The International Federation does not make any profit from its logistics or procurement services, but it must maintain financial stability. In 2007, we introduced a cost recovery mechanism designed to cover the costs of overheads related to managing our global services. Cost recovery involves charging the actual cost of supplying goods or services with an additional service fee. It is this additional fee that allows us to continue delivering a high level of customer service and satisfaction.
We revise the fees on a regular basis in order to adjust any discrepancies and we continuously review this cost recovery model.
How much is the service fee?
The service fee may depend on your status and funding. The following rules apply to different organizations and situations.
- For services provided to National Societies through service agreements, the service fee is pre-determined for each type of service. The service fee ranges from 1.5 per cent to 4.5 per cent depending on the total value of the order.
- For warehousing services provided to National Societies and third parties at zonal logistics units, we charge a monthly fee for storage per cubic metre, and a handling fee for the receipt and dispatch of items. Rates vary depending on warehouse location due to local differences in infrastructure costs. Please contact the logistics units in Panama, Dubai and Kuala Lumpur directly.
- For ad-hoc services, the maximum service fee is 6.5 per cent, with a discount of 2 per cent for National Societies with a service agreement, and a discount of 1 per cent for National Societies without a service agreement.
- For services provided to DG ECHO partners (National Societies and third parties), we charge a handling fee of 6.5 per cent of the total value of the order.