• 1. JAMES R. STOCK  DOUGLAS M. LAMBERTSTRATEGIC LOGISTICS MANAGEMENTFOURTH EDITION
    • 2. CHAPTER 1 Logistics’ Role in the Economy and the Organization
    • 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 ManagementLogistics Management Defined
    • 4. Components of Logistics ManagementCopyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Management actionsPlanningImplementationControlRaw materialsIn-process inventory Finished goods Natural resources Human resources Financial resources Information resources Time and place utility Efficient movement to customer Proprietary asset Competitive advantage Logistics management Suppliers CustomersInputs into logisticsOutputs of logisticsCustomer service Demand forecasting Inventory management Logistics communications Material handling Order processing Parts and service support Plant & warehouse site selection Procurement Packaging Reverse logistics Traffic and transportation Warehousing and storage Logistics activities
    • 5. Marketing/Logistics Management ConceptCustomer satisfactionIntegrated effortCompany profitSuppliers Intermediate customers Final customersMaximize long-term profitability Lowest total costs given an acceptable level of customer service Product Price Promotion Place (distribution)
    • 6. Cost Trade-offs in Marketing and LogisticsProductOrder processing and information costs Inventory carrying costs Place/customer service levelsOrder processing and information costsPriceLot quantity costsWarehousing costsTransportation costsLOGISTICSMARKETING
    • 7. Relationship of Logistics Activities to Logistics CostsCustomer service levels Transportation costs Warehousing costs Order processing/information systems costs Lot quantity costs Inventory carrying costs
    • 8. Key Logistics ActivitiesCustomer service Demand forecasting Inventory management Logistics communications Material handling Order processing Packaging Parts and service support Plant and warehouse site selection Procurement Reverse logistics Traffic and transportation Warehousing and storage
    • 9. Flow through the Supply ChainCustomerCustomerCustomerCustomerCustomerCustomerSupplierSupplierSupplierDistribution centerDistribution centerManufacturing siteCarrierCarrierCarrierCarrierCarrierCarrier
    • 10. Strategic Profit Model$Financial leverageReturn on net worthReturn on assetsNet profit Net worthTotal assets Net worthNet profit Total assetsNet sales Total assetsNet profit Net salesNet profit marginNet profitGross marginSalesSalesCost of goods soldVariable expensesFixed expensesAccounts receivableOther current assetsInventorySalesTotal assetsAsset turnoverCurrent assets Fixed assets Income taxes Total expenses ==xx++++++---x%%$$$$$$$$$$$$$$$
    • 11. Future Challenges and Areas for Performance ImprovementSupply Chain Management Strategic Planning Total Quality Management Just-in-Time Quick Response Efficient Consumer Response Logistics as a Competitive Weapon 1-11 a
    • 12. Future Challenges and Areas for Performance Improvement (cont.)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 logistics1-11 b