Cost to Serve

Iter's service solutions puzzle image

Cost to Serve analysis is the ideal start point for delivering strategic supply chain transformation. It defines how you can deliver the service required by all customers, whilst creating an optimised balance of operating cost and working capital for each of your supply chains.

Working with our analytics partner AlignAlytics, we complete a bottom-up transactional analysis of your supply chains to segment demand and define where and how true profitability is delivered. This provides clarity about the strategic and tactical changes required to deliver sustainable competitive advantage from your supply chain.

Benefits

Cost to serve diagram

The analysis of the Cost to Serve modelling provides the insight to define a programme of work to deliver a paradigm shift in the effectiveness and competitive advantage delivered from your supply chains

 

Working CapitalServiceOperating Costs
Inventory location and optimised profile by segmentSupply chain alignment by segmentPlanning strategies, operating models maximising operational footprint

 

Process

We combine AI based, bottom up transactional level Cost to Serve modelling and demand segmentation with a detailed understanding of the physical, organisational and management effectiveness of your supply chain through:

  • Value Stream Mapping
  • Network review including strategic inventory profiling
  • ERP and Supply Chain Planning system review
  • Targetted assessment of manufacturing and distribution operations

Once validated, alternate scenarios are modelled and a programme to work defined to deliver the chosen supply chains strategy

Case Studies

See how Iter supported GE Healthcare in understanding and optimising their Cost to Serve.

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