Logistics involves getting products to where they are needed on time at the lowest cost. The objectives of market logistics are to deliver good customer service, reduce total distribution costs, and reduce cycle times. Key logistics decisions include order processing, inventory management, transportation, and warehousing functions like receiving, storing, and shipping. Wholesaling is also growing and changing, with consolidation and expansion occurring.

1. Logistics & wholesaling
LOGISTICS:
► The process of getting products & services
where they are required & when they are
desired .Market logistics involves several
activities .The first is sales forecasting ,on the
basis of which the company schedules
distribution , production ,and inventory levels.

2. OBJECTIVE OF MARKET LOGISTICS
• “Getting the right goods to the right places at the right
time for the least cost” , but, in practical environment
no system can simultaneously maximise customer
service & minimize cost. Maximum customer service
implies large inventories, premium transportation, &
multiple warehouses, all of which raise market logistic
costs.

3. • Physical distribution starts at the factory level. Managers
choose a set of warehouses (stock points) &
transportation carriers that will deliver the goods to final
destinations in the desired time or at lowest total cost.
Physical distribution has now been expanded into the
broader concept of SUPPLY CHAIN MANAGEMENT(SCM).
• Supply chain mgmt starts before physical distribution. It
includes procurring the right inputs (raw materials,
components, & capital equipments)

4. • Modern logistic mgmt focuses on:
Delivering products on time (form, possession, time & place), with least
costs & without any damages
Broadly the objectives of mkt logistics are:
• Delivering customer service
• Reducing total distribution costs
(companies like, Federal express , FedEx logistics service etc)
,JIT (just in time production techniques) ,
• Reducing cycle time: The cycle time refers to the time from which
the requisition is sent to the vendor to the time the product reaches
the final customer (raw material-----product to final customer)

5. Market logistics decisions
• Order processing
• Inventory mgmt (reorder point ,order lead-
time ,Usage rate ,Safety stock, economic
order quantity, jit , fixed order interval
system)
• Transportation

6. Functions of warehousing
• Certain important activities of warehousing :
Receiving ,storing ,packing ,marking ,shipping
,stock mixing ,transloading (cross docking) ,
protecting the production process from
contingencies, such as employee strikes etc)
• Types of warehousing: storage warehousing &
distribution warehousing
• Strategic issues in managing logistics

7. Growth of wholesaling
• Classification of wholesalers:Merchant
wholesalers (full service merchant
wholesaler , limited line wholesalers also
incorporate the truck wholesalers, specialty
line wholesalers and rackjobbers) , Agents &
brokers & manufacturer’s sales branches &
offices

8. Market decisions
• Target market, price ,promotion & place
Changing pattern of wholesaling: Wholesale
consolidation , productivity & quality & global
expansion