Principles of logistics managementdiploma in logistics management slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Conventional accounting methods, which were strongly based on a few volumebased cost drivers for the allocation of shared and indirect costs, are being superceded by other costing methods such as direct product profitability dpp and activitybased. Ensure your supply chain and operations management teams have the foundational knowledge to take your organization to the next level. Mar 12, 2017 this sap copc end user training guide offers an overview of the concepts and principles of standard costing implemented in sap. Tull professor emeritus of accounting terry college of business university of georgia roger h. While lean has made a huge impact on manufacturing and, in some cases, even the broader supply chain, application of lean principles in logistics and distribution is less evident but, however, significant. Fm 495, logistics operations, is the armys doctrine for army logistics operations at the strategic, operational and tactical levels of war.
Logistics cost management from the supply chain perspective. What are the principle of logistic costing answers. Logistics operations have alw ays been accompanying life in. The principles of distribution and logistics seminar is designed to introduce operations management professionals to the field of distribution and logistics. Whilst logistics costs will vary by company and by industry, across the. Principles of logistic management myassignmenthelp. Next, three cost levels are distinguished to allow a separation of costs that can be influenced within a single company single and activitybased costs and.
Accounting principles call for accrual methods to relate revenues and expenditure to the actual. Military logistics in military logistics, logistics officers manage how and when to move resources to the places they are needed. At that time, supply chain management scm was a pretty new term so this article did the excellent job to explain important supply chain management principles in one shot. So kaizen principles emphasis problemawareness and provide clues to identifying problems. For example, freight and warehouses show on the income statement and are recapped monthly. Examine the details of planning and control processes in logistics management. Principles of costing polluter pays principle healthcare establishment pays for the safe disposal of the waste it generates minimization, segregation and recycling of waste appropriate sizing of the waste management system anticipate future trends. This principle also applies when the company intends to study logistics costs. It has been noticed that a cost is related as closely as possible to its cause. Lean and simple business accounting this can also be stated as applying lean methods to the accounting processes. While these principles are independent, they are also interrelated. To deliver the right product, in the right quantity and the right condition, to the right place at the right time for the right customer at the right price. Fundamentals of logistics fundamentals of logistics course material content developed by.
Principles of distribution and logistics distribution and logistics professionals face the critical challenge of running nimble, efficient processes in an era of unprecedented change. If you see a light bulb icon on a worksheet, just mouse over above the icon and a comment box will appear. Inbound logistics is one of the most overlooked aspects in logistics management. Song hua extensively researches the costing accounting methodabout enterprise logistics 3 that can be a pplied in the logistics cost accounting. How to download principles of financial accounting chapters 117 pdf. Free torrent download principles of financial accounting chapters 117 pdf ebook. The function of cost accounting is to provide the cost accounting information that is the basis for planning and controlling current and future operations. Activity based logistics costing abc uses the principle of including technology process. The whole factory operation is divided into several operations or production centers, each performing standard operations. This paper discusses the problem of identification and measurement of logistics cost parameters in the accounting information system indicating their impact on business management processes. The starting point for improvement is to recognize the need. Lean accounting principles, practices, and tools the principles, practices, and tools of lean accounting summarized in figure 1 are separated into five principles, ae.
This paper will analyze the main costs that thirdparty logistics companies are facing and develops an activitybased costing methodology useful for this kind of company. More and more companies now understand the concept of becoming leanthe ability and competitive necessity of getting waste out of processes. Job costing also called job order costing is best suited to those situations where goods and services are produced upon receipt of a customer order, according to customer specifications, or in separate batches. Logistics costing techniques and their application to a. Sep 28, 2011 a basic concern in activity based costing in logistics is to identify the period of time over which costs are accumulated for measurement. The principles of the proposed cost calculation model are defined on the. Principles of logistics and supply chain management.
