New DREF study highlights activity-based management
By Staff -- Industrial Distribution, 3/1/1998
Washington, D.C.--A new book on activity-based management that outlines pitfalls to avoid and offers successful case studies has been released by the National Assn. of Wholesaler-Distributors' Distribution Research & Education Foundation."Winning the Profitability Battle'' is a guide to wholesale distribution firms for identifying and implementing best practices in activity-based management. ABM helps companies reduce costs and increase profits by focusing on the management of activities as the route to provide value to customers.
NAW released the book in January in conjunction with Arthur Anderson, the global professional services firm. It expands on a 1995 industry trends report that found ABM was a shared practice among firms with the highest return on total assets.
"ABM is a way of looking at business from the operational viewpoint," says Steve Player, partner in charge of Arthur Andersen's cost management practice and the book's co-author. "It helps wholesaler-distributors identify and understand the true drivers of their profitability. Once they understand the work occurring in their companies, they can recognize the activities that add value and those that generate excess costs.''
The book features 30 pitfalls to avoid in implementing ABM and advanced distribution-specific applications. There is also a set of tools including a pilot project work plan, sample worksheets for analyzing activities and a comprehensive approach to assessing customer profitability.
It is available through NAW's publications department at 202-872-0885.
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