Total Supply Chain Management Cost

Total cost to manage order processingActivities associated with filling customer orders..., acquire materials, manage inventory1) Raw materials, work in process, finished goods,..., and manage supply chain(1) Starting with unprocessed raw materials and en... finance, planning, and IT costs as represented as a percent of revenue. Accurate assignmentA distribution of costs using causal relationships... of IT-related cost is challenging. It can be done using activity-based costingA methodology that measures the cost and performan... methods, or more traditional-based approaches. Allocation1) A distribution of costs using calculations that... based on user counts, transactionA single completed transmission, e.g., transmissio... counts, or departmental headcounts are reasonable approaches. The emphasis should be on capturing all costs, whether incurred in the entity completing the survey or in a supporting organization on behalf of the entity. Reasonable estimates founded in data were accepted as means to assess overall performance. All estimates reflected fully-burdened actuals inclusive of salary, benefits, space and facilitiesThe physical plant, distribution centers, service ..., and general and administrative allocations.