The Cost-To-Serve Approach Explained in Less Than 2 Minutes
Article 19 Mar. 2018

The Cost-To-Serve Approach Explained in Less Than 2 Minutes

In an increasingly competitive economy, the cost of making products available is at the heart of industrial issues. Thanks to the Cost-To-Serve approach, KEPLER offers to improve the operating margin thanks to a fine control in full costs of provision, by product line and by customer.

Cost to Serve is a process-driven accounting tool for calculating the profitability of a customer account, based on actual business activities and overhead costs incurred in serving that customer. In the context of supply chain management, it can be used to analyze how costs are consumed throughout the supply chain.