Mastering the transport cost ratio
A simple indicator to know whether your transport is under control: the ratio between transport cost and goods value.
One ratio, three zones
The transport ratio is: total transport cost divided by goods value. A common reading: up to 20% the cost is under control; between 20% and 30% it deserves attention; above 30% it becomes a priority to optimize.
These thresholds are guides, not an absolute rule: a low-value, high-volume product will mechanically have a higher ratio.
Why track it per dossier
Tracking the ratio on each shipment reveals drift early: a pricier carrier, an unsuitable mode, add-on fees piling up (handling, insurance, final delivery).
Comparing ratios across suppliers, carriers and transport modes helps decide where to focus negotiation efforts.
Taking action
Break each cost down (local, main, insurance, handling, final delivery, other) rather than a lump sum: that detail is what makes the ratio actionable. A ready-to-use calculator is available in our template library.
Structure your purchasing. Streamline your shipments.
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