distribution center planning

2-4. Service life of logistics equipment

In pallet automated warehouses (PL automated warehouses/pallet AS/RS), which is a large-scale investment in logistics equipment,Useful life (depreciation period)The idea ofSpecific lease payment calculation/return on investment simulation exampleI will explain.

1. Depreciation period (statutory useful life) of automated pallet warehouses

Automated warehouses are a combination of elements such as buildings, racks, cranes, and control systems (software), so they are subject to tax implications.The useful life differs depending on the asset classification.。

The general useful life standards under tax law are as follows.

Asset classification	Main target	Legal useful life (estimate)	remarks
machinery and equipment	Stacker crane, transfer conveyor, loading/unloading control section	10 years	Applicable as “logistics machinery/equipment” or “warehousing equipment”
Equipment and supplies	Steel racks (shelves), pallets, etc.	8 years to 12 years	Depends on rack structure and fixing method
software	WMS/WCS (Warehouse Control System)	5 years	Intangible fixed assets (software for internal use)
Building auxiliary equipment	Automated warehouse integrated building/fire protection/electrical equipment	15 years to 31 years	In the case of building-integrated automated warehouse (rack build)

💡Practical points

In accounting practice, the entire equipment is grouped together."Machine and equipment (10 year service life)"orDepreciation is divided into “rack part (12 years)” and “control part (5 to 10 years)”It is common to do so.

2. Lease transaction structure and lease rate

Rather than purchasing equipment with own funds or bank loans,finance leaseIf you use , your monthly lease fee will consist of the following elements:

Monthly lease fee = (property price [CAPEX] + interest rate + fixed asset tax + non-life insurance premium) ÷ lease period (number of months)

Estimated lease rate (annual)

period7 years to 10 yearsIn this case, the annual lease rate is approximately1.1% ~ 1.3% / month(The annualized rate is approximately 13% to 15%).
If the property price is high (several hundred million yen) or if the company has a high credit rating, more preferential rates will be applied.

3. Lease fee calculation simulation example

[Prerequisites]

PL automated warehouse Total equipment cost (CAPEX): 200 million yen(200,000,000 yen)
(Breakdown: 3 stacker cranes, 1,500 pallet racks, loading/unloading conveyor, WCS system, installation cost)
Lease period: 10 years(120 months)
Monthly lease rate: 0.95%(Assuming preferential rates for large properties)

Simulation results

Trial calculation items	calculation formula	Amount (excluding tax)
Property price	—	200,000,000 yen
Monthly lease fee	200 million yen × 0.95%	1,900,000 yen / month
annual lease fee	1.9 million yen per month x 12 months	22,800,000 yen / year
Total lease fee for 10 years	1.9 million yen per month × 120 months	228,000,000 yen
(Recalculated: total interest, tax, and insurance premiums)	Total: 228 million yen - Main unit: 200 million yen	28,000,000 yen(+14% compared to main unit)

*In addition to the above, daily manufacturer maintenance costs (OPEX: approximately 6 million to 10 million yen per year) will be incurred separately.

4. Comparison of purchase (ownership/straight-line method) and leasing

This is a comparison of the financial impact of ``purchasing (10-year depreciation)'' and ``10-year lease'' of equipment costing 200 million yen.

Comparison items	Purchase (10-year straight-line amortization)	10 year finance lease
initial cash out	200 million yen (or borrowing)	0 yen(first monthly fee only)
1st year expense (P/L)	Depreciation cost 20 million yen/year	lease fee22.8 million yen/year
Interest rate/total cost	Bank loan interest only (low total cost)	Fees, taxes, and insurance included (total cost is a little high)
Fixed asset tax/payment affairs	Need to declare, pay, and manage in-house	Processed by leasing company(No administrative burden)
Ownership after the term ends	Owned by the company (can be used free of charge after 11th year)	Return or re-lease (continuing at 1/10 of the annual fee, etc.)

Key points for management decisions

1. Equalization of cash flow

There is no need for a large amount of initial funding, making it easier to offset the monthly lease fee with the monthly storage efficiency improvement and personnel cost reduction effect (effective amount).

