Chap 001
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- Words: 642
- Pages: 12
1-1
JAMES R. STOCK
♦ DOUGLAS M. LAMBERT
McGraw-Hill/Irwin
STRATEGIC LOGISTICS MANAGEMENT FOURTH EDITION
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
CHAPTER 1 Logistics’ Role in the Economy and the Organization
Logistics Management Defined
1-3
That part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point-of-origin to the point-of-consumption in order to meet customers’ requirements. Council of Logistics Management
McGraw-Hill/Irwin
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Components of Logistics Management Inputs into logistics Natural resources
Management actions Planning
Human resources Suppliers Financial resources Information resources
McGraw-Hill/Irwin
Implementation Logistics management
Raw In-process materials inventory
Finished goods
Control
Outputs of logistics Competitive advantage
Time and Customers place utility
Logistics activities Customer service Demand forecasting Inventory management Logistics communications Material handling Order processing Parts and service support
1-4
Plant & warehouse site selection Procurement Packaging Reverse logistics Traffic and transportation Warehousing and storage
Efficient movement to customer Proprietary asset Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Marketing/Logistics Management Concept
1-5
Customer satisfaction •Suppliers •Intermediate customers •Final customers
Integrated effort •Product •Price •Promotion •Place (distribution)
McGraw-Hill/Irwin
Company profit
•Maximize long-term profitability •Lowest total costs given an acceptable level of customer service Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Cost Trade-offs in Marketing and Logistics Price
Order processing and information costs
LOGISTICS
Place/customer service levels Inventory carrying costs
MARKETING
Product
1-6
Transportation costs
Lot quantity costs
Warehousing costs Order processing and information costs
McGraw-Hill/Irwin
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Relationship of Logistics Activities to Logistics Costs • • • • • •
1-7
Customer service levels Transportation costs Warehousing costs Order processing/information systems costs Lot quantity costs Inventory carrying costs
McGraw-Hill/Irwin
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Key Logistics Activities • Customer service • Demand forecasting • Inventory management • Logistics communications • Material handling • Order processing • Packaging
McGraw-Hill/Irwin
1-8
• Parts and service support • Plant and warehouse site selection • Procurement • Reverse logistics • Traffic and transportation • Warehousing and storage Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Flow through the Supply Chain
1-9
Customer Carrier Distribution center Supplier
Customer
Carrier Customer Carrier
Supplier
Carrier Manufacturing site
Customer
Carrier Supplier
Carrier
Customer
Distribution center Customer
McGraw-Hill/Irwin
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Strategic Profit Model Gross margin Net profit Net profit margin
$
Financial leverage
=
Return on assets x
%
Net profit Total assets x Net profit = Net worth Net worth Total assets
Net profit Net sales
Sales
Sales
Income taxes
$ Current assets
$
$ Fixed expenses
$
+
$
+
Accounts receivable
$
Fixed assets McGraw-Hill/Irwin
Variable expenses
$
Total assets
$
Cost of goods sold
Inventory
$ +
Net sales Total assets
-
+
-
x Asset turnover
Total expenses
$
$
$
$ -
+
% Return on net worth
$
Sales 1-10
+
Other current assets
$
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Future Challenges and Areas for Performance Improvement • • • • • • •
1-11a 1-11
Supply Chain Management Strategic Planning Total Quality Management Just-in-Time Quick Response Efficient Consumer Response Logistics as a Competitive Weapon
McGraw-Hill/Irwin
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Future Challenges and Areas for Performance Improvement (cont.)
1-12b 1-11
• • • • • •
Accounting for logistics costs Logistics as a boundary-spanning activity Global logistics Increasing skill requirements Logistics information systems Strategic alliances, partnerships, and outsourcing • Green marketing and reverse logistics McGraw-Hill/Irwin
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
JAMES R. STOCK
♦ DOUGLAS M. LAMBERT
McGraw-Hill/Irwin
STRATEGIC LOGISTICS MANAGEMENT FOURTH EDITION
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
CHAPTER 1 Logistics’ Role in the Economy and the Organization
Logistics Management Defined
1-3
That part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point-of-origin to the point-of-consumption in order to meet customers’ requirements. Council of Logistics Management
McGraw-Hill/Irwin
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Components of Logistics Management Inputs into logistics Natural resources
Management actions Planning
Human resources Suppliers Financial resources Information resources
McGraw-Hill/Irwin
Implementation Logistics management
Raw In-process materials inventory
Finished goods
Control
Outputs of logistics Competitive advantage
Time and Customers place utility
Logistics activities Customer service Demand forecasting Inventory management Logistics communications Material handling Order processing Parts and service support
1-4
Plant & warehouse site selection Procurement Packaging Reverse logistics Traffic and transportation Warehousing and storage
Efficient movement to customer Proprietary asset Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Marketing/Logistics Management Concept
1-5
Customer satisfaction •Suppliers •Intermediate customers •Final customers
Integrated effort •Product •Price •Promotion •Place (distribution)
McGraw-Hill/Irwin
Company profit
•Maximize long-term profitability •Lowest total costs given an acceptable level of customer service Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Cost Trade-offs in Marketing and Logistics Price
Order processing and information costs
LOGISTICS
Place/customer service levels Inventory carrying costs
MARKETING
Product
1-6
Transportation costs
Lot quantity costs
Warehousing costs Order processing and information costs
McGraw-Hill/Irwin
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Relationship of Logistics Activities to Logistics Costs • • • • • •
1-7
Customer service levels Transportation costs Warehousing costs Order processing/information systems costs Lot quantity costs Inventory carrying costs
McGraw-Hill/Irwin
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Key Logistics Activities • Customer service • Demand forecasting • Inventory management • Logistics communications • Material handling • Order processing • Packaging
McGraw-Hill/Irwin
1-8
• Parts and service support • Plant and warehouse site selection • Procurement • Reverse logistics • Traffic and transportation • Warehousing and storage Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Flow through the Supply Chain
1-9
Customer Carrier Distribution center Supplier
Customer
Carrier Customer Carrier
Supplier
Carrier Manufacturing site
Customer
Carrier Supplier
Carrier
Customer
Distribution center Customer
McGraw-Hill/Irwin
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Strategic Profit Model Gross margin Net profit Net profit margin
$
Financial leverage
=
Return on assets x
%
Net profit Total assets x Net profit = Net worth Net worth Total assets
Net profit Net sales
Sales
Sales
Income taxes
$ Current assets
$
$ Fixed expenses
$
+
$
+
Accounts receivable
$
Fixed assets McGraw-Hill/Irwin
Variable expenses
$
Total assets
$
Cost of goods sold
Inventory
$ +
Net sales Total assets
-
+
-
x Asset turnover
Total expenses
$
$
$
$ -
+
% Return on net worth
$
Sales 1-10
+
Other current assets
$
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Future Challenges and Areas for Performance Improvement • • • • • • •
1-11a 1-11
Supply Chain Management Strategic Planning Total Quality Management Just-in-Time Quick Response Efficient Consumer Response Logistics as a Competitive Weapon
McGraw-Hill/Irwin
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Future Challenges and Areas for Performance Improvement (cont.)
1-12b 1-11
• • • • • •
Accounting for logistics costs Logistics as a boundary-spanning activity Global logistics Increasing skill requirements Logistics information systems Strategic alliances, partnerships, and outsourcing • Green marketing and reverse logistics McGraw-Hill/Irwin
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
