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Shorter life cycles make timing crucial

Shorter life cycles make timing crucial. Market. Late Entrant. Sales. Obsolescent Stock. Time. Less time to make profit Higher risk of obsolescence. Which activities add cost and which add value?. Customer Order Cycle. Regional Stock. Finished Product. In- Transit.

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Shorter life cycles make timing crucial

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

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

  3. Cumulative Lead-Time (Procurement 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) How long is the logistics pipeline?

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