Supply Chain SCOR Metrics

The SCOR (Supply Chain Operations Reference) model is a framework developed by the Supply Chain Council to standardize and streamline supply chain management. SCOR metrics are organized into five performance attributes, each representing a key aspect of supply chain performance. These attributes are: Reliability, Responsiveness, Agility, Costs, and Asset Management Efficiency.

Reliability

RL.1.1 – Perfect Order Fulfillment

Definition: The percentage of orders that are fulfilled without any errors, considering various factors such as accuracy, timeliness, and completeness.

Importance: Reflects the overall reliability of the order fulfillment process, encompassing multiple dimensions of customer satisfaction.

Benchmark: Aiming for 100% Perfect Order Fulfillment is an industry best practice.

Formula: $=\frac{\text{Number of Perfect Order}}{\text{Total Number of Orders}}\times 100$

RL.2.1 – % of Orders Delivered In Full

Definition: The percentage of orders that are delivered with all items requested by the customer, without any missing components.

Importance: Ensures customer satisfaction by minimizing instances of partial order deliveries.

Benchmark: Aiming for 100% is ideal for this metric.

Formula: $=\frac{\text{Number of Orders Delivered In Full}}{\text{Total Number of Orders}}\times 100$

RL.3.33 – Delivery Item Accuracy

Definition: The percentage of delivered items that match the specified items in the order.

Importance: Measures the precision in fulfilling orders, contributing to customer trust and loyalty.

Benchmark: Aiming for 100% accuracy is crucial for customer satisfaction.

Formula: $=\frac{\text{Number of Accurate Items Delivered}}{\text{Total Number of Items Delivered}}\times 100$

RL.3.35 – Delivery Quantity Accuracy

Definition: The percentage of delivered quantities that match the ordered quantities.

Importance: Ensures that customers receive the correct number of items, preventing overstock or shortages.

Benchmark: Aiming for 100% accuracy is essential for inventory management.

Formula: $=\frac{\text{Number of Accurate Quantities Delivered}}{\text{Total Number of Quantities Delivered}}\times 100$

RL.2.2 – Delivery Performance to Customer Commit Date

Definition: The adherence to committed delivery dates, measuring how often orders are delivered on or before the promised date.

Importance: Reflects reliability and punctuality, influencing customer satisfaction and trust.

Benchmark: Aiming for a high percentage, ideally close to 100%, indicates excellent performance.

Formula: $=\frac{\text{Number of On-Time Deliveries}}{\text{Total Number of Deliveries}}\times 100$

RL.3.32 – Customer Commit Date Achievement Time Customer Receiving

Definition: The time taken from the committed delivery date to the actual receipt of the product by the customer.

Importance: Provides insights into the efficiency of meeting committed delivery dates and customer receipt times.

Benchmark: Aiming for a short duration, ideally as close to zero as possible.

Formula: $=\frac{\text{End Time of Customer Receipt – Customer Commit Date}}{\text{Number of Deliveries}}$

RL.3.34 – Delivery Location Accuracy

Definition: The percentage of deliveries that accurately reach the specified delivery location.

Importance: Ensures precision in the delivery process, contributing to customer satisfaction and operational efficiency.

Benchmark: Aiming for 100% accuracy is essential for customer satisfaction.

Formula: $=\frac{\text{Number of Accurate Deliveries}}{\text{Total Number of Deliveries}}\times 100$

RL.2.3 – Documentation Accuracy

Definition: The accuracy of documentation related to the supply chain process, considering factors such as completeness and correctness.

Importance: Ensures that all documentation is error-free, contributing to regulatory compliance and smooth operations.

Benchmark: Aiming for 100% accuracy in documentation is crucial for legal and operational reasons.

Formula: $=\frac{\text{Number of Accurate Documents}}{\text{Total Number of Documents}}\times 100$

RL.3.31 – Compliance Documentation Accuracy

Definition: The accuracy of documentation related to regulatory compliance within the supply chain.

Importance: Ensures adherence to regulatory requirements, minimizing the risk of penalties and legal issues.

Benchmark: Aiming for 100% accuracy in compliance documentation is essential for legal adherence.

Formula: $=\frac{\text{Number of Accurate Compliance Documents}}{\text{Total Number of Compliance Documents}}\times 100$

RL.3.43 – Other Required Documentation Accuracy

Definition: The accuracy of additional documentation required in the supply chain process, beyond compliance documents.

Importance: Ensures completeness and correctness of all necessary documentation for smooth operations.

Benchmark: Aiming for 100% accuracy in other required documentation is essential for completeness.

Formula: $=\frac{\text{Number of Accurate Required Documents}}{\text{Total Number of Required Documents}}\times 100$

RL.3.45 – Payment Documentation Accuracy

Definition: The accuracy of documentation related to payments within the supply chain process.

Importance: Ensures accuracy in financial transactions, contributing to financial integrity and compliance.

Benchmark: Aiming for 100% accuracy in payment documentation is crucial for financial integrity.

Formula: $=\frac{\text{Number of Accurate Payment Documents}}{\text{Total Number of Payment Documents}}\times 100$

RL.3.50 – Shipping Documentation Accuracy

Definition: The accuracy of documentation related to shipping within the supply chain process.

Importance: Ensures accuracy in shipping-related documents, contributing to smooth logistics operations.

Benchmark: Aiming for 100% accuracy in shipping documentation is crucial for efficient logistics.

Formula: $=\frac{\text{Number of Accurate Shipping Documents}}{\text{Total Number of Shipping Documents}}\times 100$

RL.2.4 – Perfect Condition

Definition: The percentage of products delivered in perfect condition, without any damage or defects.

Importance: Reflects the quality of products and contributes to customer satisfaction.

Benchmark: Aiming for 100% indicates high-quality delivery.

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Formula: $=\frac{\text{Number of Products Delivered in Perfect Condition}}{\text{Total Number of Products Delivered}}\times 100$

RL.3.12 – % Of Faultless Installations

Definition: The percentage of installations conducted without any faults or issues.

Importance: Reflects the efficiency and quality of installation processes.

Benchmark: Aiming for 100% indicates successful and error-free installations.

Formula: $=\frac{\text{Number of Faultless Installations}}{\text{Total Number of Installations}}\times 100$

RL.3.24 – % Orders/Lines Received Damage Free

Definition: The percentage of orders or lines received without any damage.

Importance: Reflects the effectiveness of the receiving process in maintaining product integrity.

Benchmark: Aiming for 100% indicates a robust packaging and shipping system.

