Supply Chain & Procurement worked example

Freight Cost per Unit with total freight cost for shipment of 2,100 $: a worked example in supply chain & procurement

Suppose total freight cost for shipment falls to 2,100 $. This page works the full calculation at that level so you can see exactly which result moves and by how much. Calculate freight cost per unit for Supply Chain & Procurement from total freight spend and units shipped.

The inputs for this scenario

  • Total freight cost for shipment: 2,100 $ (the input this scenario stresses; the baseline uses 4,200)
  • Units shipped in shipment: 1,500 units (held at the documented default)
  • Unit normalization factor: 1 x (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Freight cost per unit = total freight cost ÷ units shipped × normalization factor.
  • Freight cost per unit works out to 1.4 $ / unit at these inputs, and this is the headline figure for the scenario.
  • Raw ratio works out to 1.4 value at these inputs.
  • Conversion factor works out to 1 x at these inputs.
  • Denominator works out to 1,500 value at these inputs.

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 50% below the baseline at 1.4 $ / unit.
  • Computes the freight cost carried by each unit by dividing total freight cost by units shipped, then applying an optional normalization factor. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • Freight cost per unit: 1.4 $ / unit (headline result)
  • Raw ratio: 1.4 value
  • Conversion factor: 1 x
  • Denominator: 1,500 value

Run it with your numbers

  • To rerun this with your own numbers, open the live Freight Cost per Unit calculator, set total freight cost for shipment to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.