Cost per Case Calculator

About the Cost per Case Calculator

Cost per case (CPC) is a key distribution metric for consumer packaged goods, beverage, and food service industries. It measures how much it costs to deliver each case from warehouse to customer, combining transportation, handling, and delivery expenses into a single unit cost.

For distributors managing thousands of SKUs and hundreds of delivery stops, CPC provides a simple way to evaluate route efficiency, compare delivery methods, and set minimum order quantities. A route delivering 500 cases at $2.00 per case is more efficient than one delivering 200 cases at $3.50 per case.

This calculator computes CPC by dividing total transportation cost by the number of cases shipped. Use it to benchmark route performance, justify delivery surcharges on small orders, and track distribution cost trends over time.

Use the result to compare operating scenarios, pressure-test assumptions, and rerun the model when volumes, rates, or service targets change.

When This Page Helps

In case-pick distribution, the cost to deliver each case directly impacts profit margins on every order. Knowing your CPC helps set minimum order quantities, evaluate delivery frequency decisions, and identify routes that need restructuring. It's the standard metric for beverage distributors, food service companies, and DSD operations.

How to Use the Inputs

1. Enter the total transportation cost for the route or period.
2. Enter the total number of cases delivered.
3. View the cost per case result.
4. Compare CPC across routes to find efficiency gaps.
5. Use CPC to set minimum order sizes.
6. Track CPC weekly to monitor distribution efficiency.

Example Calculation

Tips & Best Practices

• Set minimum order quantities based on CPC to prevent unprofitable deliveries.
• Higher drop sizes (cases per stop) dramatically reduce CPC.
• Combine small orders onto the same delivery day to improve route density.
• Track CPC by route, customer, and day of week to identify patterns.
• Compare CPC between owned fleet and third-party delivery.
• Factor in return cases and empties when calculating true CPC.

CPC in Direct Store Delivery

Direct store delivery (DSD) operations live and die by CPC. Every route must deliver enough cases to cover the fixed costs of the truck, driver, and fuel. Route planners use CPC targets to determine minimum order sizes, delivery frequency, and customer assignment to routes.

Reducing Cost per Case

The primary levers for CPC reduction are: increasing cases per stop (larger orders), increasing stops per route (route density), reducing fixed vehicle costs (right-sizing trucks), and improving loading efficiency (sequence stops to minimize drive time). A 10% improvement in any of these directly flows to CPC.

CPC for Pricing Decisions

Use CPC data to inform delivery charges and minimum order policies. If CPC is $2.50 and your target is $2.00, consider a delivery surcharge for orders below a threshold. Present the data transparently — customers understand volume-based pricing.

Frequently Asked Questions

• What is a good cost per case?

  CPC varies by industry and geography. Beverage distributors typically see $1.50-$3.50 per case. Food service distributors range from $2.00-$5.00. The key is comparing your CPC to your margin per case to ensure profitability.

• How does drop size affect CPC?

  Drop size is the biggest driver of CPC. Delivering 50 cases to one stop with a $100 stop cost yields $2.00/case. Delivering 10 cases costs $10.00/case at the same stop cost. Increasing average drop size is the fastest way to reduce CPC.

• Should I include warehouse costs in CPC?

  For a transportation-only CPC, include only delivery costs. For a total distribution CPC, add warehouse picking, loading, and order processing costs. Both metrics are useful — just be consistent in what you include.

• How do seasonal variations affect CPC?

  Peak seasons often improve CPC because higher volume increases cases per stop and per route. Off-season CPC rises as you deliver fewer cases but still cover fixed route and vehicle costs. Plan staffing and routing accordingly.

• What is the relationship between CPC and customer profitability?

  CPC directly impacts customer profitability. A customer ordering 10 cases per week at $3.00 CPC consumes $30 in delivery costs. If their margin is only $25, the account is unprofitable. Use CPC data to restructure delivery terms.

• Can CPC be used across different case sizes?

  If case sizes vary significantly, consider standardizing to a common unit like "case equivalents" based on weight or volume. Otherwise, comparing CPC across different package sizes can be misleading since larger cases cost more to handle.