Logistics & Freight Should-Cost Analysis
A should-cost model for logistics & freight rebuilds the supplier's price from the bottom up — materials, labor, overhead, margin — so you enter every negotiation with a defensible target instead of a "gut feel" discount.
Freight and logistics typically absorbs 5–12% of landed cost and swings widely with fuel, capacity and lane mix. The model exposes exactly where each dollar goes, so you can pressure the right lever instead of asking for a flat percentage off.
Lane consolidation, index-linked fuel clauses and reverse auctions on top-10 lanes usually unlock 6–15%. SourcingHub's should-cost engine builds this model in minutes, with the logistics & freight-specific drivers pre-loaded.
Fields every Logistics & Freight should-cost analysis should cover
- Origin & destination (city, port, incoterm)
- Mode (FTL, LTL, ocean FCL/LCL, air, intermodal)
- Equipment & handling (reefer, hazmat, dims, weight)
- Volume per lane (loads/month, seasonality)
- Rate structure (linehaul, fuel surcharge, accessorials)
- Transit time, on-time %, claim ratio
How it works in SourcingHub
Choose the category — Logistics & Freight — and SourcingHub loads the should-cost analysis template pre-tuned for it.
A 5-minute guided brief captures scope, volume and constraints. AI fills the blanks with category benchmarks.
Download the should-cost analysis as Word or Excel, or send it directly to suppliers from SourcingHub.
Frequently asked
The essentials for logistics & freight: current price, volume, and the drivers listed above (Origin & destination (city, port, incoterm), Mode (FTL, LTL, ocean FCL/LCL, air, intermodal), Equipment & handling (reefer, hazmat, dims, weight)). If you don't have every input, the model uses category benchmarks and flags each assumption.
No — the same logic (cost drivers × utilization × margin) works for services and indirect spend. In logistics & freight, the drivers just shift from raw materials to labor rates, capacity, and pass-through costs.
Within ±5–10% of the supplier's own cost stack is enough to negotiate. The value comes from the conversation the model unlocks, not decimal-precise cost accounting.
Yes. Exports come in a clean executive format (PDF or Excel), and you can share redacted drivers or the full stack depending on your negotiation strategy.
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