Question

provide two examples of "High cost-to-serve" and two examples of "Low cost-to-serve" customers in data center.

Answer 1

High cost to serve examples - Customers with low value orders and highly unpredictable demand. In both cases cost to serve cost will be high because of transportation planning and delivery cost. Low value orders logistics cost remains same as high value orders and thus the net worth or profit from the order became too low. In unpredictable orders shipment plan would be tedious and ended up spending more on fulfiling it.

Low cost to serve examples are high value orders, and bulk orders. In high value orders shipment cost became negligible and ended up getting more margin. And in bulk orders cost per unit became so less because of opportunities in consolidation of shipment for full truck load.