Strategic Activity-Based Management
Large opportunities for cost savings can come from upstream operations. By understanding the costs associated with ordering, receiving, inspecting, moving, storing, and paying for materials, companies can make better decisions in choosing the lowest total cost suppliers, not just the lowest price suppliers. Upstream operations in time give managers the best opportunities for cost reduction during product design and development. This chapter extends strategic activity-based management (ABM) back in the value chain to suppliers and to product designers and developers.
- 1997 HBS Press
- Book Quality:
- Harvard Business Publishing
- Date of Addition:
- Business and Finance, Nonfiction,
- Usage Restrictions:
- This is a copyrighted book.
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