供应链成本核算方法.pdf

CostCost-toto-ServeServe.Project Sponsor:.ZZAgendaAgenda?.Project?ABC vs.CTS?CTS application in sourcing decision-making ProjectProject?Project Title:The design and construction of a decision-support tool for taking sourcing and supply chain route-to-market decisions in the clothing retail industry using real cost-to-serve data.?Objectives:?Literature research on Activity-based Costing and Cost-to-Serve?Using Cost-to-Serve techniques to build a decision-support tool that will guide sourcing decision for a specific clothing businessABC vs.CTSABC vs.CTS?Activity-based costing a powerful costing technique?Unsatisfactory application of ABC in supply chain management?New direction of ABC application?Beyond ABC Cost-to-Serve is a supply chain analytical tool based on activity-based methodologyNote:conclusions in this report are based on literature research,case-study,interview with experienced consultant and model analysisABC vs.CTSABC vs.CTSABC ABC a powerful costing techniquea powerful costing technique?Definition“is a methodology that measures the cost and performance of cost objects,activities and resources.Resources are assign to activities,then activities are assign to cost objects based on their use.Activity-based costing recognises the causal relationships of cost drivers to activities”(source:CAMI)?Cost allocationCost ObjectsCentreActivitiesCentreResourceCentreAccountAccountAccountAccountAccountAccountABC vs.CTSABC vs.CTSABC ABC a powerful costing techniquea powerful costing technique?Advantages:?ABC analysis enables managers to slice into the business many different ways by product,customer,or by distribution channel.?ABC methodology figures out and then quantifies causal relationships between cost objects and activities and between activities and resources.Cost drive is used to reflect this sort of cause-and-effect relationships;?ABC link a companys process and activities;ABC vs.CTSABC vs.CTSABC ABC a powerful costing techniquea powerful costing technique?Conclusion:ABC=Multi-facet cost information+reasonable causal relationships+process-based thinking_“has gained considerable attention as a potentialtool for evaluating supply chain performance through supply chain”(source:Lalonde&Pohlen)ABC vs.CTSABC vs.CTSABC ABC a powerful costing techniquea powerful costing technique?Expectation:Since 1990s,most firms expected the ABC application in logistics to produce results similar to those experienced in manufacturing.?Fact:not exciting!ABC vs.CTSABC vs.CTSUnsatisfactory application of ABC in supply Unsatisfactory application of ABC in supply chain managementchain managementABC Adoption(UK Survey Result)current user,18%currentlyconsidering,20%rejected afterassessment,15%had not considered,47%Source:Chartered Institute of Management Accountants 1999ABC Adoption(US Survey Results)considered,decidedagainst,12%planning stage,27%implementing,18%not considered,25%completed and inuse,18%Source:OSU Supply Chain Research Group 1998Conclusion:Adoption:low 18%Rejection:12-15%Hesitation:20%Not considered:25-47%ABC vs.CTSABC vs.CTSUnsatisfactory application of ABC in supply Unsatisfactory application of ABC in supply chain managementchain management?Motivation behind implementing ABCUKUSPurposeCost reductionCustomer ProfitabilityhighProduct/service pricingImprove cost systemPerformance measurement/improvementBenchmarkingCost ModelingBudgetingBudgetingPurchasing decisionsCustomer profitability analysis Outsourcing decisionsOutput decisionPricingNew product/service designSupply Chain decisionStock valuationReengineeringlowother applicationssource:Chartered Institute of Management Accountants 1999 OSU Supply Chain Research Group ABC vs.CTSABC vs.CTSUnsatisfactory application of ABC in supply Unsatisfactory application of ABC in supply chain managementchain management?Implementation Direction in FuturePlans to implement ABC elsewhere in firmslogisticsactivities,23%distributionchannel,16%marketing&sales,14%productionactivities,13%customeractivites,16%other,4%product costs,5%overhead,9%Source:OSU Supply Chain Research Group 1998ABC vs.CTSABC vs.CTSUnsatisfactory application of ABC in supply Unsatisfactory application of ABC in supply chain managementchain management?Reasons behind unsatisfied adoption?Perceived complexity of implementing and maintaining such a system?Using accounting measures can be important,but is not sufficient for the success of supply chain management?Debate on“decision”&“activity”who consumes resources?ABC vs.CTSABC vs.CTSNew Direction of ABC applicationNew Direction of ABC application?Voices of Practitioners“the newer,slimmer version(ABC)is focused on specific business issues so it needs to come from the logistics or marketing function,with support from finance”(KPMG Tom Anderson)“the huge database of the old-style ABC may be falling by the wayside,but the concept isntits hugely valuable to have the information to understand cost to serve for different products to different customers”(Mercer Les Artran)ABC vs.CTSABC vs.CTSNew Direction of ABC applicationNew Direction of ABC application?Cost-to-Serve“A more complete supply chain costing system must also capture the downstream costs trigged by customers and their products and service orders these are Cost-to-Serve”(source:Cokin)ABC vs.CTSABC vs.CTSBeyond ABC Beyond ABC CostCost-toto-Serve is a supply chain analytical Serve is a supply chain analytical tool based on activitytool based on activity-based methodologybased methodologyCost-to-Serve methodology(Source:LCP Consulting)ABC