Page 25 - UnderstandingJanSanRedistribution_flipbook

Redistribution Program Worksheet*
(All values shown per gross lb.)
The charts below show orders shipped from Manufacturers
• direct to Distributors in multiples of 1,000 lb., 5,000 lb., and 10,000 lb. shipments
COMPARED TO
• single truckload sales direct to Wholesalers (40,000 lbs.)
Note: Revenue per pound is dependent upon each individual manufacturer and pricing policies and
should be calculated as such in your own evaluation. Likewise, freight costs can vary greatly depending
on product type and shipping classifications. Numbers shows are for example purposes only.

1,000 lb Order Total Revenue TL order (40,000 lbs)
to Dist and Cost to Whslr
per 20# Order Total 40 Orders @ 1000# per 20# Order Total
case case
1 Revenue $33.00 $1,650 x40 $66,000 $30.00 $60,000
2 Freight* $7.00 $350 x40 $14,400 $0.60 1,200
3 Order Mgmt Cost $2.00 $100 x40 $4,000 $0.05 $100
4 Total Freight + Order Mgmt Cost $9.00 $450 x40 $18,000 $0.65 $1,300
(line 2 + line 3)
5 Re-D Allowance (@ 8%) - - - $2.40 $4,800
6 Revenue Less Cost $24.00 $1,200 x40 $48,000 $26.95 $53,900
(line 1 less lines 4 and 5)
7 Re-D Benefit/(Risk)
(difference on Line 6 between $2.95 $5,900
40-1,000# orders to Dist vs.
1-40,000# order to Whslr)
8 Marketing Value $0.60 $1,200
9 Net Benefit of Redistribution per 40,000# comparing 40-1,000# shipments to single 40,000# $3.55 $7,100
shipment

5,000 lb Order Total Revenue TL order (40,000 lbs)
to Dist
to Whslr
and Cost
per 20# Order Total 40 Orders @ 1000# per 20# Order Total
case case
1 Revenue $31.00 $7,750 x8 $62,000 $30.00 $60,000
2 Freight* $4.00 $1,000 x8 $8,000 $0.60 1,200
3 Order Mgmt Cost $0.40 $100 x8 $800 $0.05 $100
4 Total Freight + Order Mgmt Cost $4.40 $1,100 x8 $8,800 $0.65 $1,300
(line 2 + line 3)
5 Re-D Allowance (@ 8%) - - - $2.40 $4,800
6 Revenue Less Cost $26.60 $6,650 x8 $53,200 $26.95 $53,900
(line 1 less lines 4 and 5)
7 Re-D Benefit/(Risk)
(difference on Line 6 between $0.35 $700
8-5,000# orders to Dist vs.
1-40,000# order to Whslr)
8 Marketing Value $0.60 $1,200
9 Net Benefit of Redistribution per 40,000# comparing 8-5,000# shipments to single 40,000# $0.95 $1,900
shipment
10,000 lb Order to Dist Total Revenue and Cost TL order (40,000 lbs) to
Whslr
per 20# Order Total 40 Orders @ 1000# per 20# Order Total
case case
1 Revenue $30.40 $15,200 x4 $60,800 $30.00 $60,000
2 Freight* $3.00 $1,500 x4 $6,000 $0.60 1,200
3 Order Mgmt Cost $0.20 $100 x4 $400 $0.05 $100
4 Total Freight + Order Mgmt Cost $3.20 $1,600 x4 $6,400 $0.65 $1,300
(line 2 + line 3)
5 Re-D Allowance (@ 8%) - - - $2.40 $4,800
6 Revenue Less Cost $27.20 $13,600 x4 $54,400 $26.95 $53,900
(line 1 less lines 4 and 5)
7 Re-D Benefit/(Risk)
(difference on Line 6 between $(0.25) $(500)
4-10,000# orders to Dist vs.
1-40,000# order to Whslr)
8 Marketing Value $0.60 $1,200
9 Net Benefit of Redistribution per 40,000# comparing 4-10,000# shipments to single 40,000# $0.35 $700
shipment
*Contact info@sswa.com for an Excel spreadsheet for this analysis.

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