Professional Documents
Culture Documents
Logistics
Cost leadership
strategy
Current ratio
Differentiation
strategy
Expenses (costs)
Focus strategy
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Income statement
Liabilities
Net profit margin
Owners equity
Return on assets
(ROA)
Revenues (sales)
Strategic Profit
Model (SPM)
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Learning Objectives
To explain how logistics can influence an
organizations strategic financial outcomes
To define basic financial terminology
To analyze how the strategic profit model can
demonstrate the financial impact of logistics
activities
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Finance
Rates of return may affect the decision to manager
ones own warehouse or use a third-party provider
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Procurement
The decision to move from domestic to global sourcing
would naturally affect logistics activities such as the
potential use of new modes of transportation
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Expenses
Also referred to as costs, provide a dollar value for the costs
incurred in generating revenues during a given period of
time
Profit
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Liabilities
The financial obligations a company owes to another party
Owners equity
Difference between what a company owns and what it owes
a any particular point in time
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Total expenses
Made up of the variable and fixed costs that are not
directly related to making the product or delivering a
service
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Balanced Scorecard
Balance scorecard (BSC) is a strategic planning
and performance management system used in
industry, government, and nonprofit
organizations.
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Balanced Scorecard
Management should evaluate their businesses
from four perspectives
Customers
Internal business processes
Learning and growth
Financial results
Warehousing measures
Include labor, cost, time, utilization and administration
Inventory measures
Include obsolete inventory, inventory carrying cost,
inventory turnover and information availability
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