Total Delivered Cost and Supply Chain Segmentation Freelance Ready Assessment (Publication Date: 2024/03)


Discover Insights, Make Informed Decisions, and Stay Ahead of the Curve:


  • How powerful would it be if you could alert your CFO to the total cost savings delivered by your digital team members in an end to end Order to Cash process for any time frame, instantly?
  • What initiatives do you have to improve lowest total delivered cost – product price plus all costs of delivery?
  • Do you truly have the Total Cost of Ownership around how were going to get a product sourced, manufactured, and delivered to that customer?
  • Key Features:

    • Comprehensive set of 1558 prioritized Total Delivered Cost requirements.
    • Extensive coverage of 119 Total Delivered Cost topic scopes.
    • In-depth analysis of 119 Total Delivered Cost step-by-step solutions, benefits, BHAGs.
    • Detailed examination of 119 Total Delivered Cost case studies and use cases.

    • Digital download upon purchase.
    • Enjoy lifetime document updates included with your purchase.
    • Benefit from a fully editable and customizable Excel format.
    • Trusted and utilized by over 10,000 organizations.

    • Covering: Quality Assurance, Customer Segmentation, Virtual Inventory, Data Modelling, Procurement Strategies, Demand Variability, Value Added Services, Transportation Modes, Capital Investment, Demand Planning, Management Segment, Rapid Response, Transportation Cost Reduction, Vendor Evaluation, Last Mile Delivery, Customer Expectations, Demand Forecasting, Supplier Collaboration, SaaS Adoption, Customer Segmentation Analytics, Supplier Relationships, Supplier Quality, Performance Measurement, Contract Manufacturing, Electronic Data Interchange, Real Time Inventory Management, Total Cost Of Ownership, Supplier Negotiation, Price Negotiation, Green Supply Chain, Multi Tier Supplier Management, Just In Time Inventory, Reverse Logistics, Product Segmentation, Inventory Visibility, Route Optimization, Supply Chain Streamlining, Supplier Performance Scorecards, Multichannel Distribution, Distribution Requirements, Product Portfolio Management, Sustainability Impact, Data Integrity, Network Redesign, Human Rights, Technology Integration, Forecasting Methods, Supply Chain Optimization, Total Delivered Cost, Direct Sourcing, International Trade, Supply Chain, Supplier Risk Assessment, Supply Partners, Logistics Coordination, Sustainability Practices, Global Sourcing, Real Time Tracking, Capacity Planning, Process Optimization, Stock Keeping Units, Lead Time Analysis, Continuous Improvement, Collaborative Forecasting, Supply Chain Segmentation, Optimal Sourcing, Warehousing Solutions, In-Transit Visibility, Operational Efficiency, Green Warehousing, Transportation Management, Supplier Performance, Customer Experience, Commerce Solutions, Proactive Demand Planning, Data Management, Supplier Selection, Technology Adoption, Co Manufacturing, Lean Manufacturing, Efficiency Metrics, Cost Optimization, Freight Consolidation, Outsourcing Strategy, Customer Segmentation Analysis, Reverse Auctions, Vendor Compliance, Product Life Cycle, Service Level Agreements, Risk Mitigation, Vendor Managed Inventory, Safety Regulations, Supply Chain Integration, Product Bundles, Sourcing Strategy, Cross Docking, Compliance Management, Agile Supply Chain, Risk Management, Collaborative Planning, Strategic Sourcing, Customer Segmentation Benefits, Order Fulfillment, End To End Visibility, Production Planning, Sustainable Packaging, Customer Segmentation in Sales, Supply Chain Analytics, Procurement Transformation, Packaging Solutions, Supply Chain Mapping, Geographic Segmentation, Network Optimization, Forecast Accuracy, Inbound Logistics, Distribution Network Design, Supply Chain Financing, Digital Identity, Inventory Management

    Total Delivered Cost Assessment Freelance Ready Assessment – Utilization, Solutions, Advantages, BHAG (Big Hairy Audacious Goal):

    Total Delivered Cost

    Total Delivered Cost is a metric that measures the overall cost savings achieved by the digital team in the entire Order to Cash process. It allows for real-time tracking and reporting of cost savings to the CFO.

    1. Implement total cost analysis: allows companies to analyze and understand the real costs associated with each step of the supply chain, leading to better decision-making and cost savings.

    2. Utilize technology: using digital tools and platforms can provide real-time visibility into the total delivered cost, enabling companies to make quick and informed decisions.

    3. Collaborate with suppliers: working closely with suppliers to identify cost-saving opportunities can result in reduced material costs and improved efficiency.

    4. Optimize network design: by segmenting the supply chain based on product type, customer needs, and delivery timelines, companies can design a more efficient network that minimizes total delivered cost.

    5. Implement demand planning: accurately forecasting demand helps prevent overstocking or understocking, thus reducing inventory carrying costs and improving the total delivered cost.

    6. Embrace lean principles: implementing lean practices, such as just-in-time delivery and reducing waste, can streamline operations and ultimately reduce total delivered cost.

    7. Leverage transportation strategies: optimizing transportation routes and modes can lead to significant cost savings in the supply chain.

    8. Streamline processes: identifying and eliminating inefficient processes can reduce lead times and improve overall efficiency, contributing to lower total delivered costs.

    9. Continuously review and improve: regularly reviewing supply chain processes and identifying areas for improvement can lead to ongoing cost savings and increased efficiency.

    10. Invest in talent development: hiring and training skilled supply chain professionals can drive innovative thinking and continuous improvement, leading to better cost control and overall supply chain performance.

    CONTROL QUESTION: How powerful would it be if you could alert the CFO to the total cost savings delivered by the digital team members in an end to end Order to Cash process for any time frame, instantly?

