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Contemporary Logistics
Twelfth Edition
Chapter 3
Strategic and
Financial Logistics
Learning Objectives (1 of 2)
3.1 To understand how logistics decision can influence an organization’s strategic financial outcomes
3.2 To review basic financial terminology used by logistics managers 3.3 To explain organizational financial reporting requirements
affected
by logistics activities
3.4 To employ the strategic profit model to highlight the financial impact of logistics activitieLearning Objectives (2 of 2)
3.5 To consider the value of utilizing the Balanced Scorecard approach for examining the performance of a logistics systems
3.6 To compare some of the common performance measures for logistics activitieConnecting Strategy to Financial
Performance (1 of 9)
• Logistics managers must find ways to:
§ Communicate how logistics capabilities provide value § Support corporate strategy and success in financial
termConnecting Strategy to Financial
Performance (2 of 9)
• Three generic strategies that can be pursued by an organization
1. Cost leadership strategy
§ Requires an organization to pursue activities that will enable it to become the low-cost producer in an industry for a given level of qualitConnecting Strategy to Financial
Performance (3 of 9)
• Three generic strategies that can be pursued by an organization
2. Differentiation strategy
§ Entails an organization developing a product and/or service that offers unique attributes that are valued by customers and that the customers perceive to be distinct from competitor offeringConnecting Strategy to Financial
Performance (4 of 9)
• Three generic strategies that can be pursued by an organization
3. Focus strategy
§ Concentrates an organization’s effort on a narrowly defined market to achieve either a cost leadership or differentiation advantagConnecting Strategy to Financial
Performance (5 of 9)
• Functional level strategies exist in:
§ Marketing
§ Finance
§ Manufacturing
§ Procurement
§ LogisticConnecting Strategy to Financi
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