1 Introduction to Marketing Logistics

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Marketing Logistics

By

Pramod Kumar Mishra

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Introduction to marketing logistics

Marketing is a process by which the companies

create value for the customers and build strong

customer relationships in order to capture value

from customers in return

--- Kotler et al !"#$#%

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&ontinued'

Product

Price

Promotion

Place

(Ps) of Marketing*

+oodenough,

-rsom

ething

elseisre.uired,

/ p

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&ontinued'

Process

0fficiency 1esponsiveness

&ost 2ime

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3rivers behind marketing logistics

&ustomer sophistication

Perceived product e.uality

2ransition from a sellers) to a buyers) market

Price competition

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Marketing-logistics link

4irm Market

5ogistics

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6nderstanding logistics

Purchasing

4low of goods7services

3istributing

2ransporting

1everse logistics

8arehousing

4low of information

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Marketing logistics

Marketing logistics involves planning9

implementing and controlling the physical flow

of goods7services and related information from

point of origin to the point of consumption to

meet customer re.uirements at a profit

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b:ectives of marketing logistics

2o reduce cost

2o provide better customer service

2o maintain customer relationships

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5ogistics tasks

;ow orders should be handled,

8hich warehouse should be chosen for storage,

;ow much stock should be kept on hand,

;ow should the goods be transported,

;ow should the information be monitored,

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Key decision areas

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rder processing

4irst-in-first out


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Purchasing9 material handling9

and inventory controlMaterials re.uirement planning !weekly%

0conomic order .uantity !0=%

>afety stock and re-order point

Material handling procedure !manual vs automatic%

?I2 !@ero inventory%

Make to stock !push% or make to order !push% or hybrid

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EOQ

economic order quantityis the order quantity that minimizestotal inentory holdin! "osts and orderin! "osts# $t is one o% theoldest "lassi"al &rodu"tion s"hedulin! models# 'he %rame(or)used to determine this order quantity is also )no(n as WilsonEOQ Modelor Wilson Formula# 'he model (as deelo&ed *y

+ord ,# -arris in 1913. *ut /# -# ,ilson. a "onsultant (hoa&&lied it etensiely. is !ien "redit %or his inde&th analysis#

EOQ a&&lies only (hen demand %or a &rodu"t is "onstant oerthe year and ea"h ne( order is deliered in %ull (hen inentoryrea"hes zero# 'here is a ed "ost %or ea"h order &la"ed.re!ardless o% the num*er o% units ordered# 'here is also acostfor each unit held in storage, commonly knownas holding cost. sometimes e&ressed as a &er"enta!e o% the&ur"hase "ost o% the item#

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8arehousing and distribution

5ocating warehouses !own7AP5Ps%

&entrali@ed vs decentrali@ed

&ross-docking 2rans-shipment

Product handling procedure !manual vs automatic%

3eferred distribution7product differentiation

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Cross-dockingis a &ra"ti"e in the lo!isti"so% unloadin!materials %rom an in"omin! semitrailer tru")or railroad "arand loadin! these materials dire"tly into out*ound tru")s.trailers. or rail "ars. (ith little or no stora!e in *et(een# 'hismay *e done to "han!e the ty&e o% "oneyan"e. to sort

material intended %or dierent destinations. or to "om*inematerial %rom dierent ori!ins into trans&ort ehi"les or"ontainers (ith the same destination or similar destinations#

lessthantru")load ' # $n the ' tru")in! industry. "rossdo")in! is done *y moin! "ar!o %rom one trans&ort ehi"le

dire"tly onto another. (ith minimal or no (arehousin!# $n retail&ra"ti"e. "rossdo")in! o&erations may utilize sta!in! areas(here in*ound materials are sorted. "onsolidated. and storeduntil the out*ound shi&ment is "om&lete and ready to shi&

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http://en.wikipedia.org/wiki/Logisticshttp://en.wikipedia.org/wiki/Semi-trailer_truckhttp://en.wikipedia.org/wiki/Railroad_carhttp://en.wikipedia.org/wiki/Warehousinghttp://en.wikipedia.org/wiki/Warehousinghttp://en.wikipedia.org/wiki/Railroad_carhttp://en.wikipedia.org/wiki/Semi-trailer_truckhttp://en.wikipedia.org/wiki/Logistics


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2ransportation

Mode of transportation !along with product shipment re.uirements%

1oad !adv and dis-adv%

1ail !adv and dis-adv%

>ea !adv and dis-adv%


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5ogistics flows

4unctional supply chain*

3airy-food supply chains in India

Innovative supply chain*

Documents

1 Introduction to Marketing Logistics