What is this ISO 14052 - Material flow cost accounting (MFCA) in a supply chain about?
ISO 14052 discusses environmental management with a focus on material flow cost accounting (MFCA) for practical implementation in a supply chain. ISO 14052 provides guidance for the practical implementation of material flow cost accounting (MFCA) in a supply chain.
MFCA fundamentally traces the flows and stocks of materials within an organization, quantifies this material flows in physical units (e.g., mass, volume), and evaluates the costs associated with material flows and energy uses. MFCA is applicable to any organization that uses materials and energy, regardless of its products, services, size, structure, location, and existing management and accounting systems. In principle, MFCA can be applied as an environmental management accounting tool in the supply chain, both upstream and downstream, and can help to develop an integrated approach for improving material and energy efficiency in the supply chain.
ISO 14052 is based on the principles and general framework for MFCA described in ISO 14051. The MFCA framework presented in ISO 14052 includes scenarios for improving material and energy efficiency in a supply chain, principles for successful application of MFCA in a supply chain, information sharing, and practical steps for the implementation of MFCA in a supply chain.
Who is ISO 14052 - Material flow cost accounting (MFCA) in a supply chain for?
ISO 14052 on MFCA for practical implementation in a supply chain is useful for:
- Environmental Management Systems managers
- Environmental consultants and specialists
- Government authorities
- Risk evaluation executives
Why should you use ISO 14052 - Material flow cost accounting (MFCA) in a supply chain?
MFCA improves existing supply chain management information sharing, communication mechanisms, and management practices between suppliers and the purchasing department of organizations, which is the key connector between suppliers and customers.
ISO 14052 aims to provide guidance for the practical application of material flow cost accounting (MFCA) in supply chains. MFCA is an environmental management accounting tool that assists organizations in creating a better understanding of their material and energy uses, the losses, and the associated costs caused by material inefficiencies.
ISO 14052 provides guidance on the following topics:
- The significance of integrating MFCA between organizations
- A general approach for enhancing material and energy efficiency in the supply chain
- Steps for implementing MFCA in the supply chain