2. Risk of technology obsolescence and base withdrawal

If the property is owned by the company, a loss on the sale or disposal of fixed assets will be incurred when the property is dismantled or relocated within 10 years.If you are renting a property or there is a possibility of future line changes, you need to be careful when setting the period.

5. Cost comparison with manual storage (forklift operation)

When storing and transporting palletized loads, conventional"Flat/fixed pallet rack + forklift operation"and,“PL automated warehouse (Pallet AS/RS: 200 million yen scale)”This is a comparison table when introducing .

Comparison items	Flat / Pallet rack + lift	PL automatic warehouse (pallet AS/RS)
Initial investment (CAPEX)	Low (about 10 million to 20 million yen)	High (approximately 200 million yen)
Required number of tsubos (assuming 1,000 PL)	Approximately 350 to 500 tsubo	Approximately 100 to 150 tsubo(Up to 70% reduction)
Main operating expenses (OPEX)	Lift fuel/charging cost, annual inspection fee	Regular maintenance inspection/system cost (approximately 5 million to 8 million yen/year)
Required personnel expenses (workers)	High (3 to 5 lift workers permanently stationed)	Extremely low (about 1 person for input)
Work safety/accident risk	There is a risk of lift falling and contact accidents.	extremely high(Completely unmanned driving area)

Which operation should you choose?(judgment criteria)

[Warehouses where you should choose flat storage/pallet rack operation]

Ceiling height is low in a rental warehouse (e.g. less than 5.5m)
There is a possibility that the warehouse may be relocated or the shipper may change within the next few years.
I want to keep the initial investment cost (CAPEX) below tens of millions of yen.

[Warehouse to choose PL automated warehouse (200 million yen scale)]

The company is located near urban areas where land and rent are high, and there is a lack of storage space.
A company-owned warehouse (or long-term rental) with a ceiling height of 8 to 12 meters or more
I am worried about the difficulty in hiring forklift workers and the rising hourly wages.

6. Monthly cost (2.5 million yen/month) offset simulation

Fixed cost of PL automated warehouse“Approximately 2.5 million yen/month (30 million yen per year)”This is a break-even simulation to ensure that the on-site improvement effects (rent cut + labor cost cut, etc.) offset the above and make the project profitable.

Monthly offset amount (2.5 million yen) = Rent reduction amount (number of tsubos reduced × unit price per tsubo) + Labor saving amount (reduced number of people × personnel costs/12) + Others (overtime/accident reduction)

Simulation pattern (3 achievement scenarios)

Pattern A: [Balanced type] Standard suburban warehouse (price per tsubo: 6,000 yen)

・Improved storage efficiency:250 tsubo reduction × 6,000 yen =1.5 million yen / month
・Labor-saving effect:Reduction of 3 lift workers =1.2 million yen / month
・[Total effect] 2.7 million yen / month(Monthly balance:+200,000 yen/month surplus）

Pattern B: [Location-oriented type] High rent warehouse near urban area (price per tsubo 10,000 yen)

・Improved storage efficiency:200 tsubo reduction × 10,000 yen =2 million yen / month
・Labor-saving effect:Reduction of 1.5 lift workers =600,000 yen / month
・[Total effect] 2.6 million yen / month(Monthly balance:+100,000 yen/month surplus）

Pattern C: [Labor shortage / labor saving specialized type] Warehouse with high labor costs and outsourcing ratio

・Improved storage efficiency:150 tsubo reduction × 5,000 yen =750,000 yen / month
・Labor-saving effect:Reduction of 4 lift workers (dispatch, etc.) =1.8 million yen / month
・Reduction of incorrect shipments/accidents: 100,000 yen/month
・[Total effect] 2.65 million yen / month(Monthly balance:+150,000 yen/month surplus）

Minimum conditions required for cost offset (matrix)

Price per tsubo of own warehouse	Example of combination conditions to offset 2.5 million yen per month
5,000 yen / tsubo	200 tsubo reduction(1 million yen) +Reduced number of workers by 3.8 people(1.5 million yen)
7,000 yen / tsubo	200 tsubo reduction(1.4 million yen) +Reduction of 2.8 workers(1.1 million yen)
10,000 yen / tsubo	200 tsubo reduction(2 million yen) +Reduction of 1.3 workers(500,000 yen)

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