A Mumbai based toilet soap manufacture truer producing several national brands flare production location and markets are different. Since the manufacture is based in Mumbai, physical distribution will help to transport the product all over India. Warehouses can be located at different distribution centres in different regions to provide goods to the retailers. Physical distribution will help the manufactures to transport his product to various regions of the country.
Major subsystems to the total system of marketing logistics of a firm are:
– Inventory Maintenance
– Protective Packaging
– Information Maintenance.
Differentiate between Total System Approach and Total Cost Approach of marketing logistics.
Total System Approach: Total System Approach means that these components are interrelated. And if the decisions would be made in isolation to each other it will affect the efficiency of other elements. For example, goods were transported through rail transport but to reach early and reduce time, company shifted to air transport. Transporting time could be reduced but the transportation cost increases due to air fares. So these elements are integrated and affect each other. Physical distribution involves various functions to be performed like warehousing, inventory management, acquisition, transporting, packaging material and customer services. Traditionally marketers considered these activities independent and traded them in isolation but now the decisions are taken in coordination with other activities.
Total Cost Approach: Total Cost Approach aims at reducing the total cost involved in physical distribution system. Various costs incurred in physical distribution of goods like inventory cost, warehousing cost, packaging etc. Total cost approach implies that marketer should try to reduce overall distribution cost, not any particular cost.
What is information monitoring in physical distribution?
An efficient distribution manager must be updated with the current information regarding inventory control, warehousing and transporting. Inventory information stock reveals current demand, future estimations etc.
– Space utilization, storage and loading performance
– Cost, serving and alternatives.
Distinguish between warehousing and inventory control in marketing logistics.
Warehouses hold goods in bulk for long term.
Inventory control means holding goods as per the customer’s demand. Decisions have to be made regarding how much stock to hold and when to recorder.
List the major tasks of marketing logistics.
Major tasks of physical distribution are:
1. Order Processing
3. Inventory Control
5. Information Monitoring.
What are the main objectives of marketing logistics in a firm?
Main objectives of physical distribution are:
1. Improving customer service
2. Reduce distribution cost
3. Generating additional sale
4. Creating time and place utility
5. Price stabilization.
Differentiate between Marketing logistics and Logistics management.
Marketing logistics: Marketing logistics in context of marketing is the physical flow of final goods from manufactures to the final consumer. It involves activities of handling and moving goods.
Logistics management: It includes planning, implementation and controlling a chain of organization relationships to make sure that inbound materials i.e. production logistics and outbound finished goods i.e. marketing logistics flow efficiently.