Retailers can sometimes take a fragmented approach to determining their Cost-To-Serve. But new thinking suggests Cost-To-Serve analysis should be a core, business-critical initiative for informing future decisions and direction.
In order to remain profitable and competitive in their respective business sectors, industry leaders have quickly recognised that a company’s profit is often dependent on the costs of serving its customers, but having a deeper, forensic understanding of the available tools and technology embedded within their corporate structures has proven to be the most invaluable means by which they can address the challenges latent in their supply chains. This deep understanding of where the Cost-to-Serve originate from, how they vary across orders, and importantly what actions can and should be taken to boost profitability on every order, is a critical undertaking that needs to be executed with informed methodologies as well as diligent care and expertise.
Extrapolating the correct data to deep dive into areas such as analytics, machine learning, artificial intelligence, needs to be part of a granular level understanding of relevant products and services to inform company wide strategy. By doing so operational visibility is enhanced and can promote better decisions and actionable business plans, all of which will give clear visibility of margin, how to maximise it or protect it, as well as ensuring customers are happy.
The latest thinking in the industry is articulated in detail in our new whitepaper on Cost-To-Serve. It looks at the pragmatic means by which businesses can better explore and control margins and make informed choices that tackle underlying issues, all of which place the challenges throughout the supply chain in the correct context, in turn promoting the creation of a robust model and operational framework that is purpose built to instil cost-effective changes that matter.
Managing Director, Bis Henderson Consulting
Over 25 years in logistics and supply chain Neil has led teams in solutions design and delivering large scale implementation projects across business strategy and performance optimisation, detailed operational improvements, working capital improvements and transformational change. Working for leading 3PLs to support clients across European and globally, Neil’s worked across a multitude of sectors – from eCommerce to technology and healthcare.
An automation junkie at heart, Neil is balanced and pragmatic – he’s passionate about solutions that truly fit business requirements in the moment and for the future, and always considers simple process options before diving into high-tech investment solutions. Results-led and incredibly customer focussed, Neil heads up delivery, working with customers to identify scope and deliverables, ensuring each project has the best resource available to achieve maximum output. Neil provides input and challenge to ensure all angles and possibilities are considered, so clients get supply chains fit for the future. In any spare time, Neil is a music festival veteran and avid dog walker.
We create practical leading solutions that exceed expectations at minimum cost. Whether it be a retro-fit or re-wor… https://t.co/PCW5ZxZH4J4 days ago
Our new Whitepaper on Supply Chain Cost-to-Serve evaluation analyses why Cost-to-Serve analysis should be a busines… https://t.co/3ss5IqKMrP6 days ago
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