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Client Profitability

Know which clients make you money, and which ones just keep you busy.

Momentum measures profitability per 3PL client by stacking revenue from every billing category against layered costs — settled carrier cost, packaging materials and loaded labor — so margin comes from real activity rather than averages.

Revenue & profit · August

By client · cost layers

Revenue
$212,480
Gross margin
31.4%
Below target
2 clients
Client
Harborview Home Goods36.2%
Northfield Supplements33.8%
Kestrel Outdoor22.1%
Dune AthleticsReview rates14.6%
Illustrative data

The problem

Why is 3PL client profitability so hard to measure?

Revenue is easy to see on an invoice. Cost is spread across carrier bills, supplies, labor hours and square footage that serve every client at once. Most 3PLs price a client once, at onboarding, and never check whether the account still earns what the quote assumed.

  • Quotes built on assumptions nobody revisits
  • Shipping margin unknown until carrier bills settle
  • Labor and packaging cost spread evenly instead of by client
  • Renewals negotiated without evidence

How it works

How does Momentum calculate profit per client?

  1. 1

    Revenue by family

    Fulfillment, shipping, storage, receiving, packaging, ad-hoc and recurring revenue per client — for the month or since the last bill.

  2. 2

    Cost in layers

    Shipping margin from settled carrier cost, packaging materials consumed, then loaded labor. Each layer shows separately, so you can see which one is eroding an account.

  3. 3

    Labor at the associate level

    Labor-fee revenue against loaded labor cost per person, including what errors cost in credits and absorbed replacement labels.

  4. 4

    Shrink, valued

    Inventory variance per SKU valued in dollars and settled into a client credit when it's on you — so shrink shows up in margin instead of hiding in counts.

Capabilities

What's in Client Profitability

What each piece does, in plain terms.

Client Profitability capabilities
Revenue & profit boardWhat each client brings in and what it costs to earn, in one table.
Shipping margin from settled costCarrier actuals once invoiced, quoted estimates until then — labeled as such.
Packaging and materialsMaterials consumed per client, plus a company-wide consumed vs. purchased vs. on-hand view.
Workforce economicsLabor-fee revenue, loaded cost, spread and error cost per associate.
Shrink valuation and settlementInventory variance priced and settled into client credits.
Allocated labor cost by clientLabor cost layered onto each client's margin, from entered payroll or a roster-and-hours estimate.

What changes

Renewals backed by numbers

Reprice an account with evidence of what it actually costs to serve.

Complexity drift caught early

See when a client's orders get heavier, bigger or more manual than its rate card assumed.

Better quotes next time

Real margins from today's clients inform pricing for tomorrow's.

Connects to

  • ShipHero
  • UPS invoices
  • Momentum billing engine
  • Momentum floor app

FAQ

Client Profitability: common questions

What costs does Momentum include in client profitability?

Settled carrier cost, packaging materials consumed and loaded labor. Each layer shows separately, and the page shows which layers are complete for each client.

Can clients see profitability data?

No. Profitability, costs and margins are finance-only and never reach the client portal.

How is this different from a P&L in accounting software?

Accounting software tells you the company's margin. Momentum splits it by client using operational data — which orders, labels, boxes and hours each client actually consumed.

See what your last billing cycle missed.

Early access starts with a walkthrough and shadow billing on a few clients — compare every line before you switch.

Request early access