Measures the cost of transportation based on the mode of transport used (e.g., road, sea, air).
What it Measures ?
Compares shipping costs across different transport modes.
Relevant StakeHolders
Logistics Lead, Finance Controller
Why it Matters ?
Reduces transportation costs.
In-depth Use Case / Real-world Example
A company manufacturing consumer goods calculates Freight Cost Analysis by Mode by evaluating the costs associated with each transportation mode. For example, if shipping by air costs ₹1000 per unit, by sea ₹500, and by road ₹300, the company can optimize its logistics strategy to reduce costs by shifting to more cost-effective modes.
Sample Formula
Cost Comparison for Freight by Air, Sea, and Road