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<p>1 revision imported</p> <p><b>New page</b></p><div>Supply Chain Costs is a ratio that measures the total cost a company occurs to perform the supply chain activities to plan and position resources and execute customer orders (i.e. generate revenue). Supply Chain Costs is measured as a percentage of revenue for the same period. <br /> ===Calculation===<br /> {{math|{{this}}|{{frac|COGS + Distribution Costs + Other|Revenue|100%}}}}<br /> where<br /> * [[m:CO11|COGS]] = Annual Cost of Goods Sold<br /> * [[m:CO12]] = Total annual distribution costs<br /> * [[m:CO13|other]] = Total annual other supply chain expenses (Other Operational Expenses)<br /> * Revenue = Total annual supply chain revenue. Generally this excludes revenue from selling company or supply chain assets<br /> Unit of measure: %<br /> ===Importance===<br /> A lower percentage indicates better performance. A higher percentage indicates the company is spending more to fulfill demand and thus experience lower gross profit margins. Typically {{this}} alone don't show the full picture. Cost and Asset Efficiency metrics can be influenced by fixed assets decisions for example: Assets acquired via a short term lease are operating expenses, thus increasing costs, but improving Fixed Asset turns at the same time. <br /> [[Category:Metric]][[Category:Supply Chain]]<br /> &lt;ins&gt;<br /> [[Link::t:CSCI]]<br /> &lt;/ins&gt;<br /> {{Object<br /> |name=Supply Chain Costs<br /> |parent=m:CO<br /> |sort=41000<br /> |level=1<br /> |keywords=Supply Chain, Cost, COGS, Distribution Costs, Ratio<br /> |description=The ratio of the total cost a company occurs to perform the supply chain activities to plan and position resources and execute customer order fulfillment and returns<br /> }}</div>

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