Tracy Randall, president and founder of Cooking.com, examines the concept of “cost-to-serve” in their e-commerce companies. The need for further sales growth, the need, the cost is coupled held low, puts pressure on Randall to ensure that the company that carries the capacity constrained fulfillment center products that offer the greatest profit potential not only the highest gross margin . The company is already working with a variety of models fulfillment, but she is not sure … Read more »

Tracy Randall, president and founder of Cooking.com, examines the concept of “cost-to-serve” in their e-commerce companies. The need for further sales growth, the need, the cost is coupled held low, puts pressure on Randall to ensure that the company that carries the capacity constrained fulfillment center products that offer the greatest profit potential not only the highest gross margin . The company is already working with a variety of models fulfilling, but it is not sure whether Cooking.com has the optimal mix.
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from
Timothy M. Laseter,
Elliot Rabinovich
Source: Darden School of Business
12 pages.
Publication Date: Mar 08, 2001. Prod #: UV3562-PDF-ENG
Cooking.com HBR case solution

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