DISTRIBUTION
The problem
Distributors compete on service level and rarely cost it. Two customers with identical revenue can differ by three points of margin purely through drop frequency, order size and delivery distance.
Cost to serve is what turns a service conversation into a commercial one: it is the evidence for changing a minimum order value or a delivery frequency without losing the account.
Core workflow
Confirmed order to proof of delivery.
01
Release
Orders released to the warehouse by cut-off.
02
Pick & pack
Picked, verified, packed and labelled.
03
Route
Deliveries grouped by area and vehicle.
04
Dispatch
Loaded and released, documents attached.
05
Delivery
POD captured, shortages recorded at the door.
06
Cost to serve
Delivery cost attributed to the customer.
What it covers
Warehouse
Pick lists and wave releasePick verificationPacking and labellingConsolidation and stagingCut-off and priority handling
Delivery
Route planning by areaOwn fleet and third partyDriver mobile run sheetProof of deliveryFailed delivery and reattempt
Returns & cost
Returns authorisationDamage and shortage claimsCredit note automationCost to serve by customerDelivery point profitability
Connects with
Operational outcomes
97.4%
On-time delivery
+18%
Drops per vehicle per day
Per customer
Cost to serve, not blended
0.9%
Returns as % of sales
Ranges observed on Al Jawad engagements. Targets agreed in assessment.