Cost management and value creation: the missing link

McNair, Carol; Polutnik, Lidija; Silvi, Riccardo

doi:10.1080/0963810020025321

Cited by 19 publications

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“…Supplier cost analysis is a set of interorganizational activities for acquiring information and understanding how a supplier's costs relate to the value provided to a buyer (McNair et al. ; Zsidisin et al. ).…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Coping With Dependence: A Logistics Strategy Based on Interorganizational Learning for Managing Buyer–Supplier Relations

Kull

Ellis

2016

J of Business Logistics

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T he rise of outsourcing has heightened interest in the role of logistics managers in coping with dependence in buyer-supplier relations. Buying firm dependence on a supplier potentially reduces supplier performance to expectations because the buying firm cannot leverage power to capture value in the relationship. Drawing from interorganizational learning theory, we advance a logistics strategy that consists of supplier cost analysis and supplier integration as a means to create value and thereby mitigate the negative effects of dependence. By facilitating the acquisition and use of knowledge, supplier cost analysis and supplier integration enable buying firms to identify improvement opportunities while engaging in collaborative supplier relations. Using survey responses from 222 buying firms, we find that while buyer dependence decreases the buyer's perceived supplier performance, supplier integration suppresses these negative effects. Furthermore, we show that supplier cost analysis is a valuable knowledge acquisition tool that logistics managers can use to enable supplier integration as a relational form of governance. As such, we provide new insights into interorganizational learning theory and suggest to logistics managers the important role supplier cost analysis plays in managing buyer-supplier relationships.

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Section: Hypothesis Developmentmentioning

confidence: 99%

Coping With Dependence: A Logistics Strategy Based on Interorganizational Learning for Managing Buyer–Supplier Relations

Kull

Ellis

2016

J of Business Logistics

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“…A supposer que le problème de la définition de la valeur pour le client soit résolu, il faut maintenant voir dans quelle mesure il est possible de relier cette valeur aux coûts qui ont été mis en oeuvre pour la générer afin d'être en mesure de gérer non seulement des coûts comme nos « ancêtres du XX ème siècle » le faisaient mais des couples coûts-valeur. McNair et al(2001)…”

Section: Les Tentatives Du Controle De Gestion Pour Coupler Couts Et unclassified

“…Après avoir montré rapidement les limites des outils de comptabilité de gestion destinés à comprendre les relations entre coût et valeur, McNair et al (2001) Pour Lorino, la mise en relation des coûts et de la valeur créée se heurte à deux difficultés : d'une part, il y a un décalage dans le temps entre des coûts qui sont immédiats et une valeur qui ne se produira nécessairement que plus tard, lorsque le client achètera le produit (Lorino, 1989, p. 155); d'autre part, du fait de l'organisation du travail en entreprise, une activité correspond rarement à une fonctionnalité attendue par le client : « Il faut en général combiner plusieurs activités de manière souvent complexe pour produire une fonction et une activité donnée contribue à l'obtention de plusieurs fonctions distinctes » (1995a, p. 59). Ainsi, pour Lorino, « c'est la nature sociale (division du travail) et diachronique (étalement dans le temps) de la création de valeur qui rend la correspondance fonction/activité problématique.…”

Section: La Proposition De Mcnair-polutnik-silviunclassified

“…Parmi les tentatives les plus connues, on peut citer le coût cible et le management des activités et des processus. Une certaine ambition s'observe dans ce domaine comme on peut le constater à la lecture de quelques titres d'articles ou de communications : « Le déploiement de la valeur par les processus » (Lorino, 1995a), « Simultaneaously managing cost and value: The challenge » (Lebas, Mévellec, 1999), « Cost mangement and value cration: the missing link » (McNair et al 2001).…”

Section: Introductionunclassified

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Peut-on gérer le couple coûts-valeur ?

Malleret¹

2009

Comptabilité Contrôle Audit

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La communication conteste la possibilité de gérer conjointement les coûts et la valeur créée pour le client. Elle constate dans un premier temps qu'il n'existe pas de consensus sur la définition de la valeur. Elle montre ensuite que la notion de client n'étant pas homogène, la valeur pour le client sera au minimum variable et instable. Enfin, la communication étudie deux outils (le target costing et la méthode ABC/ABM) présentés par la littérature comme susceptibles de construire une relation entre les coûts et la valeur, et elle montre que ces outils n'établissent que de façon très imparfaite un lien entre les attributs du produit qui sont à l'origine de la valeur et les coûts mobilisés pour produire ces attributs.

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“…For example, these factors may essentially promote the capability of a firm to create value added appreciated by the customers, which enables the setting of product prices that are above the level of standard commodities. To reach the profit potential of a firm and to win out in the global business environment, managers must understand the relationship between the costs of the company and the value the company provides to its customers (McNair et al 2001).…”

Section: Implications For Lm Sawmill Management In Resource Pool Builmentioning

confidence: 99%

Assessing the resource usage decisions and financial performance in Finnish sawmills within the resource-based view framework

Lähtinen¹

2009

Diss. For.

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Lähtinen, K. 2009. Assessing the resource usage decisions and financial performance in Finnish sawmills within the resource-based view framework. 40 p. Dissertationes Forestales 89. Available atThe business environment of Finnish sawmills has changed notably since the 1990s due to the internationalization of operations and increased competition from the emerging producer countries. Especially for the sawmills in higher cost-level countries, the ability to create value with special products and providing customer services have been emphasized as crucial to business success towards the present date. Still, empirical evidence of those linkages between the strategic choices and the competitiveness of woodworking firms is largely lacking.The purpose of the study is to examine, within the resource-based view (RBV) framework, the impacts of resource usage decisions on the financial performance of Finnish large-and medium-sized (LM) sawmills in the 2000s. The study materials comprise literature, firm-level financial accounting information and interview data analysed with a literature review, a regression analysis and the multi-criteria decision analysis (MCDA) method.According to the results, resources associated with access to raw material, reputation and services, collaboration and technological know-how have affected the financial performance of LM sawmills the most during the current decade. Reputation, services and collaboration have the highest strategic potential while the strategic capacity of raw material and technological know-how in enhancing the competitiveness of LM sawmills is more ambiguous. The resource valuations of the managers and the actual influence the resources have had on LM sawmills' financial performance have not corresponded in all cases. Some of the managers' least valued resources have actually been strategic resources for sawmills and vice versa.The results indicate that, when seeking solutions to enhance sawmills' competitiveness, managers should also take into account the less conventional resources in the strategic planning processes of the firms. Compared with this study, the results could be generalized in the future by gathering interview data from a larger sample and by increasing the number of accounting periods in performance measurements. In addition, since the challenges of the global business environment are similar for all woodworking companies operating in the higher cost-level areas, new research information could also be acquired by gathering comparable homogenous firm-level data from several countries.

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Cost management and value creation: the missing link

Cited by 19 publications

References 0 publications

Coping With Dependence: A Logistics Strategy Based on Interorganizational Learning for Managing Buyer–Supplier Relations

Coping With Dependence: A Logistics Strategy Based on Interorganizational Learning for Managing Buyer–Supplier Relations

Peut-on gérer le couple coûts-valeur ?

Assessing the resource usage decisions and financial performance in Finnish sawmills within the resource-based view framework

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