Logiwa Resource
Putaway Cost Per Line Calculator
Putaway Cost Per Line Formula:
Using the formula
To calculate the cost, we need two components for a specific period (e.g., a day, a week, or a month):
- Total Putaway Cost ($): This includes all costs related to receiving, inspecting, and moving inventory into its storage location (e.g., wages, equipment costs, utilities, rent allocation).
- Let’s assume the Total Putaway Cost for a specific day is $2,500.
- Number of Line Items Put Away: This is the volume of work completed (i.e., the total number of distinct items or product lines placed into storage locations).
- Let’s assume the Number of Line Items Put Away on that day is 5,000.
Calculation
We apply the formula using these figures:
Putaway Cost Per Line = 2,500 / 5,000 = 0.50
The result is a Putaway Cost Per Line of $0.50.
Putaway Cost Per Line Calculator
Explanation of
the formula
This calculator tells you the average cost to put away a single inventory line item—from the receiving dock to its final storage shelf.
A “line item” isn’t just one product; it’s a single type of product being put away (e.g., one pallet of “Size 10 Blue Shirts” is one line item). This cost includes the labor (the employee’s time and wages) and equipment (like the forklift or scanner) used during that process.
This metric is a direct measure of your receiving and storage efficiency. Putaway is a necessary cost that doesn’t add direct value for the customer, so your goal is to make it as low as possible.
Tracking this cost helps you:
- Manage Labor Costs: See if your team is working efficiently or if poor layout and processes are wasting their time (and your money).
- Optimize Equipment: Understand the cost-effectiveness of your forklifts, pallet jacks, and scanners.
- Identify Problems: A rising cost is a red flag. It can signal that your warehouse is disorganized, your staff needs retraining, or your equipment is failing.
Ready to validate
your custom estimate?
Our calculator provides a data-driven starting point.
In a brief, no-obligation demo, we’ll analyze your results and show you the proven fulfillment workflows
that will maximize your ROI. See Logiwa IO in action, tailored to your exact needs.
