choice of measurement method determines the invoice. A daily position is more accurate, but administratively more demanding. A monthly position is simpler, but may distribute peaks or short stays less fairly.
Handling
Handling costs arise from physical movements in the warehouse. Think of unloading, inbound inspection, put-away, relocation, order picking, outbound, loading and returns processing. These activities are often invoiced per pallet, package, order line, kilogram, hour or action.
With cross-docking, storage time is often limited, while handling is the dominant factor. Goods are received, checked, sorted and quickly forwarded. A storage rate is then less logical than a rate per inbound unit, outbound unit or cross-dock handling activity.
Value Added Services
Value Added Services (VAS) are additional logistics activities on top of standard storage and handling. Examples include labelling, repacking, sticker application, bundling, sealing, display building, quality control, sampling, repackaging or product-specific documentation.
These activities often require additional labour, materials and checks. That is why they are usually registered and invoiced separately. In food & beverage, batch control, expiry date registration, allergen information or temperature registration may also be part of the operational cost structure.
Administrative and contractual costs
In addition to physical activities, there are also administrative costs. Think of customer management, inventory reports, customs documentation, inventory corrections, project management, customer-specific reports or system integrations. Not every logistics service provider invoices these separately, but they should be included in the cost price model.
Which registration points are needed in the WMS?
A reliable invoice starts with reliable registration in the WMS. Three types of data are especially important here: inventory positions, activities and contract rules.
Inventory positions
The WMS must know which goods from which customer are stored at which location. At minimum, this includes customer, item, batch or lot number, quantity, packaging unit, storage location and inbound date. In food & beverage, expiry date, temperature zone and traceability information are often added.
For pallet storage, unique identification of logistics units is important. A pallet, container, tank or batch must be traceable as a separate unit. Without that registration, it becomes difficult to reliably determine storage duration, movements and status changes.
Activities
Every billable activity must be recorded as an event. Think of receipt, quality control, internal relocation, order pick, packaging, cross-dock, outbound, return, VAS activity or correction. For each activity, it must be clear for which customer it was performed, how many units were processed and which rate applies.
This is especially important for customers with different contractual agreements. The same action may be included in the monthly rate for customer A, while customer B pays per action.
Contract rules
The WMS or the connected invoicing system must be able to apply contract rules. Think of rates per unit, minimum rates, tiered pricing, free storage days, different rates per zone, surcharges, project rates and validity periods.
Without contract logic, manual work arises. Employees then have to export WMS data, correct it in Excel and then create invoice lines. This increases the risk of errors and disputes.
From WMS registration to customer invoice
The translation into invoicing usually takes place in three steps.
First, the WMS records inventory positions and activities. This data is then enriched with customer contracts and rates. Finally, invoice lines are created in the financial system.
A clear invoice line contains at least a description, period, unit of measure, quantity, rate and total amount. For example: storage pallet locations January, 1,240 pallet days, rate per pallet day. Or: VAS labelling, 3,600 units, rate per unit.
For finance controllers, traceability is crucial. Every invoice line must be traceable back to operational data. If a customer asks why 1,240 pallet days have been calculated, it must be clear which inventory positions, locations and dates were used.
Common mistakes in practice
A common mistake is that storage agreements are recorded too generally. For example, a contract mentions “storage per pallet”, but not whether this applies per day, week, month, average inventory or peak inventory. This leads to discussion later.
A second mistake is that VAS activities are not registered immediately. If employees have to recall from memory at the end of the week how many pallets were repacked or labelled, the invoice becomes vulnerable.
Free storage days are also often underestimated. For many customers, the first days after inbound are free of charge. The WMS must then know exactly when goods were received and from which date storage costs start.
A final mistake is treating cross-docking as regular storage. Operationally, that is usually incorrect. Cross-docking requires its own rate structure, focused on handling, sorting and flow-through.
Best practices for logistics service providers
A robust process starts with clear rate definitions. Record per customer which units are used, when costs arise, which activities are included and which are invoiced separately.
Also ensure that registration takes place as close to the operation as possible. A scan during inbound, outbound or a VAS activity is more reliable than a manual correction afterwards.
Work with periodic checks as well. Compare WMS positions with invoice lines, check exceptions and discuss deviations with operations before the invoice is sent to the customer. This prevents credit notes and disputes.
Finally, version control is important. Rates change, customer agreements change and storage models are adjusted. Therefore, always keep the history of rates and contract rules, so that old invoices can still be explained later.
Conclusion: recharging storage costs requires clear data and agreements
Warehouse rental and recharging storage costs require more than a rate per pallet location. A professional logistics operation combines space utilisation, storage duration, handling, cross-docking, VAS and administrative components into one controllable process.
The core lies in proper registration. The WMS must record which goods are stored where, how long they remain, which activities take place and which customer agreements apply. Only then can finance create reliable invoice lines.
For logistics service providers serving multiple customers, correct recharging is essential for margin control. Not because every action must be invoiced as much as possible, but because costs must be transparent, fair and explainable.
Sources and background
• Savills, Reorientation in Logistics Real Estate: Shocks and Stability in the Dutch Market
• CBRE Netherlands, Real Estate Market Outlook 2025: Logistics
• Infios, WMS 3PL Billing
• Cleverence, Invoicing Best Practices for 3PL Providers: Tariffs, Pricing, and Error-Free Billing
• GS1 Netherlands, Serial Shipping Container Code, SSCC
• GS1, GS1 Logistic Label Guideline
• ProLogistik, Value Added Services