Supply chain management and activity-based costing

Costing Methods for Supply Chain Management

Today's organizations, operating in an increasingly competitive conditions, are characterized by a network of relationships with suppliers and customers. Thus, the key resources, being a source of competitive advantage, are located not only within the organization but are part of network relationships. The most important task of managers is to achieve supply chain cost efficiency while maintain...

Applying activity-based costing in a supply chain environment

Traditional intra-firm cost accounting tools are not appropriate in the context of supply chain management, as there are no standards for the definition and composition of costs. This prohibits exchange and comparison of cost data among different supply chain members. Against this background, several activity-based costing models for inter-firm cost accounting have been proposed. Evaluating the...

Activity-Based Costing in Supply Chain Cost Management Decision Support Systems

Issues in Supply Chain Costing

Introduction There is ample evidence in the literature and in business practice, that the competitive playing field is changing very rapidly. Firms are using the term “Supply Chain” to describe a business process which is focused on relationship outside the enterprise, and in bringing maximum value to the end consumer. This shift from a “zerosum” mentality with vendors and middlemen does not pr...

Activity Based Costing in the Supply Chain Logistics activities cost analysis

After some considerations of the application of cost to logistics activities, the conclusions we want to draw are that through the use of cost measurement systems on performance based on activities, it is possible to identify the opportunities to reengineer the collaboration inter-company processes with the aim of reducing operating costs and thus improve the company’s performance. Francesca Ba...