LOM Session 3 WS2024 PDF

Logistics and Operations Management 2024 Vienna University of Economics and Business Institute for Transport and Logistics Management Dr. Adel Aazami Logistics and Operations Management Course (Group A) Session Day Date Time Room Topic of...

Logistics and Operations Management 2024 Vienna University of Economics and Business Institute for Transport and Logistics Management Dr. Adel Aazami Logistics and Operations Management Course (Group A) Session Day Date Time Room Topic of Session 1 Thursday 10/03/24 08:30 AM - 12:00 PM TC.4.05 --- a) --- 2 Thursday 10/10/24 08:30 AM - 12:00 PM TC.4.05 Group Assignment b) Sustainable Logistics and Supply Chain a) Internal Logistics Relationships 3 Thursday 10/17/24 08:30 AM - 12:00 PM TC.4.05 b) Supply Chain Relationships 4 OM 5 OM 6 OM 7 OM 8 OM 9 OM TC.0.10 10 Monday 12/09/24 03:30 PM - 05:30 PM Final Exam Audimax Logistics and Operations Management Course (Group B) Session Day Date Time Room Topic of Session 1 Thursday 10/03/24 02:30 PM - 06:00 PM TC.5.27 --- a) --- 2 Thursday 10/10/24 02:30 PM - 06:00 PM TC.5.27 Group Assignment b) Sustainable Logistics and Supply Chain a) Internal Logistics Relationships 3 Thursday 10/17/24 02:30 PM - 06:00 PM TC.5.27 b) Supply Chain Relationships 4 OM 5 OM 6 OM 7 OM 8 OM 9 OM TC.0.10 10 Monday 12/09/24 03:30 PM - 05:30 PM Final Exam Audimax Agenda ▪ Internal Logistics Relationships ▪ The Great Divide ▪ Supply Chain Relationships ▪ Dynamic Alignment ▪ Managing Supply Chain Relationships ▪ Performance Measurement ▪ Balanced Scorecard ▪ Strategic Profit Model 4 Sample Historical View of Dispersed and Fragmented Logistics Responsibility Figure 12.1 Traditional Organization of Logistically Related Functions Illustration of High Functional Aggregation in Logistics Organization Figure 12.2 Logistics Functional Aggregation Functional Aggregation is the Combination of Logistics Functions into a Single Managerial Group ▪ Motivated by the belief that grouping logistics into a single organization would ▪ Increase the likelihood of integration ▪ Improve knowledge of how operational changes impact performance in other areas ▪ Comprehensive aggregation in organizations is still rare, but ▪ Trend is towards strategic management of all forms of inventory movement and storage for maximum benefit of the enterprise ▪ Development of logistics information systems enabled functional integration of organizations  Aspects of Functional Aggregation Illustrated in Figure 12.2 ▪ Purchasing, Manufacturing Support, and Customer Relationship Management are separate line operations ▪ Five capabilities under Logistical Support are positioned as shared services ▪ Logistical Resource Planning embraces the full potential of management information to plan and coordinate operations ▪ Overall Planning and Control exist at the highest level of the organization to facilitate integration ▪ Is there something missing?  From Function to Process ▪ Process organization structure ▪ Barriers to process integration ▪ The great divide Barriers to Process Integration ▪ Functional organization structure ▪ Department budgets: overall picture is missing 1 ▪ Measurement & reward systems ▪ Functional performance: overall picture is missing 2 ▪ Inventory use ▪ Traditional positioning supports functional performance: efficiency? ▪ Infocratic structure ▪ Information content and flow follow traditional functions: efficiency? ▪ Limits to sharing knowledge ▪ Functional experts store/save power: Sales vs Ops? The Great Divide Reflects an Organizational Gap in Achieving End-to-end Integration Figure 12.3 The Great Divide: The Challenge of Managing Across Functional Boundaries COPYRIGHT © 2020 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED. The Great Divide ▪ What is the best way to overcome the Great Divide? ▪ What is the role of digitalization? ▪ What is the difference here between operational excellence and strategic directions? 12 Agenda ▪ Internal Logistics Relationships ▪ The Great Divide ▪ Supply Chain Relationships ▪ Dynamic Alignment ▪ Managing Supply Chain Relationships ▪ Performance Measurement ▪ Balanced Scorecard ▪ Strategic Profit Model 13 Supply Chain Perspective Places More Emphasis on External Relationships ▪ Multi-enterprise coordinated effort focused on supply chain efficiency improvement ▪ Belief that cooperative behavior will reduce risk and greatly improve efficiency ▪ Belief that opportunity exists to eliminate waste and work effort COPYRIGHT © 2020 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED. Essential Concepts to Understanding Dependency ▪ Risk ▪ Disproportionate risk among channel members ▪ The collaborative role of a member is based on risk within a specific supply chain ▪ Power ▪ Retailers have increased in power over the last decade ▪ Powerful firms tend to link together into supply chain arrangements ▪ Category dominance vs. brand power ▪ Leadership ▪ No dominant model for how firms gain leadership responsibility ▪ Greater commitment to the relationship when leaders use rewards and expertise to exercise power COPYRIGHT © 2020 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.  