Expedited costs as a percentage of total cost of the logistics process group "manage logistics and warehousing"

This measure calculates the percentage of total cost of the "manage logistics and warehousing" process group that comes from expedited costs. Expedited costs refer to costs on customer orders for which the delivery service level exceeds the normal service level because of unplanned events. 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:
100706
Total Sample Size:
2,799 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are percent.

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Percentage of total logistics costs that are expedited

Key Terms

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Process Cost Components

Total cost for a process, process group, or function consists of the following five components.

Internal/In-house operating cost consists of the first four components (personnel, systems, overhead, and other).

Personnel Cost

Personnel cost is the cost associated with personnel compensation and fringe benefits of employees (i.e., those classified as FTEs which includes both full-time and salaried/hourly employees) contributing to each respective process. Personnel cost should include all of the following costs.

Employee Compensation: Includes salaries and wages, bonuses, overtime and benefits.

Fringe: Includes contributions made towards the employees' government retirement fund, workers compensation, insurance plans, savings plans, pension funds/retirement plans, and stock purchase plans. This should also include special allowances, such as relocation expenses and car allowances.

Systems Cost

Systems costs include all expenses, paid or incurred, in conjunction with:
Computer hardware or computer software acquired by the organization or provided to the organization through service contracts.

Any related costs to process, service and maintain computer hardware or computer software. The costs of providing and maintaining services for each applicable process (e.g., computer system(s) processing (CPU) time, network/system communication charges, maintenance costs for applications and data storage). This includes the costs related to LANs, WANs, etc. This does not include one-time costs for major new systems developments/replacements. Consultant fees should not be included in depreciation of new system implementations. Include only those costs that occur more than six (6) months after implementation, as normal system maintenance costs. Any systems cost (e.g., maintenance) which is outsourced to a third party supplier should be captured in the separate cost category labeled outsourced cost.

Systems cost should include all salaries, overtime, employee benefits, bonuses or fees paid to full-time, part-time or temporary employees or independent contractors who perform services relating to computer hardware, computer software, processing or systems support.

Overhead Costs

For the purpose of this study, provide the total actual overhead costs for the year related to the specified process. These are costs that cannot be identified as a direct cost of providing a product or a service. Include the primary allocated costs such as occupancy, facilities, utilities, maintenance costs, and other major costs allocated to the consuming departments. Exclude systems costs that are allocated, since these will be captured separately as systems cost.

Other Cost

Other costs are costs associated with the specified process, but not specifically covered in personnel cost, systems cost, overhead cost and outsourced cost in this questionnaire. These other costs include costs for supplies and office equipment, travel, training and seminars. Include the cost of telephones, except for that portion captured in systems cost.

External/Outsourced Cost

In determining outsourced cost, include the total cost of outsourcing all aspects of the specified process to a third-party supplier. Exclude one-time charges for any type of restructuring or reorganization. Outsourced costs should also include costs for intracompany outsourcing (i.e., reliance on a shared services center or other business entity).

Process efficiency

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 (7.3.0)

  • 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 - Control quality of returned parts (12708)
    • 4.4.2.6 - Salvage or repair returned products (20109)
      • 4.4.2.6.1 - Perform salvage activities (10366)
      • 4.4.2.6.2 - Manage repair/refurbishment and return to customer/stock (14195)
  • 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)