What Are The Four Subdivisions Of Logistics

QUESTION 1

I would define logistics as the process of planning and organizing the deployment of resources needed to undertake and complete a task in a manner that is cost-efficient and achieves the intended objective.

The deployment would be from one location to another, which means logistics involves both movement and storage. The resources could be supplies and equipment needed to render a service, materials and component parts needed to assemble a product or finished goods inventory needed to fulfill a customer’s request.

People tend to realize the importance of logistics only when there is a problem; but the fact is that logistics plays a critical and indispensable role in the achievement of the objectives of all corporate entities, whether

• All four subdivisions will involve all the fourteen (14) logistics activities identified by Stock and Lambert (2000) although not to the same extents. They would have to forecast demand, procure materials, store them, handle and control inventory, package and transport them to designated locations and service customers.

• All four will have upstream and downstream sectors. The materials being moved will have to come from somewhere and will be destined for somewhere. In service logistics and event logistics, the downstream aspect may not be so visible, but it still exists because the event and service are being held for customers.

Despite these similarities, the four subdivisions are not the same; their differences lie mainly in their primary purpose.

• Business logistics aims to deliver products from its original source to the end consumer. Business logisticians want to do this at the least cost possible without compromising customer satisfaction to generate greater profit margins for the business

But this benefits physical distribution too because transportation cost per unit is lower when they transport more at a time.

An important tool for marketers is the product packaging. As the “Silent Salesperson”, the packaging continues to communicate and promote the product to the consumer even where there is no salesperson. But packaging also has logistical functions which includes protection, containment, apportionment, unitization and convenience. Close collaboration between the marketing and distribution functions is needed to ensure that the packaging of a product performs both its marketing and its logistical functions.

The relationship between physical distribution and marketing grows stronger and more important by the day. Customer service is traditionally a marketing activity, but is also listed among the 14 logistics activities; one possible explanation could be that customer service serves as an appropriate interface for both physical distribution and marketing to work together towards achieving their objectives.

QUESTION