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Logistics in supply chain management essay
Importance of logistics
Logistics in supply chain management essay
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Even the most advanced marketing strategies may fail if they will not be supported by appropriate logistics activities. The fact that the product is defined with the best features of its own, attractive price and well promoted is no longer sufficient. These are undoubtedly important factors but it will be difficult to sell this product without finding it on the shelf at the right time, in the right place at the right amount. Thus it is visible of the utility of space and time which are added values to product offered by the manufacturer, enriched by marketing but also additional logistical advantages. (Różycki, Bartosz, 2000). This essay clearly shows how marketing works with logistics, which connects them with the customer service and what makes Converse statement true and valid today.
According to Council of Supply Chain Management Professionals (CSCMP) (Council of Supply Chain Management Professionals, 2013) logistics can be defined as the process of planning, implementing, and controlling procedures for the effective and efficient transportation, storage of goods, services and information from the point of origin to the final point - customer - for the purpose of meeting consumer requirements. Armstrong and Kotler state that in today's global marketplace it became easier to sell goods and services than getting it straight to consumer. Many firms have to decide what is the best way to handle, store and transport their products or services to make it available for customers in the right assortments, at the right time and the right place. (Armstrong, Kotler, 2013) Therefore, in order to ensure proper and free movement of products or services to the customer, it is necessary to share connection with marketing.
Definition of ma...
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...ze the identity of the objectives of the logistics with the marketing objectives. Relying on the definition of marketing, presented by Phillip Kotler (Kotler, 1994) according to which marketing should be understood as delivering the right goods and services to the right people in the right places at the right time, at the right price using appropriate means of communication and promotion. Presented so far integrating logistics functions can be allocated to the marketing activity. In the opinion of J. Witkowski due to the importance of customer orientation in the business market, as well as the important role of orientation activities for the Implementation of the processes associated with delivering products to the customer hierarchy cannot be used in the relationship between marketing and logistics . Actions in these areas intertwine and are mutually complementary.
...dustrial Distribution allows me to pursue my interests in both Business and Engineering, and therefore I chose that major. Also, it will help me to build my personal characteristics that will make me successful in this major. As my education continues, I look forward to learning how manufacturers and distributors maintain good communication and relations, so that the products can be distributed efficiently and avoid problems. If there are problems, I would also like to comprehend ways to solve those problems. In the future, I hope to work for a company such as Amazon, Dell, or Boeing in the field of logistics. These companies depend on logistics in planning and conducting their operations. Since logistics and relations between manufacturer and distributor are critical to the everyday operations of businesses, understanding this will help me in my future endeavors.
Over the years role of supply chain has been altered. The distribution has switched from shipping from one focal point, now technology has shortened the process that will to ship directly from the manufacture to the customer that will tie in to the distribution channels. Though distribution is costly, a person would think all the risk will be eliminated. Contrarily to what people may think, distribution have many risk it must account. When the product is unloaded onto the truck, it’s the trucker sole responsibility to ensure the customer receive their product. Distribution initially start at beginning when it is
The most important stage of the value chain is inbound logistics, because they have the chance to build value in advance. Thus, the factors of this phase are considered to be upward action. In this case, logistics task including the goods received from suppliers cargo storage, loading and unloading and the inside of the transport of goods, and lay the product on the shelf. Tesco is trying to retain consumer choice, at the levels of the store, at the same time increase the efficiency of its distribution system. For damaged goods and products quality control program of the application, it provides less unfairly assume cost, company a great opportunity, therefore, to prevent these costs on to consumers by to potentially add value for the company.
A supply chain is a system through which organizations deliver their products and services to their customers. The network begins with the basic ingredients to start the chain of supply, which are the suppliers that supply raw materials, ingredients, and so on. From there, it will transfer the supplies to the manufacturer who builds, assembles, converts, or furnishes a product. The chain now needs to get the product to the consumer by transporting the finished product from the manufacturer through a warehouse or distribution center. An example is that Wal-Mart has a nearby distribution center where products are delivered there and then split up to be delivered to a retail Wal-Mart. “Wal-Mart will take responsibility for breaking down larger loads and delivering the product to other Wal-Mart stores” (Ehring 1).
The company has the main objective of offering superior quality products and services to its clients. This means that the company has the role of ensuring that its customers get quality services and products they offer thus leading to customer satisfaction. In addition, the company has effective cost leadership strategies with well-established distribution chain and logistics. This has enabled the company to be leading Retail Company in the world that has high customer satisfaction rating.
