Cost-to-Serve & KPI Driver Tree S3

Driver decomposition · Tornado sensitivity · Customer profitability · Leakage & KPI cascade

Total Cost to Serve is decomposed into a driver tree. Move any leaf driver and the whole cost structure re-computes. The tornado ranks which 1% improvement moves total cost the most — that ranking, not the absolute dollars, is what sets the improvement agenda. Illustrative sample data.
Driver tree — Total Cost to Serve
Tornado — impact of a ±10% move
Cost structure
Account profitability — revenue vs cost to serve
Leakage waterfall