Did that title grab you at all? Here at BlueGrace Logistics, we have been running across more and more companies / prospects that do not have a true freight metric other than “best cost”. There are other key freight metrics that make it easy to find out if you are actually keeping your cost down annually and average wise.
Here are two examples:
- Cost per pound: Take the cost of your shipments and then divide it by the weight. Seems simple right? You can do this easily in a spreadsheet.
- Cost for freight as a percentage of sale: This is when a customer pays for the freight as a value add for vendors/customers buying their product. Take the cost of the freight and divide it by the cost of the sale. This is also done very easily in a spreadsheet.
Once the average of these metrics is taken, it will be easy to monitor carrier and partner performance weekly, monthly, and yearly. Reach out to BlueGrace Logistics today to learn more about these freight performance metrics.