Slide 3.

Chapter 3:
Value and logistics costs

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

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

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Figure 3.1

The make-up of return on capital employed (investment)

(Source: Courtesy of Sri Srikanthan)

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

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Table 3.1

ROI and its key drivers

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

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Figure 3.2

Cost breakdown of a bottle of mineral water

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

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Figure 3.3

Three ways to cut the total cost cube

(Source: Courtesy of Sri Srikanthan)

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

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Figure 3.4

Rent cost against volume of activity

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

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Figure 3.5

Direct material costs against volume of activity

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

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Figure 3.6

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

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Figure 3.7

Break-even chart A

(Source: Courtesy of Sri Srikanthan)

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

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Figure 3.8

Break-even chart B

(Source: Courtesy of Sri Srikanthan)

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

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

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Table 3.2

Direct product profitability (DPP)

(Source: Courtesy of Sri Srikanthan)

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

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Table 3.3

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

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

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Table 3.4

Different ways of allocating maintenance costs

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

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Table 3.5

Cumulative time and cost data by activity

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

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Figure 3.9

Costtime profile for poultry product

(Source: After Bernon et al., 2003, reprinted by permission of EIASM)

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

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Figure 3.10

Costtime grid

(Source: Whicker et al., 2009)

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

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Figure 3.11

Customer profitability curve

(Source: After Guerreiro et al., 2008)

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

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Figure 3.12

Traditional and balanced priorities

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

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Figure 3.13

Tescos corporate store steering wheel

(Source: Tesco, 2010)

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

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Figure 3.14

Linking supply chain management to the balanced scoreboard

(Source: After Brewer and Speh, 2000)

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

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Figure 3.15

Supply chain financial model

(Source: Cranfield and PA Consulting Group)

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

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Figure 3.16

Five distinct management processes

(Source: After Supply Chain Council www.supply-chain.org)

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

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Table 3.6

Supply chain performance is tied to measurements that can be benchmarked

(Source: http://www.supply-chain.org)

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

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Supply chain performance evaluated within the context of the competitive

environment
Table 3.7

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