Cost of damaged product as a percentage of sales

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.

Benchmark Data

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Measure Category:
Process Efficiency
Measure ID:
100422
Total Sample Size:
1,893 All Companies
Performers:
25th Median 75th
- - -
Key Performance Indicator:
No
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Compute this Measure

Units for this measure are percent.

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Cost of damaged product as a percentage of sales

Key Terms

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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.

Measure Scope

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Cross Industry (7.4)

  • 4.4.1 - Provide logistics governance (10338)
    • 4.4.1.1 - Translate customer service requirements into logistics requirements (10343)
    • 4.4.1.2 - Design logistics network (10344)
    • 4.4.1.3 - Communicate outsourcing needs (10345)
    • 4.4.1.4 - Develop and maintain delivery service policy (10346)
    • 4.4.1.5 - Optimize transportation schedules and costs (10347)
    • 4.4.1.6 - Define key performance measures (10348)
    • 4.4.1.7 - Define reverse logistics strategy (16905)
  • 4.4.2 - Plan and manage inbound material flow (20936)
    • 4.4.2.1 - Plan inbound material receipts (10349)
    • 4.4.2.2 - Manage inbound material flow (10350)
    • 4.4.2.3 - Monitor inbound delivery performance (10351)
    • 4.4.2.4 - Manage flow of returned products (10352)
    • 4.4.2.5 - Manage disposition of returned products (20109)
      • 4.4.2.5.1 - Determine quality of controlled part (12708)
      • 4.4.2.5.2 - Perform salvage activities (10366)
      • 4.4.2.5.3 - Manage repair/refurbishment (21604) - Administering the reinstatement of the returned product in order to return them back to customers. Repair or remanufacture the defective or ineffective products returned by the customer. Process the delivery of the repaired or remanufactured products back to the customer.
      • 4.4.2.5.4 - Return to finished goods inventory (21605) - Moving a returned product back to inventory or stock. Whether a product is sufficient as returned, repaired, or refurbished, moving that product back to inventory for resale or returning to customer is the fnal step in Manage disposition of returned products.
  • 4.4.3 - Operate warehousing (10340)
    • 4.4.3.1 - Manage and track inventory deployment (10353)
    • 4.4.3.2 - Receive, inspect, and store inbound deliveries (10354)
    • 4.4.3.3 - Track product availability (10355)
    • 4.4.3.4 - Pick, pack, and ship product for delivery (10356)
    • 4.4.3.5 - Track inventory accuracy (10357)
    • 4.4.3.6 - Track third-party logistics storage and shipping performance (10358)
    • 4.4.3.7 - Manage physical finished goods inventory (10359)
    • 4.4.3.8 - Manage warehouse transfers (20957)
  • 4.4.4 - Operate outbound transportation (10341)
    • 4.4.4.1 - Plan, transport, and deliver outbound product (10360)
    • 4.4.4.2 - Track carrier delivery performance (10361)
    • 4.4.4.3 - Manage transportation fleet (10362)
    • 4.4.4.4 - Process and audit carrier invoices and documents (10363)