Why It Matters

Many companies discover that a small share of orders consumes a disproportionate share of costs. By analyzing CTS, procurement and supply chain teams identify unprofitable flows and redesign logistics for margin protection.

Related Terms & Resources

This term connects most directly to:

• Total Cost of Freight (TCoF) — a closely related cost concept, though cost-to-serve extends beyond freight alone.
• Freight Cost per Unit — a narrower cost metric that feeds into cost-to-serve calculations.