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Cost to serve

With the cost to serve module in 4flow vista® you can get a cost-optimized supply chain and identify areas with substantial cost savings potential.

The choices available for purchasing and supply are exponential in global value networks.  Supply chain costs increase, but oftentimes they are not analyzed.

An optimal delivery strategy between manufacturer and customer unlocks opportunities to reduce supply chain costs. Optimal supplier selection can help you seize the opportunities of global procurement at minimal cost. To identify potential cost savings, the total costs that would be incurred in alternative supply chain configurations can be analyzed with the cost-to-serve approach (also referred to as the total landed cost approach). 4flow vista® offers real solutions for manufacturing companies as well as for businesses in the retail and consumer goods industries.

Benefits of cost to serve with 4flow vista®

4flow vista® – Cost to serve
4flow vista® – Cost to serve

A key benefit of 4flow vista® is being able to identify potential cost savings with a total cost-optimized analysis of alternative delivery processes and suppliers.

Additional benefits of 4flow vista®:

  • Objective decision-making support tool
  • Transparency into cost structure along the supply chain
  • All relevant types of costs and cost drivers considered
  • Analysis of complex, multi-layer supply chains including value-adding steps
  • Simulation of impact that supply frequency and route have on inventory

How 4flow vista® works

4flow vista® provides the answers you need to set up optimal delivery processes and find sourcing alternatives based on total cost.

4flow vista® makes footprint and sourcing decisions easier for the manufacturing industry by determining the suppliers with the lowest total cost and the optimal supply chain configuration. The planning approach consists of modeling alternative delivery scenarios, optimization, and analysis with a focus on total cost. By modeling optimized delivery processes, suppliers can easily be compared. 

4flow vista® makes it possible for companies in the retail and consumer goods industries to simulate and analyze the costs of the flow of goods across all warehousing steps. This way you can determine the optimal flow type based on costs and services. One scenario models the route as well as the supply frequency between production and warehousing facilities in the consumer goods industry and the retailer’s stores.

This transparency makes it possible to find major cost drivers, and serves as a basis for identifying and cutting costs. Considering all the relevant types of costs such as transportation, handling, warehousing, inventory, and administrative costs along the supply chain establishes a basis for making objective decisions.

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