
MEASURIN G LOGISTICS COSTS AND P ERFORMANCE
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Probably one of the main reasons why the adoption of an integrated approach to
logistics and distribution management has proved so difficult for many companies
is the lack of appropriate cost information. The need to manage the total distribu-
tion activity as a complete system, having regard for the effects of decisions taken
in one cost area upon other cost areas, has implications for the cost accounting
systems of the organisation. Typically, conventional accounting systems group
costs into broad, aggregated categories which do not then allow the more detailed
analysis necessary to identify ...