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
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 LogisticsActivities 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