# Freight, packaging and indirect costs: pricing metric definition, thresholds and response

> Freight, packaging and other indirect costs as a share of invoice, so the true landed cost is what margin is measured against.

Source: https://revomo.ai/marketplace/metrics/indirect-cost-share/

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- [Margin Leakage](https://revomo.ai/marketplace/collections/margin-leakage/)
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- [Industrial distribution](https://revomo.ai/marketplace/templates/?industry=distribution)
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- [Margin Leakage & Cost Recovery](https://revomo.ai/marketplace/metrics/?category=leakage)
- Metric

## Freight, packaging and indirect costs

Freight, packaging and other indirect costs as a share of invoice, so the true landed cost is what margin is measured against.
[See Freight, packaging and indirect costs in Revomo →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=indirect-cost-share&name=Freight%2C+packaging+and+indirect+costs&collection=cost-recovery)

### Why it matters

Freight, packaging and indirect costs decide whether the landed cost is the cost margin is measured against. A rising share means the margin you see is overstated.

### Act when

Up over x% of invoice

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

### What it may signal

Fuel rises, inefficient logistics, supplier issues.

### What to do

The templates that respond when this metric moves.
- [Landed cost model](https://revomo.ai/marketplace/templates/landed-cost/)*template*
- [Freight lane cost table](https://revomo.ai/marketplace/templates/freight-lanes/)*template*

### How it’s defined

Formula
`sum('Indirect costs') / sum('Invoice revenue')`

Required context
Invoice lines, Landed cost

Dimensions
Family, Region, Account

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.

### Relevant industries

All industries

Type
Metric

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

Use in
Alerts

Cadence
Monthly

Industries
All industries

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

[See this in Revomo →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=indirect-cost-share&name=Freight%2C+packaging+and+indirect+costs&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 recovery rate](https://revomo.ai/marketplace/metrics/freight-recovery/) Freight billed against freight paid, by lane and account. **Act when**Under 100% on any lane for two months Alerts · Against plan · After a decision
- 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, packaging and indirect costs 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=indirect-cost-share&name=Freight%2C+packaging+and+indirect+costs&collection=cost-recovery)[All metrics](https://revomo.ai/marketplace/metrics/)