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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Presentation transcript:

1 Sales Time Less time to make profit Higher risk of obsolescence Market Late Entrant Obsolescent Stock Shorter life cycles make timing crucial

2 Which activities add cost and which add value? COST-ADDED Production, Storage & Transport costs & the Time Cost of Money VALUE- ADDED Time, Place & Form Utility Raw Material Stock Production Finished Product In- Transit Regional Stock Customer Order Cycle

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)