MARKETING MANAGEMENT

Group 8Rashin RahimIMK ,Trivandrum

• The word logistic has originated from Greek word ‘Logistikos’ and the Latin word ‘Logisticus’ which means science of computing & calculating

• In ancient times it was used more in connection with moving armies, the supplies of food & armaments to the war front.

• During World War II logistics gained importance in army operations covering the movement of supplies , men & equipment across the border

• Today It has acquired the wider meaning and is used

in the business for the movement of material from suppliers to the manufacturer and finally the finished goods to the consumers

LOGISTICS

LOGISTICS MANAGEMENTDefined

Planning implementing and controlling the physical flow of material and finished goods from point of origin to point of use to meet

customer`s need at a profitBy “Philip Kotler”

It is essentially a planning process and an information activity

So A integrative process that optimizes the flow of material and supplies through the

organization and its operations to the customer

KEY POINTS

o Logistics - the key to success of SCMo Order fulfillment –The tokeno Implication for the consumerso Far reaching effect

Continuation…

• In addition to the above role today’s logistics deals with flow of material and service sectors

-hospitals -banks

-retailers -whole salers

• Also the ultimate disposal ,recycling and reuse of the products need to be considered.

SCOPE OF LOGISTIC

• It is of critical importance to the organization how it delivers products & services to the customer , whether the product is tangible or intangible.

• Effective & efficient Physical movement of the tangible product will speak of intangible services associated with the product and the organization which is delivering it.

• In Case of intangible product , the delivery of tangibles at the right place & right time will speak about its quality.

• On the macro level infrastructure such as Various modes of transport , transportation equip., storage facilities, connectivity & information processing are contributing to a larg3e extent in the physical movement of goods produced in manufacturing , mining & agriculture Sectors.

SCOPE OF LOGISTICSThis speed & reliability in distribution of products &

services contribute to a great extent in the growth of a country`s domestic & international trade . Logistic cost as a percentage of GDP across the world is shown in the following table

Logistics as per percentage of GDPCOUNTRY % GDP

KOREA 16

CHINA 15

JAPAN 14

INDIA 13

UK 12

USA 11

FRANCE 10

• India spent nearly $ 50 billion to move material from one use to another.

• So the “ Public distribution system in the country needs logistical support for delivering goods at right place on time and the lowest cost.

• At Micro Level logistic plays a critical role in the value delivery system of business organization to provide superior customer service i.e. to achieve a desired level of delivered services and quality at the lowest possible cost

KEY LOGISTICS ACTIVITIES Logistics comunication Material Handling Order processing Packaging Parts and service support Plant and warehouse site selection Procurement Return goods handling Reverse Logistics Traffic and Transportation Ware housing and storage

In addition to this…

Understand over all strengths and weakeness to develop over all strategy

Customer service identify customer desires Conduct audits both external and internal Based on them set goals and strategies

PHASES OF LOGISTICS DEVELOPMENT

• Work place Logistics• Facility Logistics• Corporate Logistics• Supply chain Logistics• Global Logistics

TRANSPORTATION• For the movement of goods from supplier to buyer

, transportation is the most fundamental and important component of logistic.

• E.g. for low unit value products the transportation cost component is 20% of the product cost.

• In logistic cost its share varies up to 65-70% in case of mass consumed very low unit price products.

Mode of transportation ( Cost & time factor) Own fleet or Outsourcing Route Planning Vehicle scheduling Are the few decision which are involved in

transportation

Transportation in India• Transportation is not given serious preferencee in

India• Neither the central government nor the state

government takes serious interest • In India logitics costs constitutes 10% of GNP of

which 40% is from transportation • In US logisticss costs constitutes to 60% of GNP

The macro logistics of the industries are not able to derive the best out of the Micro Logistics

An improvement in the micro logistics will be effectively only if the macro logistics is effective

CONCLUSION

The logistic sector of the country is emerging day by day . As the equirement and necessities of the consumers and customerss is increasing day by day the scope of growth is really enourmous. All that is required is to have a systamatic approach so that the productivity out of the sector can be properly added to the GNP