Cost To Serve in Your Warehouse: 5 Things You Should Know

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COST TO SERVE IN YOUR WAREHOUSE 5 THINGS YOU SHOULD KNOW ABOUT

description

If you jump through hoops for your customers, the conversations might sound like this: "Sure, we can put a rush on that" "Yes we can do value-added services" "Did you get the free inventory our sales team sent?" How do you know these are profitable customers? Get control of your warehouse labor costs by knowing Cost to Serve. Big Data has made it easier than ever to capture 100% of your labor spend. You'll finally be able to make management decisions based on current and constantly updated information. Cost to serve tells you: -Which customers are making / losing you money -Which products are making / losing you money -Which processes are making / losing you money -Which service costs are killing you, and which aren’t Learn the 5 essential things about Cost To Serve and how it will transform your warehouse workforce.

Transcript of Cost To Serve in Your Warehouse: 5 Things You Should Know

Page 1: Cost To Serve in Your Warehouse: 5 Things You Should Know

COST TO SERVE IN YOUR WAREHOUSE

5 THINGS YOU SHOULD KNOW ABOUT

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Cost To Serve shows you

where every dollar in your workforce

is spent

#1

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Total Visibility on Profit & Loss

Which Customers Products

Processes Employees

1

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Total Visibility on Profit & Loss

Which Customers Products

Processes Employees

1

are making/losing you money

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20% of yourCustomers

are losing you money.Volume won’t help.

#2

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Volume increases losses2

When your marginson a customer are negativeincreasing volumeincreases losses

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Volume increases losses2

Only by knowingCost to Serve

can you make up for losses

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Operating profitscan go up by 50%

when you fire your worst customers

#3

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Profits up 50%3

The blue bars are your profitability by customer

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Profits up 50%3

The yellow line is your actual profit

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Profits up 50%3

The orange line is your cummulative profit

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Profits up 50%3

What happenswhen you fire your least profitable customers?

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Profits up 50%3

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Profits up 50%3

Now your profitability is up here

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Profits up 50%3

When you reduce workload you gain time to

find new customers or focus on your best customers

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Cost to Serve showsyou what

Labor Standards CAN’T

#4

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What Labor Standards Don’t Tell4

Labor standardssay you are productive.

If you still lose money you probably had a hard product mix.

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What Labor Standards Don’t Tell4

Your workers are productive

but you just failed to make budget

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What Labor Standards Don’t Tell4

Difficult product mix will notbe shown in your

Labor Management System. Cost to Serve knows

what LMS doesn’t.

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Your highest margincustomers are

not always profitable

#5

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Margin doesn’t correlate5

And your lowest margincustomers aren’t always your least

profitable

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Margin doesn’t correlate5

A losing customermight look like:

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Margin doesn’t correlate5

Value add services

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Margin doesn’t correlate5

ComplicatedPackaging

Requirement

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Margin doesn’t correlate5

Picking lots of

small orders

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Knowing your Cost to Serve

in your warehouseis easier

than you think

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You can have it Daily

always at yourfingertips

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New data correlation Technology

makes it affordable,fast, and...

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Easy to Implement

find out moreat EasyMetrics.com