Cost to Serve

What is Cost to Serve?

Customer satisfaction is the biggest driver of success for supply chain businesses. But with all the focus laid on fulfilling customer expectations, profitability should not be overlooked. Cost to Serve (CTS) is an analysis that calculates the profitability of products, customers, and routes to market, and provides a fact-based focus for decision making on service mix and operational changes for each customer that a business caters to.

Logistics costs often make up a big part of the overall Cost to Serve for supply chains. By performing a Cost-to-Serve analysis, it is possible to understand what it truly costs to deliver an item or service to a customer, and make well-informed decisions to reduce the CTS.

Objectives of Cost-to-Serve Analysis

  • To identify high and low cost to serve customers
  • To align distribution channels effectively to minimize the cost to serve.
  • To reduce logistical costs of operations
  • To improve supply chain efficiencies and customer experience with profitability

How Locus helps businesses lower logistical costs

End-to-end route optimization | Automated logistics planning | Complete supply chain visibility | Data analytics and insights | Network optimization and consulting

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How can Locus help manage your logistics?

  • Locus’ proprietary geocoding engine converts the fuzziest of the addresses into precise geographical coordinates thereby helping your on-ground executives locate addresses easily.
  • Digitize all your operational variables such as fleets, delivery persons, etc to come up with the best route plan every day.
  • Track your orders in real-time with the Locus Live Dashboard. Locus’ last-mile delivery app Locus On The Road (LOTR) helps delivery partners process orders.
  • Visualize and tweak your scheduled plans via three key metrics— geography, time, & vehicle(fleet)—with a birds-eye view of your entire operations.
  • Build your own reports and analyze important parameters that you need to make key decisions.

Join Industry Leaders:

$100 M+
Logistics costs reduced
100+ Years
Planning time saved
6300 + Tonnes
GHG emissions reduced

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