Packaging and Shipping Expenses

The manufacturing cost consists of direct, indirect, distribution, and fixed costs. Direct costs are raw materials, operating labor, production supervision, utihties, suppHes, repair, and maintenance. Typical indirect costs include payroll overhead, quaHty control, storage, royalties, and plant overhead, eg, safety, protection, personnel, services, yard, waste, environmental control, and other plant categories. However, environmental control costs are frequendy set up as a separate account and calculated direcdy. The principal distribution costs are packaging and shipping. Fixed costs, which are insensitive to production level, include depreciation, property taxes, rents, insurance, and, in some cases, interest expense. 

Total product expense is the sum of the total manufacturing expense and the packaging, loading, and shipping expenses. 

This long-term strategy guided Beimett s management of the radium business from this point on. The prospect of isotopes coming onstream justified creation of a sales department instead of the less expensive reliance on sales agents. It also meant that Eldorado would have to enhance not only its sales expertise but its ability to process, package, and ship radioactive products. 

The designs and varieties of boxes that can be constmcted and used in chemical packaging are many. This flexibiUty in design is possible because boxes are manufactured with minimal tooling expense under specifications that are unique to each order, but which are subject to various material specifications for meeting freight and shipping requirements. 

The packaging expense depends on how the product is sold. The package may vary from small containers to fiberpacks to leverpacks, or the product may be shipped via tank truck, tank car, or pipeline. Each product must be considered and the ejq)ense of the container included on a case-by-case basis. The shipping expense includes the in-plant movement to warehousing facilities. Product delivery ejq)enses are difficult to estimate because products are shipped in... 

A typical manufacturing expense sheet is presented in Table 16.10. On this illusffative sheet, the bottom line is the expense to manufacture a product at the manufacturing department door and excludes packaging, shipping, and overhead expenses. 

Shipping materials that can be classified as LSA are often less restrictive than shipping the materials as Type A or Type B. In particular, shipping materials as LSA allows for the use of a wider variefy of packagings that are often more versatile and less expensive than Type A or Type B packagings. These packaging options will be discussed after the discussion of SCOs because the packaging options for LSA and SCO are similar. 

Andre gave him a puzzled look. Naturally he was pleased some of the (diabolically expensive) medical nanonic packages were off, but obviously the poor boy s brain still hadn t completely recovered from decompression. And Madeleine was asking him to decide. Merde. "We know that, Erick. But I don t want you to worry. All I need to know is which of my crew is loyal enough to come with me. I have already decided to take my ship to New California."... 

This is a process of tracking an order to try to find out where it is and when it can be expected to arrive at your facility. In order to reduce some of the costs at FedEx and UPS, tracking systems have been developed and made available to their customers so they are able to track their own packages when they need to and not rely on the customer service department at the shipping comparer. This has improved service and helped satisfy their customers much faster and better. I have observed companies that have entire departments whose responsibility is to follow shipments and expedite them as necessary so everything runs as platmed. This is a potentially expensive area that can be handled more effectively with proper supply chain management. 

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