Range of Extended Supply Chain Relationships The relationships are categorized from limited to extensive, indicating varying levels of dependency between partners and how much information they share. Figure 12.5 Relationship Classification Framework More explanations on each class ▪ Contract ▪ Outsource ▪ Type of relationship: ▪ Type of relationship: Product/service procurement. Function/process performance. ▪ This represents the most basic ▪ In this relationship, one party form of a supply chain relationship. outsources specific functions or ▪ One party contracts another for a processes to another. specific product or service with ▪ There’s more dependency than in a limited dependency or information contract since the outsourcing sharing. party relies on the performance of ▪ It's a simple buyer-supplier the outsourced functions. interaction. More explanations on each class ▪ Administered ▪ Alliance ▪ Type of relationship: ▪ Type of relationship: Voluntary Leader/follower engagement. integration. ▪ One party (the leader) has more ▪ In an alliance, two parties influence and guides the other (the voluntarily collaborate and follower) in the relationship. integrate some of their functions or operations. ▪ There’s a clear hierarchy, and the information flow is more one- ▪ Both parties share information sided. more openly and work together for mutual benefits. ▪ However, there is a higher level of dependency and communication ▪ The relationship is more balanced compared to outsourcing. and involves a higher level of trust and integration than the previous types. More explanations on each class ▪ Enterprise extension ▪ Type of relationship: Act as one. ▪ This represents the most integrated form of a supply chain relationship. ▪ The partners operate as if they are one entity, sharing extensive information and acting with a unified strategy. ▪ There is maximum interdependency and coordination. Highlights of Basic Forms of Collaboration ▪ Contracting ▪ Alliance (e.g. Walmart-Procter & ▪ Adds time dimension to traditional Gamble, Dell & suppliers, H.E. Butt & buying/selling suppliers) ▪ e.g. price, service, and performance expectations over a specific period ▪ Governed by a desire to voluntarily work together both intellectually and operationally ▪ Outsourcing ▪ Voluntary integration of human, ▪ Shifts focus from buying materials to financial, operational and technical performing a specific service or activity resources ▪ Extensive joint planning and ▪ Administered expectations of the ongoing ▪ Dominate firm governs by command relationship and control ▪ Limited sharing of strategic information and limited joint planning ▪ Enterprise extension ▪ Relationship has no specific ▪ Extreme form of Alliance termination or reapply time frame  A different perspective... 21 Dynamic Alignment Model Compare the configurations ▪ Static Configuration ▪ Dynamic Configuration ▪ Label: "One-size-fits-all" (push strategy). ▪ Label: Multiple alignment (push + pull). ▪ Current Model: This shows a centralized, ▪ Future Model: This model is more flexible and top-down approach where procurement and adaptable to different situations, balancing both logistics strategies are rigid and one-size- "push" and "pull" strategies. fits-all. ▪ Source Market (Supply): The supply side is ▪ Source Market (Supply): The market’s divided into different categories based on the supply side feeds into the enterprise. market’s specific requirements. ▪ Procurement Strategies: These ▪ Procurement Strategies: Instead of being strategies are applied uniformly across the centralized, procurement strategies are tailored different Business Units (BUs), Functions, and more aligned with individual business or Geographies. units, functions, or geographies. ▪ CEO: The CEO is at the center, and all ▪ COO and CEO: The COO now plays a more decisions flow through this point. prominent role alongside the CEO, distributing ▪ Sales Market (Demand): Logistics leadership and decision-making. strategies similarly follow a one-size-fits-all ▪ Sales