LOGISTICS NAME-Rohit Rawat

DECISIONS COURSE-B.COM(HONS),C
ROLL NO.-22/1076
 Introducti
on Processing,

No matter how excellent a company’s

product may be, a lot of hard work
would be wasted Warehousing,

if it failed to reach to the users at the

Logistic
appropriate time, in the correct place, tasks are
and in the best physical condition. The classified
operations involved in handling and
moving items from the place of Inventory
control
Transportation

production to the point of usage are

referred to as marketing logistics. A Information
monitoring
company’s ability to accomplish its and

marketing goals is significantly

aided by an efficient marketing logistics
 Concept of Marketing
Logistics
The term “logistics” stems from the Greek
word “logisticos” meaning the science of Transporting
finished
computing and calculating. In the military goods out of
the
sense, Webster defines Logistics as the organisation
“procurement, and transportation of
military materials, facilities and Work-in-
progress
personnel”. Today in the industrial and through
the
commercial world, logistics has acquired a organisatio
n and Bringing raw
wider meaning.
materials
Marketing logistics has been described by and
Philip Kotler as “planning, implementing component
and controlling the physical flows of parts
materials, final goods and related
information from point of origin to point of
consumptions to meet customers’
 Importance of Marketing
Logistics
1. Improving customer experience: Logistics
management helps to provide faster and quality Improving
customer
service. experienc
2. Accessibility: Ensures access to the right e
product at right time.
Larger
3. Creates time and place utility: The company Market
Accessibil
ity
uses time utility so that all the components and Share
materials are available when they are needed, and
the manufacturing line is unaffected.
4. Boosting Profits: When goods are
manufactured on time and delivered to the end user Helps to
on time, wastage tends to be very low which tends align with
Creates
the
to increase the profits of the firm. changing
time and
place
5. Helps to align with the changing work work
utility
environment: As we all know business trends are environm
ent
changing rapidly and involvement of information
Boosting
technology has increased in every sector, so is the Profits
case with the logistics.
6. Larger Market Share: It is possible to achieve
 Stages in Marketing
Logistics

(a) Inbound Logistics: These are logistics that flow from the supplier to the
manufacturing unit. These are basically the raw materials needed by the firm to
manufacture a certain good.
(b) Outbound Logistics: They flow from the manufacturer to the point of
consumption. Shipments of items to other firm facilities, such as temporary warehouses,
physical stores, suppliers, and production facilities, are also included in this logistics step.
Outbound logistics’ primary goal is to make sure that the products are delivered to their
destination in the appropriate amounts and in the given time frame.
(c) Reverse Logistics: Reverse logistics is the process of sending goods back to the
supply chain from end users to either the producer or the retailer. Reverse logistics begin
with the end user and end at the producer of the good.
 Components of Marketing
Logistics

Storage and
Order Processing Transportation Inventory Control
Warehousing
 1.Order Processing
Processing consumer orders serves as the foundation of marketing logistics. The customer
orders should be completed as quickly as possible in order to give a better customer
service. Order processing starts from receiving a order, recording it, filling it, processing it
and assembling all received orders for further transportation. When all the steps of order
processing process are carried quickly or before time and with a better degree of
accuracy, ultimately customer satisfaction is received. Nowadays, processes like taking
orders, recording and processing them is all done with the help of online software’s.
Therefore, it is necessary to have a good command on technology.
 2.Transportation
In the context of marketing,
transportation means the movement
of goods from one place to another.
Transportation is a necessary function
of marketing because most of the
markets are geographically separated
from the areas of production. A firm’s
ability to transport undamaged
products to appropriate distributors in
a timely fashion effects the firm’s
success in satisfying consumer’s
needs and wants. Thus,
transportation decisions should be
weighed carefully and could serve as
an important differentiating variable
in a marketing strategy. The selection
of a transportation mode or method
affects all aspects of the physical
 3.Storage and Warehousing
A.STORAGE
Storage involves holding and preserving of goods between the time of their production and
the time of their use. Storage is necessary because of many reasons
A. first, when production is seasonal but consumption is perennial .
B. second, when production is continuous but consumption is seasonal;
C. third, there is no perfect time synchronization between production schedules and
consumer demands, fourth, the existence of middleman like wholesalers and retailers in
the channel required storage of goods for supply to customer in small lots;
D. fifth, storage of goods & raw materials becomes necessary to avoid interruptions in
production schedules;
E. finally, goods may be stored by traders for speculative purposes, or by produces to
guard against constantly receding princes.
• Storage is considered as a function of equalization – it tends to adjust supply to demand
so as to
equalize them in the interest of the manufacturer middlemen and consumers.
 3.Storage and Warehousing
A.WAREHOUSING
A warehouse is a place where goods are stored or accumulated. The storage function is
thus made effective through the establishment of warehouse. And warehousing is the
design of operation of storage facilities, i.e., warehouses.

(iv) (v) Benefits (vi)

(i)Stabilisati (ii) Smooth
(iii) Safety Reduction in to Financial
on of Prices: Trading
Costs Customers Assistance
 Kinds of
Warehouses:

I. Warehouses II. Warehouses

III. Specially
according to according to
Warehouses
Location Ownership

(i) General
(i) In-plant (i) Private
Merchandise
Warehouses Warehouses
Warehouses

(ii) Field (ii) Public (ii) Special

Warehouses Warehouses Warehouses

(iii) Distribution
(iii) Bonded
Centers (iii) Cold Storages
Warehouses
(Warehouses)

(iv) Bonded (iv) Co-operative (iv) Grain

Warehouses Warehouses Elevators
 4.Inventory Control
Inventory, in its broadest sense, means stock of raw materials, purchased part, tools and
jigs general stores and supplies, work-in-process, and finished products kept in reserve for
certain period of time. In the context
of our discussing regarding marketing. Inventory means the stock of goods held by a firm in
anticipation of sales. Inventory may be of two types:
in-transit inventory which is moving through the distribution system, and warehouse
inventory, i.e. stock of goods lying in the factory and/or warehouses. Every business
enterprise must carry some amount of inventory for the following reasons:
(a) To carry reserves in order to avoid stock-outs causing interruptions
in production.
(b) To maintain sufficient stocks to provide customers with adequate
service while replacement stocks are in transit.
(c) To take advantage of bulk buying.
 Techniques of Inventory
Control: Economic Order Quantity
ABC Analysis: (EOQ)
• (a) Ordering costs: The ordering
• Accordingly, inventory items are classified costs increase in proportion to the
into three categories A, B and C and this number of orders place.
technique is called ABC analysis. Category • (b) Carrying costs: These costs
A items of inventory are the least costly include storage costs, cost of
items in category B are less costly and deterioration and obsolesce,
those included in category C are the least insurance, taxes, and most
costly items. importantly, the opportunity costs
of funds invested in inventories.
• (c) Total costs: The total cost of
holding inventory is the sum of
the ordering and carrying costs.
 Supply Chain Management
Planning:
“A Simplified Supply Chain” denotes the flow that
begins with the acquisition of raw materials and
ends with the sale to end customers. Supply
Chain Management (SCM) refers to the process of Sourcing
integrating all activities in the supply chain. SCM
necessitates a high level of coordination among
chain members. To optimize the final customer’s ELEMENT
happiness, all parties must be willing to exchange
information and collaborate. The supply chain
S
includes all parties who are directly or indirectly
involved Manufact
in fulfilling a client request. Supply Chain Returning
uring
Management (SCM) is the intricate network of
trade ties that connects manufacturers, suppliers,
wholesalers, retailers, and the logistical Deliverin
infrastructure providers. g
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