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Understanding and monitoring true costs of distribution


Understanding the costs within the supply chain is crucial for all companies and provides the focus for strategic and operational initiatives. Model Logic provides you with clear and detailed analysis of financial savings to implement.

Understanding Costs

Understanding the costs within the supply chain is crucial for all companies and provides the focus for strategic and operational initiatives. Relating costs to activities or processes provides the building blocks for strategic development or reviewing customer profitability. Model Logic provides you with the know-how and experience to get the right results.

Innovative and Robust Methods

We have the tools and capability to undertake operational and cost modelling either at a total supply chain level or for individual warehouse or transport networks. We have developed innovative, yet robust methods for allocating supply chain costs to individual customers, sectors and products, thus allowing the true costs and profitability to be derived.

Cost to Serve

For a number of clients, a complete Cost-To-Serve model has been developed that allocates all actual supply chain costs against individual delivery points that are then summarised by customer accounts. The CTS model is used on a monthly basis by the customer logistics teams in order to identify trends and highlight the impact on customers’ delivered margin

Project examples:

  • Development and use of Cost to Serve systems
  • Review of warehouse design, operations, planning and monitoring
  • Review of transport operations, planning, monitoring and reporting
  • Design and use of Benchmarking