How to use this calculator
- Enter the goods value and each allocated logistics cost.
- Enter the number of shipments covered by the order.
- Calculate the evenly allocated cost per shipment.
- Review the non-goods cost share before comparing suppliers.
#2105 · Logistics & Manufacturing Tool
Procurement Order Cost per Shipment Calculator
Allocate purchase value, freight, duty, brokerage, and handling across the shipments covered by a procurement order.
Calculator
Order and shipment costsFormula
Cost per shipment = (Order value + Freight + Duty and taxes + Brokerage + Handling) ÷ Number of shipments
What the result means
The main result evenly allocates the selected procurement order costs across its shipments. It helps compare orders with different shipment counts.
Equal allocation is a planning convention. Use weight, value, volume, or line-level allocation when shipments differ materially.
Example calculation
A $50,000 order plus $3,200 freight, $2,800 duty, $600 brokerage, and $900 handling totals $57,500. Across five shipments, cost is $11,500.00 per shipment.
Tips for better results
- Use values from the same reporting period.
- Keep raw operating data before rounding displayed results.
- Recalculate when staffing, routing, rates, or supplier terms change.
- Investigate the largest contributor before changing the whole process.
Frequently asked questions
Should procurement order value be included in cost per shipment?
Include it when you want landed cost allocated per shipment; omit or set it to zero when analyzing logistics charges only.
Can I allocate costs by weight instead of equally?
This version uses equal allocation. For unequal shipments, calculate separate groups or use a weight-based allocation method.
Should duty and taxes be entered if they are refundable?
Include only the amount treated as a cost under your accounting policy.
Can the number of shipments include partial deliveries?
Yes, if each partial delivery is treated as a shipment and all entered costs cover the same group.
Why is non-goods cost shown separately?
It reveals how much freight, duty, brokerage, and handling add beyond the purchase order value.
Related calculators
Procurement Order Cost per Shipment variables
| Variable | Meaning |
|---|---|
| Goods value | Purchase value allocated to the order. |
| Non-goods costs | Freight, duty, brokerage, and handling. |
| Shipment count | Equal allocation denominator. |