What is the cost of shipment failure?

Losses related to temperature excursions and shipment delays include both time and money. But how do you quantify this loss in real terms, and what effect does your logistics provider’s performance have on these results? Discover the impact of logistics incidents on your opportunity and direct costs using World Courier’s incident cost calculator (Disclaimer)

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Calculate Your Incident Costs Below

Opportunity Cost: The supply chain, QA and study teams deal with the immediate consequences of an incident, decisions on resupply and investigation and documentation. Calculate the financial impact of this diverted time using the hourly rates for your business.

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Category Numbers of Employees Hours Per Excursion Per Employee Rate Per Hour
Immediate management of the excursion
Planning and executing re-supply

Direct Cost: Product replacement costs can vary significantly. Calculate the financial impact using costs and unit numbers of your own product – not forgetting associated transport and destruction costs.

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Product Cost of Goods Units Per Shipping Box Shipping Cost Destruction Cost Number of Shipments
Your Product

Your Calculated Impact Per Excursion

Total People Hours

Total Cost of Employee Hours

Total Product Replacement Cost

Total Product Cost

With a 99.9% courier you stand to lose $0 and with a 99.0% courier you could lose up to $15,600.

Can you afford to take that risk? On the surface, the difference between 99% and 99.9% may seem negligible, but a failure rate of 1% and 0.1% could mean 10 times the possibility of something going wrong. What does this mean for you based on your opportunity and direct costs? Reducing investment in specialty logistics services can be a false economy.