Cost to Serve - Optimale Cost to serve - the ideal balance between the service level and supply chain costs

Increasing the strategic competitiveness of your company using cost to serve and operational excellence

The Wassermann AG "Cost2Serve" approach is an efficiency increase programme along the interfaces of the supply chain for fast-moving consumer goods (FMCG).

The focus is on the ideal balance between supply chain costs and the required service level. The potential for reducing supply chain costs arises from better synchronisation of the customer orders with production (pull principle), the alignment of production to a consistent small batch production strategy, the introduction of continual improvement methods using the lean principle and improved communication between the supply chain partners.

Starting from the required customer service level, the supply chain costs and potential for optimisation in procurement, production, planning and distribution are revealed by the Wassermann Cost2Serve audit.

Cost2Serve has a key influence on the supply chain indicators

• Working capital improvement: Reducing inventories in the complete supply chain
• Optimising the distribution costs: Fewer returns and contractual penalties for incorrect or no delivery
• Transport cost optimisation: Benchmarking and route optimisation

Sample project:
The largest producer of milk products in Norway was able to reduce its stocks of finished goods by 58% and significantly lower its distribution costs with the aid of the Wassermann Cost2Serve programme.