Supply Chain Accounting 2 Flashcards
Value Chain Analysis (Porter’s 1985)
Term value chain was used by Michael Porter.
The Chain analysis describes the activities the organisation performs and links them to the organisations competitive position .
VCA describes the activities inside and outside (intra and inter-organisational), linking them to the competitive strength of the company (or supply chain)
VCA
evaluates which value each particular activity adds to the organisations products or services.
Porter distinguishes between primary activities and support activities
Primary Activities = directly concerned with the creation or delivery of a product or service.
Support Activities = Provide Support for the Primary activities
Lind and Stromsten (2006) Customer Accounting
Integrative, Connective, Facilitative, Transactional
Tom Clark Is Fun
Transactional Relationships
Customer Relationship: (Low technical and organisational interfaces) involve commodity products with standardised features.
Customer Accounting: in customer segment profitability analysis the object of measurement is a group or segment of customers. The segmentation can be based on variables such as purchasing behaviour, geographic location, demographic variables.
Facilitative Relationships
Customer Relationship: (Low technical but high organisational interfaces) products that differ only marginally from standardised ones.
Customer Accounting: customer profitability analysis measures customers’ contributions to a firm’s profits. It identifies the difference between the revenues and costs (accrual based) or a customer over a period of time.
Integrative analysis
Customer relationship: (high technical and organisational interfaces) involve products that are dedicated to specific customer and are often developed in close cooperation with the customer.
Customer Accounting: Lifetime customer profitability analysis. The revenues and costs associated with a specific customers are simply added together using a time horizon that extends beyond normal annual measurement.
Connective Relationships
Customer Relationship: (High Technical interface and low organisational interface) involve highly customised products so the firm invest a considerable amount of time and resources with the customer.
Customer Accounting: Customer valuation analysis treats customers as assets that will yield revenue in the future. The economic value of a specific customer is denoted by customer lifetime value analysis, which is the present value of the presumed future cash flows derived from the relationship with the customer.
Reverse Logistics
A process that goes the ‘wrong’ / revers way, from consumption to the point of origin to recapture value or ensure proper disposal.
Moving from ‘Cradle to Grave’ to ‘Cradle to Cradle’
Circular Economy
Omni Channel
Defined as a multichannel sales approach that provides the customer with an integrated shopping experience. The customer can be shopping online from a desktop or mobile device, or by telephone and the experience would be seamless.
Quality Costing in the reverse logistics area
Cost of Prevention, Cost of Appraisal, Cost of Internal Failure, Cost of External Failure.
