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JAMES
R.
STOCK
STRATEGIC LOGISTICS
♦
MANAGEMENT
FOURTH EDITION
DOUGLAS
M.
LAMBERT
McGraw-Hill/Irwin 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
McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Components of 1-4
Logistics Management
Outputs of
Inputs into
logistics
logistics Management actions
Natural Planning Implementation Control Competitive
resources advantage
Logistics
Time and
Human management
resources Suppliers
Raw In-process Finished Customers place utility
materials inventory goods
Efficient
Financial movement
resources to customer
Logistics activities
Customer service Plant & warehouse site selection Proprietary
Information Demand forecasting Procurement
Inventory management asset
resources Packaging
Logistics communications Reverse logistics
Material handling Traffic and transportation Copyright © 2001 by The
Order processing Warehousing and storage McGraw-Hill Companies, Inc.
All rights reserved.
Parts and service support
McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Marketing/Logistics 1-5
Management Concept
Customer satisfaction
•Suppliers
•Intermediate customers
•Final customers
McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Cost Trade-offs in Marketing 1-6
and Logistics
Product
MARKETING
Order processing
Price and information
costs
Place/customer
service levels
Inventory
LOGISTICS
Transportation
carrying costs
costs
McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Key Logistics Activities 1-8
McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Flow through the Supply Chain 1-9
Customer
Carrier
Distribution
center Customer
Supplier Carrier
Customer
Carrier
Carrier
Manufacturing Customer
Supplier site
Carrier
Carrier Customer
Distribution
Supplier center
Customer
McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Strategic Profit Model
Sales 1-10
$
Gross margin
-
Cost of
goods sold
Net profit $
$
Net profit $ Variable
margin - expenses
+
% Sales Total expenses $
Return on Financial Net profit $ +
net worth leverage
Return on $ Fixed
assets Net sales expenses
-
= x % x Income taxes $
Sales
Inventory
Net profit Total assets x Net profit Asset $
= turnover
Net worth Net worth Total assets $ $
+ Current assets +
Accounts
Total assets receivable
Net sales $
Total assets $ $
+ +
Fixed assets Other current
assets
$ $
McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Future Challenges and Areas for 1-11a
1-11
Performance Improvement
McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Future Challenges and Areas for 1-12b
1-11