{"id":15336,"date":"2023-12-15T11:06:40","date_gmt":"2023-12-15T19:06:40","guid":{"rendered":"https:\/\/michaeljbrumm.com\/dcl-v3\/?p=15336"},"modified":"2024-01-26T12:04:08","modified_gmt":"2024-01-26T20:04:08","slug":"how-to-calculate-freight-analysis","status":"publish","type":"post","link":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/shipping\/how-to-calculate-freight-analysis\/","title":{"rendered":"Is Your Freight Spend Too High? Simple Steps to do a Freight Cost Analysis for DTC Shipping"},"content":{"rendered":"<p><span data-contrast=\"auto\">High-growth ecommerce businesses may spend up to 70% of their budget on shipping and transportation. When shipping direct-to-consumer, there are many variables that factor into overall freight cost\u2014cross-referencing each aspect alone can be a misleading way of\u00a0optimizing your transportation spend. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">There can be aspects of your shipping mix or selected services that need to be consolidated or negotiated for a reduction in cost. The only way to know where you may be overspending on freight costs is to conduct a thorough analysis of your shipping invoice. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Brands should conduct a comprehensive freight analysis on a regular basis to ensure they\u2019ve optimized their shipping strategy. Only by collecting all costs and all shipping variables will you be able to properly assess your overall transportations costs. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Here are the steps to take to conduct a thorough freight cost analysis for direct\u2014to-consumer domestic shipping. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">What is a Freight Cost Analysis? <\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">A freight cost analysis is a systematic way of identifying areas within your shipping costs that may need to be adjusted. A freight analysis should be used to compare costs that you are currently incurring for parcel deliveries. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Freight costs should be reviewed and analyzed on a regular basis. Any changes to your product, packaging, warehousing, fulfillment location, or delivery speed will mean changes to your shipping costs. Without assessing the optimal carrier and service for any adjustments, you may be overpaying for shipping. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Here are a few examples of reasons to conduct a regular freight analysis: <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Your shipping carriers announced new prices\u2014carriers adjust prices annually, sometimes more often than annually <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">You notice consumer buying habits are trending up or down from different zones, which naturally changes the overall cost of your <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">You&#8217;ve decided to make changes to your packaging (eco-friendly!), your kitting (fewer boxes!), or packing materials (safer products!), which may alter the dimensions of your parcels, naturally changing the overall cost<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:720,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"auto\">Steps to Conduct a Freight Cost Analysis for DTC Shipments <\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Step One: Build a Freight Cost Table <\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Gather the following information. You\u2019ll need to build a cost table (or multiple tables) to chart the following cost factors. <\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"auto\">Rates by weight and zone of the carrier(s) and service(s) you are auditing <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"5\" data-aria-level=\"1\"><span data-contrast=\"auto\">Zip code tables or zone tables (these vary between carriers, you\u2019ll need one for each carrier you\u2019re auditing) <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"6\" data-aria-level=\"1\"><span data-contrast=\"auto\">Zip codes for Delivery Area and Extended Delivery Area surcharges (these vary between carriers, you\u2019ll need one for each carrier you\u2019re auditing)<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"7\" data-aria-level=\"1\"><span data-contrast=\"auto\">Residential surcharges, if applicable, for each carrier and service <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"8\" data-aria-level=\"1\"><span data-contrast=\"auto\">Fuel surcharge rate for each carrier and service <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"9\" data-aria-level=\"1\"><span data-contrast=\"auto\">Dimensional divisor for each carrier and service<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"10\" data-aria-level=\"1\"><span data-contrast=\"auto\">Other surcharge details which may apply to your parcels (additional handling, non-qualifying dimension, etc.) <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">The exercise of building your initial tables is the most important part of your analysis. If you\u2019ve done that as thoroughly as possible, sorting your data should prove simple. