Connect route activity to order contribution so frequent small stops do not hide inside average freight costs.
Where this helps
A route can look busy and still make little contribution. Sales order margin alone does not reveal repeated small deliveries, long unloading times, or unusually expensive stops.
What Rectangle connects
Join ERP sales and product costs to warehouse handling activity and TMS route distance, time, and stop data. Apply an explicit allocation policy for shared route costs, distinguishing estimates from measured costs. Keep this operational contribution view separate from fully allocated company profit.
Calculate route contribution Net sales $12,000 − product cost $9,000 = $3,000
- Picking $420 + allocated delivery $980
- Operational contribution: $1,600 · 13.3% of sales.
A closer look
Connect route activity to order contribution so frequent small stops do not hide inside average freight costs.
Find weak stops Elm Café is a loss-making stop under the current allocation policy. Its $40 product margin does not cover $8 of picking and $46 of delivery cost.
- Contribution per stop: −$14.
- Current frequency: four small deliveries per week.
- Delivery costs are allocated using drive time and service time.
Test two larger deliveries per week, then confirm vehicle capacity, customer storage, and customer acceptance.
From answer to action
The team can compare delivery-day changes, minimum order quantities, or consolidation options without losing sight of customer commitments. The assistant prepares a review that shows the cost assumptions and order-level evidence behind each candidate.
Compare service options 4 stops → 2 proposed stops · estimated $92 less delivery cost
- Forecast quantities fit current vehicle capacity.
- Confirm storage space and customer acceptance.
- Service-plan draft prepared · no schedule changed.
Find the service patterns that need a different delivery schedule or commercial agreement.