Formula: $=\frac{\text{Number of Orders/Lines Received Damage Free}}{\text{Total Number of Orders/Lines Received}}\times 100$

RL.3.41 – Orders Delivered Damage Free Conformance

Definition: The conformance rate of orders delivered without any damage to the intended condition.

Importance: Ensures that delivered orders meet the specified condition, minimizing returns and customer dissatisfaction.

Benchmark: Aiming for 100% conformance is crucial for customer satisfaction.

Formula: $=\frac{\text{Number of Orders Delivered Damage Free}}{\text{Total Number of Delivered Orders}}\times 100$

RL.3.42 – Orders Delivered Defect Free Conformance

Definition: The conformance rate of orders delivered without any defects.

Importance: Ensures that delivered orders meet quality standards, reducing returns and enhancing customer satisfaction.

Benchmark: Aiming for 100% conformance is crucial for product quality.

Formula: $=\frac{\text{Number of Orders Delivered Defect Free}}{\text{Total Number of Delivered Orders}}\times 100$

RL.3.55 – Warranty and Returns

Definition: The process efficiency in handling warranty claims and product returns.

Importance: Reflects customer support effectiveness and contributes to customer satisfaction.

Benchmark: Aiming for a quick and efficient resolution of warranty and return cases is essential.

Formula: $=\frac{\text{Number of Handled Warranty and Return Cases}}{\text{Total Number of Warranty and Return Cases}}\times 100$

RS.1.1 – Order Fulfillment Cycle Time

Definition: The time taken to fulfill a customer order from the point of order placement to order delivery.

Importance: Reflects the efficiency of the order fulfillment process in meeting customer demand.

Benchmark: The benchmark for order fulfillment cycle time varies by industry but is often measured in hours to days, depending on the nature of the products and customer expectations.

Formula: $=\frac{\text{Time to Fulfill Orders}}{\text{Total Number of Orders}}$

RS.2.1 – Source Cycle Time

Definition: The time taken to identify and select sources of supply for the required materials or products.

Importance: Reflects the efficiency of the sourcing process in securing materials for production.

Benchmark: The benchmark for source cycle time varies but is typically measured in days, aiming for a swift and effective sourcing process.

Formula: $=\frac{\text{Time to Identify and Select Sources}}{\text{Total Number of Sourcing Events}}$

RS.3.8 – Authorize Supplier Payment Cycle Time

Definition: The time taken to authorize and process payments to suppliers.

Importance: Reflects the efficiency of financial processes and maintaining good supplier relationships.

Benchmark: The benchmark for payment authorization cycle time varies but is often measured in days, aiming for a prompt and accurate payment process.

Formula: $=\frac{\text{Time to Authorize Supplier Payments}}{\text{Total Number of Payments}}$

RS.3.35 – Identify Sources of Supply Cycle Time

Definition: The time taken to identify and evaluate potential sources of supply for required materials or products.

Importance: Reflects the speed and effectiveness in identifying reliable sources for procurement.

Benchmark: The benchmark for identifying sources of supply cycle time varies but is typically measured in days, aiming for a swift sourcing identification process.

Formula: $=\frac{\text{Time to Identify Sources of Supply}}{\text{Total Number of Sourcing Events}}$

RS.3.107 – Receive Product Cycle Time

Definition: The time taken to receive and log products or materials into inventory upon delivery.

Importance: Reflects the efficiency of the receiving process and the speed of integrating new inventory.

Benchmark: The benchmark for product receiving cycle time varies but is often measured in hours to days, aiming for a swift and accurate receiving process.

Formula: $=\frac{\text{Time to Receive Products}}{\text{Total Number of Received Products}}$

RS.3.122 – Schedule Product Deliveries Cycle Time

Definition: The time taken to schedule and plan the delivery of products to customers.

Importance: Reflects the efficiency of delivery planning, ensuring timely and accurate deliveries.

Benchmark: The benchmark for scheduling product deliveries cycle time varies but is typically measured in days, aiming for a well-organized and prompt delivery scheduling process.

Formula: $=\frac{\text{Time to Schedule Product Deliveries}}{\text{Total Number of Scheduled Deliveries}}$

RS.3.125 – Select Supplier and Negotiate Cycle Time

Definition: The time taken to select a supplier and negotiate terms for the procurement of materials or products.

Importance: Reflects the speed and effectiveness in securing favorable terms with suppliers.

Benchmark: The benchmark for selecting a supplier and negotiation cycle time varies but is often measured in days to weeks, aiming for an efficient and successful negotiation process.

Formula: $=\frac{\text{Time to Schedule Product Deliveries}}{\text{Total Number of Scheduled Deliveries}}$

RS.3.139 – Transfer Product Cycle Time

Definition: The time taken to transfer a product from one stage of the supply chain to another.

Importance: Reflects the efficiency of product transfer processes, impacting overall supply chain responsiveness.

Benchmark: The benchmark for transfer product cycle time varies but is typically measured in hours to days, aiming for a swift and seamless transfer process.

Formula: $=\frac{\text{Time to Transfer Product}}{\text{Total Number of Product Transfers}}$

RS.3.140 – Verify Product Cycle Time

Definition: The time taken to verify the quality and specifications of a product.

Importance: Reflects the efficiency of product verification processes, ensuring product quality and compliance.

Benchmark: The benchmark for verify product cycle time varies but is typically measured in minutes to hours, aiming for a quick and accurate verification process.

Formula: $=\frac{\text{Time to Verify Product}}{\text{Total Number of Product Verifications}}$

RS.2.2 – Make Cycle Time

Definition: The time taken to manufacture or produce a product.

Importance: Reflects the efficiency of the manufacturing process, impacting overall production speed.

Benchmark: The benchmark for make cycle time varies by industry but is typically measured in hours to days, aiming for an efficient production process.

Formula: $=\frac{\text{Time to Make Product}}{\text{Total Number of Products Made}}$

RS.3.33 – Finalize Production Engineering Cycle Time

Definition: The time taken to finalize production engineering processes for a product.

Importance: Reflects the efficiency of finalizing engineering aspects, impacting the overall production timeline.

Benchmark: The benchmark for finalize production engineering cycle time varies but is typically measured in days, aiming for a streamlined engineering finalization process.

Formula: $=\frac{\text{Time to Finalize Production Engineering}}{\text{Total Number of Production Engineering Finalizations}}$

RS.3.49 – Issue Material Cycle Time

Definition: The time taken to issue materials for the production or assembly of a product.

Importance: Reflects the efficiency of material issuing processes, impacting the overall production timeline.

