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


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



  • 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

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