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JAMES
R.
STOCK
STRATEGIC LOGISTICS
MANAGEMENT
DOUGLAS FOURTH EDITION
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
1-3
Logistics Management Defined
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
Management Concept
Customer satisfaction
Suppliers
Intermediate customers
Final customers
McGraw-Hill/Irwin Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
1-6
Cost Trade-offs in Marketing
and Logistics
Product
MARKETING
Order processing
Price and information
costs
Place/customer
service levels
Inventory
Transportation
carrying costs
costs
McGraw-Hill/Irwin Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
1-8
Key Logistics Activities
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.
Sales 1-10
Strategic Profit Model $
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.
1-11a
Future Challenges and Areas for 1-11
Performance Improvement
McGraw-Hill/Irwin Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
1-12b
Future Challenges and Areas for 1-11