Benchmark: The benchmark for issue material cycle time varies but is typically measured in hours to days, aiming for a prompt material issuing process.

Formula: $=\frac{\text{Time to Issue Material}}{\text{Total Number of Material Issuances}}$

RS.3.101 – Produce and Test Cycle Time

Definition: The time taken to produce and test a product, including quality assurance processes.

Importance: Reflects the efficiency of the production and testing processes, ensuring product quality before release.

Benchmark: The benchmark for produce and test cycle time varies but is typically measured in hours to days, aiming for a thorough and efficient production and testing process.

Formula: $=\frac{\text{Time to Produce and Test}}{\text{Total Number of Produced and Tested Products}}$

RS.3.114 – Release Finished Product to Deliver Cycle Time

Definition: The time taken from the release of a finished product to the point of delivery to the customer.

Importance: Reflects the efficiency of the product release and delivery processes, ensuring timely deliveries.

Benchmark: The benchmark for release finished product to deliver cycle time varies but is typically measured in hours to days, aiming for a swift and accurate release and delivery process.

Formula: $=\frac{\text{Time from Release to Delivery}}{\text{Total Number of Released and Delivered Products}}$

RS.3.123 – Schedule Production Activities Cycle Time

Definition: The time taken to schedule and plan various production activities for a product.

Importance: Reflects the efficiency of production planning, ensuring a well-organized production process.

Benchmark: The benchmark for schedule production activities cycle time varies but is typically measured in days, aiming for a streamlined production scheduling process.

Formula: $=\frac{\text{Time to Schedule Production Activities}}{\text{Total Number of Scheduled Production Activities}}$

RS.3.128 – Stage Finished Product Cycle Time

Definition: The time taken to stage a finished product before it is ready for delivery or shipment.

Importance: Reflects the efficiency of the staging process, ensuring products are prepared for timely delivery.

Benchmark: The benchmark for stage finished product cycle time varies but is typically measured in hours to days, aiming for a swift and organized staging process.

Formula: $=\frac{\text{Time to Stage Finished Product}}{\text{Total Number of Staged Finished Products}}$

RS.3.142 – Package Cycle Time RS.2.3 – Deliver Cycle Time

Definition: The time taken to package a product for delivery or shipment.

Importance: Reflects the efficiency of the packaging process, ensuring products are prepared for safe and secure transportation.

Benchmark: The benchmark for package cycle time varies but is typically measured in minutes to hours, aiming for a quick and accurate packaging process.

Formula: $=\frac{\text{Time to Package Product}}{\text{Total Number of Packaged Products}}$

RS.3.16 – Build Loads Cycle Time

Definition: The time taken to organize and build loads for transportation, ensuring efficient and optimized shipment arrangements.

Importance: Reflects the efficiency of load-building processes, impacting the overall transportation and delivery timelines.

Benchmark: The benchmark for build loads cycle time varies but is typically measured in hours, aiming for a swift and organized load-building process.

Formula: $=\frac{\text{Time to Build Loads}}{\text{Total Number of Load-Building Events}}$

RS.3.18 – Consolidate Orders Cycle Time

Definition: The time taken to consolidate multiple orders into a single shipment for efficient transportation.

Importance: Reflects the efficiency of order consolidation processes, optimizing shipment and reducing transportation costs.

Benchmark: The benchmark for consolidate orders cycle time varies but is typically measured in hours, aiming for a quick and well-organized consolidation process.

Formula: $=\frac{\text{Time to Consolidate Orders}}{\text{Total Number of Order Consolidations}}$

RS.3.46 – Install Product Cycle Time

Definition: The time taken to install and set up a product at its final destination.

Importance: Reflects the efficiency of product installation processes, ensuring timely and accurate installations.

Benchmark: The benchmark for install product cycle time varies but is typically measured in hours, aiming for a prompt and well-executed installation process.

Formula: $=\frac{\text{Time to Install Product}}{\text{Total Number of Product Installations}}$

RS.3.51 – Load Product & Generate Shipping Documentation Cycle Time

Definition: The time taken to load products onto a shipment and generate the necessary shipping documentation.

Importance: Reflects the efficiency of loading processes and documentation generation, ensuring accurate and timely shipments.

Benchmark: The benchmark for load product & generate shipping documentation cycle time varies but is typically measured in hours, aiming for a quick and organized process.

Formula: $=\frac{\text{Time to Load Product \& Generate Documentation}}{\text{Total Number of Load \& Documentation Events}}$

RS.3.102 – Receive & Verify Product by Customer Cycle Time

Definition: The time taken to receive and verify a product at the customer’s location.

Importance: Reflects the efficiency of the customer’s product receiving and verification processes, ensuring customer satisfaction.

Benchmark: The benchmark for receive & verify product by customer cycle time varies but is typically measured in hours, aiming for a quick and accurate process.

Formula: $=\frac{\text{Time to Receive \& Verify Product by Customer}}{\text{Total Number of Received \& Verified Products by Customer}}$

RS.3.110 – Receive Product from Source or Make Cycle Time

Definition: The time taken to receive a product from the original source or manufacturing process.

Importance: Reflects the efficiency of the initial product receiving processes, impacting overall supply chain timelines.

Benchmark: The benchmark for receive product from source or make cycle time varies but is typically measured in hours to days, aiming for a prompt and well-organized receiving process.

Formula: $=\frac{\text{Time to Receive Product from Source or Make}}{\text{Total Number of Source or Make Receptions}}$

RS.3.111 – Receive, Configure, Enter, & Validate Order Cycle Time

Definition: The time taken to complete the entire cycle of receiving, configuring, entering, and validating an order.

Importance: Reflects the efficiency of the order fulfillment process, ensuring accuracy and timeliness.

Benchmark: The benchmark for receive, configure, enter, & validate order cycle time varies but is typically measured in hours to days, aiming for a well-orchestrated and accurate order processing cycle.

Formula: $=\frac{\text{Time to Receive, Configure, Enter, \& Validate Order}}{\text{Total Number of Received, Configured, Entered, \& Validated Orders}}$

RS.3.116 – Reserve Resources and Determine Delivery Date Cycle Time

Definition: The time taken to reserve necessary resources and determine the delivery date for a product.

Importance: Reflects the efficiency of resource allocation and scheduling, ensuring timely delivery planning.

Benchmark: The benchmark for reserve resources and determine delivery date cycle time varies but is typically measured in hours to days, aiming for a swift and well-organized process.

