Supply Chain Cost Control Using Activity-Based Management

Discusses the advantage that cost analysis and management can bring to companies within a supply chain. This book addresses strategies to evaluate the total cost inherent in a customer-supplier relationship, using total cost of ownership, activity-based costing, and activity-based management (ABM) for analyzing and controlling supply chain costs.

Having an accurate assessment of company expenditures is a key to staying in business. Activity-based management (ABM) is the only system that offers the tools to correctly assess the outflow involved in a tightly knit supply chain and enables understanding not only of the total cost of ownership (TCO), but also how these costs should be allocated. Supply Chain Cost Control Using Activity-Based Management discusses the competitive advantage that cost analysis and management can bring to companies within a supply chain.

Addressing a number of strategies to evaluate the total cost inherent in a customer-supplier relationship, this book uses TCO, activity-based costing (ABC), and ABM to analyze and control supply chain costs. It employs industry survey data to examine whether these techniques are being used in real life, which factors affect their usage in the supply chain, and whether they are producing results. Combining survey results with game theory, the authors suggest cost reduction strategies for competitive environments and predict the outcomes of these strategies. This cost-effective system helps businesses remain competitive and profitable.

Supply Chain Cost Control Using Activity-Based Management shows the importance of partnerships in applying ABM principles to suppliers and demonstrates the positive results that ABM can have on elements of the TCO.