CHAPTER 3
Value and logistics costs
Objectives The planned objectives of this chapter are to:
explain the concept of value and its implications for managing the supply chain;
explain how total costs can be divided up in different ways, and how they can be applied to managing the supply chain;
identify how better cost information can be used to create more value.
By the end of this chapter you should be able to understand:
what is meant by the term ‘value creation’;
how logistics costs can be managed for better value creation;
how activity-based management can be used to identify the cost drivers in your business.