Gartner Research

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

Published: 25 May 2016

ID: G00295805

Analyst(s): James Lisica , Stan Aronow


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



  • 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

Gartner Recommended Reading

©2021 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Become a client

Learn how to access this content as a Gartner client.