®
By Softtruck
Tampa, Florida USA
Shipping Cost Savings using Our Cargo Load Planner Software


"The savings and short payback times...are quite compelling."


"...The analysis indicates this is clearly a worthwhile purchase."









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Freight Cost Savings and Payback Analysis

One of the most common uses for our truck and container load planning software is to calculate container loading and packing space needed for a shipment. The time and money saved by knowing this result exactly is hard for us to put into terms relevant to your operation, but it is indeed important. To send a few items separately that did not fit as expected into the container can be very expensive and disappointing to customers.
 
The savings and short payback times that result from even modest reductions in empty space are quite compelling in common cases.

Savings Per Shipment:

For instance, if:
  ● The Truck or Container Loading Program loads 5% more.
  ● The shipping distance averages 1000 miles.
  ● Shipping costs $2000. ($2 per mile, a common rule of thumb)
  ● One Shipment is made per week.
 Then:
The savings would be 5% of $2000 = $l00 per shipment.

Annual Savings:
The annual savings would be 52 weeks x $100 = $5200/year

Payback Period and ROI:

The Simple Payback Period would be: Cost of Program/Annual savings = $500 / $5200/year = .1 years = 5.2 weeks!
The Return On Investment (ROI) is 52 / 5.2  x 100 = 1000%
Since paybacks of 2 to 5 years are common corporate goals for expenditures, the analysis indicates this is clearly a worthwhile purchase.

While many situations will vary dramatically from our simple examples, they illustrate that under a wide range of circumstances, the savings and payback are excellent.
Click "File, then "Print" to print this information and perhaps share with others.

Note for Sea Containers rather than Trucks:
As an example a container shipment from China to the USA cost about $3000 USD so you may use the "1000 miles" or "2000 miles" column to approximate your payback time and savings.

Based on 5% Space Savings, $2.00/Mile:
Shipments per Week Average Shipping Distance
50 Miles 100 Miles 500 Miles 1000 Miles 2000 miles
$/Year Saved Payback (Weeks) $/Year Saved Payback (Weeks) $/Year Saved Payback (Weeks) $/Year Saved Payback (Weeks) $/Year Saved Payback (Weeks)
20 5200 5 11400 2.5 52000 .5 104000 .25 208000 .12
10 2600 10 5200 5 26000 1 52000 .5 104000 .25
5 1300 33 2600 10 13000 2 26000 1 52000 .5
1 260 100 540 50 2600 10 5200 5 10400 2.5
1/2 130 200 260 100 1300 20 2600 10 5200 5

Based on 2.5% Space Savings, $2.00/Mile:

Shipments per Week Average Shipping Distance
50 Miles 100 Miles 500 Miles 1000 Miles 2000 miles
$/Year Saved Payback (Weeks) $/Year Saved Payback (Weeks) $/Year Saved Payback (Weeks) $/Year Saved Payback (Weeks) $/Year Saved Payback (Weeks)
20 2600 10 6700 5 26000 1 52000 .5 104000 .25
10 1300 20 2600 10 13000 2 26000 1 52000 .5
5 650 66 270 20 6500 4 13000 5 10400 2.5
1 130 200 130 100 1300 20 2600 10 5200 5
1/2 65 400 130 200 650 40 1300 20 2600 10