Freight Cost as a Percent of Sales

Total freight spend expressed as a share of revenue.

It is the fastest executive read on whether transportation cost is growing faster than the business.

2.4M freight on 60M sales = 4%.

Movement can come from rate, mode mix, order size or product mix. Decompose before drawing conclusions.

Consolidate shipments, reduce expedites, review mode selection rules, and improve trailer fill.

Reading the ratio alone while sales mix or average order size is shifting underneath it.