How to use Cost-to-Server Planner @RiverLogicInc #WebToolsWiki

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cost-to-server

River Logic’s Integrated Cost-to-Serve (CTS) Planner™ solution empowers Customer Service, Sales, Supply Chain, and Financial (FP&A) professionals to differentiate and optimize their company’s service offerings by:
Providing accurate understanding of the cost and operational impact of channel and delivery options
Quantifying customer-specific costs and inventories to identify differentiated, win-win strategies, and support more successful negotiations
Identifying cost drivers at a granular level
Creating integrated budgets that include operational and financial metrics
Analyzing, tracking, and benchmarking execution against plans
Enabling continuous learning in order to maximize operational efficiencies

Improve performance across the supply chain by better understanding detailed costs-to- serve
Align service charges and allowances with customer service strategies and the cost of fulfilling different channel and delivery modes
Improve position to negotiate with retailers Use alternative currency to drive revenue and margin growth
Achieve ROI quickly through rapid implementation Deployment takes 6 – 9 months

CtS enables CPG manufacturers to model the extended manufacturer-retailer supply chain and identify the key drivers of inventory, revenue realization and cost to enable total margin optimization. Manufacturers evaluate the impact of retailer behaviors (e.g. stocking policy, order size, pallet mix) and their service commitments (e.g. frequency, lead times, incentive programs) to understand the net P&L and operational impact on their operations as well as each retailer. Manufacturers can proactively identify and propose win-win scenarios to their retailer partners.

CtS Planner™ is an innovative planning solution, built on the analytics and constraint-based modeling platform Enterprise Optimizer® (EO). EO enables CTS Planner to deliver a level of insight that is not possible using conventional OLAP and modeling tools. Because of this expanded capability, Kraft can extract greater insights through better what-if analysis in less time to fully understand the financial impact of its programs.

A unified model will link customer costs and profitability to other critical areas of the business, giving Kraft Canada the ability to align profitability as a part of its key business objectives (e.g., revenue growth). An intuitive scenario wizard will make it possible to drive better decisions to protect prices, improve margins, reduce inventory and improve working capital.

With CtS Planner, the company hopes to improve strategic, operational, and tactical decisions around retailer relationships, while maintaining its profit neutrality. Kraft Canada expects to create improved and differentiated service offerings to its retailer customers which allow for mutual gains.

Our solutions – Cost-to-Serve Planner™ – provides insight into which customers and products matter most and how they can be managed at the appropriate cost; Integrated Business Planner™ – enhances S&OP through seamless integration of financials, what-if analyses, and marginal profitability analyses; and Trade Promotion Optimization Planner™ – ensures maximum return on trade spending by analyzing brand and account-level promotion strategies on an ongoing basis – are available to Go to Market and Distributor partners to expand market opportunities. We also work with Solution Partners to develop white space solutions, built on the Enterprise Optimizer® platform, to address business issues not yet supported by technologies available today.

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