Cost to Serve

Unlock the true cost of operational decisions for clearer decisions

Challenge:

Who are your most profitable customers? How can you replicate that rate of return with other accounts? And where are resources wasted on poor performing clients that can’t be turned around?

These are questions answered by LLamasoft cost-to-serve analytics. Data holds the answers behind your true cost to serve customers at the product level, how each contributes to the bottom line, and what products and level of service represent each customer’s ideal offer.

Solution:

The LLamasoft Digital Design and Decision Center enables cost-to-serve analysis to understand the current state to empower business users to make the right decisions to profitably support customer expectations and need. Visualize and understand the total cost of serving customers by product, region and channel.

After identifying the current state, our optimization tools go much deeper. With LLamasoft, customers can evaluate a variety of options to identify the best-performing network structure, governing policies, and product flow paths. To achieve the optimal balance of cost to serve and level of service, the platform identifies how each customer and product contributes to profitability, and accurately reflects changes in costs when customers or products are no longer served.

  • Monitor customer and product cost-to-serve and profitability
  • Accurate representation, assignment, and understanding of fixed and variable cost interdependencies and service level trade-offs throughout the supply chain
  • Develop action plans to improve the profitability of your company through supply chain design modifications
  • Support customer and product segmentation and rationalization based upon cost and profitability

Knowing the true cost for each service and delivery scenario puts you in control of operation decisions to maximize profitability in the face of changing customer and market demands

Better insights = proactive decision-making to power innovation

With LLamasoft, you’ll unlock an interconnected intelligence across supply chain functions. Using the industry’s most comprehensive set of powerful analytics and scenario testing, you’ll have the data and insights to make real-world decisions without constraints, enabling support innovation and transformative growth.

Case Study: Company Increases Network Capacity, Improves Profitability with Network Optimization Model

Ready to learn more?

Request a live demo with the LLamasoft team.

START HERE