Outsourced cost to perform the process "plan and manage inbound material flow" per $1,000 revenue

This measure calculates outsourced cost per $1,000 revenue for planning, transporting, and tracking the delivery of all incoming materials; monitoring inbound transportation carrier performance; and managing the flow of returned materials. Outsourced cost refers to the total cost of outsourcing a specific process to a third party, except one-time charges for any type of restructuring or reorganization. This measure is part of a set of Cost Effectiveness measures that help companies understand all cost expenditures related to the process "plan and manage inbound material flow."

Benchmark Data

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Measure Category:
Cost Effectiveness
Measure ID:
101578
Total Sample Size:
1,232 All Companies
Performers:
25th Median 75th
- - -
Key Performance Indicator:
No
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Compute this Measure

Units for this measure are dollars.

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Outsourced cost to perform the process "plan and manage inbound material flow" / (Total business entity revenue * .001)

Key Terms

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Total annual revenue is net proceeds generated from the sale of products or services. This should reflect the selling price less any allowances such as quantity, discounts, rebates and returns. If your business entity is a support unit and therefore does not directly generate revenue, then provide the revenue amount for the units you support. For government/non-profit organizations, please use your non-pass-through budget. For insurance companies the total annual revenue is the total amount of direct written premiums, excluding net investment income. Note: Business entity revenue needs to only include inter-company business segment revenue when the transactions between those business segments are intended to reflect an arm's length transfer price and would therefore meet the regulatory requirements for external revenue reporting.

Cost effectiveness measures are those in which two related variables, one of which is the cost and one of which is the related outcome related to the expenditure are used to determine a particular metric value.

Measure Scope

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Cross Industry (7.1.0)

  • 4.4.2.1 - Plan inbound material receipts (10349) - Managing the receipts of inbound materials. Create a plan accounting for the materials procured from the source of supply and the materials delivered to the distribution center or the warehouse.
  • 4.4.2.2 - Manage inbound material flow (10350) - Managing all the internal activities related to the flow/transfer of materials. Manage materials being delivered to distribution center or warehouse. Gauge the time taken for delivery and if the delivery process is on time.
  • 4.4.2.3 - Monitor inbound delivery performance (10351) - Overseeing the performance of an inbound delivery system. Check the present delivery system's efficiency, cost effectiveness, and adherence to a delivery schedule.
  • 4.4.2.4 - Manage flow of returned products (10352) - Tracking and taking care of the products that have been internally returned either because of their deficiency or in cases of incorrect delivery.
  • 4.4.2.5 - Control quality of returned parts (12708) - Implement a checks and balances system to verify that returned parts meet acceptable quality standards to determine appropriate disposition activity.