© Supply Chain Visions 2004 – All Rights Reserved
How Much Can It Cost?
Typical Order = profit of $15
Five items priced at $5 each
Shipped by the best way at a cost of $5
Total invoice $30
Margin of 50% with profits of $15
Cost to “Perfect” the Order of a Mis-shipment for one item = $9.75
Customer service labor and phone charges - $5.00
Transportation for a return - $2.00
Replacement item - $2.00
Labor to pick/pack/ and check the order again - $.75
Consider the below simple example of an incorrect business to consumer shipment.