Transportation, Freight & Distribution worked example

Cross-Dock Savings at 92% savings capture rate: a worked example

Push savings capture rate up to 92% and the picture changes. This example computes every intermediate figure at that operating point. Use it to decide whether fast-moving inbound freight should move through a cross-dock instead of standard DC storage.

The inputs for this scenario

  • Units cross-docked: 3,200 units (unchanged)
  • Avoided handling cost per unit: 1.15 $ / unit (unchanged)
  • Savings capture rate: 92 % (raised for this scenario; the documented default is 80)
  • Cross-dock operating cost: 750 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable cross-dock savings = units cross-docked × avoided handling cost × savings capture rate) to the inputs above produces each figure below.
  • At this operating point the engine returns 4,136 $ for total cross-dock savings, the number this scenario is built around.
  • At this operating point the engine returns 1.29 $ / unit for savings per cross-docked unit.
  • At this operating point the engine returns 3,386 $ for variable cross-dock savings.
  • At this operating point the engine returns 750 $ for fixed charges.

How this compares with the baseline

  • Against the tool's baseline example, where savings capture rate sits at 80% and the headline result is 3,694 $, this scenario comes in 11.95% above the baseline at 4,136 $.
  • It computes gross cross-dock savings as units times avoided handling cost times a capture rate, then adds the cross-dock operating cost line to report a net-of-operations figure and savings per unit. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Total cross-dock savings: 4,136 $ (headline result)
  • Savings per cross-docked unit: 1.29 $ / unit
  • Variable cross-dock savings: 3,386 $
  • Fixed charges: 750 $

Run it with your numbers

  • Every input above is editable in the live Cross-Dock Savings calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.