Distance origin - production (0-10 points)
Distance production - customer (0-10 points)
For determination of locality, a maximum of 20 points can be reached for the product and 10 points for a raw material. For a product it means that both raw materials and the customer are close to the production facility. This makes the raw material or product more environmentally friendly, and it supports the local economy and community. Inbound and outbound logistics both contribute 50% to the final score, since they are equally important.
Calculating the score
Per aspect the final score is a percentage calculated by dividing the actual score by the maximum score. In case of a Product the maximum score is 20, in case of a Raw Material this is 10.
You are calculating the score for a Product.
- The origin of the raw materials is between 75 and 300km away from the production facility.
- The distance of the production facility to the customer is 5000 km.
The determination of Local for this example would be: (10+0) / 20 = 50%.