Logistics in Marketing MBA Semester III by A Kumar 12/6/2018 Goenka College of Commerce

Goenka College of Commerce 12/6/2018 Goenka College of Commerce

Goenka College of Commerce LOGISTICS….. Defined 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 profit By “Philip Kotler” 12/6/2018 Goenka College of Commerce

Goenka College of Commerce 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” 12/6/2018 Goenka College of Commerce

Goenka College of Commerce 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. 12/6/2018 Goenka College of Commerce

Goenka College of Commerce In a manufacturing org. the business process starts with the flow of material from the suppliers, progress to the plant, then to the customer through the distribution channel. The department may excel in their respective function but org. as a whole in their performance may be dismal. 12/6/2018 Goenka College of Commerce

Goenka College of Commerce Reason Lack of Co ordination in their activities They have different goal to cherish There is no single agency that coordinates their functions and homogenizes them How to overcome ? 12/6/2018 Goenka College of Commerce

Logistic –A system approach Logistic recognizes that all the activities of material movement across the business process are interdependent and needs close coordination and these are to be maintained as a system and not the functional Silos. 12/6/2018 Goenka College of Commerce

Goenka College of Commerce LOGISTICS MIX System is shown as logistic Mix including following functional Areas Order Processing Information Flow Warehousing Inventory control Packaging Transportation 12/6/2018 Goenka College of Commerce

Goenka College of Commerce Order Processing Order checking for any deviation in agreed on negotiated term Technical details : price, delivery period, payment terms, taxes etc Checking the availability of material in stock (material requisition) 12/6/2018 Goenka College of Commerce

Goenka College of Commerce Production & material scheduling for shortage Acknowledging the order, indicating deviation if any It is routine operation but require great deal of planning training of people involved and investment to bring about efficiency & accuracy 12/6/2018 Goenka College of Commerce

Goenka College of Commerce Information Flow It is basically information based activity of inventory movement across the supply chain. Hence role of information system plays a vital role in delivering superior customer service 12/6/2018 Goenka College of Commerce

Goenka College of Commerce This function is required to facilitate the following information needs Order Registration Order checking & editing Order processing Coordination 12/6/2018 Goenka College of Commerce

Goenka College of Commerce Inventory management How much to order When to order For this we require Dependable IMS Independent IMS Purchase Control Stores control Issue management ABC Analysis VED Analysis EOQ Analysis JIT System 12/6/2018 Goenka College of Commerce

Goenka College of Commerce Packaging It is also a critical element in physical distribution of the product , which influences the efficiency of the logistic system. This is done with the view of following :- For handling and damage prevention For communications For inter modal transportation Storage space economy 12/6/2018 Goenka College of Commerce

Goenka College of Commerce Transportation For the movement of goods from supplier to buyer , transportation is the most fundamental and important component of logistic. In logistic cost its share varies up to 65-70% in case of mass consumed very low unit price products. 12/6/2018 Goenka College of Commerce

Goenka College of Commerce Three ForcesWhich have change the perspective of logistics 12/6/2018 Goenka College of Commerce

Goenka College of Commerce Globalization Focus on Supply chain Management Outsourcing of Non Core Competency Functional Area 12/6/2018 Goenka College of Commerce

 Objectives of Logistic management 12/6/2018 Goenka College of Commerce

Goenka College of Commerce Reliable and consistent delivery performance Freight economy Minimum product damage quick Response Inventory Reduction Sustainable Competitive advantage 12/6/2018 Goenka College of Commerce

Components of Logistics Management Management actions Inputs into logistics Outputs of logistics Planning Implementation Control Natural resources (land, facilities, and equipment) Marketing orientation (competitive advantage) Logistics management Time and place utility Human resources Suppliers Raw materials In-process inventory Finished goods Customers Financial resources Efficient movement to customer Information resources Logistics activities Proprietary asset Customer service Demand forecasting Distribution communications Inventory control Material handling Order processing Parts and service support Plant and warehouse site selection Procurement Packaging Return goods handling Salvage and scrap disposal Traffic and transportation Warehousing and storage 12/6/2018 21 12/6/2018 Goenka College of Commerce

List of Top Logistics Companies of India - Case Examples : 12/6/2018 Goenka College of Commerce

Goenka College of Commerce AFL : One among the acknowledged leaders among the logistics companies in India is AFL. Through its domain of logistics services, the company has delivered world class service in India. In 1979,the company introduced the first ever courier service by forming an alliance with DHL World Wide Express. The company offers services like Logistics and warehousing, Courier Company and Custom Consultant. 12/6/2018 Goenka College of Commerce

Goenka College of Commerce DHL : This company is one among the major logistics companies in India. It is a market leader globally in overland transport, air freight and international express. The company ranks No.1 in the world in contract logistics and ocean freight. The biggest logistics and express network in the world has a network in about 220 territories and countries,72,000 vehicles,350 Aircrafts,36 hubs and 4,700 bases. 12/6/2018 Goenka College of Commerce

Goenka College of Commerce BLUE DART : This logistics company is South Asia's top integrated express package Distribution and courier company. The domestic network of the company covers about 21,340 locations and provides service to 220 countries by the company's sales alliance with DHL. It provides the best service like Free Pick up from Your location,Regulatory Clearances,Real Time Tracking,Free Computerized Proof of Delivery etc. 12/6/2018 Goenka College of Commerce

Goenka College of Commerce Thank you & Best Wishes. 12/6/2018 Goenka College of Commerce