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.
The Cost-to-Serve (CTS) Analysis presentation is a powerful tool for executives aiming to optimize their supply chain operations. It provides a comprehensive framework for identifying cost drivers at every stage of the supply chain. The PPT includes detailed steps for obtaining stakeholder buy-in, conducting cost categorization, and developing classification matrices. It also highlights the importance of accurate cost modeling for individual customers and products to enhance profitability. This presentation is essential for leaders looking to make data-driven decisions and improve their bottom line.
Got a question about the product? Email us at flevypro@flevy.com. If you cannot view the preview above this document description, go here to view the large preview instead.
Source: Best Practices in Supply Chain Management, Activity Based Costing, Cost Analysis PowerPoint Slides: Cost-to-Serve (CTS) Analysis PowerPoint (PPTX) Presentation, LearnPPT Consulting
Did you need more documents?
Consider a FlevyPro subscription from $39/month. View plans here.
For $14.00 more, you can download this document plus 2 more FlevyPro documents. That's just $13 each.
Costing Supply Chain Analysis Activity Based Costing Management Accounting Strategic Planning Scenario Planning Business Case Development
Receive our FREE presentation on Operational Excellence
This 50-slide presentation provides a high-level introduction to the 4 Building Blocks of Operational Excellence. Achieving OpEx requires the implementation of a Business Execution System that integrates these 4 building blocks. |