Accurate and up to date cost to serve information is instrumental in making good decisions.  With PlaidCloud, near real-time information is processed and an accurate actionable cost to serve by many factors such as:

  • ProductCost to Serve
  • Customer
  • Distribution point
  • Delivery mode
  • Resupply mode
  • Geographic location and distances
  • Travel and stop times
  • Direct and indirect costs
  • Margin
  • Sales order and order date
  • Delivery number and delivery date
  • …and any other attribute that helps your business understand cost to serve

These timely insights provide rapid response capabilities throughout the network during times of extreme demand and/or unexpected demand spikes.

With each cost element in the value chain broken down in detail, more thoughtful and fact based analysis is possible to compare external services to internal services such as transportation, warehousing, and shipping.  Using fact based decisions can help define effective service strategies using the lowest cost option when many factors come into play.  For example, rural customers in a certain region may be better served by a third-party delivery company due to higher density in their network allowing reduced travel times and per stop cost.

With a clear understanding of the cost contributors, more effective resupply strategies are possible as well as customer deliveries.  Depending on spoilage, returns, and other factors, it may make sense to deliver more frequently.  This drives up delivery cost but may drive down lost product costs thus saving money.  While a one-off analysis could yield these insights, it is critical that this type of understanding is repeatable and timely with clear actionable direction.