Logistics Cost as % of Revenue

Calculate your total logistics cost as a percentage of revenue and benchmark against industry standards to identify savings opportunities.

Result

Component	Annual Cost	% of Revenue

Notes & assumptions: Industry benchmark total logistics cost: FMCG 8–12%, Auto parts 6–10%, E-commerce 15–20%, Manufacturing 5–8%. Benchmark used = 8% for savings calculation.

Disclaimer: This tool provides an indicative estimate for general planning only and is not professional, legal, financial, medical or engineering advice. Reference values are editable defaults that vary by location, vendor, regulation and date. Verify critical figures with a qualified professional. Varada Nexus accepts no liability for decisions made using this tool.

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FAQ

What is the average logistics cost as % of revenue?

India logistics cost averages 13–14% of GDP (higher than the global average of 8–10%). For individual companies: FMCG 8–12%, auto 6–10%, pharma 5–8%, e-commerce 15–22%.

How can companies reduce logistics costs?

Key levers: consolidate shipments, improve load factors, switch modes for long-haul (road to rail), implement WMS for warehouse efficiency, reduce inventory through better forecasting.

What is the ideal logistics cost ratio?

World-class companies achieve total logistics cost of 4–7% of revenue. Most Indian SMEs are at 12–18%. Each 1% reduction directly adds to operating profit.