Measures the total cost of the supply chain as a percentage of revenue.

What it Measures ?

How much of sales revenue is spent on supply chain operations.

Relevant StakeHolders 

CFO, VP Supply Chain, Finance Controller

In-depth Use Case / Real-world Example

A company manufacturing automotive components calculates Total Supply Chain Cost by dividing the total supply chain expenses (including procurement, warehousing, logistics, and inventory management) by the total revenue generated. For example, if the total supply chain costs amount to ₹20 crore and the revenue is ₹100 crore, the total supply chain cost percentage is 20%. Lowering this percentage improves overall profitability.