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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/Logistics8/11/2019 1 Introduction to Marketing 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*