The costs associated with operating the supply chain. The sum of the costs associated with the SCOR Level 2 processes to Plan, Source, Deliver, and Return. Note - Cost of Raw Material and Make Costs are generally accounted for in COGS. *) It is recognized that there is likely to be overlap/redundancy between supply chain management costs and COGS.
TSCMC = Sales – Profits – Cost to Serve (e.g., marketing, selling, administrative)
TSCMC = Cost to Plan + Cost to Source + Cost to Make* + Cost to Deliver + Cost to Return