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Cost to serve


We’ve been digging deep beneath the surface of omnichannel apparel retail costs to ask, if sales are up, why is margin down?

Retail sales growth is becoming increasingly dominated by online shopping through a growing number of channels and fulfilment models. But sales growth hasn’t translated into more profits. Why is this?

LCP and CranfieldWorking with LCP Consulting and Cranfield School of Management, we’ve looked into why the industry is losing margin and what can be done to stop this trend. The cost-to-serve programme has identified the key challenges retailers face in understanding their true operational costs, the levers they can use to better manage costs and where GS1 standards can be used to help maintain profitability.

What is cost-to-serve?

Cost-to-serve takes an end-to-end approach to reveal the total cost of servicing each individual customer with a specific SKU, at a designated level of service – reflecting the true cost of handling.

Our cost-to-serve findings

Cost to serve sales up

Sales up? Yet margin down?

Understanding cost-to-serve to boost profitability

Cost to serve rising to the challenge

Rising to the challenge

Unpicking the complexities of managing cost-to-serve

Closing in on the cost to serve

Closing in on cost-to-serve

Knowing where expenditure is building

Pushing the right levers

Pushing the right levers

Controlling cost-to-serve to maximise profitability

Cost to serve tools

Tools that deliver impact

Using GS1 standards to manage and reduce cost-to-serve

Cost to serve downloads

Cost-to-serve resources

Read our full report and test your own numbers in our ready reckoner tool

LCP consulting Cranfield School of Management

Our findings

Download the whitepaper

White paper

Check out the full report of the cost-to-serve programme

Get in touch

Interested in finding out how we can help you then please get in touch


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