What metric measures the cost of bringing products into a facility as a percentage of sales?

Study for the Supply Chain Management Exam. Prepare with multiple choice questions, each question comes with detailed explanations. Ace your exam with confidence!

The metric that measures the cost of bringing products into a facility as a percentage of sales is the average inbound transportation cost. This metric provides insights into how much of a company's revenue is being spent on transportation to acquire inventory before it is sold. By expressing transportation costs as a percentage of sales, businesses can evaluate the efficiency of their supply chains and the impact of transportation expenses on overall profitability. This information is critical for assessing spending relative to sales performance and can help guide logistics and pricing strategies.

The other options do not specifically represent this cost as a percentage of sales. Cost per unit usually captures the purchase cost of goods rather than transportation expenses. Freight expense encompasses transportation costs broadly but does not tie it directly to sales. The supplier cost index often evaluates cost variations and performance related to suppliers rather than focusing specifically on inbound transportation costs relative to sales figures. Therefore, the average inbound transportation cost is the most accurate metric for this specific measurement.

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