33:799:330 Lecture Notes - Lecture 2: Inventory Turnover, Asset Turnover, Profit Margin

• School: Rutgers University
• Department: Supply Chain Management
• Course: 33:799:330
• Professor: Shelley.Young

Document Summary

Article: measuring and selling the value of logistics : category of logistics functional metrics (1) cost: -operational performance: cycle time (# days between order receipt and delivery to customer), order cycle consistency, and on-time delivery. (3) quality. -quality of info (4) productivity (5) asset mgmt. Productivity is measured in terms of output of goods compared with quantities of inputs. -capacity utilization in facilities and equipment, consider the downtime. *days of supply: amount available to meet forecasted sales volume. *return on net worth (ronw): measure profitability of funds invested by owner. *return on assets (roa): measure profitability generated by managing operational assets. -direct impact on the bottom line through revenue and total logistics cost. -customer does the work by filling out the survey. - relies on mgmt outside the logistics to identify the impact on revenues which typically does not happen. -value beyond prices lead to higher sales figures, higher profit margins and higher shareholder values.