Formula: $=\frac{\text{Time to Reserve Resources and Determine Delivery Date}}{\text{Total Number of Resource Reservation and Delivery Date Determination Events}}$

RS.3.117 – Route Shipments Cycle Time

Definition: The time taken to plan and determine the routes for product shipments.

Importance: Reflects the efficiency of shipment routing processes, optimizing transportation and reducing delivery times.

Benchmark: The benchmark for route shipments cycle time varies but is typically measured in hours to days, aiming for a quick and well-organized routing process.

Formula: $=\frac{\text{Time to Route Shipments}}{\text{Total Number of Shipment Routing Events}}$

RS.3.120 – Schedule Installation Cycle Time

Definition: The time taken to schedule and plan the installation of products at their destination.

Importance: Reflects the efficiency of the installation scheduling process, ensuring timely and well-coordinated installations.

Benchmark: The benchmark for schedule installation cycle time varies but is typically measured in hours to days, aiming for a prompt and well-organized scheduling process.

Formula: $=\frac{\text{Time to Schedule Installation}}{\text{Total Number of Scheduled Installations}}$

RS.3.124 – Select Carriers & Rate Shipments Cycle Time

Definition: The time taken to select carriers and determine shipping rates for product shipments.

Importance: Reflects the efficiency of carrier selection and rate determination processes, optimizing transportation costs.

Benchmark: The benchmark for select carriers & rate shipments cycle time varies but is typically measured in hours, aiming for a quick and cost-effective process.

Formula: $=\frac{\text{Time to Select Carriers \& Rate Shipments}}{\text{Total Number of Carrier Selection \& Rate Determination Events}}$

RS.3.126 – Ship Product Cycle Time

Definition: The time taken to ship a product from the source or manufacturing facility to its destination.

Importance: Reflects the efficiency of the shipping process, ensuring timely and accurate deliveries.

Benchmark: The benchmark for ship product cycle time varies but is typically measured in hours to days, aiming for a swift and reliable shipping process.

Formula: $=\frac{\text{Time to Ship Product}}{\text{Total Number of Shipped Products}}$

RS.2.4 – Delivery Retail Cycle Time

Definition: The time taken to deliver products to retail locations from the distribution center or source.

Importance: Reflects the efficiency of the retail delivery process, ensuring products are available for customers in a timely manner.

Benchmark: The benchmark for delivery retail cycle time varies but is typically measured in hours to days, aiming for a quick and reliable retail delivery process.

Formula: $=\frac{\text{Time to Deliver to Retail}}{\text{Total Number of Retail Deliveries}}$

RS.3.17 – Checkout Cycle Time

Definition: The time taken for customers to complete the checkout process, from selecting items to making a purchase.

Importance: Reflects the efficiency of the checkout process, impacting overall customer satisfaction and store efficiency.

Benchmark: The benchmark for checkout cycle time varies but is typically measured in minutes, aiming for a quick and streamlined checkout experience.

Formula: $=\frac{\text{Time for Customer Checkout}}{\text{Total Number of Checkout Transactions}}$

RS.3.32 – Fill Shopping Cart Cycle Time

Definition: The time taken for customers to fill their shopping carts with selected items.

Importance: Reflects the efficiency of the shopping process, influencing customer satisfaction and store productivity.

Benchmark: The benchmark for fill shopping cart cycle time varies but is typically measured in minutes, aiming for a quick and convenient shopping experience.

Formula: $=\frac{\text{Time to Fill Shopping Cart}}{\text{Total Number of Shopping Cart Fill Events}}$

RS.3.34 – Generate Stocking Schedule Cycle Time

Definition: The time taken to generate schedules for stocking products on store shelves.

Importance: Reflects the efficiency of stocking processes, ensuring products are consistently available to customers.

Benchmark: The benchmark for generate stocking schedule cycle time varies but is typically measured in hours to days, aiming for a well-organized and timely stocking schedule generation process.

Formula: $=\frac{\text{Time to Generate Stocking Schedule}}{\text{Total Number of Stocking Schedule Generation Events}}$

RS.3.97 – Pick Product from Backroom Cycle Time

Definition: The time taken to pick products from the backroom or storage area for customer orders or restocking.

Importance: Reflects the efficiency of the product picking process, ensuring timely fulfillment of customer orders and shelf restocking.

Benchmark: The benchmark for pick product from backroom cycle time varies but is typically measured in minutes to hours, aiming for a quick and organized picking process.

Formula: $=\frac{\text{Time to Pick Product from Backroom}}{\text{Total Number of Product Picking Events from Backroom}}$

RS.3.109 – Receive Product at Store Cycle Time

Definition: The time taken to receive and process products at the store location.

Importance: Reflects the efficiency of the product receiving process, ensuring timely availability of products in-store.

Benchmark: The benchmark for receive product at store cycle time varies but is typically measured in hours, aiming for a quick and well-organized receiving process.

Formula: $=\frac{\text{Time to Receive Product at Store}}{\text{Total Number of Product Reception Events at Store}}$

RS.3.129 – Stock Shelf Cycle Time

Definition: The time taken to stock products on store shelves after receiving.

Importance: Reflects the efficiency of the shelf stocking process, ensuring products are readily available for customers.

Benchmark: The benchmark for stock shelf cycle time varies but is typically measured in minutes to hours, aiming for a quick and organized shelf stocking process.

Formula: $=\frac{\text{Time to Stock Shelf}}{\text{Total Number of Shelf Stocking Events}}$

RS.2.5 – Return Cycle Time

Definition: The time taken to process and complete product returns.

Importance: Reflects the efficiency of the product return process, ensuring a smooth and timely return experience for customers.

Benchmark: The benchmark for return cycle time varies but is typically measured in days, aiming for a prompt and customer-friendly return process.

Formula: $=\frac{\text{Time to Process Product Return}}{\text{Total Number of Product Return Transactions}}$

Agility

AG.1.1 – Upside Supply Chain Adaptability

Definition: The ability of the supply chain to adapt positively to unexpected changes and disruptions.

Importance: Reflects the overall agility of the supply chain, ensuring resilience and responsiveness to unforeseen challenges.

Benchmark: The benchmark for upside supply chain adaptability varies but is typically measured in terms of the ability to quickly adjust and recover from disruptions.

Formula: $=\frac{\text{Number of Positive Supply Chain Adaptations}}{\text{Total Number of Supply Chain Adaptation Events}}\times 100$

AG.2.1 – Upside Adaptability (Source)

Definition: The ability of the sourcing process to positively adapt to changes and disruptions.

Importance: Reflects the agility of the sourcing function, ensuring a resilient and responsive approach to unexpected challenges.

