Cost to serve
Our CTS system provides a framework for evaluating end-to-end supply chain costs. Costs can be split down and attributed at a customer delivery point and SKU level, to give a true understanding of customer group profitability.
Key areas of use
The Cost to Serve Model establishes the true cost to service customers, providing a framework for comparing month on month customer related costs. This can be used as an integral part of supply chain strategy review, enabling negotiation of trading terms and benchmarking.
Analysing costs on a monthly basis allows variances to be reviewed quickly and corrective action implemented, even where products are sold through various channels, such as the major multiples, symbol groups, wholesalers and food service companies. In addition, costs can be analysed by retailer, brand and manufacturing source for a total review of supply chain strategy.
The benefits of Cost to Serve
CTS breaks down supply chain costs to customer and product level, whilst identifying the key cost drivers for each customer. The process delivers detailed reports and illustrated graphics and is designed and implemented by experienced consultants, giving an intuitive and easy to use system.
A Bespoke Model for your Business
For businesses with relatively complex supply chains, the data structure of a generic ‘off the shelf’ model will probably not be compatible with their business. Model Logic design bespoke models which take into account all the relevant variables in your business. The outputs are flexible, giving precisely the information required in the form of databases, spreadsheets and text files as required.
You can obtain a useful Cost-To-Serve document regarding details of the subject by entering details on the form below *. The document link will be sent to your email and is valid for 30 minutes from submission of the form.