A guide to warehouse planning
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Cost To Serve in Your Warehouse: 5 Things You Should Know
- 1. COST TO SERVE IN YOUR WAREHOUSE 5THINGS YOU SHOULD KNOW ABOUT
- 2. Cost To Serve shows you where every dollar in your workforce is spent #1
- 3. Total Visibility on Profit & Loss Which Customers Products Processes Employees 1
- 4. Total Visibility on Profit & Loss Which Customers Products Processes Employees 1 are making/losing you money
- 5. 20% of your Customers are losing you money. Volume won’t help. #2
- 6. Volume increases losses2 When your margins on a customer are negative increasing volume increases losses
- 7. Volume increases losses2 Only by knowing Cost to Serve can you make up for losses
- 8. Operating profits can go up by 50% when you fire your worst customers #3
- 9. Profits up 50%3 The blue bars are your profitability by customer
- 10. Profits up 50%3 The yellow line is your actual profit
- 11. Profits up 50%3 The orange line is your cummulative profit
- 12. Profits up 50%3 What happens when you fire your least profitable customers?
- 13. Profits up 50%3
- 14. Profits up 50%3 Now your profitability is up here
- 15. Profits up 50%3 When you reduce workload you gain time to find new customers or focus on your best customers
- 16. Cost to Serve shows you what Labor Standards CAN’T #4
- 17. What Labor Standards Don’t Tell4 Labor standards say you are productive. If you still lose money you probably had a hard product mix.
- 18. What Labor Standards Don’t Tell4 Your workers are productive but you just failed to make budget
- 19. What Labor Standards Don’t Tell4 Difficult product mix will not be shown in your Labor Management System. Cost to Serve knows what LMS doesn’t.
- 20. Your highest margin customers are not always profitable #5
- 21. Margin doesn’t correlate5 And your lowest margin customers aren’t always your least profitable
- 22. Margin doesn’t correlate5 A losing customer might look like:
- 23. Margin doesn’t correlate5 Value add services
- 24. Margin doesn’t correlate5 Complicated Packaging Requirement
- 25. Margin doesn’t correlate5 Picking lots of small orders
- 26. Knowing your Cost to Serve in your warehouse is easier than you think
- 27. You can have it Daily always at your fingertips
- 28. New data correlation Technology makes it affordable, fast, and...
- 29. Easy to Implement find out more at EasyMetrics.com
