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Average shipping costs as % of COGS
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Novosedoff View Drop Down
Baron
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    Posted: 08 May 2020 at 22:51
I seem to have read somewhere (Bernstein's A splendid exchange perhaps?) that the average transportation costs now represent only 1-1.5% of the Costs of Goods sold. 
Do I quote this figure (1-1.5%) correctly?


Edited by Novosedoff - 08 May 2020 at 23:02
I teach history to children and I am proud that they leave my classes permeated with sh*t and hatred to meet the real world..
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Vanuatu View Drop Down
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Points: 2870 		Post Options Post Options   Thanks (1) Thanks(1)   Quote Vanuatu Quote  Post ReplyReply Direct Link To This Post Posted: 09 May 2020 at 15:20
Originally posted by Novosedoff Novosedoff wrote:

I seem to have read somewhere (Bernstein's A splendid exchange perhaps?) that the average transportation costs now represent only 1-1.5% of the Costs of Goods sold. 
Do I quote this figure (1-1.5%) correctly?
How did that happen? 8% in 2014.
Improved Logistics? Or the inventory isn't as valuable as last year bc the FED has been printing so much money. Oil prices.Thumbs Down


Edited by Vanuatu - 09 May 2020 at 15:22
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Originally posted by Vanuatu Vanuatu wrote:

Originally posted by Novosedoff Novosedoff wrote:

I seem to have read somewhere (Bernstein's A splendid exchange perhaps?) that the average transportation costs now represent only 1-1.5% of the Costs of Goods sold. 
Do I quote this figure (1-1.5%) correctly?
How did that happen? 8% in 2014.
Improved Logistics? Or the inventory isn't as valuable as last year bc the FED has been printing so much money. Oil prices.Thumbs Down

Is there any link-proof for 8%? But you seem to be in the right range. I've googled a bit and the only relevant thing that's come up seems to be the following article, where it says somewhere by the end:

Quote
2009

Transportation and logistics related costs as a percentage of sales range from 9% to 14% depending on industry sector for companies who do not adopt a ‘Best in Class' management approach. 

By adopting a ‘Best in Class' logistics management approach, logistics related costs as a percentage of sales drops to 4% to 7% depending on industry sector. That's a delta of 5% to 7%


Edited by Novosedoff - 09 May 2020 at 23:22
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Vanuatu View Drop Down
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Points: 2870 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Vanuatu Quote  Post ReplyReply Direct Link To This Post Posted: 10 May 2020 at 21:17

Logistic nightmares, I saw industry charts showing significant drops in the cost of transportation, since there was much less to  move. Some truckers are just delivering to big shots and plebs have empty shelves to be stunned by.

The numbers are brand new and I don't have subscriptions to the financial papers. Numerous industry giants who require trucking are cutting employees while orders increase. Out sourcing seems to be easier and the Artificial Intelligence is about ready to replace the ware house worker.




Edited by Vanuatu - 12 May 2020 at 06:21
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Points: 2870 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Vanuatu Quote  Post ReplyReply Direct Link To This Post Posted: 12 May 2020 at 07:07
New technology could offset the Covid-19 losses. EU had their hands slapped, lol No more bonds for you!
This may be of interest;
 
https://www.forbes.com/sites/greatspeculations/2019/12/26/how-big-is-cost-of-goods-sold-expense-for-activision-blizzard/#24b302933b20
While COGS between 2015 and 2018 have increased $932 million (nearly 30%), as % of revenue, COGS has declined in the recent years, partly due to an increase in digital downloads. This has been helpful in improvement of earnings margin from 19.1% in 2015 to an expected 24.2% in 2018. The growth in margins has been important to an over 50% jump in the company’s stock price over the same period. We discuss Activision Blizzard’s valuation analysis with context on contribution from revenue growth and expansion of valuation multiple in this dashboard. Below, we take a look at the key drivers of Activision Blizzard’s expenses and net margins. Look at our interactive dashboard analysis ~ ATVI Expenses: How Does Activision Blizzard Spend Money? ~ for more details.
Still round the corner there may wait, a new road or a secret gate. (J. R. R. Tolkien)
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Points: 10894 		Post Options Post Options   Thanks (0) Thanks(0)   Quote franciscosan Quote  Post ReplyReply Direct Link To This Post Posted: 12 May 2020 at 13:52
I would suggest "Air Cargo and Corona Virus" on youtube.  Very interesting, but I can't really do justice to it in an explanation.
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Vanuatu View Drop Down
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Points: 2870 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Vanuatu Quote  Post ReplyReply Direct Link To This Post Posted: 13 May 2020 at 14:43
Truck drivers are demanding a White House intervention, shipping prices are so low and demand so high that drivers can't make a profit. 
Still round the corner there may wait, a new road or a secret gate. (J. R. R. Tolkien)
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