Measured AI logistics

Seven formulas for testing whether AI changes shipping cost

Start by separating operating cost, delivery service, and customer price. These seven canonical metrics define the numerator, denominator, fictional worked example, review checks, and attribution boundary needed for a route, demand, allocation, or exception pilot.

Measurement dictionary

Formula

Cost per shipped order

Calculate logistics cost per order released for shipment, define eligible costs consistently, and compare an AI pilot without confusing shipment with delivery.

Cost per shipped order = eligible logistics cost / shipped orders

Formula

Cost per delivered order

Measure eligible logistics cost per successful delivery and use the result with service metrics when testing route optimization or AI planning.

Cost per delivered order = eligible logistics cost / successfully delivered orders

Formula

On-time delivery rate

Calculate on-time delivery against a frozen promise definition and prevent a route-cost pilot from degrading customer service.

On-time delivery rate = on-time delivered orders / eligible delivered orders x 100

Formula

First-attempt success

Measure orders delivered on the first eligible attempt, classify failure reasons, and test whether AI recommendations reduce redelivery work.

First-attempt success = first-attempt deliveries / eligible first-attempt orders x 100

Formula

Distance per delivered order

Measure operated distance per successful delivery while controlling for route mix, geography, service level, and failed attempts.

Distance per delivered order = actual operated distance / successful deliveries

Formula

Planning time per route

Measure active planner minutes per released route and test whether AI or optimization reduces administrative work without increasing correction time.

Planning time per route = active planning and review minutes / routes released

Formula

Average customer shipping price

Calculate the average shipping charge paid by customers and test whether operating savings were actually passed through on comparable orders.

Average customer shipping price = net customer shipping charges / charged orders

Minimum pilot contract

  1. Choose one decision, route population, region, and service level.
  2. Freeze definitions and at least four weeks of baseline data.
  3. Run recommendations in shadow mode before live control.
  4. Compare cost, service, failure, and customer-price measures together.
  5. Inspect worst cases and segment changes before attributing impact.

Evidence boundary

Every worked example is fictional and demonstrates arithmetic only. These pages do not provide a benchmark, promise a saving, recommend a vendor, establish causality, or replace operational, privacy, legal, accounting, or safety review.

Frequently asked questions

Which metric should an AI logistics pilot use first?

Choose the metric attached to one decision. A route pilot can use distance and cost per delivered order, but it should also protect on-time and first-attempt delivery performance.

Does a lower logistics metric prove AI caused the improvement?

No. Use a frozen baseline, comparable route and order segments, a controlled or shadow-mode pilot, and a review of fuel, rates, mix, weather, promotions, and exclusions.

Are operating cost and customer shipping price the same?

No. Operating cost is what the company spends; customer shipping price is what the buyer is charged. Commercial policy determines whether savings are passed through.