Benchmark: The benchmark for upside adaptability in sourcing varies but is typically measured in terms of the ability to quickly adjust and recover from disruptions in the sourcing process.

Formula: $=\frac{\text{Number of Positive Adaptations in Sourcing}}{\text{Total Number of Sourcing Adaptation Events}}\times 100$

AG.2.2 – Upside Adaptability (Make)

Definition: The ability of the manufacturing process to positively adapt to changes and disruptions.

Importance: Reflects the agility of the manufacturing function, ensuring a resilient and responsive approach to unexpected challenges.

Benchmark: The benchmark for upside adaptability in manufacturing varies but is typically measured in terms of the ability to quickly adjust and recover from disruptions in the manufacturing process.

Formula: $=\frac{\text{Number of Positive Adaptations in Manufacturing}}{\text{Total Number of Manufacturing Adaptation Events}}\times 100$

AG.2.3 – Upside Adaptability (Deliver)

Definition: The ability of the delivery process to positively adapt to changes and disruptions.

Importance: Reflects the agility of the delivery function, ensuring a resilient and responsive approach to unexpected challenges.

Benchmark: The benchmark for upside adaptability in delivery varies but is typically measured in terms of the ability to quickly adjust and recover from disruptions in the delivery process.

Formula: $=\frac{\text{Number of Positive Adaptations in Delivery}}{\text{Total Number of Delivery Adaptation Events}}\times 100$

AG.2.4 – Upside Return Adaptability (Source)

Definition: The ability of the sourcing process to positively adapt to changes and disruptions in the return process.

Importance: Reflects the agility of the return sourcing function, ensuring a resilient and responsive approach to unexpected challenges in the return process.

Benchmark: The benchmark for upside return adaptability in sourcing varies but is typically measured in terms of the ability to quickly adjust and recover from disruptions in the return sourcing process.

Formula: $=\frac{\text{Number of Positive Return Adaptations in Sourcing}}{\text{Total Number of Return Sourcing Adaptation Events}}\times 100$

AG.2.5 – Upside Return Adaptability (Deliver)

Definition: The ability of the delivery process to positively adapt to changes and disruptions in the return process.

Importance: Reflects the agility of the delivery function in handling returns, ensuring a resilient and responsive approach to unexpected challenges in the return process.

Benchmark: The benchmark for upside return adaptability in delivery varies but is typically measured in terms of the ability to quickly adjust and recover from disruptions in the return delivery process.

Formula: $=\frac{\text{Number of Positive Return Adaptations in Delivery}}{\text{Total Number of Return Delivery Adaptation Events}}\times 100$

AG.1.2 – Downside Supply Chain Adaptability

Definition: The ability of the supply chain to adapt negatively to changes and disruptions.

Importance: Reflects the overall agility of the supply chain in dealing with and minimizing the impact of unforeseen challenges.

Benchmark: The benchmark for downside supply chain adaptability varies but is typically measured in terms of the ability to minimize negative impacts and recover from disruptions.

Formula: $=\frac{\text{Number of Negative Supply Chain Adaptations}}{\text{Total Number of Supply Chain Adaptation Events}}\times 100$

AG.2.6 – Downside Adaptability (Source)

Definition: The ability of the sourcing process to adapt negatively to changes and disruptions.

Importance: Reflects the agility of the sourcing function in minimizing the negative impact of unexpected challenges in the sourcing process.

Benchmark: The benchmark for downside adaptability in sourcing varies but is typically measured in terms of the ability to minimize negative impacts and recover from disruptions in the sourcing process.

Formula: $=\frac{\text{Number of Negative Adaptations in Sourcing}}{\text{Total Number of Sourcing Adaptation Events}}\times 100$

AG.2.7 – Downside Adaptability (Make)

Definition: The ability of the manufacturing process to adapt negatively to changes and disruptions.

Importance: Reflects the agility of the manufacturing function in minimizing the negative impact of unexpected challenges in the manufacturing process.

Benchmark: The benchmark for downside adaptability in manufacturing varies but is typically measured in terms of the ability to minimize negative impacts and recover from disruptions in the manufacturing process.

Formula: $=\frac{\text{Number of Negative Adaptations in Manufacturing}}{\text{Total Number of Manufacturing Adaptation Events}}\times 100$

AG.2.8 – Downside Adaptability (Deliver)

Definition: The ability of the delivery process to adapt negatively to changes and disruptions.

Importance: Reflects the agility of the delivery function in minimizing the negative impact of unexpected challenges in the delivery process.

Benchmark: The benchmark for downside adaptability in delivery varies but is typically measured in terms of the ability to minimize negative impacts and recover from disruptions in the delivery process.

Formula: $=\frac{\text{Number of Negative Adaptations in Delivery}}{\text{Total Number of Delivery Adaptation Events}}\times 100$

AG.1.3 – Overall Value at Risk (VAR)

Definition: The overall assessment of potential value at risk in the supply chain, considering various risk factors.

Importance: Reflects the comprehensive evaluation of potential losses in value due to various risks in the supply chain.

Benchmark: The benchmark for overall value at risk varies and is typically determined based on industry standards and risk tolerance levels.

Formula: $=\frac{\text{Total Value at Risk}}{\text{Total Value in the Supply Chain}}\times 100$

AG.2.9 – Supplier’s/Customer’s/ Product’s Risk Rating

Definition: The rating assigned to a supplier, customer, or product based on its associated risk factors.

Importance: Provides an indication of the risk level associated with specific suppliers, customers, or products.

Benchmark: The benchmark for risk ratings may vary based on industry standards and the organization’s risk management criteria.

Formula: $=\frac{\text{Total Risk Rating for Suppliers, Customers, or Products}}{\text{Total Number of Suppliers, Customers, or Products}}\times 100$

AG.2.10 – Value at Risk (Plan)

Definition: The assessment of potential value at risk in the planning phase of the supply chain.

Importance: Helps identify and mitigate potential risks in the planning phase to prevent value loss.

Benchmark: The benchmark for value at risk in the planning phase varies and is typically determined based on industry standards and risk tolerance levels.

Formula: $=\frac{\text{Total Value at Risk in Planning}}{\text{Total Planned Value in the Supply Chain}}\times 100$

AG.2.11 – Value at Risk (Source)

Definition: The assessment of potential value at risk in the sourcing phase of the supply chain.

Importance: Helps identify and mitigate potential risks in the sourcing phase to prevent value loss.

Benchmark: The benchmark for value at risk in the sourcing phase varies and is typically determined based on industry standards and risk tolerance levels.

