The document discusses marketing logistics, including physical distribution, objectives, and key functions. It defines marketing logistics as the process of strategically managing the movement and storage of goods from suppliers to customers. The main objectives are to deliver the right product, to the right place, at the right time, and at minimum cost. Key functions of marketing logistics include transportation, warehousing, inventory management, order processing, and customer service decisions.
2. Marketing Logistics Concept
• Physical Distribution
• Management of physical flow of goods from supplier to purchaser
• A/c to Cravens, Hills and Woodruff “it is the process of strategically managing the movement and storage of
materials, parts, and finished inventory from suppliers , between enterprise facilities and to customers.”
7. • Place to store goods for certain period of time for distribution
• Buffer Stock
Types
• Private Warehousing
• Public Warehousing
• Bonded Warehousing
Marketing Logistics Functions Warehousing
8. Importance
• Increase product quality
• Extends the life of product
• Reduce the damage of goods
• Maintain the stock; Buffer Stock
• All time availability of goods
Marketing Logistics Functions Warehousing
9. • Concerned with decision regarding keeping the right size of stock of goods
• Balancing carrying cost, ordering cost, and stock out cost
• Calculation of EOQ
𝐸𝑂𝑄 = 2𝐴𝑂/𝐶
Marketing Logistics Functions Inventory Management
10. Marketing Logistics Functions
• Concerned with all the activities involved in receiving, handling and filling the order
Order Processing
11. • Concerned with how safely the product and service can be provided to the customer
• Labels can be given
• Packaging
• Using Different Symbols
Marketing Logistics Functions Customer Service Decision