4.1 Getting Started—Cost and Performance Management

Describe the scope and importance of supply chain performance measurement.

Identify and describe the characteristics of good performance measures.

Discuss the various methods used to measure supply chain costs, service, profit, and revenue.

Discuss how logistics decisions influence a firm’s financial performance and financial statements.

Describe and calculate the profit-leverage effect of logistics cost savings.

Describe and calculate the impact of various logistics activities on company profitability as measured by the strategic profit model.