Supply Chain Cost to Serve Assessment
Supply Chain Cost to Serve Assessment

Supply chain cost to serve assessment

We have developed a supply chain cost to serve model that will provide a starting point to understand your cost base and also allow for supporting new alternatives for growth or cost containment. By segmenting your supply chain to view data, inventory and financial flow, a business will have greater opportumities to make informed decisions and better understand if the strategic direction it takes is achieveable in the short, medium or long term. Some strategic decisions being: supporting new product introductions, venturing into new markets or scaling the business to the right size.

Our supply chain cost to serve assessment will help navigate through a range of issues and alternatives to provide a health check of your existing supply chain in a methodical and practical approach. We will not add compexity, rather simplify the solution to help you understand the real cost of running your supply chain. Our cost to serve optimisation program will provide your organisation with the ability to apply segmentation analysis to a customer or a sales channel to understand the supply chain costs of doing business. Your supply chain strategy can be redeveloped to support logistics and supply chain functions within your business.

Scope of works

With our experience of working with multiple tier supply chain's for a number of industries, we need to spend time with your supply chain team to understand the workings of the current supply chain and collectively start a construct process incorporate the following steps:

  1. Development of the existing supply chain footprint (Warehouses, DC, 3PL)
  2. Incorporate historical inventory flow for low to high stock holding levels.
  3. Incorporate all current resources, equipment and other fixed assets.
  4. Allocation of financial aspects to complete the initial state cost to serve model.

Planned outcomes

Our aim is to provide a high level construct of a cost to serve model of your existing supply chain and provide the ability to undertake several what if scenarios to better understand the impact of any changes to your supply chain structure by:
  1. Consolidating or growing your supply chain footprint (Warehouses,DC or 3PL).
  2. Reviewing changes to inventory groups
  3. The impact on resources, equipment or any fixed assets.
  4. Simulating the new supply chain cost