Cost models, quotations and performance evidence
Transport costing begins with the actual service boundary. Identify the cargo, route, collection and delivery conditions, equipment, waiting, handling, border and terminal work before comparing quotations. A cheap line-haul price is not necessarily a cheap complete operation. Separate a cost to the operator from the price quoted to the customer, and distinguish a contractual charge from an accounting allocation.
Use a model transparently
A trinomial road-cost model can combine a kilometre component, a driver-time component and a vehicle-day component. Apply the actual supplied coefficients and units. Do not multiply a daily standing cost by every driving hour or include one cost twice. The CNR provides French road-transport economic information, but a classroom coefficient is not automatically the current cost of every carrier, vehicle or route.
For example, suppose a model states 360 kilometres at 0.60 euros per kilometre plus 340 euros of other assigned cost. The model total is 216 plus 340, or 556 euros. If the desired margin is eight percent of the selling price, divide 556 by 0.92, giving approximately 604.35 euros. Multiplying by 1.08 gives a markup on cost and answers a different question. State whether VAT, surcharges and rounding are included before presenting a commercial price.
Interpret capacity and productivity
Vehicle payload use, empty running and warehouse productivity measure different aspects of performance. A truck can use its permitted mass inefficiently while using its available cube well. A good mass-utilization percentage does not establish a compliant axle distribution. Define the numerator, denominator and observation period for every indicator.
Inventory turnover normally compares a consistent annual cost flow with average inventory valued on the same basis. A simplified days-of-inventory calculation depends on the stated year convention and stable interpretation. A ratio cannot independently establish that every item is fresh, usable or available where needed.
Check service as well as cost
OTIF measures whether the defined order population arrived on time and in full. Explain the promised time, complete quantity, exclusions and treatment of split orders. A percentage based only on completed deliveries can conceal undelivered orders. Freight audit compares the relevant service, contract, weight, distance and charges with evidence; an invoice total matching a budget is not proof of correct billing.
Investigate change before naming its cause. Fuel prices, empty kilometres, traffic, order mix, utilization and charging practices can move together. Compare a suitable baseline and comparable work. A dashboard supports diagnosis, but a single favorable average does not justify unsafe loading or conceal damaged and late deliveries.