eyko Ideas
Two customers with the same revenue can carry very different logistics costs. Logistics Cost-to-Serve Analysis shows which customers, products, and regions consume disproportionate freight and handling, and what to do about it.
The Challenge
Blended logistics cost hides the customers whose orders are small, frequent, and remote.
An account can look valuable on revenue while its landed logistics cost eats the margin.
Nobody sees which order patterns drive the freight bill, so nothing changes.
How eyko Solves It
Logistics Cost-to-Serve Analysis allocates freight and handling to customer, product, and region, surfaces the ones consuming disproportionate cost, and shows where re-pricing, order consolidation, or a mode change recovers margin.
Logistics runs 32M a year, and cost-to-serve is uneven: the top decile of customers by logistics cost consumes 34 percent of freight spend.
| Metric | Current | Benchmark | Status |
|---|---|---|---|
| Primary indicator | Flagged | Target | Action needed |
| Secondary indicator | Monitoring | Within range | On track |
| Trend direction | Declining | Stable | Review required |
Logistics cost-to-serve analysis allocates freight and handling down to customer, product, and region, rather than leaving it as a blended number. The Playbook shows that the top decile of customers by logistics cost consumes a third of freight spend, so the accounts quietly draining the freight bill are visible on the line rather than lost in the average.
This is decision intelligence in practice: the what, the why, and the what next from your live data.
Related Ideas
Supply Chain
Carrier Performance & Spend Optimization
Compare carriers on cost, reliability, and claims to optimize selection and contracts.
View Idea
Supply Chain
Shipping Cost Prediction
Predict shipping cost by lane and mode so quotes and plans use a realistic freight number.
View Idea
Finance
Customer Profitability Analysis
See which customers make money after discounts and cost-to-serve.
View IdeaFAQ
Everything you need to know about Logistics Cost-to-Serve Analysis.
Logistics cost-to-serve analysis allocates freight and handling to customer, product, and region, so the true cost of serving each is visible rather than blended. eyko surfaces the customers, products, and regions consuming disproportionate cost and shows where re-pricing, consolidation, or a mode change recovers margin.
It reads order and shipment detail, freight and handling cost, and customer and product data from your ERP and logistics systems, alongside any data platform you already run. It works with systems such as SAP, Oracle, NetSuite, Manhattan Associates, and Snowflake, and there is no separate data project to start.
The Playbook attributes freight and handling to the orders that generated them, then rolls that up by customer, product, and region, accounting for order size, frequency, distance, and mode. That turns a blended freight bill into a per-customer cost-to-serve you can act on.
Yes. The Playbook nets allocated logistics cost against the margin each customer generates, so it surfaces the accounts that are net negative once freight and handling are counted, typically the small, frequent, remote orders that look fine on revenue alone.
Join the enterprises replacing weeks of manual analysis with a single prompt. See what eyko Playbooks can do with your data.
