Traditional cost management and profit optimization typically utilize proportional cost cutting through unilateral initiatives. While this can meet near-term savings objectives, an organization may eventually find itself in the same, or worse, cost state than before. But by implementing the Total True Cost to Serve (TCS), organizations can better understand the profitability profiles of the product and customer portfolios, and then introduce initiatives that optimize the segments that will yield the best bottom-line results.
- Identify customer and product-level profitability based on Total True Cost to Serve (TCS)
- Prioritize initiatives that will yield the best bottom-line impact results
- Continue measuring profit performance proactively going forward