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DESCRIPTION
Supply Chains across industries are being revolutionized at a rapid pace by technology. By implementing technology systems, Supply Chain organizations aspire to eliminate waste, meet customers' needs at reasonable costs, and ensure profitability. Enterprise Resource Planning (ERP) systems facilitate in processing unstructured data at an aggregated level. However, at workflow or micro level the data produced through ERPs needs to be further refined to understand costs.
This presentation provides a detailed overview of the Cost-to-Serve Analysis Framework, which provides Supply Chain professionals the means to identify the total cost of serving customers—including all the costs in a product's value chain (from raw material to delivery)—at product as well as customer levels. Failure to identify negative-margin products and customers debilitates profitability. We can conduct CTS Analysis to prevent this.
CTS Analysis can divide the entire Supply Chain into multiple tasks, while calculating the costs at every task, helps the Supply Chain practitioners calculate costs at various levels. The CTS Framework entails 5 steps:
1. Obtain Buy-in from Key Stakeholders
2. Conduct Cost Categorization
3. Determine per Unit Cost Breakdown
4. Develop Classification Matrices
5. Make Joint Decisions
Other topics covered in this deck include Activity-based Costing (ABC), ABC vs. CTS, key objectives of using CTS, and Classification Matrices.
The slide deck also includes some slide templates for you to use in your own business presentations.
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Source: Best Practices in Supply Chain Management, Activity Based Costing, Cost Analysis PowerPoint Slides: Cost-to-Serve (CTS) Analysis PowerPoint (PPTX) Presentation, LearnPPT
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OVERVIEW
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ABOUT THE AUTHOR
We are a team of management consultants trained by top tier global consulting firms (including McKinsey, BCG, Deloitte, EY, Capgemini) with a collective experience of several decades. We specialize in business frameworks based on real-life consulting engagements.
We have served 100s of clients that range from Fortune 500 companies to tech startups to $1B+ private companies.
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Supply Chain Analysis Costing Strategic Planning Scenario Planning Business Case Development Activity Based Costing
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