Gartner Research

Maturity Framework for Applying Cost-to-Serve Analysis in Logistics

Published: 25 May 2016

ID: G00295805

Analyst(s): James Lisica, Stan Aronow

Summary

Logistics organizations follow a common path in analyzing costs and making trade-offs to optimize warehouse and transportation services provided to their supply chain customers. This research documents the progression of capabilities, challenges and benefits over a five-stage maturity model.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Stages 1 and 2: Build Standardized Logistics Cost Structures to Understand Landed Cost Drivers as a Foundation for Cost Containment Opportunities Within the Function
    • Challenges and Roadblocks
    • Outcomes and Benefits
  • Stage 3: Balance Logistics Cost Drivers With Customer Service Objectives to Enable Trade-Offs Across Internal Supply Chain Functions
    • Challenges and Roadblocks
    • Outcomes and Benefits
  • Stages 4 and 5: Explore Creation of Cost-to-Serve Models With Suppliers, Customers and 3PL Partners to Tailor Service Levels to Specific Customer Types and Share Gains Across the Players
    • Challenges and Roadblocks
    • Outcomes and Benefits
  • Summary

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