Personnel cost to perform the process "operate warehousing" per $1,000 revenue

This measure calculates personnel cost per $1,000 revenue for receiving, inspecting, and storing incoming materials; picking, packing, and shipping product for outbound delivery; and tracking inventory deployment. Personnel cost refers to employee salaries/wages, bonuses, benefits, etc. This measure is part of a set of Cost Effectiveness measures that help companies understand all cost expenditures related to the process "operate warehousing."

Benchmark Data

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Measure Category:
Cost Effectiveness
Measure Id:
102975
Total Sample Size:
1,355 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are dollars.

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Personnel cost to perform the process "operate warehousing" / (Total business entity revenue * 0.0010)

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.

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.

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)

  • 4.4.3.1 - Manage and track inventory deployment (10353) - Tracking the logistical act of delivering or releasing an inventory item or entity to targeted end users. Track how much inventory has been deployed at all the distribution centers, individually.
  • 4.4.3.2 - Receive, inspect, and store inbound deliveries (10354) - Coordinating the incoming inbound materials/products. Accept the delivery of these materials and the subsequent storage. Track them at the warehouse/distribution center.
  • 4.4.3.3 - Track product availability (10355) - Keeping track of the availability of different materials/products at the warehouse and distribution centers.
  • 4.4.3.4 - Pick, pack, and ship product for delivery (10356) - Packing and shipping the product to deliver to the customer. Take care of the internal and external packaging of the products in order to ensure safe transportation of the products from the warehouse to delivery locations. Notify the ERP system and/or Accounts Receivable Dept.
  • 4.4.3.5 - Track inventory accuracy (10357) - Monitoring any discrepancies between electronic records that represent the inventory and the physical state of the inventory. Look for discrepancies such as phantom inventory, which includes products that an inventory accounting system considers to be available at the storage location but are not actually available.
  • 4.4.3.6 - Track third-party logistics storage and shipping performance (10358) - Keeping a track on the storage and shipping performance of third-party agencies. Monitor logistics storage and shipping performance for third-party agencies. Use measures such as a logistics scoreboard, activity-based costing, economic value analysis, and balanced scorecards.
  • 4.4.3.7 - Manage physical finished goods inventory (10359) - Administering the movement of the finished products that are processed by the organization through its warehouses. Track goods through the use of systems such as barcodes in order to monitor the volumes available, quantity of out-flowing goods, remaining shelf life of the product, etc.--ultimately, to best manage the warehouse capacity.
  • 4.4.3.8 - Manage warehouse transfers (20957) - Shipping items from one warehouse to another in a multi-warehouse environment. A warehouse transfer is typically handled electronically in a system designed to replicate the physical processes involved with transferring items from one warehouse to another.