Profitability management

Customer and product profitability management with LogCOST

Using our tool LogCOST gets you detailed insights into profitability at the product and customer level and shows potential areas for cost reductions. Our web-based tool is the basis for clustering and rationalizing products to improve profitability.

• Set internal and external benchmarks
• Review performance development
• Answer “cost to serve” questions

What LogCOST takes into account:

Depots

• Fixed costs plus variable costs are allocated to a single shipment (allocation per shipment, per weight/volume, etc., if needed)
• Special operations/handling (costs for customs, dangerous goods or other special handling are assigned to specific shipments)

Road transport legs

• Main haul: costs of subcontractor or own operations (truck engagement costs) are first recorded per truck/container/swap body and then broken down on shipments based on utilization
• PuD: costs are modeled on a shipment or working hours cost level (depends on your sourcing strategy). For hourly payments, LogEC distance information is used to come up with time needed and information on stops and drops.

Non-road transport legs

• Sea freight: costs of TEU are broken down to shipment
• Air freights: costs of air cargo containers or payable weights are broken down on individual shipments
• Rail: costs of cars, swap bodies or payable weights are broken down on individual shipments
• Ferries: costs of ferry transfer are included and broken down on shipments

Overhead/admin/IT

• Costs are included and subdivided on shipments