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Is music management and merchandising a good major?

Supply Chain Management: How much to spend on outsourcing transport and merchandising?

  • I own a start-up factory where I produce pasta products. I was wondering what is an average percentage of cost price one spends on outsourcing transport and in-store merchandising and inventory management? I need to predict a retail price which I will pitch to the buyers of a retail chain, and I designated 9% of cost price to transport, and 9% of cost price to merchandising in my budget plan. Does it sound realistic?

  • Answer:

    That sounds realistic but I would feel more comfortable if I knew the real costs as they depend on so many factors such as mode, distance, volume etc. Who are you planning to outsource to? These companies would be the best source of reliable information on your specific situation.

Edith Simchi-Levi at Quora Visit the source

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Hi, according to Ballou logistic costs contribute to 10% of sales without purchasing costs. Source (ppt): http://wweb.uta.edu/insyopma/prater/ballou01.ppt

Kostis Mamassis

The actual answer will vary a lot - too many factors involved. A few of them are - location of the factory, the DC/s, the stores, distribution model (hub-and-spoke, or milk run, or hybrid), tiers in distribution model, fulfilment policies, minimum order size, trucking company cost structure, in-store merchandising requirements, VMI process etc. I am guessing you are looking for rough benchmarks - and for that purpose 18-25% for these two combined activities would do.

Vivek Sood

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