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CO122

Fulfillment Cost

Fulfillment Cost measures a company’s expenses related to the physical delivery of products and services to the customer. Example costs include: Transportation costs, warehousing costs, handling costs, import/export duties, labor costs, depreciation/amortization and other costs. The Fulfillment Cost Ratio compares fulfillment costs to total sales revenue.

Fulfillment Cost
=
Fulfillment Cost   × 100 %
Revenue

Where

  • Fulfillment Cost = Total annual logistics costs
  • Revenue = Total annual supply chain revenue

Unit of measure: %

Importance

A lower percentage indicates better cost performance. For benchmarking purposes this metric is measured annually. For scorecards, dashboards and cockpits these a typically a rolling number of months.

Notes

Compare to: Logistics Cost

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Hierarchy

IDNameLevelx
CO12Distribution Costs2CO12
CO122Fulfillment Cost3CO122

Process(es)

IDNameLevelx
D104Schedule Transportation3D104
D107Pick3D107
D108Pack3D108
D109Load3D109
D110Ship3D110
D204Schedule Transportation3D204
D207Pick3D207
D208Pack3D208
D209Load3D209
D210Ship3D210
D305Schedule Delivery & Installation3D305
D308Pick3D308
D309Pack3D309
D310Load3D310
D311Ship3D311
D405Pick3D405
D406Pack3D406
Fulfillment Cost Distribution Costs 41220 3 {{{keywords}}} {{{description}}}