Actions

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
=
Order Management Costs + Fulfillment Costs   × 100 %
Revenue

Where

Unit of measure: %

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. t:OM Cross-Docking Statement Of Comprehensive Income

Community Importance Rating:
5.00
(one vote)

Hierarchy

IDNameLevelx
CO1Supply Chain Costs1CO1
CO12Distribution Costs2CO12
CO121Order Management Cost3CO121
CO122Fulfillment Cost3CO122

Process(es)

IDNameLevelx
P1Plan Supply Chain Operations2P1
P4Plan Deliver2P4
SSource1S
S1Source-to-Replenish2S1
S102Receive3S102
S10201Schedule Appointment4S10201
S10202Check-In4S10202
S10203Queue Activities4S10203
S10204Inspect Vehicle4S10204
S10205Weigh-In4S10205
S103Unload3S103
S2Source-to-Order2S2
S203Receive3S203
S204Unload3S204
S3Source-to-Engineering-Order2S3
S401Process Return Inquiry3S401
S402Create Return Authorization3S402
S408Settle Return3S408
D1Deliver-From-Stock2D1
D101Process Inquiry3D101
D102Create Order3D102
D103Reserve Inventory3D103
D105Invoice3D105
D2Deliver-to-Order2D2
D201Process Inquiry3D201
D202Validate & Create Order3D202
D203Route & Schedule Order3D203
D205Invoice3D205
D3Deliver-To-Engineering-Order2D3
D302Develop & Present Proposal3D302
D303Create Project Order3D303
D304Schedule Project Resources3D304
D305Schedule Delivery & Installation3D305
D306Invoice3D306

Term(s)

IDNameClearx
XDKCross-DockingXDK
CSCIStatement of Comprehensive IncomeCSCI
Distribution Costs Supply Chain Costs 41200 2 {{{keywords}}} {{{description}}}