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Cost-to-Serve Analysis  

Optimize according to the true value of every customer, product, and service territory 

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Cost to Serve Analysis Dashboard

Prioritize Your Most Important Customers and Segments

Cost-to-serve analysis calculates the true cost of servicing a customer by computing the consumed cost of each supply chain activity needed to serve the demand. It provides a comprehensive picture of total landed costs from product origin to delivery. 

Cost-to-serve provides a data-driven focus for decision-making on operational changes for each customer. It also provides insights for market segmentation exercises focusing on customer profitability rather than revenue alone.  

Get Automatic Cost-to-Serve Analysis with Every Scenario

Cost-to-serve analysis runs automatically in Cosmic Frog, enabling you to understand the true cost to fulfill demand and replenish factories across the supply chain in every scenario. 

Cost to Serve Dashboard: Average Unit Total Landed Cost
Cost to Serve Profitability Analysis

Forecast Cost, Profit, and Customer Demand

By using cost-to-serve analysis, you can predict the estimated expenses and profits associated with serving customers in the future according to anticipated demand. This analysis shows how demand shifts might impact costs and profitability for each customer, product, and service area.  

Improve Profitability

Use cost-to-serve insights to segment customers, products, service areas, and suppliers based on profitability rather than revenue volume. This strategy improves overall profitability for your supply chain by identifying unprofitable segments, informing pricing decisions, and highlighting potential areas for cost savings. 

Optimize Cost Allocations

Understanding how your resources are consumed across customer, product, service territory, and supplier segments enables you to align resources and strategies with the value and needs of each segment. Ultimately, this allows you to increase profit margins by allocating resources to the segments that bolster your supply chain’s profitability. 

Cosmic Frog Analyzes 1000s of Future-State Supply Chain Scenarios in Minutes

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“We had an overall lack of knowledge of our supply chain network. We really didn’t understand what our true cost drivers were…where we were winning and losing. Optimization and simulation allowed us to get a true understanding and to design our network towards our future growth ambitions.”  


Brett Barnello

Chief Operating Officer,

Brett Barnello

Structure Tactical Decisions with the Cost-to-Serve Approach

Inform adjustments in pricing, production, or distribution strategies 

Evaluate your distribution channel cost implications to optimize channel selection and cost allocations  

Understand the cost of different order fulfillment strategies, then optimize your fulfillment methods according to profitability for each product and customer segment 

Use the cost impact of different supplier relationships to inform supplier selection, order quantity, and inventory replenishment decisions 

Analyze the cost-to-serve for your transportation and distribution strategy, then optimize mode selection, route planning, and warehouse placement accordingly 

Cosmic Frog Cost-to-Serve Planning Features

Seamless, automated total landed cost calculations

Automatically calculate the total landed cost for every intermediate supply chain node. 

Comprehensive profitability analysis 

Understand the true cost and profitability of every customer, product, supplier, and location and eliminate unnecessary cost drivers to remain profitable while still meeting customer demands. 

Expanded cost visibility 

Get a comprehensive view of each product’s total landed cost from its origin to the moment it reaches the customer.  

Extensive data schema  

Input extremely granular data from all supply chain levels to calculate precise costs for hyper-specific product and customer segments.

Discrete event simulations 

Create a cost-to-serve simulation model to evaluate how product, pricing, and distribution changes will impact total landed cost and profitability across the supply chain. 

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