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"Logistics means having the right thing, at the right place, at the right time."
Word, Logistics is derived from French word loger, which means art of war pertaining to movement and supply of armies. Logistics means the art of managing the flow of raw materials and finished goods from the source to the user To get goods from where they arise to the right place in the right form, at the right time, at the right cost, Logistics or physical distribution or distribution logistics is an integral part of Marketing Process.
Scope of logistics
Company choosing the markets in which it wants to operate. Deciding on plant location and layout. All aspects of inventory management including costs and service levels. Customer services policies. Extent of distribution network to be built up. Location and management of storage facilities. Choices of mode of transport, selection and management of carriers.
Demand forecasting
Inventory control Materials
Distribution communication
Plant
design
and demand forecast Customer services policies Number and location of warehouses Inventory policies Order processing
Focus Areas
Inventory
Inventory management
Objectives 1. To maximise customer service
Categories of inventory
Anticipation Safety or fluctuation Lot size Transportation Hedge Maintenance
Warehousing
interrruptions o To achieve production economies in terms of setup times o To achieve transportation economies o To support changing market conditions o To provide customers with right mix of products at all times and all locations
Transportation
Selection criteria
Advantages of transportation
Greater economies of scale Provides opportunities for business Better customer services
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