Total Cost-to-Serve Model: Insource vs 3PL Alternatives
N.B. Upload segment-level price indices, share data, and attribute ratings (NPS or equivalent). If elasticity is unknown, provide historical price tests or promo lift data to infer it.
📄 Prompt Template
Build a comparative total cost-to-serve (TCTS) model for [TimeHorizon] across [Region] contrasting internal operations versus [Candidate3PLs]. Include variable and fixed cost components (handling, storage, linehaul, fuel, accessorials, IT/EDI, inventory carrying, capital avoidance), and quantify cost deltas at [VolumeForecast] levels. Layer in service penalties for missing [TargetServiceLevel] and model [FuelSurchargeAssumption] sensitivity.
Output requirements:
Cost driver dictionary (bullets).
Markdown table: Scenario | Volume | Cost/Order | Cost/Unit | On-Time Risk Adj. | Net TCTS.
3 sensitivity tables varying volume ±20% and fuel ±15%.
CFO-ready conclusion (≤150 words) stating breakeven and recommendation.
Placeholders to use: [TimeHorizon], [Region], [Candidate3PLs], [VolumeForecast], [TargetServiceLevel], [FuelSurchargeAssumption].