Brassington, F & Pettit, S (1997). Tesco is positioned as a high quality exclusive supermarket. In order to reinforce this positioning with its target market, Tesco make sure that its product ranges it staff expertise, its displays and overall store ambience are of equally high quality Brassington, F & Pettit, S (1997). Positioning might have to be adjusted for many reasons as both the product and its market mature. Developing technology, evolving competition, changing customer needs and wants all mean that products have to be constantly appraised and reviewed Brassington, F & Pettit, S (1997). Defining the lifestyle of the consumer allows marketers to sell the product not on superficial, functional features, but on benefits that can be seen to enhance that lifestyle on a much more emotional level Brassington, F & Pettit, S (1997). Marketing overview consists of a detailed marketing map showing key decision making and segments described, Malcolm McDonald (2007). Malcolm McDonald (2007) has come up with four steps in his marketing plan to achieve higher profitable growth. The process can be seen in Appendix V. Essentially this entails drawing a map of the flows of goods and services from producers through to end use, Malcolm McDonald (2007). An example of this is shown in Appendix W, which shows four major types of junctions from suppliers through to end use. Where percentages and volumes or values
In the competitive environment, it is necessary for moving products involves reception of products at an intermediate location, store, repackage, clear customs and transport to final destination. The other factor in the supply chain logistics is speed given information flows fast in the internet era. The customer expects everything quick accustomed to the instant status access to the information. With the real time inventory, customer expects the location of the product, it is next scheduled movement and the final delivery schedule.
The marketing and sales idea concerns long time ago while in the today’s setups of the companies and organizations, the customer is everything. In the past era, many businesses and organizations concerns others than the customer. The current essay evolves the factors that manufacturing businesses need to have the orientations to market around the target area. Four types of orientations are being expressed in the manufacturing organizations which are described below:
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.
...tbound Logistics: The outbound logistics include the movement of the finished goods from the manufacture to the retail stores or a warehousing facility for later use.
Reverse logistics has become an increasing concern for many companies over the last decade. It is the process of the movement of goods, moving in the opposite direction, such as from the customer to the business. Some important processes involved are the physical movement of goods, customer support, warehousing and repair. Reverse logistics handles the issue of handling resources effectively. Rogers and Tibben-Lembke (1999) defines reverse logistics as the ‘process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal’. This definition is seen to...
Strong distribution network should be made in order to ensure accessibility of the product. Various factors should also be kept in mind while designing a distribution strategy which includes the shelf life of the product, its characteristics and location of the store where the product is available. Strong relations with retailer are to be made because as discussed earlier retailer is the one who influences the buying decisions the most.
Logistics is the designing and managing of a system in order to control the flow of material throughout a corporation. This is a very important part of an international company because of geographical barriers. Logistics of an international company includes movement of raw materials, coordinating flows into and out of different countries, choices of transportation, cost of the transportation, packaging the product for shipment, storing the product, and managing the entire process. The concept of logistics is fairly new in the business world. The theoretical development was not used until 1966. Since then, many business practices have evolved and logistics currently costs between 10 and 25 percent of the total cost of an international purchase.
The transportation & logistics industry is a form of industry that keeps people and products on the move, it includes airlines and airports, shipping companies, logistics service providers and other transportation companies. That’s why it is considered the backbone of modern global supply chains. In a place like the Kingdom of Saudi Arabia that has diverse geography with a dry desert and great temperature extremes and a large area of about 2.1 million square km, a transportation & logistics industry is a necessity. Imagine you need to move from one city to another (of course it will be so hard to cross large areas of empty deserts) you have only two options to transfer from one to another city; the first option is to drive and the second option is to fly and ship your car via a car transport carrier. The harsh climate in Saudi Arabia makes people to prefer using the second option, this cause the market of transport market to enlarge. Albassami International Group is one of the biggest companies established to satisfy those needs. It is considered one of the biggest companies specialized in vehicle transportation in the Middle East. The philosophy of the company is to serve the needs of the clients over the span of thirty two years, throughout which they constantly had an eye to the future by evaluating the most appropriate ways in which to make transporting clients’ vehicles via the best and safest answer. They operate round the clock to serve clients at all times.
“Logistic is the process of planning, implementing and controlling the efficient, effective flow of goods storage of goods, services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements”