This document provides an overview of marketing logistics. It defines logistics and marketing logistics, and discusses the difference between supply chain and logistics. Marketing logistics involves planning and managing the physical flow of goods from suppliers to customers, including inbound, outbound, and reverse logistics. Improved marketing logistics can provide competitive advantages through better customer service or lower prices, and yield cost savings. The document also discusses the seven R's of logistics management, common logistics functions, modes of transportation, and the role of third-party logistics providers. It explains that the goal of marketing logistics is to provide a targeted level of customer service at the least cost.

1. WELCOM
E

2. MARKETING
LOGISTICS
PRESENTED
BY :
Manish
GJUS&T
MBA-FINANCE

3. •The science of Planning, Organizing &
Managing activities that provide Goods
& Services.
LOGISTICS?
•Logistics means
having the right thing at
the right place, at the
right time.

4. • Marketing logistics ─ also called physical
distribution─involves planning, implementing, and
controlling the physical flow of goods, services, and
related information from points of origin to points of
consumption to meet customer requirements at a
profit.
MARKETING LOGISTICS?
• That is, it involves entire supply chain management
managing upstream and down stream value-added
flows of materials, final goods, and related
information among suppliers, the company, resellers,
and final consumers.

5. Difference b/w supply chain &
logistics
Transforming raw materials
into products, and getting it to
customers
Movement of materials in
whole supply chain
Supply
chain
Logisti
cs

6. NATURE OF
MARKETING
LOGISTICS
• Marketing logistics involves not only
outbound logistics (moving products from
the factory to resellers and ultimately to
customers) but also inbound logistics
(moving products and materials from
suppliers to the factory) and reverse logistics
(reusing, recycling, refurbishing, or disposing
of broken, unwanted, or excess products
returned by consumers or resellers).

7. IMPORTANCE OF MARKETING
LOGISTICS
First, companies can gain a powerful competitive advantage by
using improved logistics to give customers better service or lower
prices.
Second, improved logistics can yield tremendous cost savings
to both a company and its customers.
Third, the explosion in product variety has created a need for
improved logistics management.
Finally, more than almost any other marketing function,
logistics affects the environment and a firm’s environmental
sustainability efforts.
 Companies today are placing greater emphasis on
logistics for several reasons.

8. Seven R’s of
LogisticsMost popular concepts of Logistics
Management is the concept of Seven R’s.

9. Logistic
FunctionsFollowing areas of logistics management,
contribute to an integrated approach to
logistics

10. AIR RAI
L
WATER ROAD PIPELIN
E
Supply Chain

12. Receiving Storing Shipping

14. Third-party
logistics (3PL)
provider is an
independent
logistics provider
that performs any
or all of the
functions required
to get a client’s
product to market.

15. Return Re
Use
Recycling Disposal

16. Logistics
GoalsLogistics share the goal of supply chain management, to meet
the customer’s requirement

17. Logistics Goals
 Some companies state their logistics objective as
providing maximum customer service at the least cost.
 Unfortunately, no logistics system can both maximize
customer service and minimize distribution costs.
The goal of marketing
logistics should be to
provide a targeted level
of customer service at
the least cost.
A company must first
research the importance of
various distribution
services to customers and
then set desired service
levels for each segment.

18. Given the market logistics objectives, the company must
design a system that will minimize the cost of achieving
these objectives.
Each possible market logistics system will lead to the
following cost:
M=T+FW+VW+5
Where,
M= total market logistics cost of proposed
system
T= total freight cost of proposed system
FW= total fixed warehouse cost of proposed
system
VW= total variable warehouse
costs(including inventory) of proposed system
S= total cost of total sales due to average