Your firm has had three quarters of declining sales.You have traced the problems to distribution efficiency shortcomings.Which of the following should you track to ensure that the firm's distribution efficiency is maximized

Question

Quizplus · Accepted Answer

Logistics as a percentage of sales is a good metric to track the efficiency of the firm's distribution system. By monitoring logistics costs as a percentage of sales, the firm can ensure that it is not overspending on distribution, and can identify areas where it can optimize its distribution operations. Additionally, if the firm sees a decline in the percentage of sales spent on logistics, it can infer that its distribution operations have become more efficient, leading to higher profitability.

Your Firm Has Had Three Quarters of Declining Sales