Activity Based Costing

Transcription

1 ABC 2 Store logistic engineering tool Activity Based Costing Insight in costs of logistics processes Supply chain management Assets & facilities Sourcing Customer Warehousing & distribution Manufacturing GW ref. 9026X037 V1.0 Transportation

2 A. Benefits ABC 2 Store B. Why ABC 2 Store? C. Model structure D. Results ABC 2 Store - V1.0 Page 2

3 A. Benefits ABC 2 Store B. Why ABC 2 Store? C. Model structure D. Results ABC 2 Store - V1.0 Page 3

4 Benefits ABC 2 Store Implementing and maintaining ABC 2 Store will give you insight in your logistics costs Leading to: Transparency in logistics processes Chain optimization Purposeful cost savings Costs per process / product / / product group / customer ABC 2 Store - V1.0 Page 4

5 Benefits ABC 2 Store? ABC 2 Store logistic engineering tool Leads to transparency in your costs This will support your company in in making well-founded commercial choices ABC 2 Store - V1.0 Page 5

6 A. Benefits ABC 2 Store B. Why ABC 2 Store? C. Model structure D. Results ABC 2 Store - V1.0 Page 6

7 Why ABC 2 Store? Logistics costs determine 5-40% of the sales price Elements of sales price Production Opportunities for savings Profit Logistics Marketing Insight Insight in in logistics costs costs often often not not available No No control on on process-,, customer- or or product level level Consequence: 20% 20% of of products, customers give give 120% 120% of of profit, profit, the the other other 80% 80% give give losses losses ABC 2 Store - V1.0 Page 7

8 Why ABC 2 Store? Manufacturer / Distributor Logistics Service provider Insight in costs: What tariff structure should I use? What is the cost price of my products? Which products / customers are costeffective? Purposeful savings: In what order should process improvements be made? What is the cost of changes in logistical design? Chain optimization: What is the effect of a changed order profile? What is the best mix in optimizing warehousing and purchasing? All All these questions, and and many others, efficiently answered by by ABC 2 Store ABC 2 Store - V1.0 Page 8

9 A. Benefits ABC2Store B. Why ABC2Store? C. Model structure D. Results ABC 2 Store - V1.0 Page 9

10 Model structure Input Activities, cost units, Running costs ABC 2 Store logistic engineering tool Output Costs per activity Costs per unit ABC 2 Store - V1.0 Page 10

11 Model structure The The model model can can handle handle various various levels levels of of details details e.g.: e.g.: On On cost cost unit unit level level (orders, (orders, orderlines, orderlines, pallets pallets etc) etc) On On process process level level (inbound, (inbound, picking, picking, outbound outbound etc) etc) Unloading Loading Receiving Receiving check Count QC Adm. Put away Transport Admin. The The level level of of detail detail depends depends on on the: the: Process Process Target Target Expected Expected added added value value ABC 2 Store - V1.0 Page 11

12 Model structure Example running costs RUNNING COSTS Indirect personnel costs 302,400 Operational personnel costs 1,831,200 Internal transport 1,242,734 depreciation 556,200 maintenance 194,670 interest costs 491,864 Storage systems 129,360 depreciation 107,800 maintenance 21,560 interest costs 0 Building 1,899,670 depreciation 659,060 maintenance 308,438 interest costs 633,768 energy 298,404 Other costs 1,170,495 land, infrastructure depreciation 11,100 maintenance 1,665 automation and other depreciation 952,405 maintenance 205,325 rent other facilities 0 TOTAL RUNNING COSTS 6,575,860 ABC 2 Store - V1.0 Page 12

13 Model structure Example equipment and FTEs LEVEL 1 DEVIATION OVER ACTIVITIES Operational FTE's Receiving Storage Orderpicking Shipping Quantity in Number of FTE's Internal transport Combi truck Reachtruck Forklifttruck Orderpicktruck Pallettruck electrical Orderpickpushcar Tote conveyor Number Number Number Number Number Number Percentage of total ABC 2 Store - V1.0 Page 13

14 Model structure Example flows LEVEL 1 ACTIVITY AND UNIT OF MEASUREMENT Activity Unit of measurement Quantity Receiving with unit of measurement Incoming lines Quantity per year 106,750 Storage with unit of measurement Article numbers Quantity per year 9,700 Orderpicking with unit of measurement Outgoing orderlines Quantity per year 1,067,500 Shipping with unit of measurement Outgoing orders Quantity per year 168,500 ABC 2 Store - V1.0 Page 14

15 Model structure Example building and storage LEVEL 1 COSTS FOR BUILING, STORAGE AND OTHERS Receiving Storage Orderpicking Shipping Quantity in Building Percentage Storage Percentage Others Percentage ABC 2 Store - V1.0 Page 15

16 A. Benefits ABC2Store B. Why ABC2Store? C. Model structure D. Results ABC 2 Store - V1.0 Page 16

17 Results Percentage of costs per activity shipping 28% receiving 25% orderpicking 33% storage 14% receiving storage orderpicking shipping Comparison in costs and turnover per product group x EUR Product gr. X Product gr. Y Product gr. Z Total Costs per product group Turnover per product gr. ABC 2 Store - V1.0 Page 17

18 Results Build up of operational costs FTE's 57% PROFIT 5% OTHER 23% STORAGE 5% FTE's BUILDING OTHER BUILDING 5% INTERNAL TRANSPORT 5% INTERNAL TRANSPORT STORAGE PROFIT ABC 2 Store - V1.0 Page 18

19 M A K I N G SU P P L Y CH A I N S YO U R CO M P E T I T I V E A D V A N T A G E!