Strategic and Financial Planning in Logistics

What are the objectives of FINANCIAL MANAGEMENT?

• Strategic logistics

  &

  Financial planning

• Profit Maximization

  &

  Wealth Maximization

• Strategy

  &

  Operational plans

• Strategic plans/Tactical plans

Logistics is essential for every organization. Logistics has always been a Central and essential feature of all economic activity, without logistics, no materials move, no operations can be done, no products are delivered, and no customers are served.

• Essential and Expensive

• Effects on financial performance

• Profitability

• Objectives

Terminal facilities

Transport equipment

Carrier administration

Roadway acquisition and maintenance [ Infrastructure (road, rail, pipeline, navigation etc.)

• Profit Maximization

• Variable Cost

• Wealth Maximization

• Fixed Cost

Fuel

Labor

Equipment maintenance

Handling, pickup & delivery, taxes

• Fixed Cost

• Profit Maximization

• Variable Cost

• Wealth Maximization

is a key concept for any company. For each possible output level, a company needs to know how much it will cost to produce and distribute this output as well as how much revenue will be earned by selling it.

• Profitability

• Strategic Planning

• Financial Planning

• Objectives

What are the three major aspects of strategic logistics planning?

• Strategy, Strategic plans/Tactical, Operational plans

• Profitability, Fixed Cost, Variable Cost

• Long-term goals,

  Means, Process

• Profit maximization,

  Wealth maximization, Objectives

defines the long-term direction of the enterprise, articulating what the enterprise will do to compete and succeed in its chosen markets or, for the public sector, what the agency will do to achieve its mission.

• Strategy

• Strategic plans/Tactical

• Operational plans 

• Profitability

define how the enterprise will realize its long-term ambitions. Functional strategic plans define the roadmap of initiatives and portfolio of investments required to achieve those strategic objectives.

• Strategy

• Strategic plans/Tactical

• Operational plans 

• Profitability

deal with the execution of specific projects and changes, as well as any operational tasks not contained in the strategic plan.

• Strategy

• Strategic plans/Tactical

• Operational plans

• Profitability

If LOGISTICS is the backbone of every organization, what is the lifeblood of every organization?

• Profit Maximization

• Strategic Logistics

• Finance

• Wealth Maximization