Transportation, Freight & Distribution worked example

Shipment Consolidation Savings at 61% realized savings capture rate: a worked example

Suppose realized savings capture rate falls to 61%. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimate savings from combining small shipments into fewer loads by multiplying avoided shipments by avoided cost and subtracting consolidation handling cost.

The inputs for this scenario

  • Shipments avoided through consolidation: 18 shipments (held at the documented default)
  • Avoided freight cost per shipment: 215 $ / shipment (held at the documented default)
  • Realized savings capture rate: 61 % (the input this scenario stresses; the baseline uses 85)
  • Added consolidation handling cost: 650 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Variable shipment consolidation savings = avoided shipments × avoided cost per shipment × savings capture rate.
  • Total shipment consolidation savings works out to 3,011 $ at these inputs, and this is the headline figure for the scenario.
  • Savings per avoided shipment works out to 167 $ / unit at these inputs.
  • Variable shipment consolidation savings works out to 2,361 $ at these inputs.
  • Fixed charges works out to 650 $ at these inputs.

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 23.58% below the baseline at 3,011 $.
  • It computes net consolidation savings by multiplying avoided shipments, avoided cost per shipment, and a capture rate, then adding the handling cost line. 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

  • Total shipment consolidation savings: 3,011 $ (headline result)
  • Savings per avoided shipment: 167 $ / unit
  • Variable shipment consolidation savings: 2,361 $
  • Fixed charges: 650 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Shipment Consolidation Savings calculator, set realized savings capture rate to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.