Good Day:
RE: We have a formula for calculating the yearly cost for our purchases from Vendors, but it does not include shipping costs.
We have a formula for calculating the yearly cost for our purchases from Vendors, but it does not include shipping costs; so, I am looking into how to add a factor for Shipping.
I know it gets complicated because it depends on: weight, Volume, type of transport, Distance?, local vendor’s truck, combine with other parts, Vendor handling charge, Vendor bill us, etc.
So:
A. what is true ‘in general’, or maybe even some specifics you have seen go by.
B. Are there web-sites that let me do a “what if” calculation. Any good ones?
Our current formula indicates a lot of money can be saved by buying smaller Lots; but, some suggest the extra shipping cost will eat up the savings. On one part alone, we can save $10,000 a year by buying every two weeks instead of once a month. Ignoring shipping cost.
If shipping cost was simply by weight, it would be a none issue.
Have you come up with any quickie, ‘shortcut’ way to estimate; or find it is too small to be of concern?
Len
This e-mail and any attachments may contain proprietary and/or confidential information. If you are not the intended recipient, please notify the sender immediately by reply e-mail or at 410-472-2900 and then delete the message without using, disseminating, or copying this message or any portion thereof. With e-mail communications you are urged to protect against viruses.