Target Costing

Heading for an ecological production, precise specifications regarding a maximal amount of harmful substances emitted is needed. By defining a quantifiable goal for carbon dioxide on product component level, a precise evaluation of the current product-portfolio’s sustainability becomes feasible. Therefore incorrect practices on shop floor level can be observed and eliminated by appropriate and cost-efficient concepts. A structured calculation model for quantifying the sustainable carbon dioxide emission over the entire product life cycle is being developed: the Target Allowance. This enables production systems to implement ecological minimum requirements oriented on the absolute, global maximum loading.

Following increasing public demand, sustainability is currently on the agenda of every company. In particular for logistics, environmental considerations play an important role today. This manuscript will put forward the concepts of “green” and “greener” logistics and highlight the differences between the two. “Greener logistics” encompasses all approaches dedicated to increasing the resource efficiency of logistics processes. In this article a practical guide to implementing greener logistics will be outlined. In order to ensure customer focus, a target costing approach is suggested. Practical relevance is demonstrated with a case study.