A form of operation costing which applies where standardized goods are produced. They understand why integrating suppliers into new product development is important. On average, companies can potentially save between 20 58% on inbound freight spend. Inventory appears on the balance sheet and is presented annually. Identification and measurement of logistics cost parameters in the. Logistics foresight is the ability to predict and manage critical logistics constraints to the commanderas freedom of action. Apics principles of operations management principles of distribution and logistics principles of inventory management. All the logistics teams consider various factors such as control of cost, service quality, productivity and quality improvement, and flexibility to. Organizational structure level for product costing master data from controlling and logistics areas overhead costs costing sheets cost component structure costing sequence product costing integration with mm and sd modules costing methods material cost. The contract work usually involves heavy expenditure, spreaded over a long p eriod. The principles described for transportation systems generally apply to the as sessment of the costs of other elements of the logistics cycle. The 7 principles of supply chain management supply chain 24.
Definition and principles of kaizen in the decade of 1980, management techniques focusing on employee involvement, and empowerment through teamwork approach and interactive communications and on improving job design were not new, but japanese companies seemed to implement such techniques. The 7 principles of supply chain management supply chain. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Download file to see previous pages supplychain management deals with regulating the relationships of the business with the stakeholders in order to enhance the quality of services at affordable prices throughout the supply chain. What are the eight principles of logistics answers. Logistics costing meaning abc mission based costing total cost anaysis 2.
Logistics origin, sources and periods of development. Guidelines for assessing costs in a logistics system. Introduction cost and performance management in logistics is a coherent set of tools which support logistics management decisions and thus the planning, controlling and monitoring of related business processes. Accounting principles call for accrual methods to relate revenues and expenditure to the actual time period during which services are performed. This document describes each of the principles and how they fit with the costing process described in the standards. Grant, pearson,97802737351 14 procurement logistics management, david b. Identification and measurement of logistics costs should include dynamic. Conceptual models consist of a set of hypothesized relationships expressed in a qualitative framework. An analyst, involved in life cycle costing, should be fully familiar with unique cost elements involved in the life cycle of asset, sources of cost data to be collected and financial principles to be applied.
Ireland 2790025 2005 undergraduate study in economics, management. Logistics foresight is the ability to predict and manage critical logistics constraints to. Such processoriented approaches, however, have only been applied for. Under absorption costing, companies treat all manufacturing costs, including both fixed and variable manufacturing costs, as product costs. The aim of the course is to develop an understanding of the role of logistics management in operations and supply chain management. It is essential to gain reliable and accurate costing information to attain efficient resource allocation within the logistics service provider companies.
The fundamental principles of logistics involves doing 7 things rightly, also known as 7 rs. Measuring logistics costs and performance logistics and the bottom line 83 logistics and shareholder value 88 logistics cost analysis 95 the concept of total cost analysis 96 principles of logistics costing 99 customer profitability analysis 103 direct product profitability 109 cost drivers and activitybased costing 111 81 chapter 3. Implementing best purchasing and supply management practices. Army doctrine publication 40, published 31 july 2012 addresses sustainment principles. So three key logistics elements are dissected and shown in different financial reports.
Develop an understanding of the role of logistics in a marketoriented society. Call it distribution or logistics or supply chain management. When identified, problems must be solved, so kaizen is also a problemsolving process. The principles of proposed logistics cost calculation model. Lecture notes introduction to transportation systems. Principles of logistics management linkedin slideshare. Grant, pearson,97802737351 materials handling and packaging issues logistics management, david b. The preceding table includes links to basic and involved problems.
It provides the cost figures and analyses that management needs in order to find the most efficient methods of operating, achieving control of costs, and determining selling prices. By whatever name it is the sinuous, gritty, and cumbersome process by which companies move material, parts, and products to customers. The seven principles of supply chain management provides a clear and compelling case for excellence in supply chain management. Principles of financial accounting chapters 117 pdf. In military science, maintaining ones supply lines while disrupting those of the enemy is a crucialsome would say the most crucialelement of military stratagy, since an armed force without resources and. Request the chapter directly from the authors on researchgate. Apr 20, 2015 the role of each element of logistics often defines the logistics principle within a supply chain. Few areas of business involve the complexity or span the. The eight principles of sustainment logistics are essential to maintaining combat power, enabling strategic and operational reach, and providing army forces with endurance. According to this model logistics costs are identified and then differentiated into direct and. Direct materials direct labor overhead absorption costing is a process of tracing the variable costs of production and the fixed costs of production to the product. The principles of logistic costing include responsiveness, simplicity, flexibility, economy, attainability, sustainability and survivability. The costing principles apply to the costing of nhs services.
