Gartner Research

Use Cost to Serve to Optimize Logistics Costs

Published: 28 March 2016

ID: G00295802

Analyst(s): James Lisica , Stan Aronow


We identify the benefits an organization can achieve and define the capabilities and data required to improve logistics spend visibility, followed by the ability to make optimal trade-offs between customer-service levels and logistics costs using cost-to-serve analysis.

Table Of Contents
  • Key Challenges



  • What Capabilities and Competencies Do You Need to Develop a Logistics Cost-to-Serve Program?
    • Strategic Enablers
    • Functional Enablers
  • How Do Logistics Cost-to-Serve Programs Evolve?
    • Stage 1 and Stage 2 — Cost of Logistics (Cost Focus)
    • Stage 3 — Cost to Deliver (Efficiency Focus)
    • Stage 4 and Stage 5 — Cost to Serve (Value Focus)
  • Summary

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