LOGISTIS AND IMPACT OF LOGISTIS AND IMPACT OF INTERNET ON LOGISTICSINTERNET ON LOGISTICS

RITURITU

M-COM(E-COM)M-COM(E-COM)

ROLL NO 15ROLL NO 15

LOGISTICSLOGISTICSDEFINITIONDEFINITION

““Logistics is the process of Logistics is the process of strategically managing the strategically managing the acquisition ,movement and storage acquisition ,movement and storage of material ,parts and finished of material ,parts and finished inventory and the related information inventory and the related information flow through an organization and its flow through an organization and its marketing channels to fulfill orders marketing channels to fulfill orders most cost effectively”most cost effectively”

-“council of -“council of logistics management” ,USA. logistics management” ,USA.

MARKET LOGISTICSMARKET LOGISTICS

Market logistics involves planning the Market logistics involves planning the infrastructure to meet demand ,then infrastructure to meet demand ,then implementing and controlling the implementing and controlling the physical flows of material and final physical flows of material and final goods from points of origin to points goods from points of origin to points of use, to meet customer of use, to meet customer requirement at a profit. requirement at a profit.

Supply chain managementSupply chain management(SCM)(SCM)

Involves procuring the right inputs; Involves procuring the right inputs; converting them efficiently into converting them efficiently into finished product; and dispatching finished product; and dispatching them to the final destination.them to the final destination.

STEPS OF MARKETING STEPS OF MARKETING LOGISTICS PLANNING LOGISTICS PLANNING

Deciding on the company’s value Deciding on the company’s value proposition to its customers.proposition to its customers.

Deciding on the best channel design and Deciding on the best channel design and network strategy for reaching the network strategy for reaching the customer.customer.

Developing operational excellence in sales Developing operational excellence in sales forecasting, warehouse management, forecasting, warehouse management, transportation management, and transportation management, and materials management.materials management.

Implementing the solution with the best Implementing the solution with the best information system, equipment, policies, information system, equipment, policies, and procedure.and procedure.

Market logistics task calls for Market logistics task calls for Integrated logistics systemIntegrated logistics system

Material management Material management Material flow system Material flow system Physical distributionPhysical distribution

Impact of internet on logisticsImpact of internet on logistics

Integrated logistics system is abetted by Information Integrated logistics system is abetted by Information technology.technology.

Information system play a critical role in managing market Information system play a critical role in managing market logistics ,especially computers, point-of –sale, terminals, logistics ,especially computers, point-of –sale, terminals, uniform production bar codes ,electronic data interchange uniform production bar codes ,electronic data interchange and electronic funds transfer. and electronic funds transfer.

These developments have shortened the order-cycle time, These developments have shortened the order-cycle time, reduced clerical labor, reduced the error rate in document, reduced clerical labor, reduced the error rate in document, and provided improved control of operation. They have and provided improved control of operation. They have enabled companies to make promises such as ”the product enabled companies to make promises such as ”the product will be at dock 25at 10:00 a.m. tomorrow”. and control this will be at dock 25at 10:00 a.m. tomorrow”. and control this promise through information.promise through information.

Market-logistics objectivesMarket-logistics objectives

““Getting the right goods to the right places Getting the right goods to the right places at the right time for the least cost”.at the right time for the least cost”.

For example;For example; The traffic manager favors rail shipment The traffic manager favors rail shipment

over air shipment because rail costs less. over air shipment because rail costs less. However, because the railroads are However, because the railroads are slower, rail shipment ties up working slower, rail shipment ties up working capital longer, delays customer payment, capital longer, delays customer payment, and might cause customers to buy from and might cause customers to buy from competitors who offer faster service.competitors who offer faster service.

Market Logistics DecisionsMarket Logistics Decisions

Four major decisions must be made with Four major decisions must be made with regard to market logistics.regard to market logistics.

1.1. How should order be handled? (Order How should order be handled? (Order processing);processing);

2.2. Where should stock be located? Where should stock be located? (warehousing);(warehousing);

3.3. How much stock should be held? How much stock should be held? (inventory);(inventory);

4.4. How should goods be shipped? How should goods be shipped? (transportation).(transportation).

Organizational LessonsOrganizational Lessons

1.1. Companies should appoint a senior vice president of Companies should appoint a senior vice president of logistics to be the single point of contact for all logistical logistics to be the single point of contact for all logistical elements. This executive should be accountable for elements. This executive should be accountable for logistical performance on both cost customer cost and logistical performance on both cost customer cost and customer-satisfaction criteria.customer-satisfaction criteria.

2.2. The senior vice president of logistics should hold periodic The senior vice president of logistics should hold periodic meeting with sales and operations people to review meeting with sales and operations people to review inventory operating costs, and customers services and inventory operating costs, and customers services and satisfaction, as well as to consider market conditions and satisfaction, as well as to consider market conditions and whether changes should be made in production whether changes should be made in production schedules.schedules.

3.3. New software and system are the key to achieving New software and system are the key to achieving competitively superior logistics performance in the future.competitively superior logistics performance in the future.

Conclusion Conclusion

Market logistics strategies must be derived Market logistics strategies must be derived from business strategies, rather than from business strategies, rather than solely from cost considerations. The solely from cost considerations. The logistics system must be information –logistics system must be information –intensive and establish electronic links intensive and establish electronic links among all the significant parties .among all the significant parties .

Finally ,the company should set its logistics Finally ,the company should set its logistics goals to match or exceed competitors’ goals to match or exceed competitors’ services standard and should involve services standard and should involve members of all relevant teams in the members of all relevant teams in the planning process. planning process.