📊 What is Cost to Supply?
Cost to supply is just like cost to serve, but flipped. Instead of looking at your costs to serve customers, you’re looking at what it costs your suppliers to supply you. And why is that important? Because understanding your suppliers’ costs can help you fine-tune strategies like reverse logistics, get your pricing right, and decide whether deliveries should go direct to stores or through your distribution centers (DCs). 📦
I’ve worked with suppliers over the years to analyze their true costs—whether it’s direct-to-store or through DCs. This helps them negotiate with retailers and make smarter decisions. 📝
It all comes down to strong collaboration. Building trust with your suppliers allows both sides to be open about costs, finding better ways to operate. For example, you might discover it’s more cost-effective for you to pick up goods instead of having them delivered. 🚚
When done right, this creates a win-win scenario. But remember, sharing the benefits is key. Encourage your suppliers to adapt by making sure everyone gets a piece of the savings. 💰
For a full insight into this topic, watch the full video through the link in the comments!
If you want to learn more tips for saving costs, we are hosting a coaching event on Logistics Cost Reduction. To secure your spot, visit the link below! 👇
#logisticsbureau #costsaving #costtosupply