vs.CTSABC vs.CTSBeyond ABC Beyond ABC CostCost-toto-Serve is a supply chain analytical Serve is a supply chain analytical tool based on activitytool based on activity-based methodologybased methodologyproduct/marketing managersproduction/sales managersconsultantconsultantexpertiselogistics/supply chain managersaccountantMajor implementation General Ledger&transaction informationbalance to General LedgerInformation(such as products physical attributes)cost drivers&non-financial informationcost driversKey variableslogistics implication analysisgood at channel profitability analysis and otherChannel(?)Product CustomerProduct,CustomerProfitability analysis(only concerns supply chain costs)not full absorption costing considerationfull absorption costing considerationApproachactivity analysis&constraint theoryactivity analysisMethodologysenior managementsenior managementproduct&logistics(SCM)deptfinance&production dept.Major Userstactical decision support tool(logistics functions)strategic decision support toolstrategic decision support toollogistics/supply chain management toolaccounting toolsManagerial rolescustomer/channel profitability analysiscost allocation;budgetingMajor functionalitiesservice-orientatedcost-orientatedinternal view and external view of costinternal view of costPerspectivesparticularly in manufacturing companiesall companies supply chain mangement decisionall companies,Application AreasCost-to-serveActivity-based costingComparison of ABC and CTS application in supply chain managementABC vs.CTSABC vs.CTSBeyond ABC Beyond ABC CostCost-toto-Serve is a supply chain analytical Serve is a supply chain analytical tool based on activitytool based on activity-based methodologybased methodology?Channel Profitability“As major retailers,whole-salers,distributors,and manufacturers reconfigure their supply chain,all participants in the supply chain need to understand the revenue and cost trade-offs associated with the various channels through which they deliver products and service”(source:Deloitte&Touche,Kenneth)ABC vs.CTSABC vs.CTSBeyond ABC Beyond ABC CostCost-toto-Serve is a supply chain analytical Serve is a supply chain analytical tool based on activitytool based on activity-based methodologybased methodology?Channel Profitability Analysis(ABC)ActivityCostsMaterialCostsTotal Cost StructureProductBProductCProductDProductEProductAProductRelated CostProductAProductBProductDProductAProductCProductEProductBProductCProductDChannel AChannel BChannel C(Adopted from Kenneth)ABC vs.CTSABC vs.CTSBeyond ABC Beyond ABC CostCost-toto-Serve is a supply chain analytical Serve is a supply chain analytical tool based on activitytool based on activity-based methodologybased methodology?Channel Profitability Analysis(CTS)ActivityCostsNon-ActivityCostsTotal Cost StructureCustomerChannelProductRelated Cost(Adopted from Kenneth)CustomerChannelProductChannel AChannel BChannel CCustomerChannelProductCustomerChannelProductNote:non-activity costs:e.g.discounts,A/P,consolidation option,routes-to-market,etc.are not triggered by activities,but by decisions!ABC vs.CTSABC vs.CTSBeyond ABC Beyond ABC CostCost-toto-Serve is a supply chain analytical Serve is a supply chain analytical tool based on activitytool based on activity-based methodologybased methodology?Conclusion?For standard ABC,all costs are traced and allocated to products(products-driven)?For CTS,the restriction that all costs must be related to products is removed;the more accurate perspective(product-related,customer-related,channel-related)enable manager to understand cost differences interacting by any combination.?The previous two graphs are justified by CTS case study(4X4X3 case)and Oros Quick ABC package Cost-to-Serve:is a supply chain analytical tool,which uses process view&costing techniques to identify major issues across the chain(defined by Zhi Zheng)ABC vs.CTSABC vs.CTSBeyond ABC Beyond ABC CostCost-toto-Serve is a supply chain analytical Serve is a supply chain analytical tool based on activitytool based on activity-based methodologybased methodologyService-orientedCost-to-ServeValue Chain AnalyzerIntra-OrganisationInter-OrganisationSupply Chain Integrated costing?Collaboration-orientedChained Target costingLanded market priceServiceCost Cost-orientedStandard Activity-based Costing4 boxes supply chain costing modelCopyright:Zhi ZhengCTS application in sourcing decisionCTS application in sourcing decision-makingmaking?Definition of SourcingAccording to Vollman,the sourcing process includes a group of activities:finding sources of supply,guaranteeing continuity in supply,ensuring alternative sources of supply,gathering knowledge of procurable resources.?Objectives of Sourcing?Cost leverage?Supplier base selection and formulation?Quality control?Right performance metrics?Etc.CTS application in sourcing decisionCTS application in sourcing decision-makingmaking?Sourcing consideration(domestic against offshore)Domestic sourcing objective/advantagesOffshore sourcing objective/advantagesResponse time(28%)Low cost(57%)Flexibility(23%)Quality(24%)Design(18%)Innovation(13%)Innovation(15%)Design(4%)Quality(13%)Response time(2%)Cost(3%)(Source:Lowson)The results are based on European retailer sourcing behaviour,which indicates that sourcing domestically emphases on supply chain responsiveness and flexibility,while sourcing internationally takes advantages of cost issuesCTS application in sourcing decisionCTS application in sourcing decision-makingmakingLink to Decision Support toolThank You!Thank You!