Supply Chain Use Case: Blended Cost
Use Case Objective:
Quantify if the overall cost is lower. Does the vendor charge a unique delivered cost per each DC versus a single cost which applies to all DCs
Use Case Benefits: The overall COGS may be reduced. CPU can also be included in scope
Process/Analytical Steps:
Metrics to Review:
1. Collect Vendor’s Blended delivered cost and shipping locations 2. Collect average Vendor location to DC lane cost from DAT board 3. Collect volume/forecast data and shipment frequency 4. Perform analysis to determine if the overall net cost is lower using a by-DC distributed cost or a unified blended cost 5. Report out
• Blended vs Non-blended vs CPU
Teams to Involve/Collaborate:
• Inbound Trans • Category • In-Stock
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