Dear valuable customer

Thank you very much for your continued support.

There are multiple price systems for storage charge of warehouse.

In Vietnam, the three most commonly used price systems are (1) fixed monthly area, (2) daily rate, and (3) monthly three-period system; same as in Japan.

(1) Fixed monthly area is based on the premise that a fixed space is secured, and the amount is calculated by multiplying the space by the unit price.
While costs are charged for a fixed space even if the cargo is not actually stored there, this is useful for those who wish to prioritize securing warehouse space or to fix storage costs.

(2) Daily rate calculation is based on the formula: cargo quantity multiply daily unit price. The unit of the cargo quantity can be in various patterns such as pallets, M3, kg, etc.
Since the amount is determined according to the actual daily storage quantity, it is highly accurate in matching the increase or decrease of inventory quantity and storage cost.

(3) The three-period monthly system is a little more complicated than the above two. The storage cost is calculated by multiplying cumulative number by the unit price per period.
The period refers to the first third of month (1^st to 10^th), the middle period (11^th -20^th), and the final third (21^st – the end of the month).
The cumulative number is the sum of each period in a defined unit (pallet, M3, etc.).
However, it is important to note that cumulative number in the current month (month N) is calculated by summing the number of remaining inventories at the end of month N-1,
the number of remaining inventories on the 10th and 20th of month N, and the number of warehouse-in amounts in month N.
The reason for this is that “items in stock for even one day during the current month (month N) are considered to be in stock for one period.
The number of remaining inventories at the end of month N-1 matches the number of inventories at the beginning of the first third of month N.
Similarly, the number of remaining inventory at the end of 10^th in month N is the same as the number of inventory at the beginning of the middle period of month N.
However, since this does not count the warehouse-in in the middle of the period (e.g., the final third of storage charge for the warehouse-in on 25^th in month N), “the number of warehouse-in in N” shall be added.

Under the three-period system, if warehouse-in is on or just before the end of each period, it will be treated as one period with a short storage period, so if possible, it is better to warehouse-in after the end of the period to save costs.

This system is often used when customers want to simplify cost calculation while keeping costs variable, and many customers tend to choose this system.

We can set up a storage price system based on customer’s requirements.

Please do not hesitate to contact us if you have any questions or concerns about our warehousing services.

Thank you very much for your continued support.

Warm Regards

Dragon Logistics Co., Ltd.

For inquiry（Vietnamese, Japanese, English）：marketing@draco.com.vn

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