Customer and product profitability might not seem like the most exciting topic—until you realize how much it affects your bottom line. Over the years, I’ve seen countless businesses lose money on customer orders without even knowing it, all because they lack proper visibility. The problem often gets shelved because it feels too difficult to fix. Addressing loss-making products or customers requires cross-functional collaboration, and that’s where things start to fall apart…
Reducing logistics costs can seem overwhelming, with so many factors to consider and constant pressure to deliver results. However, focusing on just on specific area can drive significant savings. Let me start by showing you a diagram that helps explain why logistics cost reduction can feel overwhelming. Imagine senior executives pushing you to cut costs, and you’re faced with so many areas to consider…
Cost to supply is closely related to cost to serve but flips the focus to your suppliers’ costs for delivering goods to your business. Understanding these costs is just as crucial as knowing your own cost to serve customers. This insight helps you make key decisions, like determining whether direct store delivery or using your distribution center (DC) is more cost-effective…
Your supply chain might be losing money without you even realizing it. Yes, it’s leaking profit! Identifying these leaks can be challenging, as they often go unnoticed amidst the day-to-day operations…
When it comes to supply chain and logistics operations, cutting costs is essential for both our clients and our own businesses. Do you know how effective inventory management can slash logistics expenses? Given the current emphasis on cost reduction, this topic is crucial…
Have you conducted a cost-to-serve (CTS) analysis for your enterprise? Many companies have never drilled down into the costs involved in selling specific SKU categories, individual SKUs, or providing particular services connected with those sales, to specific customers or customer categories. And that is the sole purpose of cost-to-serve analysis…
There’s been a spike in the demand for warehouses. Many companies are expanding or redesigning their spaces to accommodate increased inventory due to pandemic-related supply chain disruptions and rapid business growth. Australia, Southeast Asia, and the Americas are all seeing increased activity in this area…
Trucks and vans are not cheap to run, so if you can save even a little on the cost of operating each vehicle in your fleet, those savings can mount up to a lot—and the more extensive your truck fleet, the more you can save. The following tips should prove helpful in getting those truck running costs down…
How to identify and fix your profit leaks? Here’s a real-life example…
All Supply Chain leak profits. Some really badly! And most organizations don’t know how bad those profit leaks are…