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Guide 12 of 20
Finance
Supply chain cost, budget versus actual and targets.
Who uses it: Management and finance3 min
What it's for
Translate operations into money: what it costs to hold inventory, buy, move and store.
Step by step
- 1
Overview
Total costs, variance against budget, trend, targets met and the breakdown by category (inventory holding, purchasing, labor, transport, storage).
- 2
Cost management
The breakdown is calculated automatically from purchase orders, inventory, transport and sales; hover a line to see how it was calculated. You can also record manual costs by category and site.
Example: Where the money goes
At Acme, holding inventory is 28 % of supply chain cost: that's why the policy matrix improvements have so much impact.
Tips
- Adjust the rates (capital, storage, risk) in Cost management: they drive the policy matrix and the truckloads.