1 Sales Time Less time to make profit Higher risk of obsolescence Market Late Entrant Obsolescent...
3
1 Sales Time • Less time to make profit • Higher risk of obsolescence Market Late Entrant Obsolescent Stock Shorter life cycles make timing crucial
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3 How long is the logistics pipeline? Cumulative Lead-Time (Procuremen t to Payment) Raw Material Stock Sub-Assembly Stock Intermediate Stock Product Assembly Finished Stock at Central Warehouse In-Transit Regional Distribution Centre Stock Customer Order Cycle (Order-Cash)
Transcript of 1 Sales Time Less time to make profit Higher risk of obsolescence Market Late Entrant Obsolescent...
1
Sales
Time• Less time to make profit• Higher risk of obsolescence
Market
Late Entrant
ObsolescentStock
Shorter life cycles make timing crucial
2
Which activities add cost and which add value?
COST-ADDEDProduction, Storage & Transport costs & the Time Cost of Money
VALUE-ADDEDTime,Place &FormUtility
Raw MaterialStock
Production
FinishedProduct
In-Transit
RegionalStock
CustomerOrderCycle
3
How long is the logistics pipeline?
CumulativeLead-Time
(Procurementto Payment)
Raw Material StockSub-Assembly Stock
Intermediate StockProduct Assembly
Finished Stock at Central WarehouseIn-Transit
Regional Distribution Centre StockCustomer Order Cycle (Order-Cash)
