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Why Does Our 3PL Storage Billing Still Take Two People and a Spreadsheet?

3PL storage billing built by hand from WMS snapshots, with pallet weeks argued over by clients. We automate storage charges from your own location data.

Updated 3 min readBy SpiderHunts Technologies

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Quick answer — TL;DR

Storage billing goes wrong in a 3PL because the WMS knows where stock is today, not how many pallet spaces each client occupied on each chargeable day, and every client contract counts storage slightly differently. We build a nightly snapshot of occupancy by client and location type, apply each contract's storage rules, and produce a draft invoice with the daily detail behind it for a person to approve.

Month end in the billing office

On the first working day of the month someone exports a stock-by-location report from the WMS, drops it into a spreadsheet that has grown tabs for every client, and starts counting. Full pallets on racking are easy. Then there is the client whose half pallets share a bay, the one billed by the cubic metre on shelving, the one charged per bin in the small parts area, and the one who had forty pallets of seasonal stock in bulk floor space for eleven days in the middle of the month.

The export only shows the stock on the day it was run. So the spreadsheet also carries notes like 'add 40 pallets from the 9th to the 20th', typed in from memory or from the goods-in log. Nobody fully trusts the result, and a day or two after the invoices go out one client queries the storage line and asks to see the working.

The WMS was never asked the right question

Most warehouse management systems are built to answer 'where is it now and how much is there'. Storage billing needs a different question answered: how much space did this client take up on each chargeable day, measured the way their contract says. Those are not the same, and the gap is filled by people.

How the contract chargesWhat the billing actually needs
Per pallet per weekA count of occupied pallet locations at the agreed snapshot point, every week
Per pallet space, part pallets rounded upLocation-level data, not SKU quantity
Per cubic metre on shelvingProduct dimensions that are actually filled in
Per bin or shelf locationLocation types that are set up consistently
Minimum monthly storage chargeA comparison after the count, applied per client

The real root cause is that nobody keeps a history. If the occupancy were captured every night, month end would be a sum. Without it, month end is reconstruction.

What hand-built storage invoices cost you

Undercharging is the quiet cost. Stock that came in and left within the month is easy to miss, and short-stay bulk pallets are exactly the work that took up space you could have sold. Overcharging is the loud one: a client finds an error, and from then on they check every line of every invoice.

There is also the dependency on one person. The billing spreadsheet usually has rules in it that only its author understands, and when they are on holiday the invoices wait. Late invoices mean late payment, and in a business that often pays agency labour weekly, that matters.

What we build to take the counting away

  1. A nightly snapshot: we read stock-by-location from your WMS through its API or a scheduled export (Mintsoft, Peoplevox, or a bespoke system all work this way) and store occupancy per client, per location type, per day.
  2. Contract rules as data: each client's storage terms, such as snapshot day, rounding, minimum charge, free periods for new stock, are held as settings rather than spreadsheet formulas.
  3. A draft storage charge per client for the period, built from the daily history rather than one end-of-month export.
  4. Checks before anything is sent: locations with stock but no client, clients whose occupancy jumped or fell sharply, products missing dimensions where the charge depends on volume.
  5. Output to your accounts package: draft invoices into Xero, QuickBooks or Sage through their APIs, with a backing schedule attached that shows the count by day or week.
  6. A review screen where your billing person approves, adjusts with a note, or holds a client's charge.

The backing schedule is the part clients notice. When a storage line is questioned, the answer is a report you can send, not an evening of rebuilding the spreadsheet.

Month end afterwards

Billing becomes a review of numbers that already exist. The person who used to count spends their time on the exceptions: the client whose stock doubled, the location that seems to belong to nobody. Short-stay pallets are charged because they were recorded on the nights they were there.

Account managers can also see occupancy trends during the month, which helps when a client is quietly filling more space than their contract assumed.

Is this what your billing looks like?

  • Storage is calculated from one export taken at month end.
  • Your spreadsheet has notes about stock that came and went mid-month.
  • Different clients are charged per pallet, per bin and per cubic metre, and each needs its own tab.
  • Clients regularly ask for the working behind the storage line.
  • Invoices wait when the one person who understands the billing is away.

FAQ

Frequently asked questions

The questions readers ask us after this guide.

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Do we need to change our WMS for this?

Usually not. We read the data your WMS already holds. What we need is a way to pull stock-by-location regularly, through an API or a scheduled export.

Can it handle different storage terms for every client?

Yes. Each client's rules, such as rounding, snapshot day and minimum charge, are stored as settings, so a new contract is set up rather than coded.

What if our location data is messy?

The first thing we do is report on it: locations with no type, stock with no owner, products missing dimensions. Some of that has to be cleaned before storage billing from the data is trustworthy, and we will tell you which parts.

What drives the cost of building this?

Mainly how many different storage charging methods you use, how your WMS exposes its data and which accounts package the invoices go into.

Can it also bill handling and other activity?

It can be extended to activity charges. Storage is often the sensible starting point because it is the number most often rebuilt by hand; picks, receipts and value-added work can follow.

Keep reading

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