Logistic management

Transport, airway, train

1. LOGISTIC MANAGEMENT Dr. D.JANIS BIBIYANA

2. Logistics Management Logistics management is a supply chain management component that is used to meet customer demands through the planning, control and implementation of the effective movement and storage of related information, goods and services from origin to destination. Logistics management helps companies reduce expenses and enhance customer service. The logistics management process begins with raw material accumulation to the final stage of delivering goods to the destination. Customer needs and industry standards, logistics management facilitates process strategy, planning and implementation.

3. Concept of Marketing Logistics Logistics deals with all activities that facilitate product flow from the point of raw material acquisition to the point of final consumption as well as the information flow that set the production in motion for the purpose of providing adequate levels of customer service at a reasonable cost. The scope of logistics is twofold – First, it is the movement of raw materials to the plant which is called physical supply (or materials management) and second, it is the flow of finished products from the plant to the customers, called physical distribution. Logistics management is the process of strategically managing the movement and storage of materials, parts and finished inventory from the supplier through the firm and on to the customers. It describes the entire process of materials and products moving into, through and out of the company.

4. Objectives of Marketing Logistics ( i ) To Reduce Costs- Costs can be reduced by intelligently by managing the physical distribution system and determining the optimum number and location of warehouses, improving materials handling, increasing stock turnover, using sealed containers to ship products, correcting inefficient procedures in order processing, etc. (ii) To Provide Better Customer Service- By improving the physical distribution system, the firm’s promotional efforts are strengthened so that better sales result could be achieved. (iii) To Increase Sales- By ensuring availability of goods and having plans for quick order processing of items, a firm can increase its sales.

5. Cont … (iv) To Establish Competitive Advantage- A firm can acquire advantage over rivals by performing customer services more efficiently-such as arranging for rapid and reliable delivery, avoiding errors in order processing, and delivering undamaged goods. (v) To Develop Effective Communication System- Logistics management permits salesman to transmit orders on a daily basis and respond to customers’ inquiries on a priority basis.

6. SCOPE OF THE MARKETING LOGISTICS Demand forecasting Distribution communication Inventory Control Material Handling Order Processing Part & Service Support Plant and Warehouse side selection Procurement Packaging Salvage & scrap disposal Traffic & transportation Warehousing & Storage Time & Place Utility Efficient Movement to Customer Return goods handling Customers Service

7. Domestic Marketing Vs International Marketing BASIS FOR COMPARISON DOMESTIC MARKETING INTERNATIONAL MARKETING Meaning Domestic marketing refers to marketing within the geographical boundaries of the nation. International marketing means the activities of production, promotion, distribution, advertisement and selling are extend over the geographical limits of the country. Area served Small Large Government interference Less Comparatively high Business operation In a single country More than one country Use of technology Limited Sharing and use of latest technology.

8. Cont…. Risk factor Low Very high Capital requirement Less Huge Nature of customers Almost same Variation in customer tastes and preferences. Research Required but not to a very high level. Deep research of the market is required because of less knowledge about the foreign markets.

9. Importance of International Marketing Important to expand target market- Target market of a marketing organization will be limited if it just concentrate on domestic market. When an organization thinks globally, it looks for overseas opportunities to increase its market share and customer base. Important to boost brand reputation- International marketing may give boost to a brand’s reputation. Brand that sold internationally is perceived to be better than the brand that sold locally. People like to purchase products that are widely available. Hence, international marketing is important to boost brand reputation.

10. Importance of International Marketing (Cont..) Important to connect business with the world- Expanding business into an international market gives a business an advantage to connect with new customers and new business partners. Apple – the tech giant designs its iPhone in California; outsources its manufacturing jobs to different countries like – Mongolia, China, Korea, and Taiwan; and markets them across the world. Important to open door for future opportunities- International marketing can also open door for future business opportunities. International marketing not only increases market share and customer base, it also helps the business to connect to new vendors, a larger workforce and new technologies and ways of doing business.

11. Supply Chain management Supply chain management is the management of the flow of goods and services and includes all processes that transform raw materials into final products. It involves the active streamlining of a business's supply-side activities to maximize customer value and gain a competitive advantage in the marketplace. SCM represents an effort by suppliers to develop and implement supply chains that are as efficient and economical as possible. Supply chains cover everything from production to product development to the information systems needed to direct these undertakings.

12. Supply Chain Management Trends Consumer expectations are becoming increasingly higher. When once consumers were happy with waiting a week to receive a package in the mail, today anything longer than two day delivery means that many consumers will forget their order by the time it arrives, and maybe decide they would rather not receive any item at all than wait. Changing Consumer Experience Growing Ecommerce Crowding in Urban Centers Supply Chain Evolution Direct Delivery Channels

13. Third -Party Logistics 3PL (third-party logistics) provider offers outsourced logistics services, which encompass anything that involves management of one or more facets of procurement and fulfillment activities. In business, 3PL has a broad meaning that applies to any service contract that involves storing or shipping items. A 3PL service may be a single provider, such as transportation or warehouse storage, or it can be a system wide bundle of services capable of handling supply chain management. 3PL, or third-party logistics, is essentially a variety of services and processes that are provided to a business by an external company for a variety of reasons such as wanting to reduce costs, improve efficiencies and expand capabilities. 3PL services are usually flexible and scalable based on the needs of the business, meaning that they can be utilized on an as-needed basis, or as a long-term solution depending on the goals and objectives of the business.

14. Benefits of 3PL 3PL logistics providers can deliver a great deal of value to companies that are dealing with the challenges associated with rapid growth or changing market conditions. Here are some of the main benefits that can be realized by utilizing 3PL logistics. Cost Savings Flexibility Customer Experience International Reach

15. Fourth Party Logistics Fourth Party Logistics, popularly known as 4PL, is the outsourcing of logistics operations to a single partner. The partner will be responsible for assessing, designing, building, running and measuring integrated supply chain solutions for the client.  The 4PL advances the sourcing of logistics from Third Party Logistics(3PL) to 4PL. On behalf of the client, the single partner controls and manages the supply chain by overseeing the combination of warehouses, shipping companies, freight forwarders and agents. The 4PL is different from 3PL for the following reasons. 4PL is much suitable for medium-to-large businesses while 3PL is suitable for small-to-medium businesses. 4PL manages and controls all activities within the supply chain network while 3PL focuses more on logistics operations. 4PL maintains a single point of contact for its operations.

16. Opportunities 4PL Inbound Raw Material Supply Global Available-to-Promise/Dynamic Logistics Demand-Driven Logistics Global Orchestrator Global Fulfillment Lanes