ISO and ABC: Complements or Competitors?

ISO 9000 and Activity‐Based Costing (ABC) are two useful tools for logisticians. Both of these tools can support efforts to improve customer service and/or reduce total costs. Using survey and case study methods, we investigate whether these two techniques are implemented together as complements, are kept separate, or are considered competitors for scarce resources (money, time and talent). The survey revealed that relatively few firms are using both ISO and ABC. Moreover, respondents from firms in which either ISO or ABC were implemented reported higher performance levels than those firms where both were used. Results of the case study suggest that practicing logisticians view ISO 9000 and ABC as separate initiatives. While the quality systems group led the charge to ISO registration, finance and accounting implemented the ABC model. The case firm did little to exploit potentially complementary aspects of the two tools. Indeed, there is evidence that ABC and ISO 9000 actually competed for managerial attention.