Supply Chain & Procurement worked example

Freight Cost per Unit with total freight cost for shipment of 10,500 $: a worked example in supply chain & procurement

This scenario runs the freight cost per unit calculation on the strong side: total freight cost for shipment of 10,500 $, with every other input held at its documented default. Use it to load freight into landed cost and compare lanes in Supply Chain & Procurement.

The inputs for this scenario

  • Total freight cost for shipment: 10,500 $ (raised for this scenario; the documented default is 4,200)
  • Units shipped in shipment: 1,500 units (unchanged)
  • Unit normalization factor: 1 x (unchanged)

Working through the calculation

  • Applying the documented formula (Freight cost per unit = total freight cost ÷ units shipped × normalization factor) to the inputs above produces each figure below.
  • At this operating point the engine returns 7 $ / unit for freight cost per unit, the number this scenario is built around.
  • At this operating point the engine returns 7 value for raw ratio.
  • At this operating point the engine returns 1 x for conversion factor.
  • At this operating point the engine returns 1,500 value for denominator.

How this compares with the baseline

  • Against the tool's baseline example, where total freight cost for shipment sits at 4,200 $ and the headline result is 2.8 $ / unit, this scenario comes in 150% above the baseline at 7 $ / unit.
  • Use it when comparing inbound lanes or suppliers on landed cost, allocating freight into product costing, or evaluating whether a mode or consolidation change pays off. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • Freight cost per unit: 7 $ / unit (headline result)
  • Raw ratio: 7 value
  • Conversion factor: 1 x
  • Denominator: 1,500 value

Run it with your numbers

  • Every input above is editable in the live Freight Cost per Unit calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.