Industries / Wholesale and distribution
Invoice-line cost to serve
Wholesale and distribution
Two customers can buy the same product at the same margin and cost you completely different amounts to serve. ProfitKeel shows which ones, down to the invoice line.
Questions you can answer
- Which customers lose money once picking, delivery and order handling are counted?
- What does a one-line order really cost compared with a twelve-line order?
- Which sales reps carry the most expensive book of business?
How the model is shaped
- LedgerWarehouse, delivery and sales cost centers from the general ledger.
- Entity poolsCost pooled by legal entity and function.
- Reps and activitiesSales cost spread to reps by salary; warehouse cost to picking and delivery.
- Invoice linesEach line weighted by effort, landing on customer and rep P&Ls.
From the sample model3.75x
In the sample distribution model, each line of a one-line invoice carries 3.75 times the cost of a line on a twelve-line invoice, because the invoice header effort is spread over fewer lines.
Typical cost objects
Invoice lineInvoiceCustomerSales repBranch
Typical drivers
Lines pickedInvoicesDeliveriesRep salaryWeight and cube