Unit Cost Analysis

What is the right granularity for calculating logistics costs ? While transportation costs are usually known at the order level, the warehouse costs are only broken down as a flat percentage . This means that important controls for product and category design for the shipper or service design for the logistics service provider are missing. What influence do product properties such as size, weight, but also sensitivity and special packaging requirements have? Unfavorable properties can easily “eat up” the gross margin in many cases.

The flumiq approach shows the costs

The flumiq model allows, if enough data points are captured, to assign the actual costs to the individual order lines and thus to the products. This can then be used to calculate the costs per product, per order depending for example on the shipping method. In addition to category planning, pricing, and service design, the potential for process changes can also be evaluated.