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.what is meant by the term ‘value creation.

Value and logistics costs

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.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.