Authors: Marko Seppanen, Petri Suomala
Addresses: Institute of Industrial Management, Tampere University of Technology, P.O. Box 541, FIN-33101 Tampere, Finland. ' Institute of Industrial Management, Tampere University of Technology, P.O. Box 541, FIN-33101 Tampere, Finland
Abstract: The primary aim of the paper is to indicate the effects of e-business on the costs of supply chain activities. The empirical data have been collected through a case study in a B2B wholesaler company. In order to analyse the cost effects of e-business solutions in a logistic chain, it is imperative to conduct a cost analysis across several activities. The calculation of both the total activity costs and the unit costs of activities was carried out by activity-based costing. As is quite often supposed, the results obtained indicate that the unit cost of a web-based order entry was lower than the unit costs of other sales channels. The ratio was approximately 1:6, respectively. However, order processing entails only a small part of the order|s total costs. An assessment of the total cost effects of e-business requires that the cost structure of the environment be well understood.
Keywords: e-business; cost management; supply chain management; management accounting; activity-based costing.
International Journal of Electronic Business, 2003 Vol.1 No.4, pp.347 - 357
Published online: 30 Mar 2004 *Full-text access for editors Access for subscribers Purchase this article Comment on this article