Piotr Cyplik, Robert Uberman – ACTIVITY BASED COSTING AS A TOOL FOR EFFECTIVE USE OF OUTSOURCING IN SUPPLY CHAIN MANAGEMENT – CASE STUDY

Piotr Cyplik, Robert Uberman – ACTIVITY BASED COSTING AS A TOOL FOR EFFECTIVE USE OF OUTSOURCING IN SUPPLY CHAIN MANAGEMENT – CASE STUDY

Piotr Cyplik
Poznan School of Logistics, Poland
E-mail:
piotr.cyplik@wsl.com.pl


Robert Uberman
AFM in Kraków, Poland
E-mail:
ruberman@afm.edu.pl


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.


Key words: Activity Based Costing, make or buy analyses, outsourcing, supply-chain management

Last Update: October 26, 2017  

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October 26, 2017   284    BLMM 2017  
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