Supply Chain Cost Control Using Activity-Based Management

Supply Chain Cost Control Using Activity Based Management discusses the competitive advantage that cost analysis and management can bring to the companies within a supply chain. This book addresses a number of strategies for evaluating the total cost inherent in a customer-supplier relationship, using total cost of ownership, activity-based costing, and activity-based management for analyzing and controlling supply chain costs. It combines game theory with survey results to suggest cost reduction strategies in competitive environments and predict the outcomes of these strategies. This text shows the importance of partnerships in applying activity-based management principles to suppliers.

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.

ACTIVITY-BASED MANAGEMENT AND TOTAL COST OF OWNERSHIP - AN OVERVIEWIntroduction ReferencesMAJOR TRENDS IN SUPPLY-CHAIN INNOVATIONS Introduction Influencing the Manufacturing EnvironmentThe Acceleration PrincipleLead Time and Inventory Reduction SyndromesSupply-Chain Structure ReferencesELEMENTAL TASK LEARNING CURVES IN A PRODUCTION LINEIntroduction Learning Curves Balancing Cycle Times Interrelationships of Elemental Task Learning Curves and Line BalanceOrganizational LearningConclusion RecommendationReferencesOFFSHORING KNOWLEDGE WORK TO INCREASE SHAREHOLDER VALUE Introduction Knowledge Work Drivers of Knowledge Work OffshoringBenefits to BusinessEconomic Implications Drawbacks and Risks Offshore Locations Case Study Conclusion ReferencesINTEGRATED TOTAL COST OF OWNERSHIP AND ACTIVITY-BASED MANAGEMENT PROCESS MODELIntroduction Literature Analysis Process ModelsHypothetical ModelGame Theory ReferencesMETHODOLOGY FOR ANALYSISIntroduction The Survey Construct Data AnalysisANALYSIS AND FINDINGSIntroduction Hypothesis TestingResults Game Theory Analysis CONCLUSIONS AND RECOMMENDATIONSAppendix A: Survey InstrumentAppendix B: Survey Data Index