ACTIVITY BASED COSTING AS A TOOL FOR EFFECTIVE USE OF OUTSOURCING IN SUPPLY CHAIN MANAGEMENT – CASE STUDY

Piotr Cyplik () and Robert Uberman ()
Additional contact information
Piotr Cyplik: Poznan School of Logistics
Robert Uberman: AFM in Kraków

Business Logistics in Modern Management, 2017, vol. 17, 177-192

Abstract: The article presented herewith analyses Activity Base Costing usability to determine effective area and mode of outsourcing in supply chain based on a selected case. It is well established that ABC is a right method for establishing a comparable cost base for both typically considered generic scenarios: in-house and outsourced.Such comparison is to address a problem usually named as “make or buy”. However such analyses are often made on general level and results are automatically applied to all activities. Moreover often a possibility to improve in-house operations in overlooked. In the case presented the appropriate calculating model was created and based on it, authors show potential of ABC method in creation of various scenarios leading to enhance efficiency of a supply chain. It is demonstrated with use of real case (however altered for academic purposes) study in Central Europe in an FMCG industry. The article contributes to the existing body of knowledge on the application of ABC method to measure efficiency of managerial decisions regarding use of outsourcing in supply chains. With the model presented companies may define scope and price level of outsourced services.

Keywords: Activity Based Costing; make or buy analyses; outsourcing; supply-chain management (search for similar items in EconPapers)
Date: 2017
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.efos.unios.hr/repec/osi/bulimm/PDF/Busi ... ment17/blimm1712.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:osi:bulimm:v:17:y:2017:p:177-192

Access Statistics for this article

More articles in Business Logistics in Modern Management from Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia Contact information at EDIRC.
Bibliographic data for series maintained by Davor Dujak,PhD ( this e-mail address is bad, please contact ).