Offset Cost with Storage

Offset Cost with Storage

A logistics operation needs to have multiple revenue streams to offset the various cost that comes with a mature operation. Rents are usually a high line items on a company's income statement. And offsetting that cost with revenue generated by deliveries can present a bit of a challenge, this is particularly the case because driver commissions offset delivery revenues. Similarly, income produced by cross-docking operations also carry high labor cost. But revenues generated by long-term storage is a direct offset to warehousing cost. It is not easy to find long term storage customer, especially in the logistics industry where people earn high incomes to ensure there is little waste in the supply chain. 

Read More