Total Supply Chain Cost

1
 Total Supply Chain Cost

• Space & Technology Cost

2
 1. PLAN
PLANNING COST 1. PLAN
PLANNING COST
• SUPPLY PLANNING COST • DEMAND PLANNING COST DEMAND
PPIC • Production Planning Personnel Cost
• Production schedulling Personnel Cost
• Demand Planning Personnel Cost PLANNING/SCM
• LOSS OF SALES OPPORTUNITY COST
• DRP Personnel Cost 2. INDIRECT PLAN COST
INV CARRYING COST
Manufacturing • ASCP Personnel Cost Distribution
• INVENTORY CARRYING COST
Side • LOSS OF SERVICE LEVEL FULFILLMENT COST • Opportunity Cost (AIV*ICR) Side
2. INDIRECT PLAN COST
INV CARRYING COST • Obsolescence Cost ALL FINISH
• INVENTORY CARRYING COST • Re-Process / Shrinkage Cost GOODS
All Finish Goods • Opportunity Cost (AIV*ICR) • Taxes & Inventory Cost INVENTORY
Inventory • Obsolescence Cost
• Shrinkage Cost 3. SOURCE
FG ACQUSITION COST
• Taxes & Inventory Cost • FG ACQUSITION COST
3. SOURCE
MATERIAL ACQUSITION COST • Purchasing Cost
LOGISTICS &
• MATERIAL ACQUSITION COST • FG Warehouse Operating Cost
WAREHOUSE
• Purchasing Cost • Inbound Transportation Cost
PROCUREMENT • RM Warehouse Operating Cost • Accounts Payable Cost
• Inbound Transportation Cost
• Accounts Payable Cost 4. DELIVER
ORDER MANAGEMENT COST LOGISTICS &
• FINISH GOODS WAREHOUSE OPERATING COST
WAREHOUSE
4. MAKE
PRODUCTION COST • FG Warehouse Operating Cost (labor,
• PRODUCTION PROCESSING COST space and MHE)
• Raw Materials Cost • OUTBOUND TRANSPORTATION COST
• Production Labor Cost • Outbound Transportation Cost
PRODUCTION • Packaging Cost • FLEET MANAGEMENT COST
• Plant Overhead Cost (Depreciation on • ORDER MANAGEMENT COST
equipment, line supervision, materials • Ordering,fulfilling, invoicing Cost
handling, maintenance of line, general • ACCOUNTS RECEIVABLE COST
plant utilities & maintenance)
• ENGINEERING COST 5. INDIRECT ENABLE
IT COST
• Machine parts Cost • APPLICATION COST (DP, WMS, TMS,
• Mechanic Personnel Cost IT
Distribution Application)
5. DELIVER
ORDER MANAGEMENT COST • IT OPERATIONAL COST FOR SUPPLY CHAIN
• FINISH GOODS WAREHOUSE OPERATING COST • COMMUNICATION COST
LOGISTICS • FG Warehouse Operating Cost (labor,
space and MHE)
• OUTBOUND TRANSPORTATION COST
• Outbound Transportation Cost
• ORDER MANAGEMENT COST
• Ordering,fulfilling, invoicing Cost
6. INDIRECT ENABLE
C IT COST
• APPLICATION COST (MRP,DRP, WMS,TMS,ASCP)
IT • IT OPERATIONAL COST FOR SUPPLY CHAIN
• COMMUNICATION COST
 Requirement Data
Cost and expenses from AL’s Financial Statement Report

PPIC1. SUPPLY PLANNING COST:

a. PPIC personnel employee compensation
b. loss of opportunity cost : % complimentary

FINISH
2. Indirect Plan Cost


inventory carrying cost
GOODS a. Interest rate
b. Warehouse operational cost / month (incl. man power, utility, depreciation ect)
c. Inventory amount per month
d. Obsolesces cost (slow moving item / cost)
e. Shrinkage cost (bundling cost?? If any)
RAW
3. Material acquisition cost Total Direct Costs
MAT a. Purchasing of one month material (landed cost)
b. Raw Material warehouse cost
(TDC)

PROD/PLA
4. Production cost – Cost of good manufacture Total Plant Overhead
NT a. Raw material usage (including packaging, material per main material???)
(TPO)
b. Direct labor + Indirect Labor Cost
c. Factory overhead exclude employee compensation
LOGISTICS
5. Order Management Cost
COMMUNI6. Indirect enable / cost (IT cost)
CATION & 4
IT
 Requirement Data
Cost and expenses from AL’s Financial Statement Report

LOGISTICS
5. Delivery
Order Management Cost
a. Logistic cost (employee compensation, depreciation, utility, vehicle etc)
b. Outbound (expedition)
outsourcing and internal (labor, fuel, etc)
COMMUNI c. Order management cost
ordering, invoicing cost, up to filling?
CATION &
IT 6. Indirect enable / cost (IT cost)
a. Telecommunication per department?

FINISH RAW PROD/PLA LOGISTICS

SUPPLY CHAIN COST = PPIC + GOODS + + +
MAT NT
+
COMMUNI
CATION &
IT