Market (Demand): Logistics strategies approach to meet market demand, making are also more adaptable to market demand, this system more "push"-oriented. which is more dynamic and responsive to specific market segments. Delivering Value through people ▪ Traditionally, supply chains were seen as a 50/50 mix of infrastructure and information system technology ▪ Gattorna argues that people play a very important role: ▪ Mix should rather be 45/45/10 – human behavior, systems technology, and asset infrastructure. ▪ “Watch the customer, not the competitor”. A successful supply chain according to Gattorna ▪ Organizational design; Each of these ▪ Positioning of individuals within the structure; elements contributes ▪ Processes; to the effectiveness ▪ IT systems; and efficiency of a supply chain. ▪ S&OP process; ▪ Internal communication styles; By focusing on them, companies can ▪ Job design; create a more agile ▪ KPIs and their corresponding incentives; and resilient supply ▪ Training and development; chain. ▪ Recruitment ▪ Leadership style. A successful supply chain according to Gattorna ▪ 1. Organizational Design: ▪ Refers to how a company structures its supply chain teams and departments. A well-designed structure ensures that the supply chain is efficient and can respond to market or company changes. ▪ 2. Positioning of Individuals within the Structure: ▪ This focuses on assigning the right people to the right roles in the supply chain. Properly positioning individuals ensures that expertise is leveraged effectively, leading to better decision-making and operational efficiency. ▪ 3. Processes: ▪ Streamlined and standardized processes are vital to a successful supply chain. These include procurement, production, and distribution processes that ensure smooth sourcing and delivery operations. A successful supply chain according to Gattorna ▪ 4. IT Systems: ▪ Modern supply chains depend on robust IT systems for tracking, monitoring, and coordinating activities. These systems enable real-time decision-making, improve transparency, and provide data analytics to optimize supply chain performance. ▪ 5. S&OP Process (Sales & Operations Planning): ▪ S&OP is a process that helps balance demand and supply by aligning the sales forecast with production capabilities. It improves decision-making, meets customer demand, and optimizes resource allocation. ▪ 6. Internal Communication Styles: ▪ Effective internal communication ensures that different departments are aligned, from procurement to logistics. Good communication reduces misunderstandings and leads to a smoother workflow throughout the supply chain. A successful supply chain according to Gattorna ▪ 7. Job Design: ▪ Refers to how tasks and responsibilities are structured within the supply chain roles. Proper job design ensures that employees know their responsibilities and are equipped to perform their tasks effectively. ▪ 8. KPIs and their Corresponding Incentives: ▪ KPIs are metrics used to measure supply chain performance. Aligning these KPIs with incentives motivates employees to meet targets and improve performance, leading to a more efficient and successful supply chain. ▪ 9. Training and Development: ▪ Continuous training ensures that employees are up-to-date with the latest supply chain trends, technologies, and best practices. Development opportunities also foster innovation and efficiency within the supply chain. A successful supply chain according to Gattorna ▪ 10. Recruitment: ▪ Recruiting the right talent is essential for building a strong supply chain team. Selecting individuals with the right skills, experience, and mindset contributes to the overall success of the supply chain. ▪ 11. Leadership Style: Leadership plays a critical role in supply chain success. Leaders who foster collaboration, innovation, and strategic thinking can ensure that the supply chain adapts and thrives in a rapidly changing business environment. Delivering Value through people? ▪ What is the role of people in today‘s supply chain? ▪ Will automation replace people in the supply chain? Agenda ▪ Internal Logistics Relationships ▪ The Great Divide ▪ Supply Chain Relationships ▪ Dynamic Alignment ▪ Managing Supply Chain Relationships ▪ Performance Measurement ▪ Balanced Scorecard ▪ Strategic Profit Model 31 Managing Supply Chain Relationships – the Relationship LifeCycle Initiating Relationships ▪ Alliances are often initiated by the firm that was the customer in the relationship ▪ The initiating firm should perform an in-depth assessment of its internal practices, policies, and culture ▪ Will key