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Local delivery Largest Client Revenue Exposure: worked example

Measure the share of revenue dependent on one customer.

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Local delivery / delivery economics
Answer

With the illustrative inputs below, the result is 30 %.

Try this with your own numbers

Formula and worked example

Revenue exposure = largest customer revenue / total revenue × 100

Example figures
InputExample
Revenue from largest customer18,000
Total period revenue60,000
Calculated result30 %

Choose reliable inputs

Compare route time, vehicle cost, delivery density and collection timing. For this local delivery calculation, use completed route logs, fuel receipts and delivery records and a consistent definition of one delivery.

  • Driver hours: include the portion belonging to this delivery or reporting period, and record where the value came from.
  • Vehicle cost: include the portion belonging to this delivery or reporting period, and record where the value came from.
  • Route density: include the portion belonging to this delivery or reporting period, and record where the value came from.

Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.

How much revenue depends on my largest client?

Use the same reporting period. Revenue exposure does not directly measure profit or replacement probability.

Compare a different assumption

What if this input changes?

If revenue from largest customer rises by 10%, this example changes by 3 %. This shows the effect of one change; it does not predict what will happen.

Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.

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