Total Cost to Serve: Supply Chain Cost Management

Total Cost to Serve software from Manhattan Associates allows you to see how costs are incurred and allocated by item for each supply chain location. Because you capture actual costs, you can make better sourcing, routing and fulfillment decisions. Total Cost to Serve also offers a unique predictive ability to estimate costs before purchase orders are approved. Cost data and visibility is available for anywhere goods aggregate—as well as for each item on a route or sourced from a supplier, including:

• Inbound (landed costs)
• Distribution center activity costs
• Outbound shipping costs to your stores or forward distribution centers
• Inventory carrying costs

Total Cost to Serve software also enables you to aggregate costs by product class and across the company for various time periods. You can break these down by direct or indirect costs and track a wide variety of cost components, such as:

• Supplier, shipping, inventory carrying and warehouse labor costs
• Customer-defined costs such as import duties, security inspection charges and port fees
• Costs by weight, volume, quantity, value and distance—or any other user defined values

Additionally, Total Cost to Serve can see and gather real-time cost information from other supply chain solutions, including your warehouse management system or transportation management system in order to:

• Enable better cost-based decisions for sourcing, routing and order fulfillment
• Provide visibility into true costs by item, location, route, supplier and purchase order, providing better product margin visibility throughout the supply chain
• Provide flexible apportionment rules to allocate cost at the appropriate level
• Calculate landed cost and cost-to-serve separately for each location in the supply chain
• Aggregate costs up item, location and time hierarchies
• Estimate total cost to serve by purchase order prior to issuance
• Report and analyze costs using Manhattan Supply Chain Intelligence
• Allow cost information to be explored geo-spatially on a live Microsoft Bing map through Manhattan FieldVision technology

Contact a Manhattan representative to find out more about how Total Cost to Serve can help you make better sourcing, routing and fulfillment decisions.