Cost‐to‐serve measurement and customer profitability analysis
The International Journal of Logistics Management
ISSN: 0957-4093
Article publication date: 7 November 2008
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 generalized to other organizations.
Originality/value
The paper includes a comprehensive review of literature and the empirical case study in a Brazilian food company offers additional insights in cost‐to‐serve measurement and customer profitability analysis.
Keywords
Citation
Guerreiro, R., Rodrigues Bio, S. and Vazquez Villamor Merschmann, E. (2008), "Cost‐to‐serve measurement and customer profitability analysis", The International Journal of Logistics Management, Vol. 19 No. 3, pp. 389-407. https://doi.org/10.1108/09574090810919215
Publisher
:Emerald Group Publishing Limited
Copyright © 2008, Emerald Group Publishing Limited