|2010||2014||2018 AND BEYOND|
|Methods||Low Cost Sourcing||Total Cost of Ownership||Dynamic Sourcing|
|Drivers||Material Cost Reduction||Landed Cost||Quicker Response to Market|
|Benefits||Instant Cost Reduction||E2E Reduction||Agile: Adapt to Change|
Independent of the condition of the economy, at any point, there is an increasing need within organizations, in every industry, to have more transparency across the overall supply chain costs and the factors that influence it. Activity Based Management (ABM) is a technique used to provide this visibility, and thereby help improve strategic and operational decisions in the organization. ABM involves identifying activities that a business performs, and carrying out a value chain analysis, using Activity Based Costing (ABC).