1. It’s high because we provide the best service, but our margins compensate us for it.
2. Our cost to serve is lower than our competitors. This is our business strategy.
3. I really don’t know, as we don’t keep track of cost to serve.
This article from the I.B.I.S. blog describes methods you use to can control cost to serve in three critical areas: freight cost, cost of extending credit and selling cost. Is your campany at risk for being dependent on larger accounts for all of its profits? Are you ignoring the opportunity to make smaller orders profitable? Read more...
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