Introduction to Cost To Serve Analysis

To improve profitability, you need to identify your most valuable customers and products, while testing the impact that changes in offerings and process improvements have on costs and profitability. Knowing your cost-to-serve is the foundation upon which customer and product porfolio strategies are built.

Cost-to-serve is not only externally focused, but plays an important role in the managment and understanding of internal share services, such as IT departments. By giving the business users insight into the drivers of share services costs, they can take direct actions to manage these costs.

With more that 15 years of experience in developing activity-based cost-to-serve models, using both vendor and proprietary software tools, we have the experience and capabilities you require, regardless of your implemenation choice.

In this video, Quantalyst founder Dean Baker provides a brief introduction to the key concepts that underly successful cost-to-serve analysis.

Category:

Science & Technology

Tags:

• cost to serve
• cost to produce
• pricing waterfall
• price
• pricing
• pricing strategy

[btrevino30]

Excellent analysis. This is such an important aspect of operational efficiency that is often overlooked. Your posting of this subject is greatly appreciated.