What is a Cost to Serve model?

Cost to Serve and margin model calculates costs and profitability of each delivery, providing aggregations across any dimension (customer, segment, delivery type, etc.). We use Cost to Serve methodology to map costs to operational reality and based on that allocate costs of the whole company to its products/services. Costs and revenues are allocated to a very granular level in order to arrive at gross margin at any desired aggregated level.

Key Questions We Answer with Our Solution

  • What is the true Cost to Serve of our individual customers and products?
  • What do our margins look like when aggregated from detailed cost allocation?
  • If we allocate true costs to every delivery, what do our margins look like when aggregated on customer/segment level?

Main features

  • Get a clear picture of your organization’s profitability to support decision-making
  • User interface with higher level dashboards, aggregating results up to customer / other level, that can be used by various stakeholders in the organization
  • Integrate the Cost to Serve solution with your systems to get regular (e.g. monthly) updated reports of your operations

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