Cost-to-serve measurement and customer profitability analysis
نویسندگان
چکیده
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.
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