Re: Article - Cost to Serve (CTS)
I was involved in cost to serve work for about three years - and found the biggest challenge to be the data.
Unless the company has set up their information system in a very flexible way - companies have real difficulty identifing and allocating costs.
General ledger categories are often too broad and running through costs on a line by line basis is a nightmare.
There are some funky systems out there that can help - but the bottom line is that you need to have good access to data and people that understand the data.
This can become a very expensive exercise very quickly - if you don't have the right people involved.
Lani
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