logistics cost

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Slide 3.* Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain , 4 th Edition, © Pearson Education Limited 2011 Chapter 3: Value and logistics costs

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Page 1: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Chapter 3:Value and logistics costs

Page 2: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Page 3: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Figure 3.1 The make-up of return on capital employed (investment)(Source: Courtesy of Sri Srikanthan)

Page 4: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Table 3.1 ROI and its key drivers

Page 5: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Figure 3.2 Cost breakdown of a bottle of mineral water

Page 6: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Figure 3.3 Three ways to cut the ‘total cost cube’(Source: Courtesy of Sri Srikanthan)

Page 7: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Figure 3.4 Rent cost against volume of activity

Page 8: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Figure 3.5 Direct material costs against volume of activity

Page 9: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Figure 3.6 Break-even chart

Page 10: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Figure 3.7 Break-even chart A(Source: Courtesy of Sri Srikanthan)

Page 11: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Figure 3.8 Break-even chart B(Source: Courtesy of Sri Srikanthan)

Page 12: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Page 13: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Table 3.2 Direct product profitability (DPP)(Source: Courtesy of Sri Srikanthan)

Page 14: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Table 3.3 DPP for customer P for a sample of four orders in a given month

Page 15: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Table 3.4 Different ways of allocating maintenance costs

Page 16: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Table 3.5 Cumulative time and cost data by activity

Page 17: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Figure 3.9 Cost–time profile for poultry product(Source: After Bernon et al., 2003, reprinted by permission of EIASM)

Page 18: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Figure 3.10 Cost–time grid(Source: Whicker et al., 2009)

Page 19: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Figure 3.11 Customer profitability curve(Source: After Guerreiro et al., 2008)

Page 20: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Figure 3.12 Traditional and balanced priorities

Page 21: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Figure 3.13 Tesco’s corporate store steering wheel(Source: Tesco, 2010)

Page 22: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Figure 3.14 Linking supply chain management to the balanced scoreboard(Source: After Brewer and Speh, 2000)

Page 23: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Figure 3.15 Supply chain financial model(Source: © Cranfield and PA Consulting Group)

Page 24: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Figure 3.16 Five distinct management processes(Source: After Supply Chain Council www.supply-chain.org)

Page 25: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Table 3.6 Supply chain performance is tied to measurements that can be benchmarked(Source: http://www.supply-chain.org)

Page 26: Logistics Cost

Slide 3.*

Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011

Table 3.7 Supply chain performance evaluated within the context of the competitive

environment