Marketing Logistics

Logistics work in marketing

1. WELCOME

2. MARKETING LOGISTICS PRESENTED BY : Manish GJUS&T MBA-FINANCE

3. The science of Planning, Organizing & Managing activities that provide Goods & Services. LOGISTICS ? Logistics means having the right thing at the right place, at the right time.

4. Marketing logistics ─ also called physical distribution ─ involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit. MARKETING LOGISTICS? That is, it involves entire supply chain management managing upstream and down stream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.

5. Difference b/w supply chain & logistics Transforming raw materials into products, and getting it to customers Movement of materials in whole supply chain Supply chain Logistics

6. NATURE OF MARKETING LOGISTICS Marketing logistics involves not only outbound logistics (moving products from the factory to resellers and ultimately to customers) but also inbound logistics (moving products and materials from suppliers to the factory) and reverse logistics (reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers).

7. IMPORTANCE OF MARKETING LOGISTICS Companies today are placing greater emphasis on logistics for several reasons.

8. Seven R’s of Logistics Most popular concepts of Logistics Management is the concept of Seven R’s .

9. Logistic Functions Following areas of logistics management , contribute to an integrated approach to logistics

10. AIR RAIL WATER ROAD PIPELINE Supply Chain

11. Receiving Storing Shipping

12. Third-party logistics (3PL) provider is an independent logistics provider that performs any or all of the functions required to get a client’s product to market.

13. Return Re Use Recycling Disposal

14. Logistics Goals Logistics share the goal of supply chain management, to meet the customer’s requirement

15. Logistics Goals Some companies state their logistics objective as providing maximum customer service at the least cost. Unfortunately, no logistics system can both maximize customer service and minimize distribution costs. The goal of marketing logistics should be to provide a targeted level of customer service at the least cost. A company must first research the importance of various distribution services to customers and then set desired service levels for each segment.

16. Given the market logistics objectives, the company must design a system that will minimize the cost of achieving these objectives. Each possible market logistics system will lead to the following cost: M=T+FW+VW+5 Where, M= total market logistics cost of proposed system T= total freight cost of proposed system FW= total fixed warehouse cost of proposed system VW= total variable warehouse costs(including inventory) of proposed system S= total cost of total sales due to average delivery delay under proposed system