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Cost to serve and supply chain optimisation

Author

Listed:
  • De Poot, Daphne

    (ORTEC Int. USA Inc., USA)

  • Gademann, Noud

    (ORTEC Houtsingel, The Netherlands)

  • Davis, Alison

    (ORTEC Int. USA Inc., USA)

Abstract

Every supply chain company wants detailed information on the costs of delivering its products to customers, yet only a handful know how much it costs to serve their customers. The difference between 10 years ago and today is that industry leaders now not only recognise that a company’s profit is often dependent on the costs of serving its customers, but also have available tools and technology to tab into their data for enhanced operational visibility to make better decisions. This paper describes how the supply chain management and logistics industry can calculate the profitability of products, customers and routes using cost to serve technology. The authors describe how advanced analytics and artificial intelligence (AI) break down costs at the customer level, helping organisations set an actionable business plan to increase profits and make customers happy.

Suggested Citation

  • De Poot, Daphne & Gademann, Noud & Davis, Alison, 2021. "Cost to serve and supply chain optimisation," Journal of Supply Chain Management, Logistics and Procurement, Henry Stewart Publications, vol. 3(4), pages 335-349, June.
    • Handle: RePEc:aza:jscm00:y:2021:v:3:i:4:p:335-349
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    More about this item

    Keywords

    cost to serve; data analytics; artificial intelligence (AI); machine learning (ML); operational visibility; supply chain optimisation; inventory routing;
    All these keywords.

    JEL classification:

    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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