Cost-to-serve analysis determines how you will generate free cash flow, a key transformation driver.

is a Cost to Serve simulation model which measures the five major elements of free cash flow: margins calculated from simulated operation costs and SG&A costs, inventory effectiveness, accounts receivable levels, accounts payable and Cap Ex use measured by capacity efficiency.

ISM uses Monte Carlo simulation modeling to properly model the daily variation in customer demand to accurately visualize operational factors as they move through peaks and valleys of daily activity. Simulation modeling is the only way of understanding the impact of demand variability on capacity, inventroy, purchase activity and receivables.

The model uses probability functions in supply and demand to build an understanding of the inventory to service trade-offs.