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Logistics Downtime Cost Calculator
Logistics runs on timing. Dispatch boards, warehouse management systems, route optimization, dock scheduling, and electronic proof-of-delivery all sit on IT infrastructure — and when that infrastructure fails, freight does not stop moving so much as it starts moving wrong. Trucks wait at docks, pickers work from paper, and customer service phones light up with 'where is my shipment' calls.
The financial hit compounds quickly. Missed pickup windows can cascade through a day's routes, detention charges accumulate, and time-sensitive freight may require expensive recovery moves. Because downtime in logistics interrupts revenue-producing operations directly, this calculator applies a 1.2 revenue multiplier for the sector.
The numbers here are intentionally conservative. The model combines idled labor cost with revenue at risk, using published benchmarks and a methodology you can inspect in full. Treat the result as a floor, not a ceiling — a starting point for evaluating whether your backup and continuity arrangements match what an hour of downtime actually costs you.
Logistics downtime — common questions
My drivers keep moving during an outage — does downtime really cost that much?
Freight in motion is only part of the operation. Dispatch, dock scheduling, warehouse systems, and customer communication stall during an outage, and recovery work (detention charges, re-routing, service recovery) continues after systems return. The calculator estimates that combined exposure conservatively.
Why is the logistics multiplier 1.2?
Downtime in logistics interrupts revenue operations directly — missed windows, idle docks, delayed deliveries — rather than just internal productivity. The 1.2 multiplier reflects that elevated revenue exposure while staying deliberately conservative.
Can I model a warehouse and an office with different numbers?
Run the calculator twice — once for warehouse-affected employees and once for office staff — and add the results. The share link preserves your inputs, so you can keep a link for each scenario.
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