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Handling Costs: Definition and Examples

What are handling costs?

Handling costs are all costs incurred by moving, reloading, picking, or packing goods within the supply chain. They are considered incidental logistics costs and significantly influence the overall cost structure.

Significance and Influence of Handling Costs

Handling costs arise from almost every movement of goods – be it reloading in the warehouse, picking shipments, or packing products. They arise not only from machinery, but also from the use of personnel, infrastructure, and IT systems. It is irrelevant whether the processes are manual or automated – every work step involves effort and therefore costs.

Typical handling costs arise, for example, from unloading containers, temporary storage in a transshipment warehouse, or transferring goods to other transport companies. Internal transport is also included. The more interfaces a supply chain has, the higher the handling costs are generally.

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