Project Update-1_Vijay Pampana

8/3/2019 Project Update-1_Vijay Pampana

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Vijay Kumar Pampana

Designing a Marketing LogisticsSystem


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Agenda

Define Logistics

Logistics Model

Importance of Logistics

Define Marketing Logistics Need for Logistics in Marketing

Marketing & Logistics Interface

Objectives of Marketing Logistics

Future Steps Time-line


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Define Logistics

Business planning framework for the management

of material, service, information and capital flows.

It includes the increasingly complex information,communication and control systems required intoday's business environment.


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Logistics Model


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Factors raising Logistics Importance

Raise in transportation cost

Production efficiency is reaching a peak

Product line proliferated

Computer technology Fundamental change in inventory philosophy

Increased public concern of products

Growth of several new, large retail chains or massmerchandise with large demands & very sophisticatedlogistics services, by pass traditional channel &distribution

Growing power of retailers

Globalization


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How Globalization affects Logistics?

Efficient logistics systems throughout the worldeconomy are a basis for trade and a highstandard of living for all of us

Lands, as well as the people who occupy them,are not equally productive

Examples Japans electronics industry, the agricultural,

computer and aircrafts industries of United Statesand various countries dominance in supplying rawmaterials such as oil, gold, bauxite, and chromium


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Why Effective Logistics? Contributes immensely to the achievements of the business and

marketing objectives of a firm

It creates time and place utilities in the products and therebyhelps in maximizing the value satisfaction to consumers

By ensuring quick deliveries in minimum time and cost, itrelieves the customers of holding excess inventories

It also brings down the cost of carrying inventory, material

handling, transportation and other related activities of distribution

In a nutshell,an efficient system of physical distribution/logistics has a greatpotential for improving customer service and reducing costs there-bycontributing to the profit maximization objective of a firm!


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A Marketers Logistic Dilemma!

A single product would tend towards a minimumcost solution within production department butwould generate only a small percentage ofpotential realizable revenue from the market

On other hand, a wide & diverse product range

would lift costs of production whilst satisfyingmarketing departments desire to maximize

customer satisfaction and therefore revenue


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Define Marketing Logistics

Analysis, Planning, Organizing and Controlling of allmovement and storage operations connected withflow of finished goods from end of production line to

their satisfactory arrival in the market place, and ofthe associated channels of distribution required toarrange and complete the transactions betweencompany and its selected marketsPhysical Distribution

Management

Physical flow involved in distributionactivities

Eg how many warehouses? ,public or private vehicle fleet?

Marketing Logistics

Physical facilities + selection &management of channels ofdistribution

Eg What types of retailoutlet?, Wholesaler vs Retailer?


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Why logistics for Marketing?

Technological Advancement Advancement in the fields of information processing,

communication, transportation and material handling

So managers can now update sales and inventory

planning faster and more frequently Factories can respond with more flexibility to volatile

market conditions

Product life cycles are contracting Companies that have gone all out to slash costs by

turning to large scale batch production regularly findthemselves saddled with obsolete stocks and areunable to keep pace with competitors new-product

launches


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Contd..

Product lines are proliferating More and more product line variety is needed to satisfy

the growing range of customer tastes and requirements,and stock levels in both field and factory inevitably rise.

Shift in Distribution Management The balance of power in distribution chain is shifting

from the manufacturers to the trader

Change in Customers Attitude Transform in the customers attitude towards the total

cost approach rather than direct cost approach

Customers expectations of service has increased


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Contd..

Increasing Distribution Costs

In many industries, the value added bymanufacturing is declining as the cost of materials

and distribution climbs

Globalization & Economies of Scale

Companies are centralizing production to gain

economies of scale Most of the MNC organizations are restructuring

their production facilities on a global basis


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Marketing & Logistics Interface

**Sustainable competitive advantage => superiorlogistic performance => Integrate Manufacturing,Marketing & Distribution at strategic level**

MarketingActivities

LogisticsActivities

MarketingLogisticsinterface

MarketingResearch

DemandForecasting

CustomerService

Product Mix Transportation

Transport

Pricing Packaging InventoryProcessing

Promotion Storage Material Handling

/Distribution

Sales ForceManagement

OrderFulfillment

Information


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Objectives of Marketing Logistics

Improving customer service

Rapid Response

Reduce total distribution costs

Generating additional sales

Creating time and space utilities

Price Stabilization

Quality Improvement

Movement consolidation

*Will discuss in detail while presenting


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Future Steps

S.No. STEP DATE

1 Scope of Marketing Logistics 15th Nov

2 System Elements of Logistics 24th Nov

3 Advantages of Efficient Marketing-Logistics System

24th Nov

4 Planning Principles and Process 2nd Dec

5 Marketing Logistic System Model 20th Dec (6th

TermBeginning)

6 Role of Modern DistributionChannels

20th Dec

7 Final Presentation 20th Dec


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The development of interest in logistics after industrialrevolution and world war II

contributed to the growth in scope of logistical activities.The following areas are

the major scope of logistics:

Demand forecasting Distribution communication

Inventory Control

Material Handling

Order Processing

Part & Service Support Plant and Warehouse side selection

Procureme


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Salvage & scrap disposal

Traffic & transportation

Warehousing & Storage

Time & Place Utility Efficient Movement to Customer

Return goods handling

Customers Service


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The following are the system elements oflogistics:

1. Order processing

2. Warehousing

3. Inventory control

4. Transportation

5. Information monitoring

6. Facilities


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References

Effective Marketing Logistics book by GrahamBuxton

Basics of Distribution Management A Logistical

Approach -book by Sastish K. Kapoor and PurvaKansal

Improving Marketing/Logistics Cross-FunctionalCollaboration in the Supply Chain journal by

Alexander E. Ellinger

International Logistics Marketing & Supply ChainManagement - Pierre David, Biztantra 2003

http://www.splogistics.info/2011/01/marketing-
http://www.splogistics.info/2011/01/marketing-logistics.htmlhttp://www.splogistics.info/2011/01/marketing-logistics.htmlhttp://www.splogistics.info/2011/01/marketing-logistics.htmlhttp://www.splogistics.info/2011/01/marketing-logistics.html


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Martin Christopher Logistics & Supply Chain!
http://www.splogistics.info/2011/01/marketing-logistics.htmlhttp://www.splogistics.info/2011/01/marketing-logistics.htmlhttp://www.splogistics.info/2011/01/marketing-logistics.htmlhttp://www.splogistics.info/2011/01/marketing-logistics.html


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THANK YOU

Questions?
http://www.splogistics.info/2011/01/marketing-logistics.htmlhttp://www.splogistics.info/2011/01/marketing-logistics.html

Project Update-1_Vijay Pampana

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