The month-end problem
On the last day of the month, someone exports receiving logs, order lists and a stock snapshot, then builds each client’s invoice in a spreadsheet. Storage is estimated, a few receipts are forgotten, packaging is rounded down. Multiply that across twenty clients and twelve months.
Bill the activity as it happens
Activity-based billing records a charge every time billable work is done — not at the end of the month.
- Receiving: per delivery, per unit, per pallet.
- Storage: per day, by volume, pallet or bin.
- Fulfilment: per order, per pick, per box or packaging item.
- Returns: per return processed and per unit inspected.
Each client, their own rates
Start from a standard rate sheet, then override what you negotiated with each client. A charge is recorded at the right rate the moment the work happens.
Storage without double billing
Take a daily snapshot of each client’s stock and charge for that day. If the snapshot is re-run, it should update the day — never add a second charge.
Minimums and terms
Many 3PL contracts include a monthly minimum. When a quiet month’s activity falls short, the invoice should be topped up automatically, with payment terms per client.
Show the work
Clients pay faster when they can see what they’re paying for. Let them open each issued invoice in their portal with the activity behind it.
How Logxa handles it
Logxa’s warehouse software records billable events for receiving, daily storage, orders, picks, packaging and returns at each client’s rates, drafts monthly invoices with minimums and terms, and shows clients the activity in their portal. See activity-based billing.