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Presentation On Measures of Logistics: Submitted By:-Anshuman Parashar Mba (BT) Roll No. - 02

The document discusses measures of logistics. It states that measuring logistics accurately can help eliminate non-value added activities and enhance business competitiveness. Logistics performance can be measured from four perspectives: financial, non-financial, internal, and external. Some key financial measures mentioned are operating costs and return on investment. Important non-financial measures include productivity, asset management, order fulfillment, and quality.

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Anshuman Parashar
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390 views7 pages

Presentation On Measures of Logistics: Submitted By:-Anshuman Parashar Mba (BT) Roll No. - 02

The document discusses measures of logistics. It states that measuring logistics accurately can help eliminate non-value added activities and enhance business competitiveness. Logistics performance can be measured from four perspectives: financial, non-financial, internal, and external. Some key financial measures mentioned are operating costs and return on investment. Important non-financial measures include productivity, asset management, order fulfillment, and quality.

Uploaded by

Anshuman Parashar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Presentation on

Measures of Logistics
Submitted By:-
Anshuman Parashar
MBA(BT)
Roll No. - 02
Measures of Logistics:-

The logistics measures helps in eliminating non value


added activities from the system. In today’s
competitive scenario, the importance of accurately
measuring and controlling logistical performance can
not be derived as logistical competency has become
more critical in enhancing the competitiveness of the
business process.
The Performance measure may be viewed
through four perspective

 Financial
 Non Financial
 Internal
External
Financial Measure

A. Operating Cost :- It covers warehousing cost,


freight, material handling equipment running
& maintenance cost, labor cost, cost of
returned goods & inventory carrying cost.
B. Return on Investment:- This is an important
financial performance measure that indicates
whether the investment made in logistical assets
such as warehouse, equipment. Storage system
and transportation vehicles enhance profit
through cost reduction.
Non Financial Measures:-

A. Productivity :- The productivity of a logistical


system is judged by its output with respect to the
input to the system.
B. Asset Management :- Asset utilization means, to
utilize the capital invested such as warehouse
building, storage system and materials handling
equipment & also funds tied up in inventory.
C. Order Fulfillment :- This is an important criteria to
judge the level of customer service of the firm. It is
a relative ability of the firm to satisfy the customer.
D. Quality :- The perception of the logistical service
quality is created through ‘near to perfection’ in the
order fulfillment process. This may be interpreted as
error free order deliver.

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