Cost‐to‐serve measurement and customer profitability analysis
- 7 November 2008
- journal article
- research article
- Published by Emerald in The International Journal of Logistics Management
- Vol. 19 (3), 389-407
- https://doi.org/10.1108/09574090810919215
Abstract
Purpose – This paper aims to assess the usefulness of cost‐to‐serve for customer profitability management through literature review and a case study in a food‐industry company.Design/methodology/approach – The research is based on a case study. The study presents the state‐of‐the‐art of the literature review related to cost‐to‐serve measurement and customer profitability analysis and a case study of a Brazilian food‐industry company with high operational complexity and an extensive customer product and commercial service line.Findings – The literature review demonstrates that few empirical studies have actually addressed the problem of cost‐to‐serve measurement and customer profitability analysis. The findings of the study show that the measurement of cost‐to‐serve provides specific and detailed customer information that enables a more comprehensive customer profitability analysis than the classical paradigm.Research limitations/implications – A single case study does not allow the results to be generaliz...Keywords
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