The Smithers Pira PACKSmart Cost Estimator shows how certain variables affect the costs associated with product damage and how the addition of package and transportation testing could be a key factor in reducing those costs.
How it works:
First, determine the unit of measure that you would like to evaluate then input your current costs for packaging, product and shipping (all based on the unit indicated above). Finally, use the bottom slider bar to set your current shipment damage rate. Now that you've established your baseline, it's time to input your future costs (the same variables in the ideal state). In this example, you will factor in a new estimated cost for distribution and package testing and a reduced damage rate estimate. The results may surprise you.
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What is my Damage Rate?
Damage rate can be defined as the average percentage that product shipments experience damage during transit in the supply chain. Many companies track this to determine actual total product cost and can be used in profit/loss assessments. Need help to determine your annual damage rate? Contact our experts.
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