Resource Library

Value of materials and services per $1,000 revenue

This measure calculates the value of materials and series per $1,000 revenue. It is part of a set of Supplemental Information measures that help companies evaluate additional…

Ratio of purchases to revenue

This measure calculates the ratio of annual value of all materials and services purchased to revenue. It is part of a set of Supplemental Information measures that help…

Return on assets

This measure calculates the return on assets as a percentage by dividing total net income by total assets in the same period. It is part of a set of Process Efficiency…

Total cost to perform the process group "manage logistics and warehousing" per $1,000 revenue

This measure calculates the total cost to perform the process group "manage logistics and warehousing"—which plans, implements, and controls the forward and reverse flow and…

Total cost to perform the process "define logistics strategy" per $1,000 revenue

This measure calculates total cost per $1,000 revenue to translate customer service requirements into capacity requirements and lead-time requirements; design the logistics…

Total cost to perform the process "operate outbound transportation" per process FTE

This measure calculates total cost per process full-time equivalent (FTE) employee to prepare goods for delivery from a warehouse to a receiving location, which comprises…

Total cost to perform the process "operate outbound transportation" per $1,000 revenue

This measure calculates total cost per $1,000 revenue to prepare goods for delivery from a warehouse to a receiving location, which comprises activities like the notification…

Cash-to-cash cycle time in days

This measure projects the amount of days it takes for an investment made to flow back into a company after it has been spent for raw materials. For services, this represents…

Cost of goods sold as a percentage of revenue

This measure calculates the total annual cost of goods sold (COGS) as a percentage of revenue. COGS represents the cost of purchasing raw materials and manufacturing finished…

Finished goods inventory days of supply

This measure calculates total finished goods inventory days of supply by dividing "finished goods inventory" by the "value of transfers divided by 365 days." The value of…

Finished goods inventory turns

This measure calculates finished goods inventory turns by dividing cost of goods sold (COGS) for the year by the average value of month-end finished goods inventory for the…

Inventory value per $1,000 total revenue

This measure calculates the value of inventory/stock expressed in currency per $1,000 total revenue. It is part of a set of Process Efficiency measures that help companies…

Number of FTEs that perform the process "operate outbound transportation" per $1 billion revenue

This measure calculates the number of full-time equivalents employees (FTEs) per $1 billion revenue who prepare the goods for delivery from a warehouse to a receiving…

Number of FTEs that perform the process "operate warehousing" per $1 billion revenue

This measure calculates the number of full-time equivalent employees (FTEs) per $1 billion revenue who are employed to receive, inspect, and store incoming materials; pick,…

Percentage of orders expedited

This measure calculates the percentage of sales orders that were considered expedited (i.e. customer orders in which actual delivery service level exceeded the normal service…