CO12
Distribution Costs
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. Distribution Cost Ratio compares Distribution Costs to total sales revenue.
| Distribution Costs | ||||
| = |
| |||
Where
- Order Management Costs = Total annual order management costs
- Fulfillment Costs = Total annual logistics, transportation and warehousing costs
- Total Revenue = Total annual supply chain revenue
Unit of measure: %
Contents
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 |