Cost to serve
Our supply chain cost to serve modelling analyses costs across customer functions, products, and services to refine profitability and operational efficiency.
We equip businesses with fact-based Cost to Serve insights that drive smarter decisions – enabling root cause analysis, scenario planning, and a sharper focus on profitable growth.
Stuart Tosh
Chief Operating Officer, Visku
Drive profitability with cost to serve expertise
Cost to serve (CTS) gives organisations knowledge that empowers them to make informed strategic and operational decisions. As you plan for profitable growth, we’ll ensure you have the fact-led insight to prioritise your focus and understand the impact decisions will have on your business – allowing root cause analysis and through what-if scenarios.
Building an effective cost to serve model
For effective supply chain optimisation via CTS analysis, the following critical dependencies are key areas where Visku’s expert team applies diagnostic tools, insights, and processes to support value-driven initiatives.
Profit understanding
Accurate cost allocation reveals true profitability across customers, products, and channels, that can guide pricing strategies and operational efficiency.
Informed strategic choices
CTS analysis supports optimised resource allocation, customer segmentation, supply chain enhancements, and effective channel management.
Comprehensive cost transparency
Detailed visibility into service costs and their drivers enables better performance monitoring and decision-making.
Fostered collaboration & innovation
CTS insights facilitate stronger customer relationships, sustainability initiatives, and proactive scenario planning for continuous improvement.
Driven efficiency and enhanced profitability
Informed operational and strategic decisions, based on CTS, lead to reduced costs, improved resource utilisation, and greater customer satisfaction.
Cost to serve models are crucial in supply chain management
To build an effective supply chain cost to serve model, it’s essential to account for all pertinent expenses associated with fulfilling customer demand. These key cost categories include:
- Logistics and transportation (covering freight, last-mile delivery, warehousing, and returns)
- Order management (encompassing processing and administrative tasks)
- Inventory holding (storage, obsolescence, and capital costs)
- Customer service (support, issue resolution, and returns handling), potentially customer-specific sales and marketing
- Allocated production/sourcing costs based on order specifics, channel-dependant costs, packaging and handling
- Allocated technology and infrastructure expenses, and the comprehensive cost of returns
Visku collaborates with customers across these domains to build a bottom up cost model, offering interactive methods to develop value-driven strategies.
Supply chain consulting services that drive your success
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