Focus Information Logistics Pty Ltd

A Guide to Using Cost to Serve

Enabling Effective Customer Engagement
AFGC Cost to Serve Book Cover


A Universal Approach to Cost and Profit Measurement

The supply chain transformation taking place in the supermarket chains is just the beginning of a broader business transformation agenda for Australian retailers. As part of that broader agenda, major retailers have begun to develop visibility of the real cost of moving products from suppliers’ despatch docks to the store shelf. This focus on operational cost, at the individual SKU level, represents a major shift in the cost–awareness of the retailer. Many of the transformation initiatives will reduce the retailer’s internal supply chain cost, while adding to your cost–to–serve.

There is an increasing imperative for suppliers to understand the nature of the changes now underway and the operational and financial impacts they will have.

Focus offers unequalled expertise in grocery industry cost–to–serve analysis. Focus has led the drive to establish a rigorous, universally accepted approach to cost and profit measurement in the Australian industry with the introduction, in 2000, of the “Profit Impact of ECR” methodology, from ECR Europe. Garry O’Sullivan is the co–author of the newly published AFGC Guide — A Guide to Using Cost to Serve to Enable Effective Customer Engagement (PDF), a publication which draws on his experience over the past 5 years, using the Profit Impact of ECR Methodology.

Focus has the practical experience in Primary Freight and Factory Gate Pricing to get the facts you need on the table, quickly. To ensure speed to results, Focus has developed the Profit Impact Model, specifically to answer the financial questions being faced by Australian grocery suppliers in 2005 and beyond.