📦 Understanding CBM: Why Volume Matters in Warehousing Costs

Billy Ng
Jun 7
2 min read

When it comes to third-party logistics (3PL) and warehouse management, most businesses focus on inventory quantity — but often overlook a critical metric: CBM (Cubic Meter).

At Naraz Logistics, we use CBM to measure the actual volume your products occupy in our warehouse, ensuring fair and scalable storage fees for every client. Whether you're a DTC brand or a wholesale distributor, understanding CBM can save you money and help you optimize your fulfillment strategy.

✅ What Is CBM?

CBM (Cubic Meter) is a measurement of volume used in warehousing and freight. It tells you how much physical space your items take up, not just how many units you have.

Formula:

CBM = (Length × Width × Height × Quantity) ÷ 1,000,000

All dimensions are measured in centimeters (cm) and CBM is expressed in cubic meters (m³).

📊 Why CBM Matters in Warehousing

Unlike flat-rate storage models, our system calculates fees based on actual warehouse space usage — not just the number of pallets or bins.

Here’s why that’s better for you:

🔍 Transparent Billing – You only pay for the space your goods actually take up.
🧩 Scalable for Mixed SKUs – Small items won’t be overcharged, while bulky SKUs are fairly accounted for.
📦 Encourages Efficiency – Helps you optimize packaging and reduce wasted volume.

💡 At Naraz Logistics, your inventory’s CBM is tracked automatically via our Naraz Portal, giving you full visibility into your monthly warehouse footprint.

🔁 Real-World Example

Let’s say you store 500 units of a boxed product with the following dimensions:

Length: 30 cm
Width: 20 cm
Height: 15 cm

Your CBM would be:

(30 × 20 × 15 × 500) ÷ 1,000,000 = 4.5 CBM

So you’re using 4.5 cubic meters of storage — and that’s what your monthly storage cost is based on.

📍 Where to Find CBM in Your Naraz Portal

You can view your live CBM usage under:

Inventory > CBM Column – See per-item storage volume
Dashboard > Monthly Storage Summary – Total usage this month vs. previous
Reports > Export CSV – Download usage logs for accounting

📦 Pro Tips to Optimize CBM

📐 Use stackable packaging to reduce height
🧊 Consolidate SKUs when possible to maximize space
📦 Right-size your boxes to avoid paying for empty air

🔒 Transparent Storage. Smarter Fulfillment.

By measuring warehouse usage in CBM, Naraz Logistics ensures that you only pay for what you use, and you always know where your inventory stands.

Need help optimizing your storage? Our team can help review your product dimensions and suggest ways to cut down CBM — and costs.