alliance contacts be empowered to manage the relationship? ▪ Does the alliance involve several facilities that operate under different conditions, capabilities, or competitive requirements? Implementing Relationships ▪ Partners should have ▪ Compatible cultures ▪ A common strategic vision ▪ Supportive operating philosophies ▪ Start small to foster early wins ▪ Acknowledge early wins ▪ To motivate key contacts ▪ To build confidence in alliance performance ▪ Implement the alliance in its simplest form ▪ Fine-tune arrangement when improvement will add substantial value COPYRIGHT © 2020 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED. Maintaining Relationships is Dependent on Three/3 Key Activities ▪ Mutual strategic and operational goals - Alignment ▪ Two-way performance measurements ▪ Formal and informal feedback mechanisms COPYRIGHT © 2020 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED. Developing Trust ▪ Real collaboration requires meaningful trust ▪ Power arrangements are often temporary and create resistance to deeper collaboration ▪ How can trust be developed? COPYRIGHT © 2020 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED. Reliability and Character are Two Aspects of Trust ▪ Reliability-based trust is grounded in the perception of actual behavior and operating performance ▪ Firms perceived as incapable of delivering as promised are perceived as unreliable ▪ Unreliable firms are unworthy of trust in a relationship ▪ Character-based trust is based on culture and philosophy ▪ Perception that partners are interested in each other’s welfare ▪ Trusting partners believe that each other will protect the other’s interest COPYRIGHT © 2020 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED. Building Trust in Relationships ▪ Trust develops over time and repeated interactions among organizations ▪ The first step is to demonstrate reliability in its operations ▪ The second step is a full and frank sharing of all information necessary for the effective functioning of the relationship ▪ Firms that hoard/store information are not likely to be trusted ▪ Trust can be maintained by sharing explanations and business rationale for key decisions Termination of a relationship ▪ Natural death of arrangements vs. planned termination ▪ Supply chain arrangements are dynamic and need constant re-evaluation, repositioning, and at times termination ▪ Termination process and agreement should be discussed and defined during the formation stage of a collaboration The Storyline: Agreement with Kraft for distribution of Starbucks packaged coffee in grocery stores. Starbucks broke off its long-term relationship with Kraft. The payment was ordered by an arbitrator due to the way Starbucks terminated the relationship. https://www.nytimes.com/2013/11/13/business/starbucks-to-pay-kraft-2-75-billion-ending-broken-deal-dispute.html Agenda ▪ Internal Logistics Relationships ▪ The Great Divide ▪ Supply Chain Relationships ▪ Dynamic Alignment ▪ Managing Supply Chain Relationships ▪ Performance Measurement ▪ Balanced Scorecard ▪ Strategic Profit Model 40  Overview of Performance Measurement ▪ Measurement system objectives ▪ Operational assessment ▪ Financial assessment “If you don’t measure it, you can’t manage it.” Measurement System Objectives Related to Logistical Operations ▪ Monitoring system performance by establishment of appropriate metrics to track and report ▪ Controlling system performance by having appropriate standards of performance relative to metrics being monitored ▪ Directing employee focus on system performance through motivation and reward ▪ Improving shareholder value through superior logistics performance The Balanced Scorecard is a Comprehensive System of Performance Assessment The Balanced Scorecard Balanced Scorecard ▪ Why should companies implement a balanced scorecard? ▪ What are the functions of a balanced scorecard? ▪ What is missing? What other dimensions should be integrated? 