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BillProofs / 3PL storage fees

3PL storage fees explained

Storage is usually one of the largest recurring lines on a 3PL invoice, and one of the easiest to get wrong. Here is how it is billed and how to check it.

The four common storage units

Pallet: a flat rate per pallet position per period, common for bulk or slow-moving stock. Bin: a small container for small, fast-moving items. Shelf: a larger shelf location, between a bin and a pallet. Cubic foot or cubic metre: billed on the volume your inventory actually occupies. Your agreement should say which unit applies to which products and the rate for each.

How the count is taken

Some 3PLs bill on the inventory held on a specific day, others on an average or peak across the month. The method matters: a count taken right after a big inbound delivery can be much higher than your typical month. Check which method your agreement uses.

Long-term storage fees

Many 3PLs charge an extra fee for stock held longer than a set number of days. These are legitimate when they are in your agreement, but check the age threshold, whether it applies per unit or per location and that the units counted are actually that old.

Minimums and account fees

Look for monthly minimums, account management fees or minimum storage charges. They are not errors if you agreed to them, but they should match the amounts in your contract and stop if the conditions that trigger them no longer apply.

How to check storage on your invoice

1. Confirm the unit and rate for each storage line against your agreement. 2. Multiply quantity × agreed rate and compare with the amount billed. 3. Compare the quantity with your own inventory records for the same period. 4. Look for sudden jumps in pallet or bin counts without a matching inbound shipment. 5. Check long-term storage lines against the age of your stock.

A real example of what to look for: 15 pallets billed at $68 each ($1,020) when the agreement says $42 per pallet ($630) is a $390 difference on a single line, every month until it is fixed.

Catching storage errors automatically

BillProofs reads the storage lines on each invoice, applies the unit and rate from your rate card and flags any line billed above your agreement, with the working shown. Try the free check on one invoice.

Questions

Is storage billed per day or per month?

Both exist. Some 3PLs bill a monthly rate based on a count, others accrue daily. Your agreement should state the period and how the count is taken.

Why did my storage bill jump this month?

Common reasons are a large inbound delivery, a count taken on a peak day, long-term storage fees starting to apply or stock moving to a larger location type. Compare the count with your inventory records.

Can I reduce 3PL storage costs?

Often yes: clear slow-moving stock before long-term fees start, consolidate partial pallets, and make sure each product is stored in the smallest location type your agreement allows.

Does BillProofs check storage fees?

Yes. Storage lines are checked against the unit and rate in your rate card, alongside pick, pack, receiving and surcharge lines.

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