OPTIMIZING COST TO SERVE IN SUPPLY CHAIN MANAGEMENT: STRATEGIES FOR ENHANCING PROFITABILITY AND CUSTOMER SATISFACTION

This thesis explores the changing position of Cost to Serve (CTS) as a strategic management tool in the supply chain (SC) management area. The study starts by analyzing the fundamental idea of CTS, noting its importance in tracing operating expenses alongside customer value delivery. The research acknowledges that with the competitive and customer-centric markets of the present times, particularly the Indian technology and fashion retail industries, organizations face greater pressure to minimize wasteful expense while ensuring high levels of services. Through the discovery of inefficiencies in logistics, inventory, order processing, and fulfillment, CTS becomes a performance driver that can improve cost efficiency without affecting service quality. The objectives of the thesis revolve around comprehending CTS in detail, determining what affects it, evaluating its effect on SC performance and profitability, and finally developing a framework for optimizing CTS effectively.