ABSTRACT
Tracy Randall, president and founder of Cooking.com, –nished reading the article “e Hidden Cost of Clicks” and laid down the copy of strategy+business magazine on her desk. She re®ected on the advice in the article and her recent e˜orts to develop a deeper “cost-to-serve” understanding in her company. e need for continued sales growth, coupled with the necessity of keeping costs down, put pressure on Randall to make sure that the company’s capacityconstrained ful–llment center carried products that o˜ered the greatest pro–t potential, not just the highest gross margins. e company was already operating with a variety of ful–llment models, but she was not sure whether Cooking. com had the optimal mix.
