Archive for activity-based costing

Less-than-truckload Carriers Struggle to Effectively Price their Shipments

Effectively pricing shipments in the less-than-truckload industry is fiendishly difficult. Leading LTL carriers talk about their approach to this issue.

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Do You Know What the Total Cost to Serve Your Customers Really Is?

For more than a decade, I’ve been a fan of using granular cost-to-serve analytics to make better business decisions. Traditional accounting systems provide a distorted lens on the true costs of serving customers. In contrast, Activity Based Costing (ABC) solutions gather granular data on customer profitability based on the true costs of fulfillment for a stock keeping unit (SKU) as it moves through a supply chain. But until recently, the ABC market was served by […]

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The Power of Business Charts: The Leviathan, Price Waterfalls, and Cost Locks

The most entertaining, and perhaps most acute, business book that I’ve read in several years is “The Management Myth: Why the ‘Experts’ Keep Getting It Wrong” by Matthew Stewart (you can read a short book review by Andrew O’Connell at HBR online). Matthew is a cynical ex-consultant who reports on the methods consultants use to win business, debunks management theory, and provides a strong cautionary tale for anyone contemplating a consulting career.    According to Matthew, consultants […]

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