DIMENSIONS OF LOGISTICS

PRESENTED BY VINUTHA V

1JX12MBA42PRESENTED TO

ASST PROF SAMBRAMASJBIT

DIMENSIONS OF LOGISTICSLOGISTICS DEFINITION That part of the supply chain process that

plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers requirements.

MACRO DIMENSIONS MICRO DIMENSIONS

MACRO DIMENSIONSLogistical costsTransportation costCarrying costAdministration cost

Value-Added Role of Logistics Form Utility. Form utility refers to the value added to goods

through a manufacturing, production, or assembly process. For example, form utility results when form utility results when raw materials are combined in some predetermined manner to make a finished product.

Place Utility Logistics provides place utility by moving

goods from production surplus points where demand exists. Logistics extends boundaries of the market area, thus adding economic value to the goods.

Time Utility Not only must goods and services be available

where consumers need them, but they must also be at that point when customers demand them.

Possession Utility Possession utility is primarily created through the

basic marketing activities related to the promotion of products or services. We may define promotion as the effort, through direct and indirect contact with the customer, to increase the desire to possess a good or to benefit from a service.

MICRO DIMENSIONLOGISTICS INTERFACE WITH MARKETING PRODUCT: At the core of marketing effort of the

manufacturing organization is a product that the organization is able to offer to the customers.

PRICE: The amount of money charged for a

product or service, which the customer as to pay.

PLACE: This involves choosing a channel of

distribution, choosing the type of middleman, and deciding where to locate warehouses to ensure availability of the product.

PROMOTION: It includes the resources allocated to

advertising and promotion. Promotion of a product or service encompasses both personal selling and advertising

LOGISTICS INTERFACE WITH OPERATIONS

PROTECTIVE PACKAGING Protective packaging could prove

economically beneficial to the organization . The packaging of any product should be such that the product remains safe till it reaches the customer.

SEASONAL DEMAND: production manager is interested in

producing well ahead of season. Logistics department in conjunction with production, must be prepared to accept seasonal inventory, which can start to accumulate three to six months before sales occur.

LENGTH OF PRODUCTION RUNS: Balance economies of long production runs

against increased cost of high inventories. Short cycle time is preferred by industries.

EXAMPLE A marketing research firm wants to investigate

what factors influence the size of soda (small, medium, large or extra large) that people order at a fast-food chain. These factors may include what type of sandwich is ordered (burger or chicken), whether or not fries are also ordered, and age of the consumer. While the outcome variable, size of soda, is obviously ordered, the difference between the various sizes is not consistent. The difference between small and medium is 10 ounces, between medium and large 8, and between large and extra large 12.

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