Formula: $=\frac{\text{Total Value at Risk in Sourcing}}{\text{Total Sourced Value in the Supply Chain}}\times 100$

AG.2.12 – Value at Risk (Make)

Definition: The assessment of potential value at risk in the manufacturing phase of the supply chain.

Importance: Helps identify and mitigate potential risks in the manufacturing phase to prevent value loss.

Benchmark: The benchmark for value at risk in the manufacturing phase varies and is typically determined based on industry standards and risk tolerance levels.

Formula: $=\frac{\text{Total Value at Risk in Manufacturing}}{\text{Total Manufactured Value in the Supply Chain}}\times 100$

AG.2.13 – Value at Risk (Deliver)

Definition: The assessment of potential value at risk in the delivery phase of the supply chain.

Importance: Helps identify and mitigate potential risks in the delivery phase to prevent value loss.

Benchmark: The benchmark for value at risk in the delivery phase varies and is typically determined based on industry standards and risk tolerance levels.

Formula: $=\frac{\text{Total Value at Risk in Delivery}}{\text{Total Delivered Value in the Supply Chain}}\times 100$

AG.2.14 – Value at Risk (Return)

Definition: The assessment of potential value at risk in the return phase of the supply chain.

Importance: Helps identify and mitigate potential risks in the return phase to prevent value loss.

Benchmark: The benchmark for value at risk in the return phase varies and is typically determined based on industry standards and risk tolerance levels.

Formula: $=\frac{\text{Total Value at Risk in Returns}}{\text{Total Value of Returned Items in the Supply Chain}}\times 100$

AG.2.15 – Time to Recovery (TTR) Asset Management Efficiency

Definition: The average time taken to recover assets, indicating the efficiency of asset management.

Importance: Reflects the efficiency in recovering assets and minimizing downtime in the supply chain.

Benchmark: The benchmark for Time to Recovery varies and is typically determined based on industry standards and the organization’s objectives.

Formula: $=\frac{\text{Total Time to Recover Assets}}{\text{Total Number of Asset Recovery Events}}$

AM.1.1 – Cash-to-Cash Cycle Time

Definition: The time it takes for a company to convert its investments in raw materials into cash flows from sales.

Importance: Indicates how efficiently a company manages its working capital and cash flow.

Benchmark: The benchmark for Cash-to-Cash Cycle Time varies and is influenced by industry norms and organizational goals.

Formula: $=\frac{\text{Cash-to-Cash Cycle Time}}{\text{Total Sales Revenue}}$

AM.2.1 – Days Sales Outstanding AM.2.2 – Inventory Days of Supply

Definition: The average number of days it takes for a company to collect payment after a sale has been made.

Importance: Reflects the efficiency of accounts receivable management and cash collection.

Benchmark: The benchmark for Days Sales Outstanding varies and is influenced by industry standards and company expectations.

Formula: $=\frac{\text{Days Sales Outstanding}}{\text{Total Sales Revenue}}$

AM.3.16 – Inventory Days of Supply ( Raw Material )

Definition: The average number of days it takes for inventory to be sold or used.

Importance: Reflects the efficiency of inventory management and turnover.

Benchmark: The benchmark for Inventory Days of Supply varies and is influenced by industry norms and company objectives.

Formula: $=\frac{\text{Inventory Days of Supply}}{\text{Total Cost of Goods Sold (COGS)}}$

AM.3.17 – Inventory Days of Supply ( WIP )

Definition: The average number of days it takes for raw materials to be used or transformed into finished goods.

Importance: Reflects the efficiency of managing and utilizing raw materials in the production process.

Benchmark: The benchmark for Inventory Days of Supply for raw materials varies and is influenced by industry norms and company objectives.

Formula: $=\frac{\text{Inventory Days of Supply (Raw Material)}}{\text{Total Cost of Raw Materials Used}}$

AM.3.23 – Recycle Days of Supply

Definition: The average number of days it takes for work-in-progress inventory to be completed and ready for sale.

Importance: Reflects the efficiency of the production process and work-in-progress inventory management.

Benchmark: The benchmark for Inventory Days of Supply for work-in-progress varies and is influenced by industry norms and company objectives.

Formula: $=\frac{\text{Recycle Days of Supply}}{\text{Total Recycled Inventory Items}}$

AM.3.28 – Percentage Defective Inventory

Definition: The percentage of inventory that is defective or not meeting quality standards.

Importance: Indicates the quality and reliability of the inventory, impacting customer satisfaction and operational efficiency.

Benchmark: The benchmark for Percentage Defective Inventory varies and is influenced by industry quality standards and company quality goals.

Formula: $=\frac{\text{Total Defective Inventory}}{\text{Total Inventory}}\times 100$

AM.3.37 – Percentage Excess Inventory

Definition: The percentage of inventory that exceeds the required amount for current demand.

Importance: Indicates the efficiency of inventory planning and helps prevent overstock situations.

Benchmark: The benchmark for Percentage Excess Inventory varies and is influenced by industry norms and company inventory management goals.

Formula: $=\frac{\text{Total Excess Inventory}}{\text{Total Inventory}}\times 100$

AM.3.44 – Percentage Unserviceable MRO Inventory

Definition: The percentage of Maintenance, Repair, and Operations (MRO) inventory that is unserviceable or not fit for use.

Importance: Reflects the condition and usability of MRO inventory, impacting maintenance efficiency.

Benchmark: The benchmark for Percentage Unserviceable MRO Inventory varies and is influenced by industry standards and company maintenance goals.

Formula: $=\frac{\text{Total Unserviceable MRO Inventory}}{\text{Total MRO Inventory}}\times 100$

AM.3.45 – Inventory Days of Supply ( Finished Goods )

Definition: The average number of days it takes for finished goods inventory to be sold or used.

Importance: Reflects the efficiency of managing and selling finished goods inventory.

Benchmark: The benchmark for Inventory Days of Supply for finished goods varies and is influenced by industry norms and company objectives.

Formula: $=\frac{\text{Inventory Days of Supply (Finished Goods)}}{\text{Total Cost of Finished Goods Sold (COGS)}}$

AM.2.3 – Days Payable Outstanding

Definition: The average number of days it takes for a company to pay its suppliers after receiving goods or services.

Importance: Reflects the efficiency of accounts payable management and cash flow.

Benchmark: The benchmark for Days Payable Outstanding varies and is influenced by industry norms and company financial policies.

Formula: $=\frac{\text{Days Payable Outstanding}}{\text{Total Cost of Goods and Services Purchased}}$

AM.1.2 – Return on Supply Chain Fixed Assets

Definition: The return generated on the investment in fixed assets within the supply chain.

