Monday, June 27, 2011

Which is More Important, Distribution Cost to Sales Ratio or Distribution Cost Per Case?

While the accountants and Upper Management would like to have a favorable (low) Distribution Costs to Sales Ratio, I think the more relevant statistic would be the Distribution Cost per case delivered.

From that Cost per case, you can immediately relate to your Profit margin especially if you are a Distributor of goods and your biggest Cost component is your Distribution cost.

Let me know what you think.  I could be wrong.


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My Sulit Homepage

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