# Freight recovery rate: pricing metric definition, thresholds and response

> Freight billed against freight paid, by lane and account. When to act, what a move may signal, and the Revomo templates that respond.

Source: https://revomo.ai/marketplace/metrics/freight-recovery/

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Business need
- [Margin Leakage](https://revomo.ai/marketplace/collections/margin-leakage/)
- [Cost Recovery](https://revomo.ai/marketplace/collections/cost-recovery/)
- [Price Increase](https://revomo.ai/marketplace/collections/annual-price-increase/)
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- [Rebates & Incentives](https://revomo.ai/marketplace/collections/rebates-incentives/)
- [Market Response](https://revomo.ai/marketplace/collections/market-response/)

Industry
- [Industrial distribution](https://revomo.ai/marketplace/templates/?industry=distribution)
- [Machinery & industrial products](https://revomo.ai/marketplace/templates/?industry=machinery)
- [Building products](https://revomo.ai/marketplace/templates/?industry=building)
- [Chemicals & materials](https://revomo.ai/marketplace/templates/?industry=chemicals)

Search Marketplace

- [Marketplace](https://revomo.ai/marketplace/)
- [Metrics](https://revomo.ai/marketplace/metrics/)
- [Margin Leakage & Cost Recovery](https://revomo.ai/marketplace/metrics/?category=leakage)
- Metric

## Freight recovery rate

Freight billed against freight paid, by lane and account.
[See Freight recovery rate in Revomo →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=freight-recovery&name=Freight+recovery+rate&collection=cost-recovery)

### Why it matters

Freight paid rises with carrier rates; freight billed rises only when delivered prices are reset. The gap by lane is absorbed freight, and it is recoverable lane by lane.

### Act when

Under 100% on any lane for two months

Thresholds are set per business; the ones written as x and y are placeholders your team fills in.

### What it may signal

Carrier rates up, delivered prices set once.

### What to do

The templates that respond when this metric moves.
- [Freight recovery scorecard](https://revomo.ai/marketplace/templates/freight-scorecard/)*template*
- [Freight recovery optimization](https://revomo.ai/marketplace/templates/freight-recovery-optimization/)*template*

### How it’s defined

Formula
`sum('Freight billed') / sum('Freight paid')`

Required context
Orders, Carrier bills, Lane rates

Dimensions
Lane, Account, Mode

Cadence
Reviewed monthly

Lineage
Every value traces to the invoice line or governing record it was computed from.

Use in
**Alerts**: an agent watches it against a rule and alerts you when it trips. **Against plan**: tracked against the target, with the bridge that says what moved it. **After a decision**: measured against what the model said the decision would deliver.

### Relevant industries

[Industrial distribution](https://revomo.ai/marketplace/metrics/?industry=distribution)[Building products](https://revomo.ai/marketplace/metrics/?industry=building)

Type
Metric

Category
[Margin Leakage & Cost Recovery](https://revomo.ai/marketplace/metrics/?category=leakage)

Use in
Alerts · Against plan · After a decision

Cadence
Monthly

Industries
Industrial distribution, Building products

Business need
[Cost Recovery](https://revomo.ai/marketplace/collections/cost-recovery/)

[See this in Revomo →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=freight-recovery&name=Freight+recovery+rate&collection=cost-recovery) Defined, monitored and connected to action, on representative data or your own.

### Related metrics

- Margin Leakage & Cost Recovery #### [Cost of raw materials](https://revomo.ai/marketplace/metrics/raw-material-cost/) Input cost by material and month against the index the formula prices on. **Act when**Up over x% in one month, or a steady rise over a quarter Alerts
- Margin Leakage & Cost Recovery #### [Freight, packaging and indirect costs](https://revomo.ai/marketplace/metrics/indirect-cost-share/) Freight, packaging and other indirect costs as a share of invoice, so the true landed cost is what margin is measured against. **Act when**Up over x% of invoice Alerts
- Margin Leakage & Cost Recovery #### [Surcharge capture rate](https://revomo.ai/marketplace/metrics/surcharge-capture/) Surcharges applied against surcharges due, and the waivers by account and approver. **Act when**Under 90%, or waivers rising Alerts · After a decision

### See Freight recovery rate on your commercial data.

We will show how Revomo defines, monitors and connects this metric to commercial action, using representative data or your own.
[See this on your commercial data →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=freight-recovery&name=Freight+recovery+rate&collection=cost-recovery)[All metrics](https://revomo.ai/marketplace/metrics/)