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URL: https://odmarketing.odfl.com/ODValueCalc
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Text Content

Value Calculator

THE VALUE OF SHIPPING WITH OLD DOMINION

When it comes to LTL Transportation, every detail is important—especially
calculating all of the associated costs. Old Dominion’s service, on-time
percentage and low claims ratio provide a greater value across every aspect of
the shipping process. This value calculator identifies and quantifies those
costs to illustrate how Old Dominion can help you lower your overall total cost
of transportation.

Instructions: Fill in the fields below. Roll-over each field name for additional
information. Where appropriate, we have prepopulated the fields with industry
averages or Old Dominion corporate performance metrics. However, where you have
specific metrics for your own shipping, please enter them. Try to provide the
most accurate data possible so the calculator provides accurate results and the
true potential benefit for your shipping situation.

Annual Number of Shipments

(Minimum of 50 annual shipments required)
Average Sales Value per Shipment
$
Company Contribution


TOTAL COST

Average Carrier Shipping Charge
$
Old Dominion Price Differential
%
Current On-Time Shipment Percentage
%
Old Dominion On-Time Shipment Percentage
%
Current Claims Ratio
%
Old Dominion Claims Ratio
%
Current Shipments Incurring Fines

Fine Percentage
%

RESULTS

Annual Sales Value of Freight $
Example ODFL Freight Bill $

TOTAL

 
Current Carrier

--------------------------------------------------------------------------------

ODFL

--------------------------------------------------------------------------------

Number of Late Shipments

Sales Opportunity Cost
$$
Cost of Claims
$$
Total Freight Bill
$$
Fines/Chargebacks
$$
Actual Total Cost
$$
Total Cost Reduction
%
Old Dominion Potential Total Cost Benefit**
$
Email Address



*Old Dominion’s industry-leading on-time and #1 claims prevention rankings are
based on the 2022 Mastio & Co. National LTL Carrier Report. Old Dominion’s .14%
claims ratio is as of Q4 2022.

**Results provided by this calculator are based upon information input by the
user and are also based on certain business assumptions as described in the
rollover text for each entry. Calculations should not be considered as price
quotes, actual savings amounts or offers of service by Old Dominion but rather
directional data based on the total cost of your freight program. Although OD
has made every effort to ensure the accuracy of this calculator, each business
is different and will have additional factors influencing actual results. OD
does not guarantee, either expressly or implicitly, the accuracy and
completeness of this calculator.

Enter the number of shipments you send in a year.

×

This is the average price you pay for a shipment.

×

This is the average value of each shipment.

×

The chart above does not account for the other costs, such as administrative
costs, the carrying cost of inventory, customer dissatisfaction, and other
intangible expenses.

** The chart above is for illustrative purposes only and may not be indicative
of, or predictive with respect to, your particular shipping situation.

×

Old Dominion’s service can be priced above that of the competition. That
difference is generally between 5% and 9%.

×

Enter your current shipper’s on-time percentage rate. The industry average is
94%.

×

Old Dominion’s industry-leading* on-time delivery rate is 99.1%.

×

Enter your current carrier’s claims ratio. This is the percentage of shipments
that incur damage. The industry average is 1.4%.

×

OD is ranked #1 in Claims Prevention and has a claims ratio of only 0.14%.*

×

Enter the estimated number of your shipments each year that arrive outside the
delivery parameters established by your customers. Fines, also called
chargebacks, are often an issue with retail customers.

×

OD’s Shipments Incurring Fines is based on your number of shipments times OD’s
outstanding on-time delivery rate. OD’s ability to meet tightening delivery
windows improves your retailer relationships.

×

Enter the rate you are fined for missing a delivery window. This is a percentage
of the value of the shipment. The retail industry average is between 3% and 5%
of the value of the shipment.

×

This is the number you entered on the Assumptions page.

×

This is the number of shipments multiplied by the average invoice value.

×

This is based on your average invoice amount multiplied by the OD price
differential.

×

This is calculated by applying each carrier’s on-time percentage to your annual
number of shipments.

×

This is the amount of profit lost due to late shipment. It is the dollar amount
of profit on each shipment multiplied by the number of late shipments.

×

This represents the total cost involved when your freight is damaged. It is
calculated by multiplying the assumed handling costs and the dollar profit per
shipment by the number of damaged shipments.

×

This is calculated based on the Annual Number of Shipments multiplied by each
carrier’s Example Freight Bill.

×

This amount is calculated by multiplying the total value of the number of
shipments incurring fines times the fine percentage.

×

This is the sum of the cost of sales claims, total freight bill and shipments
incurring fines. This represents the true cost of freight.

×

This is the percentage reduction in the total cost of your freight that Old
Dominion’s value added service could potentially generate based on the
assumptions you’ve provided.

×

This is the amount you could potentially save in your LTL transportation costs
by switching to Old Dominion.

×



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