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Distribution Costs Supply Chain Costs 41200 2 {{{keywords}}} {{{description}}}
CO12
Difference between revisions of "CO12"
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| − | {{this}} measures a company’s expenses related to the order fulfillment of products and services to the customer. Example costs include: Transportation cost, warehousing cost, handling costs, import/export duties, order management cost, depreciation/amortization and other costs. | + | {{this}} measures a company’s expenses related to the order fulfillment of products and services to the customer. Example costs include: Transportation cost, warehousing cost, handling costs, import/export duties, order management cost, depreciation/amortization and other costs. |
| − | {{math|{{this}} | + | ===Calculation=== |
| − | + | {{math|{{this}}|Order Management Costs|add|Fulfillment Costs}} | |
| − | + | {{where|Currency|[[m:CO121|Order Management Costs]]|Total annual order management costs|[[m:CO122|Fulfillment Costs]]|Total annual logistics, transportation and warehousing costs}} | |
| − | + | ===Benchmarking=== | |
| − | + | {{this}} Ratio compares Distribution Costs to total sales revenue for benchmarking purposes. | |
| − | + | {{math|{{this}} Ratio|{{frac|Distribution Costs|Revenue|100 %}}}} | |
| + | {{where|%|{{this}}|Total annual order management costs|Total Revenue|Total annual supply chain revenue}} | ||
===Importance=== | ===Importance=== | ||
A lower percentage indicates better performance. For benchmarking purposes this metric is measured annually. For scorecards, dashboards and cockpits these a typically a rolling number of months. | A lower percentage indicates better performance. For benchmarking purposes this metric is measured annually. For scorecards, dashboards and cockpits these a typically a rolling number of months. | ||
Latest revision as of 21:32, 23 September 2020
Distribution Costs measures a company’s expenses related to the order fulfillment of products and services to the customer. Example costs include: Transportation cost, warehousing cost, handling costs, import/export duties, order management cost, depreciation/amortization and other costs.
Calculation
| Distribution Costs | |
| = | Order Management Costs |
| + | Fulfillment Costs |
where:
- Order Management Costs = Total annual order management costs
- Fulfillment Costs = Total annual logistics, transportation and warehousing costs
Benchmarking
Distribution Costs Ratio compares Distribution Costs to total sales revenue for benchmarking purposes.
| Distribution Costs Ratio | ||||
| = |
| |||
where:
- Distribution Costs = Total annual order management costs
- Total Revenue = Total annual supply chain revenue
Importance
A lower percentage indicates better performance. For benchmarking purposes this metric is measured annually. For scorecards, dashboards and cockpits these a typically a rolling number of months.
Notes
For Reverse Logistics supply chains these costs include the costs to ship the product or asset to repair between locations. The costs to source replacement parts and the labor costs to repair the product or asset are part of Cost of Goods Sold. Discuss Contract Custom Solution Cross-Docking Statement of Comprehensive Income
Community Importance Rating: Hierarchy
| ID | Name | Level | x |
|---|---|---|---|
| CO1 | Supply Chain Costs | 1 | CO1 |
| CO12 | Distribution Costs | 2 | CO12 |
| CO121 | Order Management Cost | 3 | CO121 |
| CO122 | Storage Costs | 3 | CO122 |
| CO123 | Handling Costs | 3 | CO123 |
| CO124 | Transportation Costs | 3 | CO124 |
| CO125 | Export/Import Duties | 3 | CO125 |
Process(es)
| ID | Name | Level | x |
|---|---|---|---|
| P1 | Plan Supply Chain Operations | 2 | P1 |
| P4 | Plan Deliver | 2 | P4 |
| S | Source | 1 | S |
| S006 | Negotiate | 3 | S006 |
| S1 | Source-to-Replenish | 2 | S1 |
| S102 | Receive | 3 | S102 |
| S10201 | Schedule Appointment | 4 | S10201 |
| S10202 | Check-In | 4 | S10202 |
| S10203 | Queue Activities | 4 | S10203 |
| S10204 | Inspect Vehicle | 4 | S10204 |
| S10205 | Weigh-In | 4 | S10205 |
| S103 | Unload | 3 | S103 |
| S2 | Source-to-Order | 2 | S2 |
| S203 | Receive | 3 | S203 |
| S204 | Unload | 3 | S204 |
| S3 | Source-to-Engineering-Order | 2 | S3 |
| S401 | Process Return Inquiry | 3 | S401 |
| S402 | Create Return Authorization | 3 | S402 |
| S408 | Settle Return | 3 | S408 |
| D1 | Deliver-From-Stock | 2 | D1 |
| D101 | Process Inquiry | 3 | D101 |
| D102 | Create Order | 3 | D102 |
| D103 | Reserve Inventory | 3 | D103 |
| D105 | Invoice | 3 | D105 |
| D2 | Deliver-to-Order | 2 | D2 |
| D201 | Process Inquiry | 3 | D201 |
| D202 | Validate & Create Order | 3 | D202 |
| D203 | Route & Schedule Order | 3 | D203 |
| D205 | Invoice | 3 | D205 |
| D3 | Deliver-To-Engineering-Order | 2 | D3 |
| D302 | Develop & Present Proposal | 3 | D302 |
| D303 | Create Project Order | 3 | D303 |
| D304 | Schedule Project Resources | 3 | D304 |
| D305 | Schedule Delivery & Installation | 3 | D305 |
| D306 | Invoice | 3 | D306 |
Term(s)
| ID | Name | Clear | x |
|---|---|---|---|
| XDK | Cross-Docking | XDK | |
| IFRS | International Financial Reporting Standards | IFRS | |
| CSCI | Statement of Comprehensive Income | CSCI |