Cost-to-Serve

Optimisation of customer & product profitability based on cost-to-serve analysis

Optimisation of customer & product profitability based on cost-to-serve analysis

Things that move you

Your company faces the challenge of ensuring profitability in a globally competitive environment and minimising delivery risks.

Companies are continuously confronted with changing customer requirements that have an impact on their own process and cost structure. Optimisation measures or cost reduction programmes on the customer side are reflected, for example, in falling sales prices or adjusted order sizes and thus have a significant influence on profitability. 

In order to be able to serve the customer in the best possible way and to meet the increasing competitive pressure, optimisation initiatives are planned again and again. Each implemented initiative is usually accompanied by a change in the cost structure. In most cases, existing systems in controlling are not able to determine the actual costs of serving customer orders.

How KPMG supports you

With the cost-to-serve approach, complete and source-based cost transparency is created along the customer-specific supply chain.

We start exactly at the point where classic IT tools from accounting reach their limits and offer our customers real added value: a cost-to-serve analysis that maps any special features of the customer-specific supply chain(s) and creates a new level of cause-related cost transparency. For this purpose, existing system data, e.g. from SAP, is extracted and automatically analysed and processed with the help of KPMG's own analysis tool KREO. Using intuitive dashboards, the results can be clearly displayed and potentials identified.

What matters

The cost transparency achieved enables the identification of specific measures to sustainably increase profitability.

Cost-to-serve analysis provides full transparency on actual customer and product profitability. Cost drivers can be quickly identified and their impact on profitability assessed, which is of great benefit in prioritising the processing of key cost and value levers. Through the targeted implementation of short- and long-term measures, the profitability of your company can be increased and sustainably secured.

Use the cost-to-serve analysis to control your supply chain and thus ensure the long-term success of measures introduced or recognise effects on your processes at an early stage.