INTERNATIONAL LOGISTICS

International marketing is becoming more important to

companies as the world shifts from distinct national
markets to linked global markets. Globalization brings
homogenization of consumer needs, liberalization of
trade, and competitive advantages of operating in
global markets. Companies are forced to think and
act globally in order to survive in such a dynamic
environment. All these elements have a deep impact
on the development and the positioning of companies
on international marketplaces where competition is
cruel. Furthermore, another significant change
concerns the customers since they are more
demanding in term of quality, lead time and order
fulfillment
According to Council of logistics management:
“Logistics is the process of planning, implementing
and controlling the efficient, effective flow and
storage of goods, services and related
information
from point of origin to point of consumption for the
purpose of conforming the customer
requirement”
• Raise in transportation cost.
• Production efficiency is reaching a peak
• Fundamental change in inventory philosophy
• Product line proliferated
• Computer technology
• Increased use or computers
• Increased public concern of products Growth of several new, large retail
•chains or mass merchandise with large demands & very sophisticated
•logistics services, by pass traditional channel & distribution.
• Reduction in economic regulation
• Growing power of retailers
• Globalization
 CONCEPT OF INTERNATIONAL
MARKETING LOGISTICS
Word, ’Logistics’ is derived from French word ‘loger’, which
means art of war pertaining to movement and supply of armies.
Basically a military concept, it is now commonly applied to
marketing management. Fighting a war requires the setting
of an object, and to achieve this objective meticulous planning
is needed so that the troops are properly deployed and the
supply line consisting, interalia, weaponry, food, medical
assistance, etc. is maintained. Similarly, the plan should be
each that there is a minimum loss of men and material while, at
the same time, it is capable of being altered if the need arises.
As in the case of fighting a war in the battle-field, the
marketing managers also need a suitable logistics plan that is
capable of satisfying the company objective of meeting
profitably the demand of the targeted customers.
SIGNIFIGANCE OF MARKETING
LOGISTICS
The important of a logistics systems lies in the fact that
it leads to ultimate consummation of the sales
contract. The buyer is not interested in the promises
of the seller that he can supply goods at competitive
price but that he actually does so. Delivery according
to the contract is essential to fulfilling the commercial
and legal requirements. In the event of failure to
comply with the stipulated supply of period, the seller
may not only get his sale amount back, but may also
be legally penalized, if the sales contract so specifies.
There is no doubt that better delivery schedule is a
good promotional strategy when buyers are reluctant
to invest in warehousing and
keeping higher level of inventories. Similarly, better
and/or timely delivery helps in getting repeat orders
through creation of goodwill for the supplier
 SOME OTHER ISSUEIN
ILM
 1. Transform in the customers attitude towards the
total cost approach rather than direct cost
approach .
 2. Technological advancement in the fields of
information processing and communication.
 3. Technological development in transportation
and material handling.
 4. Companies are centralizing production to gain
economies of scale.
 5. Most of the MNC organizations are
restructuring their production facilities on a global
basis.
 6. In many industries, the value added by
manufacturing is declining as the cost of
materials and distribution climbs.
 7. High volume data processing and transmission
is revolutionizing logistics control systems.
8. With the advancement of new technologies,
managers can now update sales and inventory
planning faster and more frequently, and factories can
respond with more flexibility to volatile market
conditions.
9. Product life cycles are contracting. Companies that
have gone all out to slash costs by turning to large
scale batch production regularly find themselves
saddled with obsolete stocks and are unable to keep
pace with competitors’ new-product introductions.
10. Product lines are proliferating. More and more
product line variety is needed to satisfy the growing
range of customer tastes and requirements, and stock
levels in both field and factory inevitably rise.
11. The balance of power in distribution chain is shifting
from the manufacturers to the trader.
 OBJECTIVES OF
MARKETTING LOGISTICS
The General objectives of the logistics can be
summarized as:
1. Cost reduction
2. Capital reduction
3. Service improvement
THE SPECIFIC OBJECTIVE OF AN IDEAL
LOGISTICS SYSTEM IS TO ENSURE THE
FLOW OF SUPPLY TO THE BUYER, THE:

 right product
 right quantities and assortments
 right places
 right time
 right cost / price and,
 right condition
1. Improving customer service
As we know, the marketing concept assumes that
the sure way to maximize profits in the long run is
through maximizing the customer satisfaction. As
such, an important objective of all marketing
efforts, including the physical distribution
activities, is to improve the customer service
2. Rapid Response:
Rapid response is concerned with a firm's ability to
satisfy customer service requirements in a timely
manner. Information technology has increased the
capability to postpone logistical operations to the
latest possible time and then accomplish rapid
delivery of required inventory. The result is
elimination of excessive inventories traditionally
stocked in anticipation of customer requirements.
Rapid response capability shifts operational
emphasis from an anticipatory posture based on
forecasting and inventory stocking to responding to
customer requirements on a shipment-to-shipment
basis. Because inventory is typically not moved in a
time-based system until customer requirements are
known and performance is committed, little
tolerance exists for operational deficiencies
3. Reduce total distribution costs:
Another most commonly stated objective is to minimize
the cost of physical distribution of the products. As
explained earlier, the cost of physical distribution
consists of various elements such as transportation,
warehousing and inventory maintenance, and any
reduction in the cost of one element may result in an
increase in the cost of the other elements. Thus, the
objective of the firm should be to reduce the total cost
of distribution and not just the cost incurred on any
one element. For this purpose, the total cost of
alternative distribution systems should be analyzed
and the one which has the minimum total distribution
cost should be selected