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This article was reviewed and approved by the Governing Board of the American Society for Gastrointestinal Endoscopy (ASGE).

EXECUTIVE SUMMARY Historically, safety in the gastrointestinal (GI) endoscopy unit has focused on infection control, particularly around the reprocessing of endoscopes. Two highly publicized outbreaks where the transmission of infectious agents were related to GI endoscopy have highlighted the need to address potential gaps along the endoscopy care continuum that could impact patient safety.

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The purpose of this research paper is to help managers improve their understanding of logistics costs and the accounting for those costs in order to optimize use of the total cost approach to managing logistics processes. This paper will discuss the history and evolution of logistics management and activity‐based costing (ABC), the driving cost factors affecting the key logistics activities, and the use of ABC systems to help improve the allocation of logistics costs to specific cost objects. This paper also includes several important managerial implications and implementation techniques for an ABC system.