Cost-to-Serve (CTS) Analysis – PowerPoint PPTX Template

SUPPLY CHAIN MANAGEMENT PPT TEMPLATE DESCRIPTION

Editor Summary The Cost-to-Serve (CTS) Analysis is a 25-slide PowerPoint framework developed by ex-McKinsey and Big 4 consultants that defines a 5-step approach to measure total cost of serving customers across the value chain. Read more Includes templates and tools such as a CTS framework template, cost categorization templates, classification matrices, stakeholder engagement guidelines, and analytical tools. Target users: Supply Chain Executives, Finance Leaders, Operations Managers, and Business Analysts. Used for assessing product- and customer-level profitability, cost-reduction planning, and pricing/service negotiations; sold as a digital download on Flevy with immediate digital download.

Use this deck when an organization needs to quantify end-to-end serving costs to decide which products or customers are profitable, negotiate service levels, or prioritize cost-reduction initiatives.

  Supply Chain Executives segment customers to identify unprofitable accounts and recalibrate service levels based on total cost drivers.
  Finance Leaders model per-unit cost breakdowns across procurement, manufacturing, warehousing, and logistics to reconcile reported margins.
  Operations Managers map task-level costs to redesign workflows and reduce high-cost activities in warehousing and distribution.
  Business Analysts build classification matrices to visualize customer and product profitability for executive decisions.

The 5-step CTS methodology—starting with stakeholder buy-in and ending in joint decision-making—reflects the structured, hypothesis-driven cost analysis approaches used at McKinsey and Big 4 firms.

Read Presentation Deep Dive

Explore Slides inside the Deck:

Cost-to-Serve Framework: Steps for Strategic Cost Analysis Comparative Analysis of Cost Management Methodologies Strategic Customer Classification for Profit Optimization

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.

Explore Slides inside the Deck: