Supply Chain · Logistics · Component
The cost per movement
What it costs to move a unit, by mode and by leg, including the handling that does not appear on a freight invoice.
The deliverable
What it is
Freight cost is visible and handling cost is not, and handling is frequently the larger share for anything that moves through several nodes.
Cost per unit rather than cost per shipment is what allows comparison, and it requires the volume data that shipping invoices do not carry.
One level in
What it is made of
Each element is a constituent part of the component. Follow one to see the attributes it carries.
The freight cost
What is paid to move goods, per leg.
3 attributes: Cost · Mode · Surcharge share
LearnThe handling cost
What it costs to receive, store, pick and dispatch.
3 attributes: Cost per unit · Handling time · At node
LearnThe last mile
The final leg to the customer, costed separately because it behaves differently.
3 attributes: Cost per delivery · Failed delivery rate · Share of total
Learn
Handling recurs at every node the goods pass through. That is what makes node count expensive.
The other components in logistics
The network
Where things are stored and moved, and how far that is from demand — the design that sets the cost floor.
LearnThe lead time record
Actual times with their spread rather than the quoted average — because variability is what costs money.
Learn