Freight Margin Agent (Formula Expressions)

This page provides summary of the Formula Expressions used in the Freight Margin Agent (Reference).

Freight Cost Recovery Rate

Definition

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The percentage of freight cost recovered through freight charges over the filtered scope. It compares the total amount billed to customers for freight with the total internal freight costs incurred, indicating how fully freight costs are being recovered.

Formula

SUM(Freight_Charge)/NULLIF(SUM(Freight_Cost),0)-1

Freight Recovery Opportunity

Definition

:question_mark:

The unrecovered freight amount in value terms: the gap between freight cost and freight charge when freight cost is higher. It quantifies the missed freight recovery (freight subsidy) over the filtered scope by measuring how much freight cost was not passed on to customers.

Formula

SUM(Freight_Charge)-SUM(Freight_Cost)

Freight Charge To Revenue

Definition

:question_mark:

The share of revenue represented by freight charges. Calculated as freight charges divided by invoice price (revenue), showing how large a portion of total revenue comes from billed freight.

Formula

SUM(Freight_Charge)/NULLIF(SUM(InvoicePrice),0)

Freight Cost To Revenue

Definition

:question_mark:

The share of revenue consumed by freight cost. Calculated as freight cost divided by invoice price (revenue), indicating how much of the revenue is absorbed by internal freight costs.

Formula

SUM(Freight_Cost)/NULLIF(SUM(InvoicePrice),0)

Opportunity %

Definition

:question_mark:

The net freight recovery gap relative to revenue. It expresses the difference between freight charges and freight costs as a proportion of revenue, showing the relative impact of under- or over-recovery of freight on overall revenue.

Formula

(SUM(Freight_Charge)-SUM(Freight_Cost))/NULLIF(SUM(InvoicePrice), 0)