Analysing costs is boring, right? It’s just something that the finance team have to do in order to do their admin and balance the books?

We beg to differ.

Any business, particularly one operating with fine margins, should have a deep understanding of its key cost drivers, whether direct or indirect.

If you get into the details and really analyse your costs there’s a whole range of practical insights that can be applied right across the business.

And that can be quite interesting…

Take DHL as an example. We helped them build a costing tool that analysed their end-to-end costs. All the way from pre-sale to booking, pick up, linehaul, customs clearance and last mile delivery. This gave them an accurate picture of their costs drilled down by product, lane, transport mode, individual shipment – and even by piece.

Not just interesting, but also extremely useful. For everyone.

Sales can use end to end costing data to identify unprofitable customers and analyse where and how to take remedial action.

Operations get detailed visibility on fixed and variable costs and ops cost per move. This gives them the ability to accurately assess the impact of providing any additional service and to push back if it’s not been priced correctly.

Pricing are able to use cost insights to implement more flexible tools such as dynamic and spot rate pricing.

As for the finance team – they can continue doing their thing secure in the knowledge that everyone else is also thinking about costs.

To know more about our end-to-end costing solution check out our case study and short video explainer.

And get in touch if you’d like to discuss further. We promise not to be boring!

Photo by Priscilla Du Preez 🇨🇦 on Unsplash