LOGISTICS ACTIVITIES UNIT – II-
LOGISTICS ACTIVITIES-
MARKETING AND LOGISTICS – CONCEPT:
Logistics has gained importance due to the following trends:
- Rise in transportation cost.
- Production efficiency is reaching a peak
- Fundamental change in inventory philosophy
- Product line proliferated
- Computer technology
- Increased public concern of products growth of several new, large retail chains
- Reduction in economic regulation
- Growing power of retailers
- Globalization
OBJECTIVES OF MARKETING LOGISTICS:
The General objectives of the logistics can be summarized as:
- Cost reduction
- Capital reduction
- Service improvement
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
LOGISTICS AND MARKETING INTERFACE
RELATIONSHIP OF LOGISTICS TO MARKETING AND PRODUCTION
ELEMENTS OF LOGISTICS:
- Storage, warehousing and materials handling
- Packaging and unitization
- Inventory
- Transport
- Information and control
TRADE-OFF ANALYSIS – CONCEPT
THE FOUR MAIN TYPES OF TRADE-OFF ANALYSIS:
I. Conjoint
II. Discrete Choice
III. Self-Explicated
IV. Hybrid
LOGISTICS OUTSOURCING
The Advantages and Drawbacks of Logistics Outsourcing:
- Reduces burden of back-office management
- Economies of scale
- Real-time visibility of inventory
- Expert documentation handling
Five Often Overlooked Pitfalls in Logistic Outsourcing:
- Outsourcing without proper appraisal process
- Choosing a low-pricing vendor for cost-benefit
- Not specifying roles and responsibilities in writing
- Not viewing logistics outsourcing as a strategy
- Disconnect between clients and outsourcing agents