The cost of logistics or the last mile of your supply chain are often managed as a total percent of sales with a goal of maintaining a predetermined average percentage. Managing it this way leads companies to implement generic cost cutting measures when the goal is exceeded – leading to reduced service levels, generic recovery fees, and, ultimately, unhappy customers. Avoiding this situation requires new thinking and the first step towards this is developing a detailed understanding of how each customer and product uniquely drives your logistics’ cost.
Through this type of lens, companies identify the customer-specific behaviors, poorly negotiated service level agreements, and hidden product requirements that are driving last mile supply chain costs – and can take specific actions to address them. This avoids the risk of generic service curtailments and focuses efforts on controlling the specific business activity driving the cost of logistics.
With 93% of companies working on ways to get better cost data, you’re likely trying to identify better methods to explore and analyze cost results. Learn how companies leverage data from ERP and other systems to connect product costs and post-production costs to provide visibility into overall profit performance.
Hear examples highlighting the importance of accurately calculating and allocating costs at each post-production stage to unlock true profitability analytics, best practices for identifying drivers, building rates, and allocating overhead costs for post-production and cost-to-serve processes, and insights and advices on how finance teams can establish a robust analytics program to evaluate performance at any business dimension.