What is Cost to Serve

Cost to serve is the measurement of cost factors that go into the servicing of a customer, or the production of a product. When paired with revenue, cost to serve analysis enables you to accurately calculate profitability by customer, product types, production lines, facilities, processes.  Cost to serve analysis enables you to accurately identify unprofitable […]


Measuring Continuous Improvement

Most operations have some kind of continuous improvement initiative ongoing at any given time. There are a variety of continuous improvement methodologies: Kaizen, Six Sigma, Lean and Total Quality Management are all good examples. One of the most common improvement models is the PDCA (Plan, Do, Check, Act). Each step is distinct and intuitive: Plan: […]




7 Must-Haves for Good Labor Management

Good labor management has become a necessity in today’s very competitive distribution environment. In our hundreds of implementations, we have learned that there are 7 key factors you must have for a successful labor management program (LMS). They are: 1. Track 100% of Time The goal of any labor management system should be to see […]


Cost to Serve – The 4th Dimension of Process Analysis

Objective and measurable employee performance standards are an excellent way to drive workforce engagement, improve productivity, and measure process improvement. The most common method of deriving performance standards is through the use of Engineered Labor Standards (ELS). This involves an industrial engineer conducting time and motion studies, data analysis, and industry best practice methodology to […]



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