Purpose
This measure evaluates whether freight charges adequately cover actual freight costs. It helps detect cost leakage and supports targeted analysis by region, customer, product, or delivery method.
Business Context
Freight Cost Recovery compares the amount charged to customers for freight with the actual freight costs incurred. A value below 100% (for example, 95%) indicates that freight charges covered only part of the total freight cost, resulting in a margin shortfall. This measure enables business users to identify areas where freight pricing or policies may require adjustment.
Definition
The measure calculates the percentage of freight charges recovered relative to total freight costs over the Agent’s filtered scope.
Business Formula
Freight Cost Recovery (%) = Sum of Freight Charges / Sum of Freight Costs
Agent Expression
SUM(Freight_Charge) / NULLIF(SUM(Freight_Cost), 0)