Consumer goods companies face rising service expectations from retailers post-COVID-19, with tighter delivery windows, increased penalties for noncompliance, and shifting definitions of "in-full" delivery. Although most companies have implemented cost-to-serve programs, only 17% recover more than 75% of these costs, leading to margin erosion. To address this, companies must align pricing with true service costs and collaborate with retailers on win-win solutions. In e-commerce, while supply chains are more prepared, profitability remains a challenge due to high logistics and advertising costs in online channels.

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