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Discovering mutual supplier and distributor enhanced profitability through industry supply‐chain collaboration
Author(s) -
MacArthur John B.,
Waldrup Bobby E.
Publication year - 2006
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.20263
Subject(s) - profitability index , competitor analysis , business , supply chain , industrial organization , activity based costing , distributor , value (mathematics) , marketing , operations management , commerce , economics , finance , computer science , engineering , mechanical engineering , machine learning
This article profiles a major contact lens manufacturer that sponsors an independent activity‐based costing (ABC) study for two of its largest wholesale distributors in an effort to better illuminate the “true” profitability of its own products—and competitors'—for the distribution channel.The results show how an intercorporate ABC analysis can improve profitability throughout an industry's supply (or industry's value) chain. © 2006 Wiley Periodicals, Inc.