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Home » Services » Supply Chain Performance Analytics » Total Cost-to-Serve Analytics
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Total Cost-to-Serve Analytics
What Is It?
Chainalytics' Total Cost-to-Serve Analytics (TCS) helps you assign and account for the true cost of serving your customers to enable informed decisions. TCS provides you with a detailed analysis of all costs that impact your demand and supply strategies, so you can avoid making policy decisions or allocating resources that do not support the profitability objectives of your organization. Chainalytics' TCS combines our expertise in supply chain modeling with the use of advanced activity based costing tools to create the cost-to-serve of each product, channel, customer, or supplier in your portfolio -- enabling you to expose hidden cost and profit opportunities at a detailed level. Through more complete and accurate costing models, TCS will augment and enhance the quality of Chainalytics' Profitability Analytics.
What Do We Do?
Chainalytics' TCS provides you with a framework, an approach, and activity based costing tools to understand your true costs to fulfill customer orders. Within our collaborative model building process, we will examine your costs at a discrete transaction level and determine the appropriate method to assign costs to products, customers, and suppliers.
Can Total Cost-to-Serve Analytics improve the quality of your company's decision making? Chainalytics' TCS can help your firm improve costing accuracy by effectively answering these questions:
- How can we effectively capture and maintain all cost elements associated with serving our customers?
- How do we accurately account for the factors driving our costs and assign them to individual products, customers, orders, or suppliers?
- How can we assign overhead and shared service costs based upon actual use of resources?
- How do we allocate sales, marketing, and general administrative costs?
Is It Right For You?
You are an ideal candidate for Total Cost-to-Serve Analytics if your company has a sizeable and/or diverse product mix or complex customer/channel structure and is looking to understand your true cost-to-serve. TCS will improve the quality, accuracy, completeness, and maintainability of your costing environment. You will see substantial benefits from this service if you:
- Are making product, customer, and supplier portfolio decisions based upon costing information that only considers direct product costs and not all costs incurred in delivering products and services to your customers.
- Are maintaining standard costing systems unable to understand the true cost-to-serve at the order, product or supplier level.
- Are finding that you have rationalized your product and customer portfolios, but your costs did not decrease as expected.
- Are finding that your costs are changing more frequently than anticipated, forcing you to infrequently update costing based upon averages and standards rather than actuals?
- Incent your sales organization on gross margin or other cost-impacted metrics.
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