Logistics, Segmentation and Costs

• Logistics involves links between a focal firm and its upstream suppliers.
• Outbound logistics includes links between a focal firm and its downstream customers.
• Internal logistics includes planning and controlling material flow within a firm's boundaries.
• Reverse logistics involves the flow of goods back up the supply chain.

Reverse Logistics

• Reasons to engage in it include damaged products or end-of-life products.
• A time-based approach identifies and removes sources/causes of waste in the supply network.

Segmentation

• Geographic segmentation divides a population by country, state, and city.
• Demographic segmentation divides a market by age, gender, and education.

Costs

• Fixed costs remain constant regardless of activity volume.
• Variable costs increase as activity volume increases.
• Total cost is the sum of fixed and variable costs.
• Warehouse rental cost is an example of fixed costs.

Internationalization

• Increase in market share, return on investment, economies of scale/learning, and location advantages drive the international expansion of logistics companies.
• Logistical implications of internationalization include inventory, handling, and transport, but DOES NOT include pricing.

Supply Chain

• The origin of the supply chain concept comes from logistics.
• Information flows in both directions, while material flows in one direction are necessary concepts.
• A typical manufacturing supply chain sequence starts with a supplier, storage, manufacturing, storage, distributor, retailer, and then the customer.
• Quality, time, and cost are the 3 hardest objectives for creating logistics advantages.
• Discarding a product at any stage due to quality problems is referred to as waste.
• To improve customer service, focus on pre-transaction, transaction, and post-transaction elements.
• Markets can be segmented demographically, geographically, technically, and behaviorally.

Activity Based Costing

• Activity-based costing purpose is for the allocation of indirect costs based on causal activities.
• ABC is most useful when there are high overheads, product diversity, customer diversity, and service diversities.

Working Capital

• Working capital combines inventory, cash, and debtors, less creditors.

Internationalization Drivers

• Major drivers include cost and product advantages, as well as quality and/or time advantages.
• Qualifying as an 'entry ticket' is an order qualifier.
• P-time refers to pipeline time, while D-time refers to delivery lead time.
• The lead-time gap describes the time difference between the total supply chain lead-time and the custom.
• Inbound logistics is the transport, storage, and delivery of goods coming into a business.
• Outbound logistics is the same, but for goods going out of a business.

Further Key Points

• There are two basic limitations: the need for speed and __________.
• A working definition of competing on time is the timely response to customer needs.
• Total logistics lead time in a typical manufacturing unit is known as production time.
• The time that customers are willing to wait to fulfill their demand is known as demand time.
• Reallocation of activities to emerging and developing countries defines offshoring.
• The supply chain sequence: Supplier-Storage-Manufacturing-Storage–Distributor-Retailer-Customer is the correct sequence.
• Logistics is an integral part of supply chain management, involving forward and reverse flow.
• Businesses today operate in complex environments due to increased product complexity.
• For activity-based costing, the objective is best achieved in two stages.
• The clearance of the product because of quality problems is called waste.
• The degree of speed is a basic limitation to the need for time-based logistics management.
• The practice of consolidating production of products in specific factories involves a focused factory strategy.
• Order qualifiers are the minimum standards a company needs to meet to be considered by customers.
• Supply pipeline is what p time and d time measure.

Further Key Information

• Differences between P-times and D-times are referred to as the Lead-time gap.
• Each production line is allocated equally.
• Direct costs can be tied to specific products like direct labor.
• Any cost that cannot be allocated directly to a given product is called indirect costs.
• The break-even point is reached when the sales revenue equals the total cost.
• Global shifts are dimensions of internationalism strategies.
• Reverse logistics involve the flow of Goods that go back up the supply chain.
• Shareholders typically have a passing interest in a firm in which they invest.
• Competing on time is achieved by timely response to customer needs.
• Motivations for international expansion include better the increase the market share, better the return on investment, and location advantages.
• Supply chain concept originated in the marketing discipline.
• The three strong competitive objectives for creating logistics advantage are quality, time, and cost.
• Logistics is the key aspect of Noon.com that focuses on ensuring customer deliveries arrive on time.
• Reviewing changes is the last stem for the time based strategies.
• Understand your processes is the second step for time based processing.
• Material flow and information flow is what Logistics is concentrating on.
• "Damage product, end of product life.", is why the company is engaging in Reverser logistics.
• "Terms and conditions of the product to be able to enter specific market." Order qualifiers

