The implications of shareholder value planning and management for logistics decision making

Abstract

Much of the literature in the field of logistics and supply management is concerned with the role that should be taken by business activities to add value for the customer and the shareholder. One of the problems currently under discussion is how this may be achieved. Discusses the issues underlying shareholder value management and planning. It proposes that value drivers are identified and examined in the context of both value and cost implications when related to the broader objectives of delivering shareholder value. A model is proposed which links EVA criteria, operating management criteria and logistics options. The model offers managers the opportunity to explore operational options and their impact on shareholder value criteria.