Overhead and other costs to perform the process group "plan for and align supply chain resources" per $100,000 revenue

This measure calculates the overhead and other cost per $100,000 revenue to perform the process group "plan for and align supply chain resources," which involves developing sound strategies for production, handling demand for products/services, administering master production schedules, and establishing quality standards and procedures. Overhead costs refer to those that an organization cannot identify as direct costs of performing a process; these include occupancy, facilities, utilities, and maintenance, etc. Other costs include costs other than personnel, equipment, material, systems, or outsourced costs (e.g., costs for supplies and office equipment, travel, training, and seminars). This measure is part of a set of Cost Effectiveness measures that help companies understand all cost expenditures related to the process "plan for and align supply chain resources."

Benchmark Data

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Measure Category:
Cost Effectiveness
Measure Id:
104798
Total Sample Size:
489 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are dollars.

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(Overhead cost to perform the process group "plan for and align supply chain resources" + Other cost to perform the process group "plan for and align supply chain resources") / (Total business entity revenue * .00001)

Key Terms

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Total Annual Revenue/Net Revenue

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.

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.

Cost Effectiveness

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 (7.3.0)

  • 4.1.1 - Develop production and materials strategies (10221)
    • 4.1.1.1 - Define manufacturing goals (10229)
    • 4.1.1.2 - Define labor and materials policies (10230)
    • 4.1.1.3 - Define outsourcing policies (10231)
    • 4.1.1.4 - Define capital expense policies (10232)
    • 4.1.1.5 - Define capacities (10233)
    • 4.1.1.6 - Define production network and supply constraints (10234)
    • 4.1.1.7 - Define production process (14193)
    • 4.1.1.8 - Define standard operating procedures (19551)
    • 4.1.1.9 - Define production workplace layout and infrastructure (14194)
  • 4.1.2 - Manage demand for products (10222)
    • 4.1.2.1 - Develop baseline demand forecasts (10235)
    • 4.1.2.2 - Collaborate demand with customers (10236)
    • 4.1.2.3 - Develop demand consensus forecast (10237)
    • 4.1.2.4 - Determine available to promise (10238)
    • 4.1.2.5 - Monitor activity against demand forecast and revise forecast (10239)
    • 4.1.2.6 - Evaluate and revise demand forecasting approach (10240)
    • 4.1.2.7 - Measure demand forecast accuracy (10241)
  • 4.1.3 - Create materials plan (10223)
    • 4.1.3.1 - Create unconstrained plan (10242)
    • 4.1.3.2 - Collaborate with supplier and contract manufacturers (10243)
    • 4.1.3.3 - Identify critical materials and supplier capacity (10244)
    • 4.1.3.4 - Monitor material specifications (10245)
    • 4.1.3.5 - Generate constrained plan (10246)
    • 4.1.3.6 - Define production balance and control (14196)
  • 4.1.4 - Create and manage master production schedule (10224)
    • 4.1.4.1 - Model production network to enable simulation and optimization (20023)
    • 4.1.4.2 - Create master production schedule (20024)
    • 4.1.4.3 - Maintain master production schedule (17041)
  • 4.1.5 - Plan distribution requirements (17042)
    • 4.1.5.1 - Maintain master data (10252)
    • 4.1.5.2 - Determine finished goods inventory requirements at destination (10253)
    • 4.1.5.3 - Determine product storage facility requirements (19555)
    • 4.1.5.4 - Calculate requirements at destination (10254)
    • 4.1.5.5 - Calculate consolidation at source (10255)
    • 4.1.5.6 - Manage collaborative replenishment planning (10256)
    • 4.1.5.7 - Calculate and optimize destination dispatch plan (10258)
    • 4.1.5.8 - Manage dispatch plan attainment (10259)
    • 4.1.5.9 - Calculate and optimize destination load plans (10260)
    • 4.1.5.10 - Manage partner load plan (10261)
    • 4.1.5.11 - Manage cost of supply (10262)
    • 4.1.5.12 - Manage capacity utilization (10263)
  • 4.1.6 - Establish distribution planning constraints (10226)
    • 4.1.6.1 - Establish distribution center layout constraints (10267)
    • 4.1.6.2 - Establish inventory management constraints (10268)
    • 4.1.6.3 - Establish transportation management constraints (10269)
    • 4.1.6.4 - Establish storage management constraints (19558)
  • 4.1.7 - Review distribution planning policies (10227)
    • 4.1.7.1 - Review distribution network (10264)
    • 4.1.7.2 - Establish sourcing relationships (10265)
    • 4.1.7.3 - Establish dynamic deployment policies (10266)
  • 4.1.8 - Develop quality standards and procedures (10368)
    • 4.1.8.1 - Establish quality targets (10371)
    • 4.1.8.2 - Develop standard testing procedures (10372)
    • 4.1.8.3 - Communicate quality specifications (10373)