This measure calculates the cost of damaged product as a percentage of sales by dividing total damaged value by total sales value. Appropriate values are in the range of 0 to 100. This measure is part of a set of Process Efficiency measures that help companies optimize the performance of their "manage logistics and warehousing" process by minimizing waste and refining resource consumption.
Cost of damaged product as a percentage of sales
Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.