Cost to serve: why should you care?
“Different customers drive different costs – and the same is true of products and services,” explains Michel De Meyere, Business Controlling expert, at the start of the webinar. “So, CTS offers interesting new insights into profit margins – as an incentive for optimizations.”
With CTS, organizations can, for example, see what product categories are most interesting from a financial point of view and whether these get sufficient marketing attention. They’re able to identify the true value of every customer and understand which customers are really worth investing in. Accordingly, the approach paves the way for short and mid-term improvement tracks: based on CTS reports, firms can define concrete actions, like turn unprofitable products or customers into profitable ones, raise the efficiency of manufacturing or logistics processes or adapt commercial strategies.