    Big Hairy Audacious Goal (BHAG) for 10 years from now:

    In 10 years, our goal is for Total Delivered Cost to deliver real-time and accurate cost savings data for the entire Order to Cash process. This means that every member of the digital team will have the tools and resources to truly optimize each step of the process, from order creation to product delivery.

    By having this comprehensive view of all costs involved in the Order to Cash process, including supply chain, manufacturing, transportation, and facility expenses, we will be able to pinpoint areas of potential waste or inefficiency and make data-driven decisions to reduce these costs.

    Not only will this provide valuable information for our internal teams, but it will also allow us to easily communicate our cost savings achievements to the CFO. With instant access to the total cost savings delivered by our digital team, we will have the power to influence financial planning and investment decisions, ultimately leading to even greater cost savings and profitability for the company.

    This ambitious goal will not only transform our own operations, but it will also set a new standard for cost optimization in the industry. Our vision for Total Delivered Cost is to be a game-changing tool that revolutionizes how businesses measure and manage their costs, ultimately creating a more efficient and competitive marketplace.

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    Total Delivered Cost Case Study/Use Case example – How to use:


    Company X is a global manufacturing company that produces and distributes industrial equipment to various industries. With a complex and extensive supply chain, the company relies heavily on its Order to Cash (O2C) process to manage orders, sales, and invoicing. The O2C process involves multiple departments and functions, including sales, customer service, finance, and logistics. However, the company has been facing challenges with high operational costs and long lead times in their O2C process. The CFO has identified the need for cost savings and efficient processes to improve the company′s financial performance.

    To address these challenges, Company X has engaged consulting firm ABC to implement Total Delivered Cost (TDC) methodology. TDC is a holistic approach to evaluating the total cost of a product or service by factoring in all associated costs throughout the entire value chain. By implementing TDC, Company X aims to identify opportunities for cost optimization and improve overall efficiency in their O2C process.

    Consulting Methodology:

    The consulting team at ABC will follow a structured methodology to assess the current state of the O2C process and identify potential areas for cost savings through TDC. The methodology includes the following steps:

    1. Process Mapping: The consulting team will map out the current O2C process to understand all the steps involved and the roles of different departments. This will provide a baseline for assessing the current state and identifying potential bottlenecks.

    2. Data Collection and Analysis: The team will gather data from various sources, including ERP systems, financial reports, and supplier invoices. The data will be analyzed to identify the total cost components in the O2C process, including labor, materials, transportation, inventory, and overhead costs.

    3. Cost Allocation: Using activity-based costing techniques, the team will allocate the costs associated with the O2C process to each product or customer. This will provide a better understanding of the profitability of different products and customers.

    4. Identify Cost Drivers: The consulting team will identify the key cost drivers that impact the total cost of the O2C process. This can include lead time, order frequency, inventory levels, and supplier performance.

    5. Benchmarking: The team will benchmark the company′s O2C process against industry peers to identify areas for improvement. This will help in setting realistic cost reduction targets and identifying best practices to be adopted.


    The main deliverables of this project will include a TDC report and an action plan for cost optimization. The TDC report will provide a detailed analysis of the cost components in the O2C process and their impact on the company′s profitability. It will also highlight the cost savings opportunities identified and the potential impact on the company′s financial performance. The action plan will outline specific initiatives and recommendations to reduce costs and improve efficiency in the O2C process.

    Implementation Challenges:

    Implementing TDC can be challenging as it requires collaboration and alignment across various departments and functions within the organization. Resistance to change from employees and lack of data transparency can also hinder the successful implementation of TDC. The consulting team at ABC will work closely with key stakeholders to address these challenges and ensure buy-in from all departments.


    The success of the TDC implementation will be measured against the following KPIs:

    1. Total Delivered Cost: This is the ultimate KPI that measures the overall cost savings achieved through the TDC methodology.

    2. Order Lead Time: The TDC implementation aims to reduce order lead time by optimizing processes and eliminating inefficiencies.

    3. Inventory Levels: By identifying cost drivers, the consulting team will recommend ways to reduce inventory levels and associated costs.

    4. Supplier Performance: Strengthening supplier relationships and improving supplier performance can lead to cost savings in the O2C process.

    Management Considerations:

    To ensure the sustainability of cost savings and process improvements, the management team at Company X will need to integrate TDC into their decision-making processes. This can include incorporating TDC measures in the performance evaluation of employees and using TDC data to make strategic decisions on pricing, sourcing, and supplier relationships.


    1. Accenture. Total Delivered Cost: Unlocking Hidden Value in the Supply Chain. Accenture Consulting, Accessed 12 June 2021.

    2. Gopalakrishnan, M, et al. A Conceptual Framework for Assessing Total Delivered Cost in Supply Chains. Journal of Management Development, vol. 28, no. 3, 2009, pp. 216-230.

    3. Deloitte. How Total Delivered Cost is Changing the Game. Deloitte Consulting LLP, Accessed 12 June 2021.

    4. Gopalakrishnan, M. Total Delivered Cost (TDC): A Key Measure for Competitive Advantage in Supply Chains. International Journal of Physical Distribution & Logistics Management, vol. 39, no. 3, 2009, pp. 174-184.


    Implementing Total Delivered Cost methodology can provide Company X with a comprehensive understanding of their O2C process costs and identify potential areas for cost optimization. The TDC approach allows for a holistic view of the total cost of the O2C process and enables the company to make data-driven decisions that can lead to significant cost savings. By alerting the CFO to the total cost savings achieved through the digital team′s efforts, Company X would have immediate visibility into the impact of the TDC implementation and be able to make strategic decisions for the company′s financial future. By leveraging TDC, Company X can achieve long-term cost savings and improve their overall efficiency in the O2C process.

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