The document outlines the evolution and significance of logistics management, tracing its origins from military applications to its current role in business and supply chain management. Key logistics activities include transportation, order fulfillment, and customer service, with a focus on cost efficiency and effectiveness in delivering goods. It highlights the critical importance of logistics in impacting both micro and macro levels of an economy, with potential for significant growth in the sector as consumer demands increase.

1. MARKETING MANAGEMENT
Group 8
Rashin Rahim
IMK ,Trivandrum

2. • The word logistic has originated from Greek word
‘Logistikos’ and the Latin word ‘Logisticus’ which
means science of computing & calculating
• In ancient times it was used more in connection
with moving armies, the supplies of food &
armaments to the war front.
• During World War II logistics gained importance in
army operations covering the movement of
supplies , men & equipment across the border
• Today It has acquired the wider meaning and is
used in the business for the movement of material
from suppliers to the manufacturer and finally the
finished goods to the consumers

3. LOGISTICS MANAGEMENT
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”
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

4. KEY POINTS
o Logistics - the key to success of SCM
o Order fulfillment –The token
o Implication for the consumers
o Far reaching effect

5. Continuation…
• In addition to the above role today’s logistics
deals with flow of material and service sectors
-hospitals
-banks
-retailers
-whole salers
• Also the ultimate disposal ,recycling and reuse
of the products need to be considered.

6. 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.
• In Case of intangible product , the delivery of tangibles at the right
place & right time will speak about its quality.
• On the macro level infrastructure such as Various modes of transport
, transportation equip., storage facilities, connectivity & information
processing are contributing to a larg3e extent in the physical
movement of goods produced in manufacturing , mining &
agriculture Sectors.

7. SCOPE OF LOGISTICS
This speed & reliability in distribution of products & services contribute
to a great extent in the growth of a country`s domestic & international
trade . Logistic cost as a percentage of GDP across the world is shown
in the following table
Logistics as per percentage of GDP
COUNTRY % GDP
KOREA 16
CHINA 15
JAPAN 14
INDIA 13
UK 12
USA 11
FRANCE 10

8. • India spent nearly $ 50 billion to move material
from one use to another.
• So the “ Public distribution system in the country
needs logistical support for delivering goods at right
place on time and the lowest cost.
• At Micro Level logistic plays a critical role in the
value delivery system of business organization to
provide superior customer service i.e. to achieve a
desired level of delivered services and quality at the
lowest possible cost

9. KEY LOGISTICS ACTIVITIES
 Logistics comunication
 Material Handling
 Order processing
 Packaging
 Parts and service support
 Plant and warehouse site selection
 Procurement
 Return goods handling
 Reverse Logistics
 Traffic and Transportation
 Ware housing and storage

10. In addition to this…
 Understand over all strengths and weakeness
to develop over all strategy
 Customer service
identify customer desires
 Conduct audits both external and internal
 Based on them set goals and strategies

11. PHASES OF LOGISTICS DEVELOPMENT
• Work place Logistics
• Facility Logistics
• Corporate Logistics
• Supply chain Logistics
• Global Logistics

12. TRANSPORTATION
• For the movement of goods from supplier to buyer ,
transportation is the most fundamental and important
component of logistic.
• E.g. for low unit value products the transportation cost
component is 20% of the product cost.
• In logistic cost its share varies up to 65-70% in case of
mass consumed very low unit price products.
 Mode of transportation ( Cost & time factor)
 Own fleet or Outsourcing
 Route Planning
 Vehicle scheduling
Are the few decision which are involved in
transportation

13. Transportation in India
• Transportation is not given serious preferencee in
India
• Neither the central government nor the state
government takes serious interest
• In India logitics costs constitutes 10% of GNP of
which 40% is from transportation
• In US logisticss costs constitutes to 60% of GNP
The macro logistics of the industries are not able to
derive the best out of the Micro Logistics
An improvement in the micro logistics will be
effectively only if the macro logistics is effective

14. CONCLUSION
The logistic sector of the country is emerging day by
day . As the equirement and necessities of the
consumers and customerss is increasing day by day
the scope of growth is really enourmous. All that is
required is to have a systamatic approach so that
the productivity out of the sector can be properly
added to the GNP