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Incident Cost Calculator

Commercial Shipments

Temperature excursions and delays with APIs, safety samples, semi- and finished product shipments result in financial and time costs for manufacturers. But how do you quantify this loss in real terms and what impact does your logistics provider’s performance have on the result?

Calculate your opportunity and direct costs.

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Opportunity Cost

The supply chain and QA 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 Associates Hours Per Excursion Per Associate Hourly Rate
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 the associated loss of sales:

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Product Cost of Unit Units Per Shipping Box Replacement Cost Loss of Sales Number of Shipments
Your Product

Your Calculated Impact

Total People Hours Per Excursion

Total Cost of Associate Hours Per Excursion

Total Manufacturing Cost of Units Lost

Total Product Cost Per Excursion

With a courier with a 99.9% non-excursion rate, you stand to lose With a 95.0% courier you could lose . and with a 90.0% courier it’s up to .

Can you afford to take that risk? The difference between a 99.9% and 90.0% courier is a failure rate of 0.1% and 10% respectively, which means 100 times the possibility of something going wrong. What impact will logistics performance have on your costs, based on the costs you input?

Reducing investment in specialty logistics for time and temperature-sensitive shipments can be a false economy.