# Supply Chain Cost Calculator MCP > Supply Chain Cost Calculator instantly determines your total supply chain expense as a percentage of revenue, breaks down spending across key operational areas (like warehousing or transportation), and compares those results against industry-specific performance benchmarks. ## Overview - **Category:** finance - **Price:** Free - **Tags:** scm, cost-analysis, logistics-efficiency, benchmarking, operations ## Description Managing costs in logistics is complicated. Instead of juggling spreadsheets and running multiple reports, this MCP calculates the full financial picture of your supply chain efficiency. It figures out what percentage of every dollar earned gets spent on moving goods and keeping operations running. You can then drill down to see exactly where that money goes—whether it’s inventory holding costs or administrative overhead. The system doesn't stop there; it flags potential issues by comparing your actual spending ratios against industry standards, like those used by the manufacturing sector versus retail. When you connect this through Vinkius, your agent handles all the math and reporting, giving you a clear, actionable view of where you can trim fat. ## Tools ### get_cost_distribution Breaks down total supply chain costs across specific operational categories like inventory, warehousing, and administration. ### calculate_scm_ratio Determines the overall ratio of your total supply chain spending compared to your company's revenue. ### evaluate_sector_performance Checks if your current cost ratio meets target ranges for specific industries, like Manufacturing or Distribution. ## Prompt Examples **Prompt:** ``` What is my SCM cost ratio if my revenue is 1000000 and total costs are 120000? ``` **Response:** ``` Your SCM cost ratio is 12.0%. ``` **Prompt:** ``` Analyze my costs: transportation 50k, warehousing 30k, inventory 20k, order processing 10k, and administration 10k. ``` **Response:** ``` The cost distribution is: transportation 41.67%, warehousing 25.0%, inventory 16.67%, order processing 8.33%, and administration 8.33%. ``` **Prompt:** ``` Is my manufacturing sector performance good with a 9% SCM ratio? ``` **Response:** ``` No, the target range for Manufacturing is 5% to 8%. Your current ratio of 9% exceeds the benchmark. ``` ## Capabilities ### Determine Cost Ratio Calculates total supply chain expenditure as a percentage of overall revenue. ### Break Down Spending Pillars Analyzes how the total cost is distributed across specific operational pillars like transportation, warehousing, and inventory. ### Benchmark Performance Compares your calculated spending ratio against industry-specific targets (e.g., Retail or Manufacturing). ### Identify Reduction Targets Flags specific cost areas where spending exceeds typical industry norms. ## Use Cases ### Annual Budget Review A CFO needs to justify next year's logistics budget increase. They use the MCP to calculate their current SCM cost ratio and then run `evaluate_sector_performance` against a competitor benchmark, proving that their spending is necessary to maintain market parity. ### Post-Merger Cost Analysis An operations director just merged two warehouses. They use the MCP to analyze the combined costs using `get_cost_distribution`. This helps them immediately pinpoint which pillar—like warehousing or administration—has ballooned unexpectedly, guiding facility consolidation. ### Sudden Spike in Shipping Costs A Supply Chain Manager notices a spike in fuel costs. They run `calculate_scm_ratio` to see the impact on overall revenue and then use `get_cost_distribution` to isolate transportation as the main culprit, justifying an immediate shift to rail over truck freight. ### Determining Operational Efficiency A consultant is hired to review a company's operations. They run the full analysis, getting both the ratio and the distribution. The results immediately show that inventory costs are 20% higher than industry average, flagging it as the primary area for improvement. ## Benefits - You get an immediate, high-level ratio that shows total SCM cost as a percentage of revenue. This is better than just looking at raw numbers because it gives context to the entire financial picture. - It provides a granular breakdown of costs across five main pillars—transportation, warehousing, inventory, order processing, and administration. You see exactly where your money goes, not just the total amount spent. - Forget guessing what's normal. This MCP compares your current ratio against established industry benchmarks (e.g., Retail vs. Manufacturing). It tells you if you're overspending relative to peers. - It proactively flags cost reduction opportunities by comparing your numbers against target ranges, giving you specific areas—like inventory or admin spend—to focus on for savings. - The tool allows you to calculate the ratio using just two inputs: total costs and revenue. This makes it incredibly fast to run a quick financial check without complex data feeds. ## How It Works The bottom line is, you get an instant audit of your supply chain finances without touching a spreadsheet. 1. Provide the system with your total supply chain costs and your company's overall revenue figure. 2. The MCP calculates the overall spend ratio, then breaks that cost down across all defined operational pillars (transportation, warehousing, etc.). 3. Finally, it assesses those figures against a chosen industry benchmark to tell you if your spending is too high or low. ## Frequently Asked Questions **How do I calculate my SCM cost ratio using the calculate_scm_ratio tool?** You provide two numbers: your total supply chain costs and your total revenue. The tool then calculates what percentage that spending represents of your gross earnings, giving you a simple, immediate metric. **What if my industry isn't listed for evaluate_sector_performance?** The MCP will run the comparison using the closest available benchmark. If the match is poor, it still provides your current ratio and flags areas of high spending that are generally problematic, regardless of sector. **Does get_cost_distribution include labor costs?** It analyzes core operational pillars like warehousing, inventory, order processing, and administration. While it covers many overheads, you should verify if specific direct labor hours are tracked separately in your internal accounting. **Can I run a cost analysis for multiple time periods?** While the MCP calculates costs based on the data provided in a single prompt, you can feed it sequential data points (e.g., Quarter 1 vs. Quarter 2) to compare changes over time. **What is the required data format when using get_cost_distribution?** The tool expects structured inputs specifying each operational pillar. You must provide key-value pairs, listing categories like 'transportation' or 'warehousing' followed by their corresponding dollar amounts. **Are there rate limits when running calculate_scm_ratio frequently?** The MCP includes standard usage throttling to manage high volume requests. If you exceed the limit, your agent will receive an explicit error code telling you exactly when it's safe to try again. **How accurate are the industry benchmarks used by evaluate_sector_performance?** The benchmarks rely on aggregated, publicly sourced industry data. Think of them as a starting point for discussion; always use your internal financial models to validate these figures. **Do I need specific credentials before calling evaluate_sector_performance?** No, Vinkius manages the authentication flow securely for your AI client. You just need the correct scope permissions assigned to your account to access this MCP functionality. **What metrics does this server calculate?** It calculates the SCM cost ratio, provides a breakdown of costs by category using `get_cost_distribution`, and evaluates performance against industry benchmarks. **How do I identify cost reduction opportunities?** Use the `evaluate_sector_performance` tool. It compares your current costs against sector-specific targets and flags categories that are exceeding their expected weight. **Which industries are supported for benchmarking?** The server includes hardcoded benchmarks for Retail, Manufacturing, and Distribution sectors.