This measure calculates total annual transportation cost as a percentage of revenue. Transportation costs are the costs of moving product from your enterprise to customer locations, including loading and unloading trucks, transporting the freight, and any packaging that is required specifically for transportation (as opposed to packaging used for storing or selling it). This question collects the total transportation cost, regardless of what is passed on to customers. This Cost Effectiveness measure is intended to help companies understand this cost expenditure related to the process group "Manage logistics and warehousing".
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Total annual transportation cost as a percentage of revenue
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.
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.
The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.