Products and Services - Cost-to-serve Cost

Do you know your customers true profitability?

Cost to serve costs (CTS), by our definitions are all cost, minus the manufacturing costs. Typical cost to serve costs are distribution costs, customer service costs, etc. We have segmented the cost to serve costs by those customers holding the cumulative first 50% and those customers holding the cumulative 50%-100%. The first 50% we call HighCTS and the second part we call LowCTS because of the relative cost a customer has.

The CTS costs combined with the green blue and red part of the WhaleCurve allows for segmentation of six parts. It is from each part that you are able to look at the WhaleCurve of, for example, the blue regime. This is also a way to differentiate between your tactical and strategic of customers.

Our dynamic WhaleCurve application enables you to have immediate access to your customersP&L the product profitability and details on revenue, costs, volume all at your fingertip.