1. Logistics in Marketing
MBA Semester III by
A Kumar
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Goenka College of Commerce

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Goenka College of Commerce

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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”
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Goenka College of Commerce

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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”
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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.
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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.
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Goenka College of Commerce

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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 ?
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Goenka College of Commerce

8. 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.
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Goenka College of Commerce

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

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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)
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Goenka College of Commerce

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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
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Goenka College of Commerce

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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
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Goenka College of Commerce

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

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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
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Goenka College of Commerce

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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.
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Three ForcesWhich have change the perspective of logistics
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Globalization
Focus on Supply chain Management
Outsourcing of Non Core Competency Functional Area
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19.  Objectives of Logistic management 12/6/2018
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Reliable and consistent delivery performance
Freight economy
Minimum product damage
quick Response
Inventory Reduction
Sustainable Competitive advantage
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Goenka College of Commerce

21. 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
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22. List of Top Logistics Companies of India - Case Examples :
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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.
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Goenka College of Commerce

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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.
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Goenka College of Commerce

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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.
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Goenka College of Commerce

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Thank you
&
Best Wishes.
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Goenka College of Commerce