Introduction to Logistics


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.When total supply chain system is integrated over a firm, it is known as logistics
    the process of planning, implementing, and controlling the efficient, cost-effective,flow and storage of raw materials, in process inventory,finished goods and related information flow from the point of origin to point of consumption for th purpose of conforming customer requirements.
  • It is an integrated effort aimed at helping customer value at a lower cost.
    the main aim of logistics management is to reduce products to customer in least cost. for this purpose organization tries to reduce transportation cost, raw material cost with higher quality
  • Without logistical support, marketing and manufacturing departments cannot accomplish product in timely or fresh manner.
    At a conceptual level, managers may well understand and agree to the importance of integrating marketing and logistics activities, but at a practical level integration is often quite difficult to achieve. Firms that are integrated can expect to provide higher levels of customer service, at lower costs, as well as create more satisfied customers and increase profits over the long term.

  • The value of logistics is evaluated when the inventory is correctly positioned to facilitate sale. It is very costly to create a logistical value.
    The main objective of logistics is to move products in to positions that facilitate sale. That create value for a that product.

  • A firm gains competitive advantage by providing customer with superior service through quality logistics
    through effective logistics management organization can achieve competitive edge in case of distribution. If an organization can distribute product in timely manner that is the positive side of that company. They can achieve customer satisfaction and profit in easily manner.

  • Logistically leading firm have information system capability of monitoring logistical performance on a real time basis by giving them the capability to identify potential operational breakdowns and take corrective action prior to customer service failure

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