Logistics is the art of managing the supply chain and science of managing and controlling the flow of goods, information and other resources like energy and people between the point of origin and the point of consumption in. Pdf activitybased costing methodology for thirdparty. The basic principle of logistics costing is to identify the different costs that result from servicing customers with particular product mixes. Logistics transportation distribution consulting services. Supply chain costing a conceptual framework springerlink. Principles of logistics and supply chain management assignment. Conceptual models are generally constructed at a macro level. Historic cost accounting and current values 126 summary 129 sample examination question 129 chapter 9. Solutions manual for principles of cost accounting 16th. The insights provided here remain remarkably fresh even ten years after its original published date.
The costing principles is the main facet of the access regime to ensure that the correct risk return balance is struck between third party train operators and pta. This paper provides a framework for supply chain costing in three steps. Cost accounting in logistics the two approaches of cost accounting activitybased costing and mission costing both follow the logic of tracing costs according to the specific activity or mission. The company builds three logistics teams such as the sales logistics, industrial logistics, and international logistics to make sure about the effective supply chain management loreal, 2015. Principles of financial accounting chapters 117 pdf kindle free download. The first part of the study presents the identification and measurement of logistics costs from the perspective of broadly understood business management. Logistics cost accounting is particularly suitable distribution industry and manufacturing industry, but there are not a lot of studies on the costs of thirdparty logistics control. A basic concern in activity based costing in logistics is to identify the period of time over which costs are accumulated for measurement. This publication emphasizes logistics tactics and procedures in order. Oct 15, 2009 the united kingdom recognises five key principles of logistics, which are defined in logistics for joint operations, joint publication 400. Project evaluation and finance pdf courtesy of carl d. Activity based costing in logistics mba knowledge base.
A business perspective first global text edition, volume 1 financial accounting james don edwards, phd, d. Oct 11, 2016 logistics cost is the total expenditure done on a single product from the beginning of procurement to selling it to end customer cost includes like. Each excel link will download the file containing a spreadsheet for the problem and a template worksheet on which you can prepare the solution electronically. The united kingdom recognises five key principles of logistics, which are defined in logistics for joint operations, joint publication 400. Logistics management is the planning and scheduling of transport operations through proper fleet asked in transportation and logistics. The problem with definitions and discussions of supply chains is that it is not easy to recognize the role of logistics within them, which is why th. Provide an opportunity for comprehensive analysis and discussion of key contemporary issues and problems in logistics and supply chain management. Logistics is happening around the globe 24 hours a days seven days a week during fiftytwo weeks a year. Effective logistics is the core requirement in the enhance customer satisfaction in the supplychain process. Logistical support to united nations eacekp eeping oper.
If you continue browsing the site, you agree to the use of cookies on this website. This includes the contribution of logistics to creating and adding value through domestic and global supply chains and in enabling organisations to achieve their strategic purpose and objectives in a holistic manner. First, the productrelationshipmatrix offers a systematic approach to decision in supply chain management. The important fundamental principles of costing are as follows. This publication emphasizes logistics tactics and procedures in order to provide all commanders, staffs, and soldiers an understanding of army logistics operations. Christopher 1998 provides further insights into the area. In the following table, several of the files span more than one lecture. The principles of logistics are the same as the principles. A knowledgeable and skilled workforce is your most valuable asset.
Cost calculation model for logistics service providers abstract the exact calculation of logistics costs has become a real challenge in logistics and supply chain management. The figures of costs are collected and analysed according to the nature and are allocated or apportioned on a basis of cause relationships. Logistics costs are individually recognized, not recognized at all or recognized in different places. Mar 10, 2010 principles of logistics managementdiploma in logistics management slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. May 2014 transportation management systems logistics management. The principles of process costing are briefly presented below. Absorption costing the focus of this class is on how to allocate manufacturing costs to the product. Variable costing traces only the variable costs of production to the. The costing principles provide a sense check to help you prioritise where to invest effort in improving costing and decide how much time to invest in that improvement.