Logistics Cost

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

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

Table 3.1 ROI and its key drivers

Figure 3.2 Cost breakdown of a bottle of mineral water

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

Figure 3.4 Rent cost against volume of activity

Figure 3.5 Direct material costs against volume of activity

Figure 3.6 Break-even chart

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

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

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

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

Table 3.4 Different ways of allocating maintenance costs

Table 3.5 Cumulative time and cost data by activity

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

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

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

Figure 3.12 Traditional and balanced priorities

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

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

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

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

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

environment

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