Logistics cost and lead time reduction in operation of foreign trade using activity based costing: An action research

Abstract

This study objective to verify how the logistic costs and lead time in import and export operations can be reduced, using available resources and without any type of investment. Through a Research-action in a company from stationery goods segment by the application of Activity Based Costing ABC it was needed an analysis of activities and costs, besides the accurate cost drivers definition, as well as full knowledge of the influence of certain costs in others. As a result, there was obtained reduction of 21 days of lead time and 43% in the logistic costs in the export. Regarding the import operations the configuration originally used by the Nippon2 was totally changed, which got reductions by the application of the ABC. Changes did not cause trade-offs; but effective costs and lead times reduction, without any further investments.