Track: Material Flow Cost Accounting

Abstract

Material Flow Cost Accounting (MFCA) enables the systematic identification of inefficiencies in material and energy use and it provides a valuation of these inefficiencies in the language of management – monetary units. In addition, the intended reduction of ‘wastes’ also decreases negative ecological impacts. MFCA’s basic methodology is described in the ISO standard 14051 and its effectiveness is demonstrated in numerous case studies. However, the analysis was restricted to single companies so far, hindering the identification and exploitation of inter-company potentials of resource efficiency. Seizing this shortcoming, the presentation firstly will discuss the challenges of an MFCA analysis on the inter-company and the supply chain level, respectively. These challenges can be classified as follows: (1) exchange of information, (2) motivation for participation, (3) consistency of data, (4) discontinuity of flows, (5) definition of system boundaries and (6) methodical issues of (inter-company) profit allocation. Thereafter, approaches for overcoming these hurdles and respecting their complex interrelations are presented in the second part. An outlook on the remaining methodical questions in this field will complete the presentation.