Delivery Window Per-Shipment Cost Estimator

The Delivery Window Per-Shipment Cost Estimator calculates the average cost per shipment for a scheduled delivery window by combining labor, vehicle, waiting, and other window-specific costs. It then divides the total by the number of shipments served in that window.

The estimate can help compare narrow versus broad delivery windows, evaluate low-density appointment blocks, or create a consistent internal cost view for service design. It uses equal allocation across shipments and does not automatically account for customer-specific pricing, revenue, distance weighting, overhead policy, or failed-delivery costs unless those amounts are included in the inputs.

Inputs

USD
USD
USD
USD
shipments
Result
Average delivery-window cost per shipment
Total window cost
Shipments served
Waiting share
Per-shipment cost

1. Enter labor cost
Use labor cost attributable to the delivery window being evaluated.

2. Add vehicle and idle cost
Enter vehicle operating cost and any waiting or idle cost you want to track separately.

3. Capture other window cost
Add other costs that belong to the same delivery block.

4. Enter shipments served
Use the number of shipments actually sharing the entered costs.

5. Review cost drivers
Use the total, per-shipment cost, and waiting-cost share to compare delivery-window designs.

Per-shipment delivery-window cost = (Labor + Vehicle + Waiting/idle + Other cost) ÷ Shipments served

Where:

  • Labor cost for window — entered in USD.
  • Vehicle operating cost — entered in USD.
  • Waiting/idle cost — entered in USD.
  • Other delivery-window cost — entered in USD.
  • Shipments served — entered in shipments.

Assumptions: all inputs refer to the same planning period or operating scenario, and the model uses the averages entered rather than forecasting external disruption.

What the result means

The result is the average entered delivery-window cost assigned equally to each shipment served.

When shipments have materially different service times, distances, sizes, or special handling needs, a weighted cost allocation may provide a more useful management view.

Given:
Labor $300; vehicle $190; waiting $50; other $20; 20 shipments.

Calculation:
Total window cost = 300 + 190 + 50 + 20 = $560.
$560 ÷ 20 = $28.00.

Result:
$28.00 per shipment.

Interpretation:
Each shipment carries an average of $28 of the entered delivery-window cost under equal allocation.

What belongs in waiting cost?

Examples can include paid driver or vehicle idle time when you track it separately. Avoid duplicating amounts already included in labor or vehicle cost.

Should failed deliveries be included in shipment count?

Use the denominator that matches your costing policy. If failed attempts consume cost but are excluded from the count, per-successful-shipment cost will rise.

Can I compare different window lengths?

Yes, if the cost inputs and shipment counts are measured consistently for each scenario.

What if delivery costs differ substantially by shipment?

An equal average may hide that variation. A weighted allocation by time, distance, size, or another cost driver may be more informative.

How does this differ from route per-shipment cost?

This tool focuses on costs attributable to a defined delivery window, while a route-cost estimator allocates costs for a route or tour as a whole.