Transportation, Freight & Distribution worked example

Shipment Consolidation Savings at 98% realized savings capture rate: a worked example

Push realized savings capture rate up to 98% and the picture changes. This example computes every intermediate figure at that operating point. Use it when deciding whether to hold orders for consolidation, pool distribution, or convert repeat LTL moves into truckload moves.

The inputs for this scenario

  • Shipments avoided through consolidation: 18 shipments (unchanged)
  • Avoided freight cost per shipment: 215 $ / shipment (unchanged)
  • Realized savings capture rate: 98 % (raised for this scenario; the documented default is 85)
  • Added consolidation handling cost: 650 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable shipment consolidation savings = avoided shipments × avoided cost per shipment × savings capture rate) to the inputs above produces each figure below.
  • At this operating point the engine returns 4,443 $ for total shipment consolidation savings, the number this scenario is built around.
  • At this operating point the engine returns 247 $ / unit for savings per avoided shipment.
  • At this operating point the engine returns 3,793 $ for variable shipment consolidation savings.
  • At this operating point the engine returns 650 $ for fixed charges.

How this compares with the baseline

  • Against the tool's baseline example, where realized savings capture rate sits at 85% and the headline result is 3,940 $, this scenario comes in 12.77% above the baseline at 4,443 $.
  • It computes net consolidation savings by multiplying avoided shipments, avoided cost per shipment, and a capture rate, then adding the handling cost line. 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 shipment consolidation savings: 4,443 $ (headline result)
  • Savings per avoided shipment: 247 $ / unit
  • Variable shipment consolidation savings: 3,793 $
  • Fixed charges: 650 $

Run it with your numbers

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

Last reviewed 2026-05-12.