Importance: Indicates the efficiency of utilizing fixed assets in the supply chain to generate returns.

Benchmark: The benchmark for Return on Supply Chain Fixed Assets varies and is influenced by industry standards and company financial goals.

Formula: $=\frac{\text{Net Profit Generated from Supply Chain}}{\text{Total Value of Fixed Assets in the Supply Chain}}\times 100$

AM.2.4 – Supply Chain Revenue

Definition: The total revenue generated by the activities within the supply chain.

Importance: Reflects the financial performance and contribution of the supply chain to overall revenue.

Benchmark: The benchmark for Supply Chain Revenue varies and is influenced by industry standards and company financial goals.

Formula: $=\frac{\text{Total Supply Chain Revenue}}{\text{Total Company Revenue}}\times 100$

AM.2.5 – Supply Chain Fixed Assets

Definition: The total value of fixed assets within the supply chain.

Importance: Indicates the investment in fixed assets to support supply chain activities.

Benchmark: The benchmark for Supply Chain Fixed Assets varies and is influenced by industry norms and company investment goals.

Formula: $=\frac{\text{Total Value of Fixed Assets in the Supply Chain}}{\text{Total Value of Company Fixed Assets}}\times 100$

AM.3.11 – Fixed Asset Value (Deliver)

Definition: The total value of fixed assets dedicated to the delivery phase of the supply chain.

Importance: Reflects the investment in fixed assets specifically for the delivery activities.

Benchmark: The benchmark for Fixed Asset Value in the delivery phase varies and is influenced by industry norms and company objectives.

Formula: $=\frac{\text{Total Value of Fixed Assets in Delivery}}{\text{Total Value of Company Fixed Assets}}$

AM.3.18 – Fixed Asset Value (Make)

Definition: The total value of fixed assets dedicated to the manufacturing (make) phase of the supply chain.

Importance: Reflects the investment in fixed assets specifically for the manufacturing activities.

Benchmark: The benchmark for Fixed Asset Value in the make phase varies and is influenced by industry norms and company objectives.

Formula: $=\frac{\text{Total Value of Fixed Assets in Make}}{\text{Total Value of Company Fixed Assets}}$

AM.3.20 – Fixed Asset Value (Plan)

Definition: The total value of fixed assets dedicated to the planning phase of the supply chain.

Importance: Reflects the investment in fixed assets specifically for the planning activities.

Benchmark: The benchmark for Fixed Asset Value in the planning phase varies and is influenced by industry norms and company objectives.

Formula: $=\frac{\text{Total Value of Fixed Assets in Planning}}{\text{Total Value of Company Fixed Assets}}$

AM.3.24 – Fixed Asset Value (Return)

Definition: The total value of fixed assets dedicated to the return phase of the supply chain.

Importance: Reflects the investment in fixed assets specifically for managing product returns.

Benchmark: The benchmark for Fixed Asset Value in the return phase varies and is influenced by industry norms and company objectives.

Formula: $=\frac{\text{Total Value of Fixed Assets in Return}}{\text{Total Value of Company Fixed Assets}}$

AM.3.27 – Fixed Asset Value (Source)

Definition: The total value of fixed assets dedicated to the sourcing phase of the supply chain.

Importance: Reflects the investment in fixed assets specifically for the sourcing activities.

Benchmark: The benchmark for Fixed Asset Value in the source phase varies and is influenced by industry norms and company objectives.

Formula: $=\frac{\text{Total Value of Fixed Assets in Source}}{\text{Total Value of Company Fixed Assets}}$

AM.1.3 – Return on Working Capital

Definition: The return generated on the investment in working capital within the supply chain.

Importance: Indicates the efficiency of utilizing working capital to generate returns.

Benchmark: The benchmark for Return on Working Capital varies and is influenced by industry standards and company financial goals.

Formula: $=\frac{\text{Net Profit Generated from Working Capital}}{\text{Total Value of Working Capital}}\times 100$

AM.2.6 – Accounts Payable (Payables Outstanding)

Definition: The average number of days it takes for a company to pay its suppliers after receiving goods or services.

Importance: Reflects the efficiency of accounts payable management and cash flow.

Benchmark: The benchmark for Accounts Payable (Payables Outstanding) varies and is influenced by industry norms and company financial policies.

Formula: $=\frac{\text{Days Payable Outstanding}}{\text{Total Cost of Goods and Services Purchased}}$

AM.2.7 – Accounts Receivable (Sales Outstanding)

Definition: The average number of days it takes for a company to collect payment from customers after making a sale.

Importance: Reflects the efficiency of accounts receivable management and cash flow.

Benchmark: The benchmark for Accounts Receivable (Sales Outstanding) varies and is influenced by industry norms and company financial policies.

Formula: $=\frac{\text{Days Sales Outstanding}}{\text{Total Revenue}}$

AM.2.8 – Inventory Responsiveness

Definition: The ability of the inventory to respond quickly to changes in demand or supply chain requirements.

Importance: Reflects the agility of inventory management in adapting to market fluctuations.

Benchmark: The benchmark for Inventory Responsiveness varies and is influenced by industry norms and company supply chain objectives.

Formula: $=\frac{\text{Change in Inventory}}{\text{Total Inventory}}\times 100$

Cost

CO.1.1 – Total Supply Chain Management Costs

Definition: The overall costs incurred in managing and operating the entire supply chain.

Importance: Reflects the total financial investment in supply chain management activities.

Benchmark: The benchmark for Total Supply Chain Management Costs varies and is influenced by industry norms and company financial objectives.

Formula: $=\frac{\text{Total Supply Chain Management Costs}}{\text{Total Company Costs}}\times 100$

CO.2.1 – Cost to Plan

Definition: The costs associated with the planning phase of the supply chain.

Importance: Provides insights into the financial investment required for planning activities.

Benchmark: The benchmark for Cost to Plan varies and is influenced by industry norms and company planning objectives.

Formula: $=\frac{\text{Cost of Planning Activities}}{\text{Total Supply Chain Management Costs}}\times 100$

CO.3.1 – Cost to Plan Supply Chain

Definition: The costs associated with planning the entire supply chain.

Importance: Indicates the financial resources dedicated to planning the overall supply chain.

Benchmark: The benchmark for Cost to Plan Supply Chain varies and is influenced by industry norms and company planning objectives.

Formula: $=\frac{\text{Cost of Planning the Entire Supply Chain}}{\text{Total Supply Chain Management Costs}}\times 100$

CO.3.2 – Cost to Plan (Source)

Definition: The costs associated with planning the sourcing phase of the supply chain.

