Calculate transportation cost per case shipped. Divide total freight cost by number of cases to measure delivery cost efficiency for case-pick operations.
Cost per case (CPC) is a key distribution metric for consumer packaged goods, beverage, and food service industries. It measures how much it costs to deliver each case from warehouse to customer, combining transportation, handling, and delivery expenses into a single unit cost.
For distributors managing thousands of SKUs and hundreds of delivery stops, CPC provides a simple way to evaluate route efficiency, compare delivery methods, and set minimum order quantities. A route delivering 500 cases at $2.00 per case is more efficient than one delivering 200 cases at $3.50 per case.
This calculator computes CPC by dividing total transportation cost by the number of cases shipped. Use it to benchmark route performance, justify delivery surcharges on small orders, and track distribution cost trends over time.
Supply-chain managers, warehouse operators, and shipping coordinators rely on precise cost per case data to maintain efficiency and control costs across complex distribution networks. Revisit this calculator whenever conditions change to keep your logistics plans aligned with real-world performance.
In case-pick distribution, the cost to deliver each case directly impacts profit margins on every order. Knowing your CPC helps set minimum order quantities, evaluate delivery frequency decisions, and identify routes that need restructuring. It's the standard metric for beverage distributors, food service companies, and DSD operations. Real-time recalculation lets you model different scenarios quickly, ensuring your logistics decisions are backed by accurate, up-to-date numbers.
Cost per Case = Total Transportation Cost / Total Cases Delivered Route CPC = (Vehicle Cost + Driver Cost + Fuel) / Cases on Route Cost per Case-Mile = Total Cost / (Cases × Miles)
Result: CPC = $2.50
CPC = $1,850 / 740 cases = $2.50 per case. If the average product margin per case is $5.00, transportation consumes 50% of the margin. Increasing route density to deliver 900 cases on the same route would reduce CPC to $2.06.
Direct store delivery (DSD) operations live and die by CPC. Every route must deliver enough cases to cover the fixed costs of the truck, driver, and fuel. Route planners use CPC targets to determine minimum order sizes, delivery frequency, and customer assignment to routes.
The primary levers for CPC reduction are: increasing cases per stop (larger orders), increasing stops per route (route density), reducing fixed vehicle costs (right-sizing trucks), and improving loading efficiency (sequence stops to minimize drive time). A 10% improvement in any of these directly flows to CPC.
Use CPC data to inform delivery charges and minimum order policies. If CPC is $2.50 and your target is $2.00, consider a delivery surcharge for orders below a threshold. Present the data transparently — customers understand volume-based pricing.
CPC varies by industry and geography. Beverage distributors typically see $1.50-$3.50 per case. Food service distributors range from $2.00-$5.00. The key is comparing your CPC to your margin per case to ensure profitability.
Drop size is the biggest driver of CPC. Delivering 50 cases to one stop with a $100 stop cost yields $2.00/case. Delivering 10 cases costs $10.00/case at the same stop cost. Increasing average drop size is the fastest way to reduce CPC.
For a transportation-only CPC, include only delivery costs. For a total distribution CPC, add warehouse picking, loading, and order processing costs. Both metrics are useful — just be consistent in what you include.
Peak seasons often improve CPC because higher volume increases cases per stop and per route. Off-season CPC rises as you deliver fewer cases but still cover fixed route and vehicle costs. Plan staffing and routing accordingly.
CPC directly impacts customer profitability. A customer ordering 10 cases per week at $3.00 CPC consumes $30 in delivery costs. If their margin is only $25, the account is unprofitable. Use CPC data to restructure delivery terms.
If case sizes vary significantly, consider standardizing to a common unit like "case equivalents" based on weight or volume. Otherwise, comparing CPC across different package sizes can be misleading since larger cases cost more to handle.