Cost_to_serve
Cost to serve
Acccountancy tool for calculating the business costs of serving each customer
Cost to Serve (CTS or C2S) is an accountancy tool used to calculate the profitability of serving the needs of a particular customer account, based on the actual business activities and overhead costs incurred in servicing that customer or customer type.[1] Businesses are able to reposition customers and services, and how they are served to improve overall margin.[lower-alpha 1]
This article needs additional citations for verification. (August 2021) |
The Australian Food and Grocery Council describes Cost to Serve (C2S) as
a generic label for a robust methodology to determine the likely financial outcomes of supply chain investment and collaborative engagement.[2]
Gartner's glossary defines the term as a form of analysis which
calculates the profitability of products, customers and routes to market, and provides a fact-based focus for decision making on service mix and operational changes for each customer.[3]