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559685&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">It\u2019s easy to rate-check on a per service basis\u2014looking at the Delivery Area Surcharge across carriers, for example. But that base cost doesn\u2019t take into account the entirety of your shipping mix. Only once you have included the many variables that factor into shipping your product can you get\u00a0a clear analysis of your overall transportation costs. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Step 2: Compile and Organize Historical Data <\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Locate a shipping file with historical information containing 30-90 days of shipping data. It is important that this includes the following data points, at the bare minimum: <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"11\" data-aria-level=\"1\"><span data-contrast=\"auto\">Origin zip code<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"12\" data-aria-level=\"1\"><span data-contrast=\"auto\">Destination zip code<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"13\" data-aria-level=\"1\"><span data-contrast=\"auto\">Shipping zone <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"14\" data-aria-level=\"1\"><span data-contrast=\"auto\">Dimensions (length, width, height)<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"15\" data-aria-level=\"1\"><span data-contrast=\"auto\">Weight (actual and billed)<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"16\" data-aria-level=\"1\"><span data-contrast=\"auto\">Carrier <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"17\" data-aria-level=\"1\"><span data-contrast=\"auto\">Service<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"18\" data-aria-level=\"1\"><span data-contrast=\"auto\">Net cost<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">Make sure all your data types are normalized within your chart. For example, it is common to see leading zeroes dropped from zip codes once data is moved to a document or sheet. If these aren\u2019t fixed, you will not have an accurate analysis. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559685&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Step 3: Sort Your Shipping Data for a Specific Outcome <\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559685&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Once you have collected and charted the\u00a0specific details you want to assess, you\u2019ll want to merge that data with your historical shipping file. There are a few ways to do this, it depends on your desired outcome and the software you prefer: <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559685&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ol>\n<li data-leveltext=\"%1.\" data-font=\"\" data-listid=\"5\" data-list-defn-props=\"{&quot;335551671&quot;:1,&quot;335552541&quot;:0,&quot;335559683&quot;:0,&quot;335559684&quot;:-1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0,46],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Excel file or sheet. You\u2019ll need to leverage formulas like v-lookup to access data across multiple tables and\u00a0roll the data up into a pivot table. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ol>\n<ol>\n<li data-leveltext=\"%1.\" data-font=\"\" data-listid=\"5\" data-list-defn-props=\"{&quot;335551671&quot;:1,&quot;335552541&quot;:0,&quot;335559683&quot;:0,&quot;335559684&quot;:-1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0,46],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Microsoft Access. You can import all the tables and import your historical shipping file, run a series of queries that will ultimately produce a master report for export. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ol>\n<p><span data-contrast=\"auto\">The software you use will only work as well as the information you gather. Ultimately, by sorting this data according to your main objective, you\u2019ll get a total landed cost rate. It will be the amalgamation of the variables combined. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559685&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Step Four: Assess Your Outcome <\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559685&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">There are multiple goals you may have from conducting a freight analysis. You can use this data to assess various outcomes. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Here are some possible ways to use the data in your freight analysis. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"auto\">Compare Historical Data <\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">If the analysis is simply to compare your historical data over time, without changing the service or origin fulfillment center, then you should compare specific periods of time. By doing this you\u2019ll naturally see cost fluctuations and be able to assess if your rates are optimized for business growth. Seeing rates get too high in any area may mean it\u2019s time to then reassess the services you choose. