Marketing Logistic

Submitted in the partial fulfillment of the award of PG Degree of Master of Business Administration Session 2011-2012

Submitted To: SMU Center Haldwani

Submitted By: Shailendra Singh Dhami MBA 4th Semester (Marketing) Haldwani

Table Content 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) Logistic 3-4 Marketing Logistic Nature of Marketing Logistic Marketing channels and S C M Indian Logistic Logistic Companies Logistic Business Plan Logistic Terminology Logistic Employment Inventory Management in Logistic Logistic Department Logistic Information Conclusion Reference

What is logistic? Logistics can be classified as an enterprise planning framework for material management, information, service and capital flows. Logistics when seen in the context of the modern day prevalent work environment also includes information that is complex in nature besides giving importance to all the communication and control system that are essential for efficient working of the organization. In the words of a layman, logistics can be defined as having the right type of product or service at the right place, at the right time, for a right price and in the right condition. Logistics has evolved as a common and well-known business concept because of the ever increasing complexities of modern day business. The primary goal of logistics is to effectively manage the project life cycles and resultant efficiency. This has greatly evolved with a logistics manager's role in efficiently designing the products of the company keeping in view the principle of efficient system of supply chain management. In business terms, it can be summarized as a competitive strategy adapted by the enterprise to meet and exceed the expectations of its existing and prospective customers. It refers to a complete process of total supply chain management that is established to achieve a state of perfection through efficiency and integration. Logistics does not mean a single work activity but refers to a group of activities performed to attain the goal of a business enterprise that is maximizing the Profits. This may involve steps like purchasing, planning, coordination, transportation, warehousing, distribution and customer service. A business can run without profits, but it needs money to fund its services, pay its employees and grow its customer base. Logistics play an important part in the present business world; it cannot be neglected by an enterprise focused on growth and profitability. Logistics is a mixture of several professional disciplines, such as: Planning Controlling Directing Coordination Forecasting Warehousing and transportation Facility location Inventory management

As per the Council of Logistics Management, logistics has been defined as the part of the process of supply chain that plan, control and implement an effective and efficient flow for the purpose of storage of goods and services and other related information from the point of commencement to the point of final consumption with a aim to satisfy the requirements of its existing and prospective customers. All activities that are involved in the movement of goods and services from the point of origin to the point of final consumption are grouped under the term 'logistics'. The art of managing or supervising all these activities when grouped together as a collective unit, are placed under 'logistics management'. People who are authorized or given the task of managing the aspect of logistics management are referred to as 'distribution managers' or 'logistics managers'.

Marketing Logistic
Logistic managers are given the task of marketing logistics as well as communicating logistics with a purpose of positioning logistics in the present competitive environment. The cut-throat competition so commonly associated with many current organizations has caused most businesses all over the world to remain proactive and any organization which ignores the importance of logistics has to blame itself. The entire purpose of logistics is defined when the logistics managers start to take marketing initiatives. Logistics and marketing management are concerned with the effective flow of products and services in the economy and pertain to the distribution of both consumer and industrial goods. Marketing is considered to be a vital part of an economy and there is a need for an efficient marketing system which can ensure that all marketing activities are carried out in accordance with the predefined goals of the business. Logistics managers and executives nowadays are entrusted with the added responsibility of taking important decisions and they want a better due in return for their work by being recognized as members of the pivotal winning team. Wholesalers, manufacturers, business firms and retailers are facing the urgent need to formulate implement policies pertaining to marketing. This can be done by the execution and development of executive marketing programs and strategies. The logistics executives and managers are primarily concerned with expansion of product line and product development, choice of the channels of distribution and are also concerned with the overall development of promotional programs and establishment of pricing methods and policies. Logistics is primarily concerned with a high degree of development in the relations that concern marketing exchange. It is commonly believed that an effective marketing strategy creates opportunities for the implementation of logistics in addition to building up effective and efficient logistics systems. A developed economy or an economy which is expanding its horizons for its overall development requires the integration of both logistics and marketing. This greatly influences the facilitation of the concepts of logistics and marketing. There is interplay between flow-oriented logistics and the market-oriented concept of marketing. Thus, the manufacturer of a product is benefited in such a way that he is enabled to increase the informational and material properties of the product as evaluated by the end-consumer. This integration also helps in stimulating the emergence of marketing logistics within the logistics structure to provide the customer with a wide range of options.

The concept of effective marketing which is widespread in the developed countries of the world allows modifications on the part of commercial mediators, their concerned functions and objectives. These mediators shift their base from traditional catering to solvent demand for goods which are demanded by the customers to respond to customer groups' particular demand. The marketing strategy allows the commercial mediators to get involved in supplying various means of production besides raising the standards of servicing by efficiently and effectively performing their functions. This also leads to a reduction in the levels of price and costs through the streamlining of product flows. Thus, it can be rightly concluded that marketing and logistics are inter-related to each other and an organization which wants to achieve equilibrium of stability and overall development must consider them as an integral part of the organization.

Logistic Inventory
The main function of inventory management is to minimize inventory cost, subject to demand and services constraint .It deal with guiding a firm with respect to Row materials and finished goods stocking policies. Short-term sales forecasting. Number size and location of stocking points. Just in time, pull push strategies.

Types of Inventory Management : TRANSITION INVENTORY: This is inventory currently undergoing transformation and function as a vehicle for profit generation.. It can be either in form of working progress or in the form of finished goods. The finished goods transition inventory can either be undergoing quality checker could be in the process of being transported from the point of consumption. BUFFER INVENTORY: This is the inventory which is waiting to enter a production activitie MAINTENANCE INVENTORY: These are inventories, which are not involved directly in the conversion process but are necessary to manage an organization property, plant and equipment. FUNCTIONS OF INVENTORY: Inventory allows managers to decouple operation. Inventory protects one part of an operation system from disruptions in other parts of system. Inventory can provide an edge against inflation. Inventory allows firms to meet expected demand.

COSTS OF INVENTORY. A company might carry inventory so as to: Reduces cost of purchasing by increased order lots And decreasing number of orders. AVOID STOCK OUTS Allow variability in supply time. Provide for storage space for WIP

There are four main categories of cost associated with inventory. Procurement costs Out of stock Costs Inventory costs over costs Inventory carrying costs OUT OF STOCK COST: The costs incurred when a customer places, as order and order cannot be filled from the inventory to which it is normally assigned. They are further divided into two categories: Lost sales costs. Back order costs. LOST SALES COSTS: These costs occur when the customer, faced with out of stock situation, chooses to withdraw his order for the product. The cost id the profit that would have been made if the sale gad occurred and cost of negative affects that the stock out may have on future sales. BACK ORDER COST: Back order costs that customer will wait for his order to be filled so that the sales is not lost but only delayed. These create clerical and sales cost for order processing additional, transport etc. That has to be occurred to fulfill these back orders out of course of normal distribution channel.