Don't Let Your Warehouse Eat Your Profits!
The future of logistics is flexibility and avoiding unnecessary costs. Let’s analyze why you should switch to frequent, smaller deliveries from us instead of maintaining your own costly warehouse.
What's the Real Cost of Storing One Pallet?
Let’s start with the facts. External pallet storage in Poland (3PL – Third-Party Logistics services) is an excellent benchmark, as it reflects the true market costs any company would incur.
Current average market rates for storing one pallet in a logistics warehouse in Poland are approximately:
| Cost Type | Average Market Rate (Net) | Notes |
| Monthly Storage Cost (Pallet Slot) | €4.65 – €5.81 / month | Fixed warehouse costs. |
| Inbound/Outbound Fee (Handling) | €1.40 – €3.49 / pallet | Logistics service fee. |
Important Note: These are just the external service costs!
In-house storage involves many hidden costs that are often forgotten when budgeting (e.g., cost of frozen capital and property taxes).
Cost Analysis: Sea Container vs. Frequent Orders
To illustrate the difference, let’s look at a large sea container. A standard 40-foot (HC) container typically holds about 25 EURO pallets (120x80cm).
Scenario 1:
You Order a Large Container (25 Pallets) and Store It Yourself
You buy and store stock for 3 months (25 pallets for 90 days). This generates high fixed costs (wages, utilities, rent, risk) regardless of your sales pace.
Scenario 2:
You Order Small Quantities, More Frequently (From Us)
Instead of one container for 3 months, you order 3 smaller deliveries monthly. You only pay for goods when they are needed, minimizing storage time and maximizing liquidity.
Real Savings: Storing With Us Is Your Profit
The following calculation shows the minimum savings over a 3-month period (a quarter), achieved by avoiding self-storage of 25 pallets.
1. Savings on Operational Logistics
We will use the conservative average rate of €4.65 per month for storage and €3.49 for combined handling.
| Cost Type | Calculation for 25 pallets / 3 months | Savings (€) |
| Monthly Storage Cost | 25 pallets×€4.65×3 months | €348.75 |
| Handling Cost (Inbound & Outbound) | 25 pallets×€3.49 | €87.25 |
Total Operational Logistics Savings | €436.00 |
2. Savings on Inventory Carrying Cost (ICC)
We assume a stock value of €23,255 and a conservative annual Inventory Carrying Cost (ICC) rate of .
3. Hidden Costs (Labor, Taxes, Inventory)
These costs are either completely eliminated or significantly reduced with minimal inventory levels.
| Internal Hidden Cost | Why You Save by Ordering From Us | Estimated Minimum Savings over 3 Months (€) |
| Inventory Process Costs (labor and time) | Eliminates the need for time-consuming stock counting and associated labor costs. (PLN 1,500) | €348.84 |
| Property Tax (Share) | You avoid paying the highest tax rate for commercial storage space. (PLN 800) | €186.05 |
| Risk of Obsolescence/Loss (Inventory write-offs) | Minimize “dead stock” (1% of stock value). | €232.55 |
| Other Fixed Costs (Utilities, Depreciation) (PLN 1,500) | Reduction of fixed costs regardless of occupancy. | €348.84 |
| Labor Costs (Share of time spent on inventory management) (PLN 2,000) | Minimizes the need for dedicated warehouse personnel. | €465.12 |
Total Hidden Cost Savings | €1,581.40 |
Final Summary: How much you can save?
| Savings Category (Based on 1 container/3 months) | Saved Amount (€) |
| 1. Savings on Operational Logistics (Storage/Handling) | 436.00 € |
| 2. Savings on Frozen Capital Cost (ICC) | 872.06 € |
| 3. Hidden Costs (Labor, Taxes, Inventory, Risk) | 1,581.40 € |
| Total Minimum Savings in 3 Months | €2,889.46 |
By partnering with Flagsystem and foregoing the self-storage of a single container for 3 months, your company saves a minimum of €2,889.46 per quarter. This includes eliminating operational inventory costs, property taxes, and the substantial financial risk of obsolescence.
Remember: Storage costs you more than you think because you pay not only for the racks but also for accountants, utilities, and the time wasted counting inventory. Free up this cash and invest it in your business growth!
Logistics Model Comparison (European View)
This table summarizes and contrasts the three main inventory management models, using the data from the calculations above (based on 25 pallets for 3 months).
| Cost Category | 1. In-House Storage (Own Warehouse) | 2. External Storage (3PL – Rental) | 3. Frequent Orders (Flagsystem Model) |
| Storage Cost (3 Months) | High (Included in fixed overhead) | €348.75 (min.) | Minimal/None (Goods move immediately) |
| Frozen Capital Cost (ICC) (3 Months) | €872.06 (Capital locked for 90 days) | €872.06 (Capital locked for 90 days) | Capital is Free (Pay monthly for smaller batches) |
| Fixed Property Costs (Rent, Utilities) | Very High (Paying for unused space) | None | None |
| Property Tax (Share) | Incurred (Highest commercial tax rate applies) | None | None |
| Risk of Obsolescence/Loss | High (Due to long storage time) | Medium | Lowest (Stock is fresh) |
| Total Estimated Cost (3 Months) | >€2,889.46 (incl. all hidden costs) | >€1,220.81 (Not incl. ICC costs!) | You Make a Profit! (Capital in circulation) |