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.
|Supply Chain Costs|
Unit of measure: %
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 Supply Chain Costs 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.Community Importance Rating:
|CO1||Supply Chain Costs||1||CO1|
|CO11||Cost of Goods Sold||2||CO11|
|CO13||Other Operational Expenses||2||CO13|
|P1||Plan Supply Chain Operations||2||P1|