Examples of Serve (Distribution Company) Costs

Example 1:

One positive of online loans is that consumers can check on the progress of their loan applications. Quickenloans.com is one of the sites where this feature is available. (
Year-2000, SIC-6141)

The cost that Quicken incurs to provide this information is part of their Serve costs.

Example 2:

AmeriSource's success as a drug distributor is due to good cost control and a focus on customer service. "We empower our managers to make decisions at the distribution center level." (
Year-2001, SIC-5122)

AmeriSource’s spending to allow its local distribution center managers to handle customer problems is part of their Serve cost.

Example 3:

Neptune Orient is trying to transform one division of American President Lines' into a global origin-to-destination logistics company in which managing and tracking inventory are as important as hauling cargo over the sea. (
Year-2001, SIC-4412)

Neptune Orient has taken the Serve costs of managing and tracking inventory and made it into a separate, profit-making, business.

Example 4:

Best Buy is now offering the "Geek Squad," which is a nationwide team of repair and installation specialists. (
Year-2004, SIC 5900)

The “Geek Squad” is part of Best Buy’s Serve costs.