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Tool

Which rate card costs you less.

Put two 3PL rate cards side by side at your own monthly volume. You see what each one costs once tiers, minimums, returns and cash-on-delivery fees are in. You also see the volume where the cheaper one changes.

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Your figures
Percent.
Percent.
In your currency.
Platform, account management or standing fees, in your currency.
Deliveries above this number are charged at the tier rate. Enter a very large number if the contract has no tier.
Percent of the cash value collected.
The minimum commitment. Enter 0 if there is none.
Packaging, storage, handling or other extras.
Platform, account management or standing fees, in your currency.
Deliveries above this number are charged at the tier rate. Enter a very large number if the contract has no tier.
Percent of the cash value collected.
The minimum commitment. Enter 0 if there is none.
Packaging, storage, handling or other extras.
Your results
Contract A: total cost per month-
Contract B: total cost per month-
Contract A: effective cost per delivery-
Contract B: effective cost per delivery-
Deliveries per month at which the two contracts cost the same (0 if they do not cross)-
Contract A: total cost per month if volume rises 20%-
Contract B: total cost per month if volume rises 20%-
Contract A: total cost per month if volume falls 20%-
Contract B: total cost per month if volume falls 20%-
The starting figures

What the comparison shows before you change a number

These panels use the starting figures in the calculator above. Replace them with yours and the answer moves.

Sample · Two rate cards, 6,000 deliveries a month
One month

Same deliveries, two bills

Contract A has a fixed charge and a minimum, and a lower rate. Contract B has neither, and a higher rate. Which one costs you less depends on how many deliveries you send.

2,916

Contract A costs you less every month

Below 5,007 deliveries a month, Contract B is the cheaper one.

Cost of one delivery on Contract A as volume moves

  1. 14.543,000
  2. 11.174,000
  3. 10.645,000
  4. 10.126,000
  5. 9.269,000

Total cost a month

  • A at 6,00060,740
  • B at 6,00063,656
  • A at 7,20069,788
  • B at 7,20076,227

Where Contract A's 60,740 goes

  • 44,000Delivery charges
  • 10,500Fixed and extras
  • 4,320Cash-on-delivery fee
  • 1,920Returns
  • 60,740Contract A, every month
  • 63,656Contract B, every month
  • 5,007Deliveries a month where they cross
  • 6,439Gap if volume rises 20%
How to read the result

Read the crossing line first

Start with the effective cost per delivery. It folds the fixed charge, the delivery rate, return fees, cash-on-delivery fees and extras into one figure, so two cards with different headline rates sit on the same footing.

The crossing line gives the monthly volume where the two contracts cost the same. Below it one contract is cheaper and above it the other is. If it reads 0, the contracts do not cross within ten times your volume and one stays cheaper throughout. The four sensitivity lines show each contract with your volume 20 percent higher and 20 percent lower, which is where a minimum commitment or a tier shows itself.

The calculator counts each contract's fixed charge, rate and tier, minimum delivery charge, return fees, cash-on-delivery fees at the shares you enter and extras, at one volume and mix for both contracts. Replace the starting figures with your own.

Next step

Take the rate cards further

Where the answer turns on a clause, 3PL contract evaluation and renegotiation reads the full contracts and the invoices behind them. The Control Diagnostic places the result beside your position on the Control Matrix and the capital the choice commits.

Related

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