What to look out for when calculating the cost of the logistics process
The standard step in considering the implementation of automated logistics is the calculation of return. For such a calculation, it is necessary to know the price of the new technology and the price of the current manual logistics process. We often find that the cost of a manual logistics process is defined quickly and does not take into account all aspects that affect the overall cost of the manual process.
Exemplary situation – consider a simple process of transporting products from the end of the assembly line to the warehouse and return empty pallets to the end of the assembly line, products placed on a euro pallet, the task is provided by one operator, transport uses a hand-held electric truck days per year.
Procedural view of the situation:
The logistics process must be ensured for the entire period under consideration, i. 1 change and 250 days per year. In terms of capacity, it is assumed that one operator can provide this transport.
- Available assembly line fund: 8 hours x 250 days = 2000 hours
- Available fund of the logistics operator
- Available fund: 250 days
- Holiday entitlement: 25 days
- Incapacity for work: e.g. 15 days (according to the Social Insurance Agency, the average duration of incapacity for work was 2019 to 44.79 days)
- Resulting available fund: 210 days i. 1680 hours
- Missing operator capacity: 320 hours
Conclusion: one operator is not enough to ensure the year-round process, but 1.19 operators
Personnel view of the situation:
In addition to wages and levies, it is necessary to provide the logistics operator with:
- Work clothes and shoes
- Protective equipment
- All necessary training
- Meal allowance, catering facility (Financial allowance for meals will be 55% from March 1, 2021 and thus € 2.11, which is € 527.5 per year)
- Hygienic premises and means
- Remuneration system (common practice is to offer employees 13th salary and other incentive bonuses)
Conclusion: in addition to labor costs, there are other costs associated with the operator
Managerial view of the situation
The manager expects that the logistics operator will perform the required activities according to the defined standard. However, the reality is usually different. On the one hand, there are human needs (hygiene needs, toilet, smoking breaks,…), physical dispositions (age of the operator, level of health, physical condition) and, last but not least, work discipline. Thus, in the real process, there are a number of factors that can negatively affect the logistics process.
Conclusion: there are always some differences between plan and reality
How to determine the total cost of the manual logistics process?
Operating and working conditions vary from company to company. However, our experience shows that the total cost of providing even a simple logistics process is significantly higher than the super gross salary of a logistics operator. Since we often perform similar recalculations, we have created a simple calculator to calculate the total cost of the logistics process.
Try our logistics process cost calculator for free.