How is the logistics cost and performance calculated?

The logistics cost and performance are calculated using various metrics that reflect the efficiency and effectiveness of a company's supply chain operations. Some of the common metrics used to calculate logistics cost and performance include:

  1. Inventory carrying cost: The cost associated with holding and storing inventory.
  2. Transportation cost: The cost of moving goods from one place to another.
  3. Order processing cost: The cost of processing a customer's order, including picking and packing.
  4. Delivery accuracy: The percentage of deliveries that are made on time and without errors.
  5. Lead time: The time it takes for an order to be processed and delivered to a customer.
  6. Order fulfillment rate: The percentage of customer orders that are fulfilled and delivered.
  7. Return rate: The percentage of products that are returned by customers.

These metrics are used to measure different aspects of logistics performance, and companies can use them to identify areas for improvement and to track their progress over time.Genex Logistics has more information about "Logistics Cost Meaning".

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