Using Material Flow Cost Accounting (MFCA) for Eco-efficiency in Production and Supply Chains: A Case StudyMarie Zieglerová

30 August 2019

Material flow cost accounting (MFCA) is becoming a widely used tool for sustainable practices especially in production; allowing companies to identify material and energy losses and measures to avoid or diminish them. However, the successful implementation of such a tool, and by extension sustainability in general, is contingent upon internal and external environments of the company. The purpose of this study was to apply material flow cost accounting into the production and supply chain processes of a food packaging company, and thereafter, with the research lenses of contingency theory, recognize internal and external enablers and barriers of the implementation. Moreover, connections between production and supply chain were being investigated. A quantitative research method was applied when carrying out MFCA analysis, which was extended by a qualitative research method when investigating influential factors of implementing sustainability. The findings of the study showed that the food packaging company is greatly contingent upon internal enablers and barriers to sustainability. Additionally, strong alignment between factors important for both production and supply chain was discovered, expanding on current literature. In conclusion, the study proved that contingency is a suitable approach to exploring supporting and limiting factors of implementing sustainability in both production and supply chain.