Knowledge / Cost and environmental impact
Thermal Packaging TCO: Calculating Cost per Shipment
The price of thermal packaging is supplemented by preparation, packing, freight and, for reusable systems, return transport and refurbishment. A Total Cost of Ownership (TCO) calculation captures all these costs. For a fair comparison, use the same shipping task and period. The example shows how many uses it takes for a reusable shipper to become cheaper.
Practical guidance
Calculate the cost per shipment and the number of uses after which a reusable shipper pays off under your conditions.
Cost per shipment: two calculation steps
1. Add the costs
Add packaging, preparation, shipping, returns and quality-related effort for the selected period. Count services already included only once.
2. Divide by the number of shipments
Define whether you count all dispatched shipments or only successful deliveries that met product requirements. Use the same rule for both options.
In this guide
- First define which shipments are being compared
- Which costs belong in the calculation
- Cost per dispatched shipment or per successful shipment?
- Worked example: after how many uses is reuse cheaper?
- Include small and large orders in the annual calculation
- Use achievable reuse counts and sufficient stock
- Check freight prices and uncertain assumptions before signing
First define which shipments are being compared
Select the product quantity, temperature range, lane, duration and comparison period. All packaging options considered must be technically suitable for this task. Also record whether they are purchased, hired or charged per use.
Separate one-off implementation costs from ongoing expenditure. If, for example, qualification is spread over expected shipments across several years, the same period must apply to every option.
Which costs belong in the calculation
- Packaging: purchase, hire or usage fee, spare parts and disposal.
- Preparation: labour, energy, equipment capacity and storage space for cooling elements.
- Shipping: packing time, consumables, temperature monitoring and freight.
- Reuse: return freight, inspection, cleaning, administration and losses.
- Quality: qualification, changes and the actual handling of deviations.
Check which services are included in service quotations. Returns or cleaning already included are not added again. Document the source and period of the figures. The single-use versus reusable comparison explains which return data you need.
Cost per dispatched shipment or per successful shipment?
For shipping cost planning alone, divide total costs by the number of dispatched shipments. To account for successful temperature maintenance, use total costs in the period ÷ successfully delivered shipments that met their product requirements.
State explicitly which shipment count is used. Record replacement deliveries, returns and product losses under the same rule for both options. A loss must not be counted both as an individual cost item and again as a general risk surcharge.
If you lack your own loss data, calculate separate scenarios clearly labelled as assumptions. An industry rate is not evidence of your packaging’s reliability. The VIP comparison with a size example shows how external dimensions influence selection.
Worked example: after how many uses is reuse cheaper?
All figures are illustrative; they are not THERMOCON prices or customer data. Both options are assumed to be equally technically suitable. The simplified calculation includes purchase, preparation, freight and returns. Additional costs from your own project must be added.
| Cost item | Single-use | Reusable |
|---|---|---|
| Packaging | €12 | €120 purchase / N usable cycles |
| Outbound transport | €26 | €24 |
| Preparation and packing | €4 | €4 |
| Return transport | Not applicable | €6 |
| Inspection and refurbishment | Not applicable | €1 |
| Total | €42 | €35 + €120/N |
At ten uses, the reusable option costs €47 per shipment; at twenty uses, €41. It becomes cheaper than single-use at N > 120 / (42 − 35) ≈ 17.1, meaning from 18 usable cycles.
If return transport rises from €6 to €8, more than 24 uses are required. If the system does not achieve this number, it is more expensive in this example. Return freight can therefore consume the purchase-cost benefit of reuse.
Include small and large orders in the annual calculation
Calculate using the order sizes that actually occur. A large shipper may be economical when fully loaded but create unnecessary freight volume for small orders. A calculation based on only one average order does not reveal this difference.
Include investigation costs, replacement deliveries and product losses only with traceable figures and allocation. Use your own data if these costs are to enter the comparison.
Show the result for expected conditions and for a less favourable scenario. Identify the assumption causing the difference, for example higher return freight or fewer reuses.
Use achievable reuse counts and sufficient stock
Spread the purchase cost over the realistically achievable number of uses. A long technically permitted service life is of little help if shippers remain with recipients or are retired early through damage.
Also check return lead time. Longer cycles require more systems available at once, tying up more capital. This is a different cost factor from the number of uses per shipper.
Costs and environmental impact are calculated separately. A financial advantage does not demonstrate lower emissions.
Check freight prices and uncertain assumptions before signing
Use the external dimensions and gross weight of the fully packed shipment. Whether volumetric weight is charged, and which divisor applies, is specified in the carrier’s tariff. There is no divisor suitable for every transport mode.
Change uncertain values individually in the calculation: usable cycles, return duration, shipping volume, packing time and freight. If an initially cheaper option becomes more expensive after only small changes, substantiate those particular values with quotations or operational measurements before signing a contract.
Complete the calculation with your own figures
Enter quotations, freight prices and your own working times. Pay particular attention to realistically achievable reuse and services already included in the price.