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Would fewer, fuller shipments lower total cost?
Compare freight savings with extra inventory carrying cost and consolidation fees.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- Current shipments / year
- 240
- Proposed shipments / year
- 120
- Fixed freight cost / shipment
- $500
- Additional average inventory cash
- $100,000
- Annual holding cost rate
- 25 %
- Annual consolidation service cost
- $10,000
Annual consolidation net savings
Example result only, not a forecast or promise.
- Annual freight reduction
- $60,000
- Extra annual carrying cost
- $25,000
- Additional inventory cash tied up
- $100,000
What to do with this result
Check delivery frequency, product age and service commitments before consolidating; avoid double-counting freight in carrying cost.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
Annual net savings = (old shipments − proposed shipments) × fixed freight cost − extra average inventory × holding rate − consolidation cost.
Assumptions and limitations
- Example inputs are editable scenarios, not Aryo results or independently verified industry benchmarks.
- Demand, lead times and service levels are scenario inputs. Validate variability, physical constraints and supplier terms before ordering.