In part one of our two-part article series, we discussed how the time-driven Activity-Based Costing system is capable of capturing the full complexity of the supply chain activity costs of each shipment line in each phase of the supply chain. Based on these costs, we can now determine the optimal supply chain routing that leads to the lowest total end-to-end supply chain cost. Moreover, since the time-driven ABC system expresses the costs in units of time spent on a resource, we are able to combine it with the resource capacity constraints across shipment lines (e.g., production, transportation or storage capacity) that are fundamental in supply chain planning. This allows us to combine both the planning and costing criteria into one integrated supply chain optimization model. In this article we provide examples of time-driven ABC costing to demonstrate its effectiveness, describe the optimization model, and illustrate our integrated approach to optimize the total supply chain cost based on time-driven ABC through a simple example. Finally we validate the value and applicability of our integrated supply chain costing approach in the retail sector, based on a focused workshop and several individual discussions with retail companies and producers supplying to retail companies.