Cost-To-Serve
Profitability
Intelligence
Peraison helped Techtronic Industries Australia uncover true profitability by building a cost-to-serve model that attributes both direct and indirect P&L costs to individual customers and products.
In many product-driven businesses, revenue and gross margin can look healthy while indirect costs quietly erode EBIT, leaving executives to make pricing, marketing, and customer prioritisation decisions without reliable profitability truth.
Peraison created a defensible allocation approach that produced a true customer and product EBIT view, with full transparency of the specific cost lines driving margin dilution in underperforming segments.
Executives can now see which customers and products generate the majority of EBIT, identify where cost-to-serve is out of line with value, and take targeted commercial action, including reprioritising account focus, resetting spend, and adjusting pricing or service settings to protect margin.
Focus investment on the customers & products that drive EBIT
Identified the small set of customers and products delivering 80% of EBIT, enabling leadership to concentrate effort, resources, and commercial time where it creates the most value.
Turn cost-to-serve transparency into margin action
Revealed the exact cost components suppressing profitability in specific segments, creating clear actions to reduce cost-to-serve, reset service expectations, or adjust pricing to restore margin.
Improve pricing and spend decisions with true profitability, not volume
Enabled more disciplined sales and marketing decisions by redirecting spend away from low-return product lines and low-profit relationships, replacing intuition with a trusted customer and product EBIT view.
Our Supply Chain stories & insights
Explore the real‑world impact of our work across manufacturing, logistics & warehousing with stories and insights that reveal how data, AI, and technology deliver measurable outcomes.
Modern Solutions for a changing
Supply Chain landscape
Helping Supply Chain Operations with data & AI
Unified OT and IT data architectures that connect machines, systems, and enterprise platforms into a single source of truth. Leveraging cloud platforms, scalable data pipelines, and AI-ready foundations to enable real-time visibility, advanced analytics, and faster, more confident decision making across plants and production networks.
Advanced forecasting, integrated sales and operations planning (S&OP), and scenario modelling that align demand, supply, and production capacity. Inventory intelligence and optimisation techniques reduce working capital, minimise stockouts and excess, and improve service levels across complex manufacturing and distribution environments.
Data-driven quality management combining root-cause analytics, defect prediction, and continuous improvement insights.
End-to-end batch & serial traceability across raw materials, production, and distribution improves compliance, lifts yield, and significantly reduces scrap, rework, and costly recalls.
Proactive asset management using condition monitoring, sensor data, and reliability analytics to predict failures before they occur.
Maintenance optimisation strategies increase equipment uptime, reduce unplanned downtime, improve safety, and extend asset life while lowering total maintenance costs.
Multi-tier supply chain visibility that spans suppliers, logistics partners, and internal operations. Supplier performance monitoring, risk scoring, and disruption analytics help identify vulnerabilities early, strengthen resilience, and ensure continuity of supply in the face of volatility and global disruptions.
Granular energy consumption insights across sites, lines, and assets to identify inefficiencies and cost-saving opportunities. Robust, auditable ESG and carbon reporting capabilities support decarbonisation initiatives, regulatory compliance, and transparent reporting aligned to corporate sustainability goals.
Modern manufacturing technology delivery underpinned by secure, scalable architectures and proven engineering practices. Targeted accelerators, reusable components, and platform-based solutions enable faster time to value while delivering reliable, future-ready outcomes tailored to manufacturing operations.
Curious how we can improve your business's performance?
Get in touch with our team