benefits of cost-to-serve analysis?
Gain visibility into where you are truly making and losing money in your business and why.
Successful companies have received following improvements.
Process Improvements & Vendor negotiations
Gross margin increase
Category & SKU optimization, Customer negotiations
Generating a 5x-10x payback on initial investment within 12 months
CUSTOMER AND PRODUCT PROFITABILITY
Do you know which customers and products contribute the most to your profitability?
Do you know what drives revenue and cost across all elements of your business?
Customers, products, vendors, channels, etc. may look profitable on a gross margin basis but are often unprofitable when adding the true Cost-to-Serve. Understanding the profitability of any product or customer lies with the ability to capture and analyze the direct and indirect costs driven by operational data.
Cost-to-Serve is a well-established approach for learning which customers and products matter most and how to manage them with the proper cost/service balance. Cost-to-Serve analysis provides an activity driven view of how specific dimensions, such as products, customers, and channels, consume resources and incur costs. With this complete insight, those responsible for bottom-line performance can make critical and well informed strategic decisions while quickly identifying the underlying causes of poor profitability.
up to 40% of your customers lose you money
20% of your customers bring 200% of your net profits
cost-to-serve knowledge is critical for every negotiated deal
See how you could benefit
Our team will help you to improve your bottom line
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Ger van Nijkerken
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