Warehousing – What is RH&D?

Are you looking at warehousing costs and need RH&D explained?

Have you received your quotes from the various warehouse companies you have contacted and are unsure of some of the charges? If you are new to warehousing your goods, there may be some costs which you need explained.

If you are storing pallets, one of the self explanatory charges you will have obtained would be for your pallet storage. These prices are charged per pallet per week and will depend on the amount of pallets you have, the dimensions of those pallets and whether they are stackable. The other charge which you may not be aware of in warehousing are the RH&D charges.

RH&D stands for Receipt, Handling and Despatch.

This charge is a cost for the pallets being taken from the vehicle and put into the warehouse to store and also the charge when the pallets are called off and need to be loaded onto the vehicle they are leaving on. Some warehouses charge this fee all on the intake of the pallets whereas others charge on the intake and the outbound. The logistics companies you have contacted may have stated the charges as for example £3.00 per pallet RH&D or £1.50 per pallet in £1.50 per pallet out. The first example will mean this cost is charged when the goods arrive whereas the second example means they charge this cost when the goods arrive and when they leave.

Pallet prices, just as RH&D charges, really do vary from one warehouse to another and if you have a lot of movement of your goods then this cost needs to be taken into account when you are working out which warehouse to choose. Understandably, if your goods are going to enter the warehouse and sit there for a substantial amount of time before being called off then your pallet prices may be slightly higher than if your goods were going in and out often as the warehouse would take the movement of the goods into consideration when working out your rates.

If your goods arrive by full container and need palletising on arrival, otherwise known as destuffing, there are some warehousing companies that charge a fixed fee for palletising the goods and putting them to store. This includes the RH&D price therefore when the goods are called off there are no additional charges for the outbound RH&D.

Each warehouse has their own way of doing things. Since working in the industry for Whichwarehouse, finding suitable warehousing companies for clients looking to store their goods, I have come across some clients who believe they do not get charged RH&D and only get charged a pallets rate. In my experience, the RH&D charge will always be in your costings somewhere. Whether it is charged on the destuffing of a container or added in with the pick and pack price should you be using fulfilment services, all warehouses take the costs of movement of goods into account when working out your pricing.

If you need help looking for warehousing in the UK or need some advice on where to start, contact Whichwarehouse on 0800 1707 555 and we will be happy to assist. Having successfully matched many many clients with suitable warehousing companies over the years, we pride ourselves on finding the right solution for your warehousing needs, saving you time and money.


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