Gartner Research

How to Develop Cost-to-Serve for Your Guardrail Supply Chain Segmentation Models

Published: 26 July 2016

ID: G00308113

Analyst(s): Jennifer Loveland , Stan Aronow

Summary

This research provides best practices for roughly costing processes that drive the most extreme outcomes required by supply chains. Strategy and center of excellence leaders can use these best practices to define targeted or end-to-end supply chain segments.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Outline Your Guardrail Supply Chain Models
    • Use the Outcome Segmentation Model
    • Identify the Most Extreme Outcomes Your Supply Chain Needs to Deliver
    • Consider Future Unmet Needs for your Company and Industry
    • Focus on the Key Design Levers That Drive Significant Differences in Supply Chain Outcomes
  • Align Cost Allocation to Effort Within Your Largest Cost Buckets for Your Guardrail Supply Chain Models
  • Identify Small Inter-Related Costs Across Multiple Activities That Create a Significant Combined Difference Between Your Guardrail Supply Chain Models

Gartner Recommended Reading

©2020 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.