How to easily calculate the total logistics costs?

 

For some companies, I found during the audit that the calculation of logistics costs often lacks up to 60 % of the actual costs incurred. Business owners then mistakenly believe that the performance of their logistics is efficient.

Rudolf Malý, ALog.

Logistics Auditor and Vice President for Education at the Logistics Academy

What to include in logistics costs

Logistics costs in detail

In order to be able to calculate your logistics costs, you need to include the monthly expenses associated with storage, packaging materials, labor and transportation. What to include in these items and how to proceed? You will find the answers in our calculator. If in doubt, download our e-book, which will theoretically and step by step guide you to the right logistics path. What do you also get by filling in the calculator? The exact cost of handling one shipment, which is the absolute basis for further optimization and decision-making steps!

Get answers from our calculator

Our logistics calculator, which was created in cooperation with auditors with many years of experience, will answer the following logistics questions:

  1. Do you know your intralogistics costs?

  2. Can you say exactly how much it costs you to pick up one shipment?

  3. Can you include one-time investments in your costs, such as warehouse equipment or the acquisition of a warehouse management system (WMS)?

  4. Do you correctly include your time or the time of your managers and other logistics workers in the calculations?

Own logistics or its outsourcing?

The result from the calculator can be the basis for a financial comparison with the possibility of logistics outsourcing. This service is an increasingly common option for e-shops in the Czech Republic, following the example of its western neighbors and especially the USA. There are already many providers in our market, but how to choose the most suitable one for your business? Download our logistics partner selection guide, which contains a battery of practical questions for your final decision.

Download our calculator for free!

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Intralogistics

Intralogistics includes all activities performed directly in the warehouse, or in connection to it. From the financial point of view, count with the costs of logistics staff, other fixed and variable operating items or investments.

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Distribution

The basis is the expenses on behalf of your carriers for the delivery of shipments to end customers. The distribution costs also include packaging material, selected according to the nature of your products.

Result

The resulting value is the sum of intralogistics and distribution costs. You will find out your total cost per shipment and it also serves as a basis for a possible financial comparison with logistics outsourcing.

"One of the most common mistakes that growing eshops make is the very view of logistics as something that is always "arranged somehow". Logistics cannot be built on the current state. You need to think at least two years in advance. High costs and investments in warehouse equipment, software, deposits, legislation and the like are often associated with building your own logistics. If you have already completed this whole round and in 6 months you find out that you have grown so much that the current state no longer suits you again, it will be a time-consuming and financially demanding blow for you."

Konstantin Margaretis,

CEO Skladon