Cost To Serve provides visibility of ALL costs in your definition of the supply chain at ship-to level.
It then aggregates costs by sales channel and account to generate a Cost To Serve for your customer.
Cost to serve enables you to eliminate waste and cost by highlighting inefficient or costly practices, to simplify your customer offering and ensure it is cost-effective. You can also quickly move from CTS to Customer Account Profitability, enabling you to re-focus your supply chain on driving Gross Margin, not just supporting sales. Our clients have utilised information gained from our Cost To Serve product across 3 core areas:
Visibility of all in-scope costs by customer ship-to and account every month. A flexible tool using core ERP data, with no systems integration is needed.
Data collection time typically 2-3 man-hours per month to start, falling to <1 hour after 6 months (subject to number of inputs).
CTS processing time typically <1 hour when data uploaded.
Data outputs formatted to enable charts and reports to be created using Microsoft Office tools for familiarity and flexibility, or configured for access via your existing report-writer (or can be provided).