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2.marketing Logistics
2.marketing Logistics
2.marketing Logistics
1
Logistics
Company engaged in marketing nationally :
main consideration is selection of a
dependable mode of transportation..
To ensure safe arrivals
In reasonable time
At a reasonable cost
2
Logistics
As the Company grows : such a solution could
become extremely costly & inefficient.
The hardest part is not making a sale..
It is:
Getting the correct quantity of product to
customers
In the required time
profit
3
Importance of Logistics
Following Logistical Marketing
activities can impact customer
costs & operations:-
Transportation
Inventory management
Warehousing
Materials handling..
Order processing
4
Importance of Logistics
Poor service in any area can cause :-
Delayed or inconsistent deliveries
safety stocks
Develop secondary sources of
supply or
Shift to another source entirely
5
Relationship of Logistics & Physical
Distribution
Logistics
Physical Supply
Management of all activities involved in
6
Relationship of Logistics & Physical
Distribution
7
Logistics Management
When a marketer begins to grow the business rapidly ..
8
Logistics Management
9
Logistics Management
10
Real physical distribution costs of Air
versus Ocean Freight
To offset the slower ocean freight & the
possibility of unforeseen delays and still
ensure prompt customer delivery schedules
The company has to continuously maintain 30
days of inventory in Singapore and another 30
days of inventory at the companys
distribution centers..
Ocean Freight ends up exceeding Air Freight by
over $75000 !!...
Let us examine the above in a little more of
detail
11
Real Physical Distribution Costs of
Air versus Ocean Freight
Particulars OceanAir
Transport costs $31790 $127,609
In transit inventory (in transit 21days) (in transit 3days)
Financing cost $44289 $6328
12
Benefits of Physical Distribution
System
There are more benefits to a physical distribution system
than just cost advantages
An effective physical distribution system can result in :-
Optimal inventory levels and
13
Overall contribution of Marketing Logistics
14
Overall contribution of Marketing Logistics