How to measure the logistics cost and performance
To maintain the low logistics cost, at the same time to ensure that the product's performance, is the key production enterprise profit. Logistics cost includes all costs other than basic production cost of a unit. This includes the service costs, transportation costs, inventory costs and warehousing costs. The company focused on the cost of production, because their products after the devaluation, basically is the material production and increase the cost, reduce the production performance of the company. Reduce logistics costs is an important business focus to improve the overall performance of the product.
To maintain the low logistics cost, at the same time to ensure that the product's performance, is the key production enterprise profit. Logistics cost includes all costs other than basic production cost of a unit. This includes the service costs, transportation costs, inventory costs and warehousing costs. The company focused on the cost of production, because their products after the devaluation, basically is the material production and increase the cost, reduce the production performance of the company. Reduce logistics costs is an important business focus to improve the overall performance of the product.
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Assess your sales in total sales revenue minus total cost of production, including material cost, labor, public facilities and space. Please refer to this value as the profit, because it represents the gross profit at a certain time, and then calculate the logistics cost. Note that the logistics cost and profit report began with the profit value, then according to the logistics service, transportation, warehousing and inventory costs and other complications, the loss of profits. For example, if you have the total sales revenue of $225000 45000 yuan cost of production, we can calculate (225000 - 45000 = 180000).
The service level of cost calculation, determined not to meet consumer demand, according to industry limited. Including production restrictions, such as can not meet the large orders, because of the limitation of time or lost production time. Including the order delay, such as the time it takes to process orders, delivery time and the general manager. Including the cost of failure, such as damage to the product, in the process of transfer, manufacturing errors and returned products. Determine the level of service cost, minus the actual number did not return to order from total product sales. For example, if you have 5500 units ordered, but can only meet 4800 of orders, you can calculate (5500 - 4800 = 700 of the loss of sales).
To determine the cost of transportation. The total cost of transportation, transportation of products in total sales ratio determined for the transportation cost. Includes all transportation costs in this equation, such as transport staff wages, fuel use, insurance costs and maintenance costs. For example, if you have a profit of $180000 in a month and 18000 yuan of transportation costs, we can calculate (18000/180000 = 0.10% or 10% of the cost of transportation).
Calculation of long-term storage cost of goods warehousing cost. Including land costs, construction costs, utilities, wages and special cost, if the need for special storage conditions of your products, such as cooling. In addition, including any additional warehouse space for out of stock products, so it is often stored in your company can be repeatedly used parts. In a pure cash value, the storage cost for or on behalf of their total sales divided by the percentage of the total sales revenue of storage cost. For example, if your warehouse at a cost of $27000, you can calculate the (27000 / 180000 = 0.15 or 15% of the cost of storage).
Make sure your inventory cost, production cost of goods, short-term memory, waiting to be shipped goods for sale. Including fees, utilities, labor cost and special arrangements, for your products, such as cooling necessities. The percentage of pure cash value or your profits, the current inventory cost. For example, if your inventory cost $9000, you can calculate (9000/180000 = 0.05 or 5% of the inventory cost).
The logistics cost is the additional costs resulting from the production of processed products of.
