Gartner Research

Leverage Supply Chain Cost-to-Serve Insights to Maximize Profitability

Published: 06 March 2015

ID: G00272393

Analyst(s): Stan Aronow


This research highlights the most common uses for cost-to-serve analysis and provides best practices for how supply chain transformation teams can create CTS models by drawing relationships between their menu of services and supply chain costs to improve profitability.

Table Of Contents
  • Key Challenges



  • Step 1: Enlist an Exploratory Team to Discuss and Understand the Areas of Largest Opportunity for Leveraging CTS Analysis
  • Step 2: Craft a Management Pitch That Draws a Clear Connection Between Understanding the Profitability of Customers and/or Products and the Most Important Goals and Issues for Your Company
  • Step 3: Assemble a Project Team to Manage Your CTS Initiative
    • Launching and Running Your CTS Program Team
    • Setting the CTS Team Up for Success With an Achievable Program Scope
  • Step 4: Build Focused and Flexible CTS Models
    • Building a MOS
    • Focusing Your CTS Model
    • Building Flexibility Into Your Model
  • Time to Get Started


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