Financial Impact of Shipment Delays

When a shipment is delayed, your money is tied up longer than planned. AskBiz calculates three financial metrics for delayed shipments:

• Financial impact — estimated total cost of the delay in pounds
• Daily financing cost — how much the delay costs you per day in tied-up capital
• Working capital days — how many extra days your cash is locked in transit

The financial impact is based on:

• Shipment value — the value of goods in transit
• Delay duration — how many days past the expected arrival
• Cost of capital — estimated at a standard rate for SMEs
• Opportunity cost — revenue you could be earning if the goods were available to sell

This gives you a clear picture of how much each delayed day actually costs your business.

Financial impact data helps you:

• Prioritise — focus on the most expensive delays first
• Negotiate — use data when discussing compensation with carriers or suppliers
• Plan — factor delay costs into your supplier evaluation and carrier selection
• Budget — account for realistic delivery timelines in cash flow planning