Traditional cost accounting as the key obstacle to reach sustainable SCM solution in the industry of the 3rd millennium

Abstract

Competitive long term market position cannot be reached by a particular solution in terms of low price or high quality or just innovative products. A system solution fulfilling the current customer demand should be based on the respectful utilization of scarce resources. 20th century creates successful production and accounting systems unique for the industrial development. Traditional cost accounting (TCA) was developed to work with the traditional mass supply chain management concept of customer satisfaction. To successful cost efficiency measuring of the Sustainable SCM concept in the industry of the 3rd millennium, new accounting methods must be used.