Quantalyst Consulting LLC

Quantalyst founder Dean Baker explains how cost-to-serve analysis can improve profits.

To improve profitability, you need to identify your most valuable customers and products, while testing the impact that changes in offerings and process improvements have on costs and profitability. Knowing your cost-to-serve is the foundation upon which customer and product portfolio strategies are built.

Cost-to-serve is not only externally focused, but plays an important role in the management and understanding of internal share services, such as IT departments. By giving the business users insight into the drivers of share services costs, they can take direct actions to manage these costs.

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