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Liberalisation
Intelligent consumers
Heavy Industrialisation
Scientific innovations
Hence for more customer satisfaction now
To be customer focused
Quick delivery & after sales service (24 hrs)
Hence the need of Logistics Management
Logisticsfrom Greek word ‘Logisticos’ meaning
“science of computing and calculating”
Firstused in military sense (Logistical Support)
(World War II & other wars)
Webster (1963) defines Logistics as:
“The procurement, maintenance & transportation
of military materials, facilities & personnel”
Flexibility
E.g.
Plastic moulded water tanks
Fully assembled automobiles
Transportation of huge machinery
(H & R Johnson)
Containers capacity and storage
Plant Location
Choice of sources/ markets
Production structure & planning
Distribution/ Dealer network design
Warehouse location/ operations
Plant layout
Allocation decisions
Inventory management/ stock levels
Transportation models/ Routing/ Capacity
E.g. Cement Transportation (wagon
shortage) change in packaging (Jute, plastic)
Packaging
Material Handling
Storage problems in monsoons
Plant/ warehouse near port/ Airport
Nearness of dealers to factory/ warehouses
Shippers
Suppliers
Carriers
(Rail, Road, Air etc)
Warehouse providers/ Freight forwarders
Terminal operators (port, stevedores)
b) Automobile
Company Dealer Customer
Telemarketing
Through Telephone calls
Positive is, reduced selling costs
Direct Mailing
Sending detailed brochures to prospective customers
Is a silent sales
Negative is, poor response
Firms to have the right & vast data bank
One-tier Distribution system
i.e.Company Distributors Customers (only 1
intermediary)
positive is, minimum distribution costs, maximum
control
6) Selective distribution
i.e. to select high potential channel intermediaries
(i.e. agents/ sellers)
To bring maximum turnover & profits
Storage Warehouse
For keeping for a long time
E.g. Raw materials, components etc for production
Closer to factories
Warehouse
For keeping finished products
Storage time varies
Module III
Distribution Centre
i.e.full service warehouse
It emphasizes on movement, then storage
Situated near to market