What is the actual cost of one stop on a distribution route?

Do you know the cost that each of your clients actually impose on your operation?

We spent a lot of time finding a workable way to work this out. There are many factors to be considered. The question is which factors are the most significant, and which factors are less? Should you concentrate on distance, or time, weight or volume; and what about waiting time and handling time? etc.

The Law of Large Numbers, and the Normal Distribution set the stage for which are actually the most important factors. We have found that when you use TIME as the base “currency” it will yield a good foundation for the calculations, since both the actual driving and waiting and handling are best defined by this common denominator - TIME. We have developed an algorithm that will assign a reasonable cost share levied by the individual stop on a distribution route, based on the cost of the total route completed.

This enables us to accumulate these cost fragments from every day and thereby present the aggregated cost of every client you have with a reasonable precision.

Feel free to take a look: