CoreProcess

Relatively little has been published on the why and how of undertaking cost-to-serve analysis.

In 1998, the pan-European body ECR Europe commissioned a project to establish a methodology for the conduct of cost-to-serve analysis. The resulting report was called Assessing the Profit Impact of ECR. In 1999, CoreProcess managing director Garry O’Sullivan led an Australian project to evaluate the methodology in the Australian business context. The resulting publication from ECR Australasia, is called The Profit Impact of ECR.

While a methodology is a useful start in undertaking cost to serve analysis, what was needed was a practical, experience-based guidebook on the application of the methodology. In 2004, the Australian Food and Grocery Council asked Garry O’Sullivan to translate his many years of experience in the application of the Profit Impact methodology into a guide book which could provide a kick-start to those wanting to undertake cost-to-serve.

The resulting publication – Using Cost to Serve to Enable Effective Customer Engagement, is now the most widely reference cost-to-serve publication on the Web. The document provides a wealth of practical tips and questions to ask when planning and undertaking cost-to-serve analysis.