NetSuite Solution for Exact Volume-Based Inbound Shipment Costs

Fulfillment Services | USA


Consider a scenario where you need to receive large consignments or shipments. These shipments include multiple orders with a variety of items that you need to send to a large set of customers. Since this is a single shipment, how would you calculate the shipment cost? Would you divide the total volume by the rate, or would you prefer to allocate the amount for each item based on its weight and item price? What would your customers prefer? Can this entire process be automated? 

Yes, it can! This case study illustrates how we've achieved this by effectively calculating the landed cost for each individual order based on the value and cost of the inbound shipments. 

Client Portfolio

 A USA-based fulfillment services provider operating in the retail sector approached us to implement an efficient landed cost calculation for their items in multiple orders. They sought accurate costs so that their customers could know the exact cost of each item after shipment. Dealing with large consignments and shipments, which include bulk orders, effective calculation of each order is essential for them to track the right costs and for accurate financial management. 

Problem Statement 

Our client faced a challenge in accurately and effectively calculating the landed cost of their inbound shipments within NetSuite. The shipments included multiple purchase orders, often involving bulk shipments of numerous orders. The existing method calculated the landed cost by simply dividing the shipment charges across the orders, which led to inaccuracies and inefficiencies. The client needed a more precise and smoother approach to calculate the landed cost for each item and purchase order.

What We Suggested

To address the client’s needs, we recommended developing a custom solution within NetSuite that accurately calculates the landed cost based on two key categories: volume and value. Our solution included the creation of a custom page where users can view the landed cost for each item and purchase order. 

Key Features of Our Solution: 

1. Volume & Value Based Calculation: 

Analyzes the size and weight of each item and uses a specific formula to handle volume-based costs. 

Assesses the price of each item to utilize a distinct formula designed for value-based costs

2. Custom Page Development: 

Provides a detailed view of landed costs for each item and purchase order. 

Enables users to quickly and easily determine the exact freight charges and shipment rates for each item

3. Automated Status Updates: 

Changes the status of purchase orders from ‘in-transit’ to ‘shipped’ based on the stage of the process. 

Reduces manual intervention and ensures accurate tracking of purchase orders


Developing precise formulas for both volume-based and value-based calculations proved to be more complex. Ensuring these formulas were robust and could handle the variability in shipment sizes and values was a significant challenge. Our expert team examined all possible scenarios and provided the right solution.

Customer Success

The implementation of our solution led to significant improvements for the client. 

1. Simplified Cost calculation: 

Automated the landed cost calculation process, drastically reducing the time required for manual calculations. 

Enabled users to determine the landed cost with a single click, enhancing productivity. 

2. Category Wise Landed Cost: 

Provided highly accurate landed cost calculations based on detailed volume and value assessments. 

Eliminated discrepancies and errors associated with the previous manual method. 

3. Improved Cost Management: 

Accurate cost allocation helped in better financial planning and cost control. 

Provided a clear understanding of shipment rates and freight charges for each item. 

Key Achievements:

Reduction in manual work by 70% 

Accurate landed costs for individual items

Way Forward

With these advancements, the client is well-positioned to achieve greater efficiency and accuracy in their landed cost calculations, supporting better financial management and operational excellence. They can also expand the solution to handle multiple currencies to accommodate their global operations. With just a click, you can get the entire calculation split for your specific order from the bulk shipment. 

Are you looking for an efficient cost calculation for your shipped orders? Need to know the item cost individually for bulk orders? Contact us today to improve your operations with our automated solution.