COST-TO-SERVE: AN APPLICATION PROPOSAL FOR A PAINT COMPANY

Abstract

This article approaches the logistic costs of distribution management from the perspective of the Costs to Serve, in order to settle the trialog existing in organizations among the views of Marketing/Sales, Operations and Logistics, and Controllership, aiming at the value aggregation for the customers, under the aegis of value aggregation for the shareholders. For this, we analyze a case of a company in the ornamental paints sector, which faces the constantly growing demands of its customers, this is, its channels of products distribution to the final users. The conclusion consists in an extremely difficult task in which the costing procedures, oriented at the activities costing, will demand a significant effort from the organization to determine the profitability per customer or customers’ segment, and, additionally, the full conscience that decisions on the strategies concerning customers have to be taken on grounds of the joined repercussions resulting from impacts on the market, on the savings at production scale, and from the real positive impact on the business results and, therefore, on the aggregate value for the shareholders. This impact can be evaluated by the costs to serve management, according to the model proposed in the case study presented here. Keywords: Management of logistic costs of distribution. Costs to serve. Customers' Profitability.