Identifying Costs to Serve in Distribution
Overlooked Costs to Serve: Why Not All Customers Are Created Equal
Margins are tight, freight isn't cheap, and everyone wants "special pricing." Too many distributors still price on volume or relationships instead of the hard truth in their invoices. This guide shows a practical, invoice-driven way to spot overlooked Cost to Serve (CTS), the six CTS metrics you can calculate straight from invoiced transactions, and how to use epaCUBE to segment and price customers based on what they really contribute.
What's Inside:
Proven invoice-based CTS metrics for distribution
Practical customer segmentation by behavior, not just revenue
Pricing guardrails and discount floors that protect margins
A real-world scenario showing how to turn CTS insight into profit