Page 126 - Warehouse 1 to 9
P. 126

126                                                                                                               127



            Outbound             On Time Ready to ship The percentage of                                                       Warehousing Cost    Distribution cost a      The cost to run         Total distribution costs
                                                         orders ready for                                                                          percent of COGS          distribution relative   / Total COGS (based

                                                         shipment at the planned                                                                                            to COGS. Activities     on corporate income
                                                         time                                                                                                               included as part of     statement)
            Note: “ready         Number of orders                                                                                                                           total distribution
            for shipment”        ready for shipment on                                                                                                                      operating costs are
                                                                                                                                                                            management activities,
            typically means      time / number of total                                                                                                                     track inventory
            that packaging       orders shipped.                                                                                                                            deployment, receive,

            and shipping                                                                                                                                                    inspect and store
            documents are                                                                                                                                                   inbound deliveries,
            completed and                                                                                                                                                   track product

            ready for pickup.                                                                                                                                               availability, pick,pack
            Warehousing Cost     Distribution cost as a   The cost to run         Total Distribution                                                                        and ship product
                                 percent of sales        distribution relative to   Costs / Total sales                                                                     for delivery, track
                                                         total sales, Activities                                                                                            inventoryaccuracy,
                                                         included in the operate                                                                                            track third-party
                                                         warehousing process                                                                                                Logistics storage and
                                                         are management                                                                                                     shipping performance.
                                                         activities, track                                                     Warehousing Cost    Distribution cost per    The cost to run         Total cost of operating
                                                         inventory deployment,                                                                     unit shipped             distribution relative   distribution / total units
                                                         receive, inspect                                                                                                   to the units shipped    shipped
                                                                                                                                                                            through distribution.
                                                         and store inbound                                                                                                  Distribution costs
                                                         deliveries, track                                                                                                  include : management
                                                         product availability,                                                                                              activities; track
                                                         pick , pack, and ship                                                                                              inventory deployment,
                                                         product for delivery,                                                                                              receive , inspect
                                                         track inventory                                                                                                    and store inbound
                                                         accuracy, track                                                                                                    deliveries, track
                                                         third-party logistics                                                                                              product availability ,
                                                         storage and shipping                                                                                               pick, pack, and ship
                                                                                                                                                                            product for delivery
                                                         performance.                                                                                                       , track inventory
                                                                                                                                                                            accuracy, track
                                                                                                                                                                            third-party logistics
                                                                                                                                                                            storage and shipping
                                                                                                                                                                            performance
   121   122   123   124   125   126   127   128   129   130   131