Cost-to-Serve

The cost to get products to customers is accumulated through the steps, or activities, required to move the items.

Each Cost-to-Serve activity becomes a line item on a product-level profit & loss statement, with the revenue calculated using the data at the order line item level. Combining these results with the Cost of Goods Sold value makes it possible to view profitability at the individual manufactured SKU level.

The Cost-to-Serve “V-Diagram” defines the relationship between the customer and the product through the order line item.