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"auto\">Cross Reference Other Services <\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">If your goal is to compare your current data with another service, you can re-rate the shipments in your historical data with the costs of a new service. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Be sure to factor in the appropriate rate ingredients (surcharges, zones, dimensional weight, etc.) so that the comparison is accurate. Fuel is typically calculated once all other rate ingredients are added to the base rate.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"auto\">Optimize to Change a New Shipping Origin <\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">You can also use this process to calculate the costs from a different origin fulfillment center. You can perform a freight analysis with a new potential fulfillment center to assess a lower overall rate. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">To do this, first determine the fulfillment center with the lowest zone to your destination. Then determine and assign the rate ingredients compiled from that zone. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In a two-fulfillment center setup, where one is on the East Coast and one is on the West Coast, it is typical to see a spilt where approximately 70% of shipments are optimized, for cost and transit time, when shipped from the\u00a0one origin\u00a0and rest from the other origin. For example, it is cheaper and faster to ship a parcel from PA to NY than it is to ship it from CA to NY. Likewise, it is cheaper and faster to ship a parcel from CA to AZ than to ship it from PA to AZ. <\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Bottom Line <\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Shipping is a vital aspect of ecommerce. It\u2019s so important to get the right mix of service, delivery speed, and cost. The wrong mix can hinder your growth.\u00a0It can be complex to understand each line item of your shipping invoice, but by compiling the relevant information and analyzing it against your historical data you\u2019ll better understand what you are paying for. If you outsource to a 3PL or logistics partner, they should be helping you conduct a freight cost analysis on a regular basis. Leverage their expertise to help you optimize your shipping and transportation strategy. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>High-growth ecommerce businesses may spend up to 70% of their budget on shipping and transportation. When shipping direct-to-consumer, there are many variables that factor into overall freight cost\u2014cross-referencing each aspect alone can be a misleading way of\u00a0optimizing your transportation spend. \u00a0 There can be aspects of your shipping mix or selected services that need to [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[95],"tags":[2050,32],"class_list":["post-15336","post","type-post","status-publish","format-standard","hentry","category-shipping","tag-calculators-formulas","tag-freight"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.5 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How to Conduct a Freight Analysis | DCL Logistics<\/title>\n<meta name=\"description\" content=\"DTC brands need to save costs of shipping, by doing a comprehensive freight analysis you can assess where you need to make adjustments to your shipping mix.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/shipping\/how-to-calculate-freight-analysis\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Is Your Freight Spend Too High? Simple Steps to do a Freight Cost Analysis for DTC Shipping\" \/>\n<meta property=\"og:description\" content=\"DTC brands need to save costs of shipping, by doing a comprehensive freight analysis you can assess where you need to make adjustments to your shipping mix.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/shipping\/how-to-calculate-freight-analysis\/\" \/>\n<meta property=\"og:site_name\" content=\"DCL Logistics\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/DCLLogistics\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-12-15T19:06:40+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-01-26T20:04:08+00:00\" \/>\n<meta name=\"author\" content=\"Maureen Walsh\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@dcl_logistics\" \/>\n<meta name=\"twitter:site\" content=\"@dcl_logistics\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Maureen Walsh\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"How to Conduct a Freight Analysis | DCL Logistics","description":"DTC brands need to save costs of shipping, by doing a comprehensive freight analysis you can assess where you need to make adjustments to your shipping mix.