Understanding your cost to serve
Are there costs you’re not aware of?
Most businesses believe they know all the costs involved in their business, and they probably do. But, when you drill down to individual customers and sales, you might be surprised by how unprofitable the Cost to Serve margin is.
There’s one simple reason for that: organisations do not have a system to connect revenue, rebates, discounts, and the full costs to serve “end to end” to do business with each customer.
Understanding
your cost to serve
Are there costs you’re not aware of?
Most businesses believe they know all the costs involved in their business, and they probably do. But, when you drill down to individual customers and sales, you might be surprised by how unprofitable the Cost to Serve margin is.
There’s one simple reason for that: organisations do not have a system to connect revenue.
How to see the hidden costs
By digging deeper into the data and connecting all the dots, we’re able to see a radically different picture.
For example, you can look at the manufacturing costs or the trade price compared to the retail price and see a strong profit margin. But what are the hidden costs? If you’re delivering the product to the consumer, have you factored in variable costs including ordering, picking, packing, delivery, and the particular nuances with each customer?
More knowledge means more profit
Of course, products and deliveries are just an example. These costs could simply be time spent serving clients that lose you more business than they’re worth. But they’re hard to track as they easily get lost in large, disorganised pools of data.
That’s where the CadDo solution comes in: showing you Cost to Serve data that’s buried deep. We do this by connecting every datapoint you have from every data source and bringing it all together in reports that show you everything you need to know about your company’s Cost to Serve; from millions of products to individual customers.
Adjusting accordingly
With these data-driven reports showing you a clearer picture of your business’s cost & profit margins, you can draw all the insights you need to make actionable adjustments and optimise your business.
CadDo will stay with you throughout your optimisation process, too. You‘ll be able to track how strategic adaptations effect your business financially by generating new, updated reports and make any additional changes based on your findings. We’re here to help you improve, and keep improving, your cost to serve.