Cost To Serve
Identifying detailed costs? Model Logic has developed an in depth modelling approach to
calculating the total organisation cost-to-serve of moving multiple
products from different suppliers through to the consumer.
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.
Cost to Serve – What Can It Do For Me?
Cost To Serve (CTS) is a robust methodology for providing customer insight and customer account profitability. This three page paper gives useful insights into implementing a CTS project. To download the paper, just fill out the form and a link will be emailed to you*.
Cost to Serve – Some Practical Considerations
Model Logic has undertaken numerous CTS assignments, which have been commissioned for many different reasons. This paper introduces some of the more common practical issues that have arisen when developing a CTS model. To download the paper, just fill out the form and a link will be emailed to you*.