44 Operational Assessment ▪ Functional perspectives ▪ Measuring customer accommodation ▪ Determining appropriate metrics ▪ Supply chain comprehensive metrics ▪ Benchmarking Functional Perspective on Logistics Measures includes these Major Categories ▪ Cost ▪ Customer service ▪ Quality ▪ Productivity ▪ Asset management Example of Common Metrics by Category Table 13.1 Typical Performance Metrics Cost is the Most Direct Reflection of Logistics Performance ▪ Typically measured in total dollars spent ▪ Total logistics cost (= total landed cost) ▪ Sum of order processing + inventory + transportation + warehousing and materials handling + facility network ▪ Few organizations can measure total cost ▪ Common to report cost as a ▪ Percentage of sales volume ▪ E.g. transportation cost as 15% of sales volume ▪ Cost per unit of volume ▪ E.g. loading cost as $5.50 per order  Customer Service Requires Specific Measures for each Element of the Basic Service Platform ▪ Availability ▪ Organization’s fill rate ▪ Item fill rate ▪ Line fill rate ▪ Value fill rate ▪ Order fill rate ▪ Operational performance ▪ Average order cycle time is the average number of days elapsed between order receipt and delivery to the customer ▪ Order cycle consistency ▪ On-time delivery Quality Measures often Include Service Reliability Performance ▪ Accuracy of work activities performed ▪ Damage frequency is the ratio of the number of damaged units to the total number of units ▪ Number of customer returns of damaged or defective goods ▪ Number of instances when information is not available on request ▪ Number of instances when inaccurate information is discovered Productivity is Measured in Terms of Output of Goods Compared with Input Quantities ▪ Labor productivity ▪ Units shipped per employee ▪ Units received per employee ▪ Equipment downtime COPYRIGHT © 2020 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED. Inventory Turnover Rate is Measured Differently by Different Types of Firms ▪ A vast majority of firms use this metric ▪ Some retail firms use this metric ▪ This metric is used for products whose cost or selling price changes significantly during relatively short periods of time ▪ E.g. gasoline inventory Critical that average inventory uses as many data points as possible Measuring Customer Relationships Requires an Additional Set of Metrics ▪ Perfect order measures the effectiveness of the overall integrated logistical performance ▪ Ratio of perfect orders to the total number of orders completed during the same time period ▪ Absolute performance provides a better indication of how a firm’s performance impacts customers ▪ “To us, 99.5 percent on-time delivery would mean that on a typical day, over 5,000 customers received late orders.” ▪ Customer satisfaction measurement requires monitoring, measuring, and collecting information from the customer Determining Appropriate Metrics using the Framework ▪ Competitive basis reflects the fundamental choice between responsive or efficient logistics performance ▪ Measurement focus is a continuum ranging from operational metrics to strategic metrics ▪ Measurement frequency is the need to monitor day-to-day performance versus less frequent review to diagnose performance problems Supply Chain Comprehensive Metrics ▪ Cash-to-cash cycle time ▪ On-shelf in-stock percentage ▪ Time required to convert a dollar ▪ Percentage of time a product is spent on inventory into a dollar of available on the shelf in a store sales revenue ▪ Total supply chain cost ▪ Inventory days of supply ▪ Sum of costs across all firms in the ▪ Calendar days of sales available supply chain based on recent sales activity ▪ Supply chain response time ▪ Dwell time ▪ Time required for all firms to ▪ Ratio of days inventory sits idle to recognize a fundamental shift in the days it is productively used or demand, internalize that finding, positioned replan, and adjust output to meet that demand COPYRIGHT © 2020 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED. Illustration of Supply Chain Total Cost Extending Beyond an Individual Firm Figure 13.3 Total Supply Chain Cost Benchmarking Makes Management Aware of State-of-the-art Business Practice ▪ Critical aspect of performance measurement ▪ “Are we staying competitive?” ▪ Considers metrics and processes ▪ Which organizations should we benchmark against? ▪ Internal groups are easier to identify ▪ Johnsons & Johnson has 150+ business units with ample opportunity to share best practices ▪ Provide little information about performance against the competition ▪ Nonrestricted benchmarking compares metrics and processes to best practices regardless of where the practice is found ▪ Belief that learning is possible from any firm with outstanding performance  Financial Assessment is Needed to Link Supply Chain Performance to Financial Results ▪ Critical tools for financial assessment ▪ Segmentation of data ▪ By channel, territory, customer, product, and supplier ▪ Cost-revenue analysis ▪ Strategic profit model  Cost-revenue Analysis is Needed to Provide a Financial View of Integrated Logistics ▪ Accounting deficiencies make this difficult ▪ 3 approaches are available to identify and control logistics expenses ▪ Contribution ▪ Net