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/shipping\/how-to-calculate-freight-analysis\/","og_locale":"en_US","og_type":"article","og_title":"Is Your Freight Spend Too High? Simple Steps to do a Freight Cost Analysis for DTC Shipping","og_description":"DTC brands need to save costs of shipping, by doing a comprehensive freight analysis you can assess where you need to make adjustments to your shipping mix.","og_url":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/shipping\/how-to-calculate-freight-analysis\/","og_site_name":"DCL Logistics","article_publisher":"https:\/\/www.facebook.com\/DCLLogistics\/","article_published_time":"2023-12-15T19:06:40+00:00","article_modified_time":"2024-01-26T20:04:08+00:00","author":"Maureen Walsh","twitter_card":"summary_large_image","twitter_creator":"@dcl_logistics","twitter_site":"@dcl_logistics","twitter_misc":{"Written by":"Maureen Walsh","Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/shipping\/how-to-calculate-freight-analysis\/#article","isPartOf":{"@id":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/shipping\/how-to-calculate-freight-analysis\/"},"author":{"name":"Maureen Walsh","@id":"https:\/\/michaeljbrumm.com\/dcl-v3\/#\/schema\/person\/bc81d881eb8b181d8c951e6ac0087a06"},"headline":"Is Your Freight Spend Too High? Simple Steps to do a Freight Cost Analysis for DTC Shipping","datePublished":"2023-12-15T19:06:40+00:00","dateModified":"2024-01-26T20:04:08+00:00","mainEntityOfPage":{"@id":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/shipping\/how-to-calculate-freight-analysis\/"},"wordCount":1247,"publisher":{"@id":"https:\/\/michaeljbrumm.com\/dcl-v3\/#organization"},"keywords":["Calculators &amp; Formulas","freight"],"articleSection":["Shipping"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/shipping\/how-to-calculate-freight-analysis\/","url":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/shipping\/how-to-calculate-freight-analysis\/","name":"How to Conduct a Freight Analysis | DCL Logistics","isPartOf":{"@id":"https:\/\/michaeljbrumm.com\/dcl-v3\/#website"},"datePublished":"2023-12-15T19:06:40+00:00","dateModified":"2024-01-26T20:04:08+00:00","description":"DTC brands need to save costs of shipping, by doing a comprehensive freight analysis you can assess where you need to make adjustments to your shipping mix.","breadcrumb":{"@id":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/shipping\/how-to-calculate-freight-analysis\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/shipping\/how-to-calculate-freight-analysis\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/shipping\/how-to-calculate-freight-analysis\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/michaeljbrumm.com\/dcl-v3\/"},{"@type":"ListItem","position":2,"name":"Is Your Freight Spend Too High? Simple Steps to do a Freight Cost Analysis for DTC Shipping"}]},{"@type":"WebSite","@id":"https:\/\/michaeljbrumm.com\/dcl-v3\/#website","url":"https:\/\/michaeljbrumm.com\/dcl-v3\/","name":"DCL Logistics","description":"Logistics and Fulfillment Experts","publisher":{"@id":"https:\/\/michaeljbrumm.com\/dcl-v3\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/michaeljbrumm.com\/dcl-v3\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/michaeljbrumm.com\/dcl-v3\/#organization","name":"DCL Logistics","url":"https:\/\/michaeljbrumm.com\/dcl-v3\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/michaeljbrumm.com\/dcl-v3\/#\/schema\/logo\/image\/","url":"https:\/\/michaeljbrumm.com\/dcl-v3\/wp-content\/uploads\/2023\/05\/DCL-Icon-Transparent.png","contentUrl":"https:\/\/michaeljbrumm.com\/dcl-v3\/wp-content\/uploads\/2023\/05\/DCL-Icon-Transparent.png","width":153,"height":153,"caption":"DCL Logistics"},"image":{"@id":"https:\/\/michaeljbrumm.com\/dcl-v3\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/DCLLogistics\/","https:\/\/x.com\/dcl_logistics","https:\/\/www.linkedin.com\/company\/dcl\/"]},{"@type":"Person","@id":"https:\/\/michaeljbrumm.com\/dcl-v3\/#\/schema\/person\/bc81d881eb8b181d8c951e6ac0087a06","name":"Maureen Walsh","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/michaeljbrumm.com\/dcl-v3\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/92a8327f195b45b2998fbb72af53feaf6cd55207b691df23673cd0c3fc9dbb10?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/92a8327f195b45b2998fbb72af53feaf6cd55207b691df23673cd0c3fc9dbb10?s=96&d=mm&r=g","caption":"Maureen Walsh"},"description":"Maureen is the Marketing Manager at DCL Logistics. A writer and blogging specialist for over 15 years, she helps create quality resources for DCL's innovative customers and many other ecommerce brands looking to optimize their business.","sameAs":["https:\/\/www.linkedin.com\/in\/maureenwalsh\/"],"url":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/author\/maureen\/"}]}},"_links":{"self":[{"href":"https:\/\/michaeljbrumm.com\/dcl-v3\/wp-json\/wp\/v2\/posts\/15336","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/michaeljbrumm.com\/dcl-v3\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/michaeljbrumm.com\/dcl-v3\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/michaeljbrumm.com\/dcl-v3\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/michaeljbrumm.com\/dcl-v3\/wp-json\/wp\/v2\/comments?post=15336"}],"version-history":[{"count":0,"href":"https:\/\/michaeljbrumm.com\/dcl-v3\/wp-json\/wp\/v2\/posts\/15336\/revisions"}],"wp:attachment":[{"href":"https:\/\/michaeljbrumm.com\/dcl-v3\/wp-json\/wp\/v2\/media?parent=15336"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/michaeljbrumm.com\/dcl-v3\/wp-json\/wp\/v2\/categories?post=15336"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/michaeljbrumm.com\/dcl-v3\/wp-json\/wp\/v2\/tags?post=15336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}