Importance: Provides insights into the financial investment required for planning sourcing activities.

Benchmark: The benchmark for Cost to Plan (Source) varies and is influenced by industry norms and company planning objectives.

Formula: $=\frac{\text{Cost of Planning Sourcing Activities}}{\text{Total Supply Chain Management Costs}}\times 100$

CO.3.3 – Cost to Plan (Make)

Definition: The costs associated with planning the manufacturing (make) phase of the supply chain.

Importance: Provides insights into the financial investment required for planning manufacturing activities.

Benchmark: The benchmark for Cost to Plan (Make) varies and is influenced by industry norms and company planning objectives.

Formula: $=\frac{\text{Cost of Planning Manufacturing Activities}}{\text{Total Supply Chain Management Costs}}\times 100$

CO.3.4 – Cost to Plan (Deliver)

Definition: The costs associated with planning the delivery phase of the supply chain.

Importance: Provides insights into the financial investment required for planning delivery activities.

Benchmark: The benchmark for Cost to Plan (Deliver) varies and is influenced by industry norms and company planning objectives.

Formula: $=\frac{\text{Cost of Planning Delivery Activities}}{\text{Total Supply Chain Management Costs}}\times 100$

CO.3.5 – Cost to Plan (Return)

Definition: The costs associated with planning the return phase of the supply chain.

Importance: Provides insights into the financial investment required for planning return activities.

Benchmark: The benchmark for Cost to Plan (Return) varies and is influenced by industry norms and company planning objectives.

Formula: $=\frac{\text{Cost of Planning Return Activities}}{\text{Total Supply Chain Management Costs}}\times 100$

CO.2.2 – Cost to Source

Definition: The costs associated with sourcing goods or materials for the supply chain.

Importance: Provides insights into the financial investment required for sourcing activities.

Benchmark: The benchmark for Cost to Source varies and is influenced by industry norms and company sourcing objectives.

Formula: $=\frac{\text{Cost of Sourcing Goods or Materials}}{\text{Total Supply Chain Management Costs}}\times 100$

CO.3.6 – Cost to Authorize Supplier Payment

Definition: The costs associated with authorizing payments to suppliers.

Importance: Reflects the financial resources dedicated to the authorization of supplier payments.

Benchmark: The benchmark for Cost to Authorize Supplier Payment varies and is influenced by industry norms and company financial policies.

Formula: $=\frac{\text{Cost of Authorizing Supplier Payments}}{\text{Total Supply Chain Management Costs}}\times 100$

CO.3.7 – Cost to Receive Product

Definition: The costs associated with receiving products into the supply chain.

Importance: Reflects the financial investment required for product receiving activities.

Benchmark: The benchmark for Cost to Receive Product varies and is influenced by industry norms and company receiving objectives.

Formula: $=\frac{\text{Cost of Receiving Products}}{\text{Total Supply Chain Management Costs}}\times 100$

CO.3.8 – Cost to Schedule Product Deliveries

Definition: The costs associated with scheduling product deliveries in the supply chain.

Importance: Reflects the financial investment required for scheduling delivery activities.

Benchmark: The benchmark for Cost to Schedule Product Deliveries varies and is influenced by industry norms and company scheduling objectives.

Formula: $=\frac{\text{Cost of Scheduling Product Deliveries}}{\text{Total Supply Chain Management Costs}}\times 100$

CO.3.9 – Cost to Transfer Product

Definition: The costs associated with transferring products within the supply chain.

Importance: Reflects the financial investment required for product transfer activities.

Benchmark: The benchmark for Cost to Transfer Product varies and is influenced by industry norms and company transfer objectives.

Formula: $=\frac{\text{Cost of Transferring Products}}{\text{Total Supply Chain Management Costs}}\times 100$

CO.3.10 – Cost to Verify Product

Definition: The costs associated with verifying the quality and accuracy of products within the supply chain.

Importance: Reflects the financial investment required for product verification activities.

Benchmark: The benchmark for Cost to Verify Product varies and is influenced by industry norms and company verification objectives.

Formula: $=\frac{\text{Cost of Verifying Products}}{\text{Total Supply Chain Management Costs}}\times 100$

CO.2.3 – Cost to Make

Definition: The costs associated with the manufacturing (make) phase of the supply chain.

Importance: Provides insights into the financial investment required for manufacturing activities.

Benchmark: The benchmark for Cost to Make varies and is influenced by industry norms and company manufacturing objectives.

Formula: $=\frac{\text{Cost of Manufacturing Activities}}{\text{Total Supply Chain Management Costs}}\times 100$

CO.3.11 – Direct Material Cost

Definition: The direct costs associated with the materials used in the production process.

Importance: Reflects the financial investment in raw materials for production.

Benchmark: The benchmark for Direct Material Cost varies and is influenced by industry norms and company material cost objectives.

Formula: $=\frac{\text{Direct Material Costs}}{\text{Total Supply Chain Management Costs}}\times 100$

CO.3.12 – Indirect Cost Related to Production

Definition: The indirect costs associated with the production process.

Importance: Reflects the financial investment in indirect costs related to production activities.

Benchmark: The benchmark for Indirect Cost Related to Production varies and is influenced by industry norms and company cost objectives.

Formula: $=\frac{\text{Indirect Costs Related to Production}}{\text{Total Supply Chain Management Costs}}\times 100$

CO.3.13 – Direct Labor Cost

Definition: The direct costs associated with labor in the production process.

Importance: Reflects the financial investment in direct labor for production.

Benchmark: The benchmark for Direct Labor Cost varies and is influenced by industry norms and company labor cost objectives.

Formula: $=\frac{\text{Direct Labor Costs}}{\text{Total Supply Chain Management Costs}}\times 100$

CO.2.4 – Cost to Deliver

Definition: The costs associated with the delivery phase of the supply chain.

Importance: Provides insights into the financial investment required for delivery activities.

Benchmark: The benchmark for Cost to Deliver varies and is influenced by industry norms and company delivery objectives.

Formula: $=\frac{\text{Cost of Delivery Activities}}{\text{Total Supply Chain Management Costs}}\times 100$

CO.3.14 – Order Management Costs

Definition: The costs associated with managing orders within the supply chain.

Importance: Reflects the financial investment required for order management activities.

Benchmark: The benchmark for Order Management Costs varies and is influenced by industry norms and company order management objectives.

Formula: $=\frac{\text{Order Management Costs}}{\text{Total Supply Chain Management Costs}}\times 100$