Which metric is used to measure the cost-effectiveness of a supply chain?

The metric that measures the cost-effectiveness of a supply chain is the supply chain cost as a percentage of sales. This metric provides insight into how much of a company's sales revenue is consumed by supply chain expenses. By evaluating this ratio, organizations can assess the efficiency of their supply chain operations. A lower percentage indicates a more cost-effective supply chain, suggesting that the company is managing its supply chain expenses well relative to its sales revenue.

In contrast, sales growth percentage is primarily focused on revenue generation rather than cost efficiency. The product return rate deals with customer satisfaction and product quality rather than operational costs. The marketing expense ratio looks at the relationship between marketing costs and sales but does not address supply chain costs specifically. Therefore, the focus on supply chain costs in relation to sales makes the chosen metric the most appropriate measure of supply chain cost-effectiveness.