Cost to Serve

ORTEC Cost to Serve is an industry-leading solution that draws on advanced analytics and AI to automatically break down costs at the customer level, helping you sign better service level agreements and increase profits.

Watch the video for an introduction to ORTEC Cost to Serve >>

_______

Industries:
Energy, Manufacturing, Transportation & Storage

Business area:
Planning & Forecasting

Request a Demo – Increase Cost Efficiency with Data-Driven Service Plans

An Elusive Calculation

Supply chain teams typically have detailed information about routes, timing and costs but they often struggle to break down the cost at the individual stop level. The cost to serve individual customers is very difficult to determine without advanced mathematics. As a result, most businesses adopt a one-size-fits-all service policy, but this results in high logistics costs.

Nationally Recognized Solution

ORTEC’s Cost to Serve solution was a finalist for Best IT Innovation for MHI Innovation Award, highlighted from among 155 submissions.

ORTEC- Cost to Serve industry-leading solution

Faster Insights, Better Decisions

ORTEC Cost to Serve uses sophisticated machine learning algorithms (AI) to accurately and efficiently determine cost allocations, taking dozens of customer attributes and extensive historical route data into account. You can consider factors like service window, volume, proximity to market, and distance to depot, among others. Calculations are completed in an instant, helping you understand profits and costs per individual customer and take action quickly. For instance, you can decide to reduce the number of visits per customer, negotiate larger service windows, re-assign customers to different depots, identify the minimum profitable delivery quantity, or increase your sales footprint in a given region.

Discover the Benefits in the Cost to Serve brochure

ORTEC - Cost to Serve automates costs with AI and Data Analytics

Real Results: $1 Million Per Year in Cost Savings

Sensitivity analyses on an aggregated level (department /region, group of customers or products) enable you to understand how frequency, drop size, distance, duration, and capacity impact costs and profitability. We have seen that these insights result in at least $1 million per year in savings. Companies using ORTEC Cost to Serve see numerous benefits.

ORTEC - Cost to Serve - Visibility into Operations, Profits

More cost savings

Find the right depot, delivery window and volume per customer.

Better, faster decision-making

Pinpoint areas to extend your customer base or improve SLAs.

Intelligence for sales and operations

Visibility and insights that improve collaboration and alignment.

Improved efficiency

Forget time-consuming calculations and gain agility.

Request a Demo

Discover how ORTEC Cost to Serve can revolutionize your supply chain and distribution operations. Contact us for a demonstration and let's start a conversation.