profit ▪ Activity-based costing Accounting Practices to Prepare Financial Statements Create some Deficiencies ▪ Costs are aggregated on a standard account basis rather than an activity basis ▪ Inbound freight expense is deducted from gross sales ▪ Outbound freight is reported as an operating expense ▪ Freight is not reported as a specific cost ▪ i.e. Products purchased on a delivered price basis ▪ Failure to specify and assign inventory cost Contribution Analysis Requires All Costs be Identified as Fixed or Variable ▪ Fixed costs are those that do not directly change with volume ▪ Variable costs are those that change as a result of volume ▪ Direct costs are those specifically incurred because of the existence of the segment of the business ▪ E.g. product, customer, channel ▪ Indirect costs exist because of more than one segment of business Example of Contribution Analysis Table 13.3 Contribution Margin Income Statement for Two Customers Strategic Profit Model Shows Relationship of Income and Balance Sheet to ROA ▪ Return on investment (ROI) is critical measure of financial success ▪ Return on net worth (RONW) measures profitability of funds invested by owners ▪ Return on assets (ROA) measures profitability generated by managing operational assets Illustration of Strategic Profit Model with Example Data Figure 13.4 Strategic Profit Model Example Showing ROA Improvement if Inventory Level is Reduced to $300 COPYRIGHT © 2020 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED. Figure 13.5 Strategic Profit Model (Inventory Reduction) Two Fundamental Ways to Improve Return on Assets ▪ Manage net profit margin improvements ▪ Net profit margin is net profit divided by net sales ▪ Measures portion of each sales dollar that is kept by the firm ▪ Manage asset turnover improvements ▪ Asset turnover is the ratio of total sales divided by total assets ▪ Measures efficiency of management utilization of assets Impact of Logistics Logistics’ Impact Sales - Sales increase due to better $ Gross Margin customer service _ $ Cost of Goods Sold - Lower cost due to new or more $ efficient manufacturing facilities Net Profit - Lower cost of purchased materials Net Profit $ _ Variable Margin Expenses Lot Quantity - Reduced order management costs ¸ - Fewer last minute production changes % Costs Sales net profit Total Expenses Transportation - Fewer LTL shipments net sales $ Costs - Fewer freight claims - Lower freight costs $ Inventory - Insurance Carrying - Taxes - Variable Storage costs Costs - Inventory risk costs Warehousing - Fewer employees required Return on Financial Return on Costs - Lower third-party warehousing costs Net Worth Leverage Assets Information = X % X Systems Reduced IS costs Net profit = Total assets X Net profit General and net worth net worth total assets Reduced cost of supervision Administrative Inventory $ Reduced inventory investment Sales + $ Accounts Current Assets Receivable Asset Turnover Reduced due to more prompt ¸ $ $ Total Assets paying customers (reduced errors) + $ Other Current Assets net sales + total assets $ Fixed Assets Less warehouse space required $ STRATEGIC PROFIT MODEL Increase investment in modernized production facilities Product B Contributes a Higher Return even Though its Gross Margin is Lower CMROI for Two Products Applications of the Strategic Profit Model (SPM) ▪ Model is very adaptable to a spreadsheet ▪ Can use SPM in combination with other methods to examine ROA for customer or product segments ▪ Other segment profitability and ROI analyses can be conducted ▪ Very useful framework for relating logistics activities to the overall financial objectives of the organization COPYRIGHT © 2020 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED. Requirements for Financial Reporting Provide More Supply Chain Visibility to Management ▪ Sarbanes-Oxley Act of 2002 (SOX) ▪ Section 404 requires an internal control report to be filed along with the corporate annual report ▪ Firms must have internal measurement capabilities that comply with Securities and Exchange Commission (SEC) requirements ▪ SOX requires disclosure of all off-balance-sheet liabilities that have a material effect on financial reports ▪ Vendor-managed inventories ▪ Long-term purchase agreements ▪ Slotting allowances ▪ Also required to report any event that may have material effect on financial reports ▪ E.g., shipments with long lead times that may be held at an international border COPYRIGHT © 2020 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED. Balance Scorecard 71 Logistics part is already finished Thanks for listening