Project Update-1_Vijay Pampana
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Transcript of Project Update-1_Vijay Pampana
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8/3/2019 Project Update-1_Vijay Pampana
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Vijay Kumar Pampana
Designing a Marketing LogisticsSystem
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Agenda
Define Logistics
Logistics Model
Importance of Logistics
Define Marketing Logistics Need for Logistics in Marketing
Marketing & Logistics Interface
Objectives of Marketing Logistics
Future Steps Time-line
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Define Logistics
Business planning framework for the management
of material, service, information and capital flows.
It includes the increasingly complex information,communication and control systems required intoday's business environment.
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Logistics Model
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Factors raising Logistics Importance
Raise in transportation cost
Production efficiency is reaching a peak
Product line proliferated
Computer technology Fundamental change in inventory philosophy
Increased public concern of products
Growth of several new, large retail chains or massmerchandise with large demands & very sophisticatedlogistics services, by pass traditional channel &distribution
Growing power of retailers
Globalization
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How Globalization affects Logistics?
Efficient logistics systems throughout the worldeconomy are a basis for trade and a highstandard of living for all of us
Lands, as well as the people who occupy them,are not equally productive
Examples Japans electronics industry, the agricultural,
computer and aircrafts industries of United Statesand various countries dominance in supplying rawmaterials such as oil, gold, bauxite, and chromium
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Why Effective Logistics? Contributes immensely to the achievements of the business and
marketing objectives of a firm
It creates time and place utilities in the products and therebyhelps in maximizing the value satisfaction to consumers
By ensuring quick deliveries in minimum time and cost, itrelieves the customers of holding excess inventories
It also brings down the cost of carrying inventory, material
handling, transportation and other related activities of distribution
In a nutshell,an efficient system of physical distribution/logistics has a greatpotential for improving customer service and reducing costs there-bycontributing to the profit maximization objective of a firm!
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A Marketers Logistic Dilemma!
A single product would tend towards a minimumcost solution within production department butwould generate only a small percentage ofpotential realizable revenue from the market
On other hand, a wide & diverse product range
would lift costs of production whilst satisfyingmarketing departments desire to maximize
customer satisfaction and therefore revenue
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Define Marketing Logistics
Analysis, Planning, Organizing and Controlling of allmovement and storage operations connected withflow of finished goods from end of production line to
their satisfactory arrival in the market place, and ofthe associated channels of distribution required toarrange and complete the transactions betweencompany and its selected marketsPhysical Distribution
Management
Physical flow involved in distributionactivities
Eg how many warehouses? ,public or private vehicle fleet?
Marketing Logistics
Physical facilities + selection &management of channels ofdistribution
Eg What types of retailoutlet?, Wholesaler vs Retailer?
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Why logistics for Marketing?
Technological Advancement Advancement in the fields of information processing,
communication, transportation and material handling
So managers can now update sales and inventory
planning faster and more frequently Factories can respond with more flexibility to volatile
market conditions
Product life cycles are contracting Companies that have gone all out to slash costs by
turning to large scale batch production regularly findthemselves saddled with obsolete stocks and areunable to keep pace with competitors new-product
launches
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Contd..
Product lines are proliferating More and more product line variety is needed to satisfy
the growing range of customer tastes and requirements,and stock levels in both field and factory inevitably rise.
Shift in Distribution Management The balance of power in distribution chain is shifting
from the manufacturers to the trader
Change in Customers Attitude Transform in the customers attitude towards the total
cost approach rather than direct cost approach
Customers expectations of service has increased
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Contd..
Increasing Distribution Costs
In many industries, the value added bymanufacturing is declining as the cost of materials
and distribution climbs
Globalization & Economies of Scale
Companies are centralizing production to gain
economies of scale Most of the MNC organizations are restructuring
their production facilities on a global basis
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Marketing & Logistics Interface
**Sustainable competitive advantage => superiorlogistic performance => Integrate Manufacturing,Marketing & Distribution at strategic level**
MarketingActivities
LogisticsActivities
MarketingLogisticsinterface
MarketingResearch
DemandForecasting
CustomerService
Product Mix Transportation
Transport
Pricing Packaging InventoryProcessing
Promotion Storage Material Handling
/Distribution
Sales ForceManagement
OrderFulfillment
Information
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Objectives of Marketing Logistics
Improving customer service
Rapid Response
Reduce total distribution costs
Generating additional sales
Creating time and space utilities
Price Stabilization
Quality Improvement
Movement consolidation
*Will discuss in detail while presenting
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Future Steps
S.No. STEP DATE
1 Scope of Marketing Logistics 15th Nov
2 System Elements of Logistics 24th Nov
3 Advantages of Efficient Marketing-Logistics System
24th Nov
4 Planning Principles and Process 2nd Dec
5 Marketing Logistic System Model 20th Dec (6th
TermBeginning)
6 Role of Modern DistributionChannels
20th Dec
7 Final Presentation 20th Dec
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The development of interest in logistics after industrialrevolution and world war II
contributed to the growth in scope of logistical activities.The following areas are
the major scope of logistics:
Demand forecasting Distribution communication
Inventory Control
Material Handling
Order Processing
Part & Service Support Plant and Warehouse side selection
Procureme
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Salvage & scrap disposal
Traffic & transportation
Warehousing & Storage
Time & Place Utility Efficient Movement to Customer
Return goods handling
Customers Service
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The following are the system elements oflogistics:
1. Order processing
2. Warehousing
3. Inventory control
4. Transportation
5. Information monitoring
6. Facilities
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References
Effective Marketing Logistics book by GrahamBuxton
Basics of Distribution Management A Logistical
Approach -book by Sastish K. Kapoor and PurvaKansal
Improving Marketing/Logistics Cross-FunctionalCollaboration in the Supply Chain journal by
Alexander E. Ellinger
International Logistics Marketing & Supply ChainManagement - Pierre David, Biztantra 2003
http://www.splogistics.info/2011/01/marketing-
http://www.splogistics.info/2011/01/marketing-logistics.htmlhttp://www.splogistics.info/2011/01/marketing-logistics.htmlhttp://www.splogistics.info/2011/01/marketing-logistics.htmlhttp://www.splogistics.info/2011/01/marketing-logistics.html -
8/3/2019 Project Update-1_Vijay Pampana
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Martin Christopher Logistics & Supply Chain!
http://www.splogistics.info/2011/01/marketing-logistics.htmlhttp://www.splogistics.info/2011/01/marketing-logistics.htmlhttp://www.splogistics.info/2011/01/marketing-logistics.htmlhttp://www.splogistics.info/2011/01/marketing-logistics.html -
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THANK YOU
Questions?
http://www.splogistics.info/2011/01/marketing-logistics.htmlhttp://www.splogistics.info/2011/01/marketing-logistics.html