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A Better, Easier Way to Improve Warehouse Operations

This article looks at the results 10 companies have achieved through using Resource Based Costing, a quicker, lower-cost, less complex new approach to understanding how to operate most efficiently and profitably. The approach was developed by a former McKinsey Consultant who studied under Dr. Robert Kaplan at Harvard Business School and has produced double-digit increases in profitability for the companies listed in this article as well as hundreds of other companies in a variety of industries. Charles Schwab, Sysco Foods, and Fisher Scientific are using this methodology, as are the leading companies in the tight-margin distribution industries in which the approach first met widespread adoption. The 10 case studies that follow illustrate how Resource Cased Costing (RBC) was applied to a number of different challenges within the warehouse setting. Among the companies common beliefs was greater customer profitability.