EIM would like to help you calculate your cost of carrying inventory. If you will print and fill out this questionnaire and send it to us by email, mail, or fax, we will calculate your carrying cost and send you a comparison of your answers to each question to others in your region and industry. There is no charge for this service as long as you agree to let us add your information to our database. Please note that all responses are confidential. Data we present to other companies will not identify your company name or location.

 

Questionnaire for Calculating Carry Cost of Inventory

Complete for each stocking facility. Please contact us with any questions.
Send the completed questionnaire to:

Effective Inventory Management, Inc.
110 W Sandy Lake Road, Suite 102
Coppell, TX 75019 USA
Phone: (972) 304-3325
Fax: (972) 393-1310
Email: carrycost@effectiveinventory.com

Your Name _________________________________________________________
Company ___________________________________________________________
Address ___________________________________________________________
City/Town ___________________________ State/Prov __________________
Postal Code _________________________ Country _____________________
Phone _______________________________ Fax _________________________
Email _____________________________________________________________

   Distributor/Manufacturer/Retailer ______________________________
   Types of Products Sold _________________________________________

We will only contact you with the results, or if we have questions concerning your answers.

 

  1. What was your average inventory value over the past 12 months (sum of month-ending inventory values divided by 12)? _______
  2. What was your total warehouse labor expense (wages, taxes, and benefits) during the past 12 months (including the expense of inspection, putting away stock, moving from bin to bin as necessary, assembling kits, and filling customer orders)? _______
  3. What percentage of warehouse activity is dedicated to filling customer orders and transfers? _______
  4. Is this warehouse owned or rented? _______
  5. If the warehouse is rented, what is the monthly rent? _______
  6. If the warehouse is owned, what is the rental cost of comparable warehouse space under a “triple net” lease (i.e. a lease where the tenant pays all utilities, maintenance, and property taxes)? _______
  7. How many square feet (or meters) is your facility? _______
  8. How many square feet (or meters) is your warehouse? _______
  9. What were the total warehouse utilities you paid last year? _______
  10. What were the total property taxes you paid last year? _______
  11. What was your total warehouse maintenance expense last year? _______
  12. What was your total warehouse supply expense, excluding shipping materials (that is, storage boxes and other supplies used in the process of receiving and stocking material)? _______
  13. What was the cost of warehouse equipment that was expensed (i.e. not capitalized) last year? _______
  14. What was your total depreciation expense for warehouse equipment last year? _______
  15. What was the value of written-off inventory last year? _______
  16. What was the value of inventory shrinkage last year (not included in the written-off inventory value)? _______
  17. How much current inventory is in excess of a 12-month supply (a value equal to monthly demand x 12)? _______
  18. What was the cost of insuring your warehouse and equipment last year? _______
  19. What was the cost of insuring your inventory last year? _______
  20. What was the cost of any inventory taxes you paid last year? _______
  21. If additional labor was necessary to conduct physical counts of your inventory, what was the cost of this labor (including taxes and benefits)? _______
  22. If you borrow money to finance your inventory, what was the average outstanding balance over the past 12 months? _______ What is the annual interest rate? _______
  23. If you borrow money to finance warehouse equipment or improvements, what was the average outstanding balance over the past 12 months? _______ What is the annual interest rate? _______
  24. If you finance your own inventory purchases, what interest rate could you expect to receive if you invested that money in a relatively safe income-producing investment? _______

 

Please use this information to calculate an inventory carrying cost for our company. We agree to allow Effective Inventory Management, Inc. (EIM) to use this data for comparative purposes, but acknowledge that EIM will not reveal our company name or location to any other party without our expressed written permission.

 

______________________________________________________________
Signed by Company Representative

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Print Name, Title, and Date