Cost Insights

ongoing visibility to specific costs
across the end-to-end supply chain








reduce supply chain costs

Whether concentrating on one type of supply chain cost or a combination of costs, our expertise from over 20 years of supply chain experience delivers insights for quick and efficient identification of cost reduction strategies.

End-to-end supply chain costs

Inventory / Inventory Working Capital

Sourcing
Costs
 

Inbound
Transportation
Costs

Import/Export
Processing
Costs

Manufacturing
Costs
 

Inter-facility
Costs
 

Warehousing
& Handling
Costs

Outbound
Transportation
Costs

Reverse
Logistics
 











specific elements of Cost to Serve

Competitive Insights uses transactional data from as many sources as needed to the specific cost elements you need. As a part of the Data Assurance, transactional data is gathered across as many supply chain processes to get the most accurate cost insights for your initiative or to discover opportunities for significant cost reduction that you may not know.

Customer

+ Customer service overhead

+ Customer value learn costs

+ Order management overhead
 
 
 
 
 
 
 
 
 
 

Plan

+ Business unit and factory planning overhead

+ Materials and capital acquisition planning overhead
 
 
 
 
 
 
 
 
 
 
 

Source

+ COGS materials

+ Materials purchase price variance

+ Factory capital acquisition and indirect materials

+ Sourcing, procurement and accounts payable overhead

+ Raw materials carrying and obsolescence costs
 

Make

+ COGS internal conversion costs or outsourced manufacturing costs

+ Standard cost variances

+ Finished goods and WIP inventory carrying and obsolescence costs
 
 
 
 
 
 

Deliver

+ Internal warehouse costs (space, equipment, people)

+ 3PL/4PL costs

+ Tax, licensing and customs

+ Inbound and outbound carrier costs

+ Logistics security costs

+ Special services (boxing, labeling, etc.)
 

Return

+ Product returns costs

+ Repair costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Other

+ Supply chain management overhead (admin and center of excellence)

+ Supply chain IT overhead

+ Supply chain Finance overhead

+ Supply chain HR overhead

+ Costs of continuous improvement and poor quality mitigation
 











Profitability as the Common Thread




precision

Competitive Insights is able to provide this precision down to the SKU-level and the highest level of specificity for cost performance .

Beyond Activity Based Accounting (ABC) or traditional Cost to Serve calculations, Competitive Insights' Cost Insights have multi-dimensional insights that is necessary for impact on the bottom line.








foundation

Having the cost insights for one or more cost to serve elements can be the building blocks to later on build the full Net Landed Cost to Serve or Net Landed Profit.




Profitability as the Common Thread














supply chain

sample of supply chain costs






  • Sourcing cost
  • Tariffs
  • Transportation Cost
    • Inbound & Interfacility
    • Outbound
  • Warehousing Cost
    • Handling Cost
  • Air Ship
  • Inventory Carrying Cost
    • Working Capital
    • In-Transit Inventory
    • Taxes
    • Loss
    • Insurance
  • Distribution Fees
    • Value Added Services
    • Other