The concept of Cost to Serve has been around for many years (to my knowledge at least 20) and is an important tool in consumer packaged goods industries. Cost to Serve is a method of identifying profitability of individual products and customers. It is also used to unravel the complexity of multiple supply chains and channels to market. The analysis of the cost of each activity across the supply chain also provides data and insights to enable supply chain optimisation.
The focus of Cost to Serve is usually the in-market or post-launch costs of serving a product to a customer. Cost to Serve rarely looks at the development and launch costs of new products, which is the focus of this article. Yet product development teams can gain benefit from Cost to Serve methodology. Continue reading →
A recent post in Purchasing Insight, “What can game theory teach us about Financial Supply Chain Management?” highlights the overall financial impact of paying suppliers as late as possible. The key point is that the working capital cost to supplier usually far outweighs the savings to the customer, thereby increasing the overall cost to the supply chain. The post got me thinking about a much bigger issue: how businesses manage their supply chains – a cross-functional collaboration or a collection of functional silos? Continue reading →
This is a very big question, with many facets to be explored. I look forward to following the discussion. My immediate thoughts are that there is some conflict, some consistency and some dependency. Continue reading →
Few customer-supplier partnerships are equal. Buyers need to be wary of entering into dependent relationships where the supplier will gain a dominant position. This is the second part of a 2-part article which sets out to examine how and why Procurement might consider the supplier’s perspective when selecting suppliers. It is particularly relevant for strategic supplies, where value creation and value capture are key objectives. Continue reading →
Few customer-supplier partnerships are equal. Buyers need to be wary of entering into dependent relationships where the supplier will gain a dominant position. This is the first part of a 2-part article which sets out to examine how and why Procurement might consider the supplier’s perspective when selecting suppliers. It is particularly relevant for strategic supplies, where value creation and value capture are key objectives. Continue reading →
This is the sixth in a series of articles on how to implement and enhance a gate process. The series offers advice in the context of consumer products. This article is a summary of the first 5 Articles together with my 7 top tips. Continue reading →
This is the fifth in a series of articles on how to implement and enhance a gate process (also known as stage gate process). The series sets out to highlight some of the issues associated with the introduction and operation of gate processes, and to offer some advice in the context of consumer products. Continue reading →
An EU e-Privacy Directive was adopted by all EU countries on May 26th 2011. At the same time the UK updated its Privacy and Electronic Communications Regulations, which brought the EU Directive into UK law. The Regulations provide that certain information must be given to a website's visitors and the user must give his or her consent to the placing of cookies.
The law allows us to place cookies on your machine if they are essential to the operation of this site; for all others we need your permission to do so. This website does use some non-essential cookies.
The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" then you are consenting to this.
More information about cookies, including how to block them or delete them, can be found at AboutCookies.org.