2. Logistics Management
• Logistics management is a supply chain management component that is
used to meet customer demands through the planning, control and
implementation of the effective movement and storage of related
information, goods and services from origin to destination. Logistics
management helps companies reduce expenses and enhance customer
service.
• The logistics management process begins with raw material
accumulation to the final stage of delivering goods to the destination.
• Customer needs and industry standards, logistics management
facilitates process strategy, planning and implementation.
3. Concept of Marketing Logistics
• Logistics deals with all activities that facilitate product flow from the point of raw material
acquisition to the point of final consumption as well as the information flow that set the
production in motion for the purpose of providing adequate levels of customer service at a
reasonable cost.
• The scope of logistics is twofold – First, it is the movement of raw materials to the plant
which is called physical supply (or materials management) and second, it is the flow of
finished products from the plant to the customers, called physical distribution.
• Logistics management is the process of strategically managing the movement and storage of
materials, parts and finished inventory from the supplier through the firm and on to the
customers. It describes the entire process of materials and products moving into, through and
out of the company.
4. Objectives of Marketing Logistics
• (i) To Reduce Costs-Costs can be reduced by intelligently by managing the
physical distribution system and determining the optimum number and location
of warehouses, improving materials handling, increasing stock turnover, using
sealed containers to ship products, correcting inefficient procedures in order
processing, etc.
• (ii) To Provide Better Customer Service-By improving the physical
distribution system, the firm’s promotional efforts are strengthened so that
better sales result could be achieved.
• (iii) To Increase Sales-By ensuring availability of goods and having plans for
quick order processing of items, a firm can increase its sales.
5. Cont …
• (iv) To Establish Competitive Advantage-A firm can acquire
advantage over rivals by performing customer services more
efficiently-such as arranging for rapid and reliable delivery, avoiding
errors in order processing, and delivering undamaged goods.
• (v) To Develop Effective Communication System-Logistics
management permits salesman to transmit orders on a daily basis
and respond to customers’ inquiries on a priority basis.
6. SCOPE OF THE MARKETING LOGISTICS
• Demand forecasting
• Distribution communication
• Inventory Control
• Material Handling
• Order Processing
• Part & Service Support
• Plant and Warehouse side selection
• Procurement
• Packaging
• Salvage & scrap disposal
• Traffic & transportation
• Warehousing & Storage
• Time & Place Utility
• Efficient Movement to Customer
• Return goods handling
• Customers Service
7. Domestic Marketing Vs International
Marketing
BASIS FOR
COMPARISON
DOMESTIC
MARKETING
INTERNATIONAL
MARKETING
Meaning Domestic marketing refers
to marketing within the
geographical boundaries of
the nation.
International marketing
means the activities of
production, promotion,
distribution, advertisement
and selling are extend over
the geographical limits of
the country.
Area served Small Large
Government interference Less Comparatively high
Business operation In a single country More than one country
Use of technology Limited Sharing and use of latest
technology.
8. Cont….
Risk factor Low Very high
Capital requirement Less Huge
Nature of customers Almost same Variation in customer
tastes and preferences.
Research Required but not to a
very high level.
Deep research of the
market is required
because of less
knowledge about the
foreign markets.
9. Importance of International Marketing
• Important to expand target market-Target market of a
marketing organization will be limited if it just concentrate on
domestic market. When an organization thinks globally, it
looks for overseas opportunities to increase its market share
and customer base.
• Important to boost brand reputation-International
marketing may give boost to a brand’s reputation. Brand that
sold internationally is perceived to be better than the brand that
sold locally. People like to purchase products that are widely
available. Hence, international marketing is important to boost
brand reputation.
10. Importance of International Marketing
(Cont..)
• Important to connect business with the world-Expanding business into an
international market gives a business an advantage to connect with new
customers and new business partners. Apple – the tech giant designs its iPhone
in California; outsources its manufacturing jobs to different countries like –
Mongolia, China, Korea, and Taiwan; and markets them across the world.
• Important to open door for future opportunities-International marketing can
also open door for future business opportunities. International marketing not
only increases market share and customer base, it also helps the business to
connect to new vendors, a larger workforce and new technologies and ways of
doing business.
11. Supply Chain management
• Supply chain management is the management of the flow of goods and
services and includes all processes that transform raw materials into final
products. It involves the active streamlining of a business's supply-side
activities to maximize customer value and gain a competitive advantage in
the marketplace.
• SCM represents an effort by suppliers to develop and implement supply
chains that are as efficient and economical as possible. Supply chains cover
everything from production to product development to the information
systems needed to direct these undertakings.
12. Supply Chain Management Trends
• Consumer expectations are becoming increasingly higher. When once
consumers were happy with waiting a week to receive a package in the
mail, today anything longer than two day delivery means that many
consumers will forget their order by the time it arrives, and maybe decide
they would rather not receive any item at all than wait.
• Changing Consumer Experience
• Growing Ecommerce
• Crowding in Urban Centers
• Supply Chain Evolution
• Direct Delivery Channels
13. Third -Party Logistics
• 3PL (third-party logistics) provider offers outsourced logistics services, which
encompass anything that involves management of one or more facets of
procurement and fulfillment activities. In business, 3PL has a broad meaning
that applies to any service contract that involves storing or shipping items.
• A 3PL service may be a single provider, such as transportation or warehouse
storage, or it can be a system wide bundle of services capable of
handling supply chain management.
• 3PL, or third-party logistics, is essentially a variety of services and processes
that are provided to a business by an external company for a variety of reasons
such as wanting to reduce costs, improve efficiencies and expand capabilities.
3PL services are usually flexible and scalable based on the needs of the
business, meaning that they can be utilized on an as-needed basis, or as a long-
term solution depending on the goals and objectives of the business.
14. Benefits of 3PL
• 3PL logistics providers can deliver a great deal of value to companies that
are dealing with the challenges associated with rapid growth or changing
market conditions. Here are some of the main benefits that can be realized
by utilizing 3PL logistics.
• Cost Savings
• Flexibility
• Customer Experience
• International Reach
15. Fourth Party Logistics
• Fourth Party Logistics, popularly known as 4PL, is the outsourcing
of logistics operations to a single partner. The partner will be
responsible for assessing, designing, building, running and
measuring integrated supply chain solutions for the client.
• The 4PL advances the sourcing of logistics from Third Party
Logistics(3PL) to 4PL. On behalf of the client, the single partner
controls and manages the supply chain by overseeing the
combination of warehouses, shipping companies, freight
forwarders and agents.
• The 4PL is different from 3PL for the following reasons.
• 4PL is much suitable for medium-to-large businesses while 3PL is
suitable for small-to-medium businesses.
• 4PL manages and controls all activities within the supply chain
network while 3PL focuses more on logistics operations.
• 4PL maintains a single point of contact for its operations.
16. Opportunities 4PL
• Inbound Raw Material Supply
• Global Available-to-Promise/Dynamic
Logistics
• Demand-Driven Logistics
• Global Orchestrator
• Global Fulfillment Lanes
