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- W2115164041 abstract "Before implementing cost transparency, firms should understand its requirements and implications. When firms implement cost transparency for the purpose of improving the supply chain efficiency, two methods are identified to reduce the total supply chain cost. First, exchanging costing information could support horizontal learning if it is used as input for discussions about the most efficient approach to perform certain activities. Second, when firms exchange costing information to identify duplications in the supply chain and conduct discussions about where activities can be performed efficiently, cost transparency could lead to vertical efficiency improvements. However, while implementing cost transparency in supply chains can contribute to the identification of efficiency improvements, firms must also understand that to achieve these efficiency improvements, roles and responsibilities in the supply chain will change. To realize the full potential of cost transparency, firms must give up control in order to improve supply chain efficiency and realize cost reductions. Therefore, firms must consider whether they trust their partners to act in the interest of the supply chain, even if it is not in the other’s own interest. This goodwill trust can support the successful implementation of cost transparency to improve the supply chain efficiency and realize cost reductions." @default.
- W2115164041 created "2016-06-24" @default.
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- W2115164041 date "2015-01-01" @default.
- W2115164041 modified "2023-09-27" @default.
- W2115164041 title "Implementing cost transparency - Designing a method for the implementation of cost transparency in a supply chain" @default.
- W2115164041 hasPublicationYear "2015" @default.
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