Logistics and the balance sheet
As well as its impact on operating income (revenue less costs) logistics can
affect the balance sheet of the business in a number of ways. In today’s
financially-oriented business environment improving the shape of the balance
sheet through better use of resources has become a priority.
Once again better logistics management has the power to transform
performance in this crucial area. Figure 3.3 summarizes the major elements
of the balance sheet and links to each of the relevant logistics
management components.
By examining each element of the balance sheet in turn it will be
seen how logistics variables can influence its final shape.