Further Key Information

• Ware house rental costs are fixed costs.
• The supply chain, refers to upstream relationships between members of a network
• Generate refers to why purpose supply chair mapping.
• Logistics is related to transportation management, customer relationship management, distribution network, and service response.
• Demographic segmentation is diving the consumers based on age, gender and their education .
• Buisnesses to Buisness refers to upstream relationships between members of a network
• The goal of the supply chain is to synchronize; maintain the flow of materials, from source to end customer.
• Objectives include quality, time, and cost
• Focus should be on Controlling Variability, Dealing with Uncertainty and sustainably
• The objectives quality, time, and cost are related to trade-off.
• The three layers that focus on social issues Corporate Social Responsibility .
• Quality is on doing things; right.

More Key information

• People which use and consume the product are; Customers.
• In supply chain management, Supply chain is based in b-2-b , Business to Business relationships
• The set up, marketing decisions that implement positioning strategy-aka target segments and the resulting profits is. Marketing Mix
• There are Four P's- product, price, promotion, place
• The Four Factors , used to break down, the totals on a products sales Base *trend x seasonality/uncertainty)

Incentives For Buyers

• Financial incentives. is not apart of Three Strategies.
• Customers needs are referred to has Loyalty and customer satisfaction.
• A Company is successful has; service/ customer service, business, etc.
• When a company's sales, meet cost = Break Even point is reached.
• To define a Market that is broken up in similar needs is- segmentation.
• There is a number of ways to measure/ see segments a product can be at, these ways ARE NOT- Customers.
• When sales/ revenue = cost, You reached- breakeven levels.
• When the company/ shareholder can see what they are paying for- The product and the company's ability/value is. Value Proposition

Core Supply Chain Key Points

• A basic element is to keep the comparable amount of risk, new investment.
• Increased profitability and increased asset of the product is - Return On Investment.
• In retail; The DDP- method/ measurement is widely put in practice.
• Direct costs is what variable costs include
• The group that have a passing interest is - Shareholders
• ABC costs have an negative- is provide cost for - inaccurate cost.
• Customer Knows what they want- is what drives marketing
• Cost are eroded when- Loss
• Lead time is most subjective , to time.
• The focus for Logistics , is most strongly , correlated to Physical
• Major ways to receive inventory savings in a supply chain are ; Centralized Inventory, Reduced Factory number/ output, and less transportation.
• There should be No Shipping- on The list for measured for Integration .
• The First element/ factor to consider is External and internal factors
• "Continuos replishment" is pioneer in IT.
• The -Inability/ risk , for qualitative analysis is a, Disadvantage.
• Togetherne/ Cohabitation. The "feeling" for the requirement.
• Logistics , is why Company like, Noon - is so successful/ Customer centric

Final Key Points

• The logistics is integral part involved with the forward and reverse flow of goods, and: All of above Cash, Credit
• In logistics the keys to manage the "Material" / information flow
• Maintains products" = included Logistics .
• Product/Producting are aspects that are ; NOT LOGISTICS
• Upperstream suppliers =Inbound Logistic
• Volume increase = Variable cost increases and fix cost increase; at times.
• To find success / to be able to sell the most. Segmentations is Key !!!- Segmentations must meet Quality, time , and competitive Advantage .

Activity-based costing (ABC)

• Benefits for Activity Based Costing = High Overloads , better/ Variety the product, Customer Diversity, and the " Service/ Diversity' with ABC .
• Activity-based costing = = = High Overloads, Product Diversity or Multiple Products customer Diversity service.
• Segmentation and management (IT's Main Objective)
• Oliver and Webber (1982). Long ago - summerised key points for SC
• Oliver said "The more you get it". Supply chain must be looked up as one, you just be strategic , balance.
• Logitics - Task - plan, the product range. ( IT'Main Objective).