TransportGistics

Executive Summary

For the most part, the industrial world has perfected the science of cost accounting. Assigning a cost to, at least every description in the general ledger, creates a new perspective and offers new dimensions and dynamics for the micrologistics component, transportation. These dimensions and dynamics will provide fresh insights and actionable opportunities.

In our previous white paper, “Convergence, the Combined Power of Micrologistics and Wireless Technology” we identified that, “Convergence is the coming together of like and disparate knowledgebases, skill sets and disciplines”. Additionally, two of our other white papers, “The Dichotomy of Logistics” and “Logistics is not a Chain” specifically demonstrated that economics and logistics could be considered essential partners; they are the most likely candidates capable of solving business equations with the intended results of creating new paradigms and achievements that would be otherwise unachievable.

An adjunct to the logistics/economics convergence is “accounting”. “Accounting” is described as the science that manages money and other assets. Amongst its many capabilities, accounting delivers the fundamental key concepts and those specialized techniques that are uniquely capable of identifying, examining, analyzing, and presenting transportation’s finance potential. “Cost accounting” is that specific accounting activity that applies a “cost” to every detail of any kind that could possibly appear in a general ledger. As used in this white paper, the cost accounting principles and methods will be considered as a tool for freight transportation.