Knowledge is power: The Cost to Serve tool determines how much discount a customer should get

Afbeelding
Cost to Serve

Districon enables customers to find out for themselves what the profitability is of a particular customer or product. Most companies allocate average delivery costs to their customers. This method often gives a false impression because without an effective 'activity-based' end-to-end cost allocation there is no real insight into customer behavior, loss-making patterns or cost-saving potential.

Districon helps companies to properly allocate costs to customers and products, to build and implement a Cost to Serve application and with coaching the team itself to come to the right insights and decisions (self-enablement).

What are the main benefits of a Cost to Serve capability?

  • Identifying quick wins: what are our supply chain inefficiencies and can we save costs directly as of today?
  • Insight into how customer behavior affects the supply chain costs: what can we save if we move the customer into another order behavior?
  • Insight into profitable or loss-making customers: how important is this customer for us?
  • Understanding of costs versus lead time: what is important to us as a company?

With your own Cost to Serve application you can find out how to optimally deliver particular customers and products: e.g. directly, via cross docks or through a distributor. Such decisions are fact-based, using scenario analysis on your historical supply chain data such as transport and delivery data.

Districon takes a pragmatic approach to create a Cost to Serve capability for your company.

Keen to learn more about how we can help your company to develop Cost to Serve capability? Contact Victor Ponsioen by calling +316 23732557 or by email v.ponsioen@districon.com.