The similarities and differences between the major marketing and major logistics objectives.
Although marketing and logistics can be classified as two totally different subjects in the University, there are a lot of similarities, and undoubtedly, some critical differences. In this article, I will begin by discussing the similarities and differences between major marketing and logistics objectives, followed by some other discussion on warehousing and inventory management issues.
First of all, one of the major objectives of both logistics and marketing is to maintain or strive for the lowest cost. The best marketing is always free marketing, if the company does not have to pay for any promotion and sales budget, customers and clients
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Such feature becomes one of the similarities between marketing and logistics.
Generally speaking, marketing and logistics are two components with totally different properties. The objective of marketing department is to look for maximum income; on the other hand, the objective of logistics is to spend minimum.
Warehousing
Warehousing can be regarded as one of the leading strategic logistics instruments because a warehouse is playing a key part in ensuring a company meets its productivity goals. In addition, warehousing is very important in a logistics system. In 1998, warehousing is defined as the part of a firm’s logistics system that stores products (raw materials, parts, good-in-process, finished goods) at and between point of origin and point of consumption, and provides information to management on the status, condition, and disposition of items being stored. (Lamber et. al 1998)
Benson et al. stated that warehouses are a part of an overall effort to gain place and time utility in 1994. As warehousing contributes to the increased speed of material flows from the beginning to the end-users, warehousing processes are very important. By integrating all the points and functions of warehouse, it is believed that warehousing can be regarded as one of the leading strategic logistics instruments.(Lee, 2003)
3 Basic functions of warehousing
A warehouse can simply serve three functions, one is to store product. After the
Logistics and supply chain management is an important aspect of a firm’s strategy for the business to achieve success by creating value throughout the logistics and supply chain. The research paper will outline the concepts that are involved in creating the logistics and supply management framework. The logistics and supply chain management strategies will drive success for the company towards fulfilling and supporting customer needs, procurement and manufacturing operations of the firm.
Warehouse activities have essential elements that run them and how management highlights them as indicators is by comparing the process value with normal, standard values. (Liviu lliea, 2009) The indicators are the key to performance improvement, and there are various ways this is done internationally.
During 1980s, most global firms focused on quality management in product design and internal process improvement in order to achieve competitive advantage. Today, the spotlight shines on transferring value to customers instead (Mentzer & Williams 2001). Therefore, logistics has turned to be the primary marketing instrument for increasing and sustaining competitive excellence. While comparing to the past, logistics was only taken as a function regarding the higher productivity objective (Hutt & Speh 2011).
Public warehouses are very useful to the business community. Most of the business enterprises cannot afford to maintain their own warehouses due to huge capital Investment. In many cases the storage facilities required by a business enterprise do not warrant the maintenance of a private warehouse. Such enterprises can meet their storage needs easily and economically by making use of the public warehouses, without heavy investment.
This dissertation is submitted in part fulfillment of the requirements for the CILT Diploma in Logistics and Supply Chain Management.
For our current context, we are dealing logistics as limited to the warehousing, transport and integral management part of the whole supply chain of an organization. In any small to big business, logistics holds a crucial importance of cutting costs and avoiding waste of materials and the golden time resource (Anon., 2012). In our earlier assignment, we mentioned five critical global changes which are bring vital transform in the logistics functionalities of the enterprises. These changes were analyzed for the current period scenario and the coming decade in the organizations regarding Australian Context.
With growth of international shipping also increased domestic movements of freight. Companies has to find an optimal solution for moving their goods from factory to warehouse and from warehouse to distribution centers. Organizations has to look at many factors (objective and subjective) before they will make a rational decision and pick a suitable technique.
Even though the above considerations of raw material, labour, labour market or power have a primary influence on site selection, often more than one location would satisfy the primary need. This permits selection among the alternatives, the one that represents the most advantageous utilization of costs involved for providing the warehousing system while maintaining the desired quality of customer service. The total costs involved are made up of the cost of transporting all inputs required from their respective sources, the cost of transporting outputs to the markets at the various locations and the cost of providing the warehousing facilities that have been or are to be acquired. The behavior of these considerations may be different and opposite with respect to location. Finding the least cost combination will require the trading off one castigatory of cost from another. That is, a higher transportation cost will have to be accepted to realize a proportionately greater reduction in storage systems. Thus choosing the most economical location and sizes for distribution warehouses is not a simple task. It may require the use of linear
Modern logistics is more intelligent and integrative than traditional logistics, there are various techniques in the field of logistics such as RFID Technology (Radio Frequency Identification), ERP (Enterprise Resource Planning) and RF WMS (Radio Frequency Warehouse Management System). These techniques put forward 20 years ago, but it seems to be unrealistic at that time. Thus, these original ideas were realized and continuously perfect. Until now, the people of logistics still try to improve these techniques. Traditional warehouse has simplex function and low ability of services, it is not suit
The report is on how transportation and warehouse management plays a vital role in the supply chain, different modes of transports that involve in the freight movement from one location to another. The amount of time to deliver a product to customers will show the effect on company’s future, so the company has to follow some steps to have a better mode of transportation for less cost and delivery time. The primary objective of this project is to show how the transportation and warehouse management systems are used to overcome the problems that are faced in transportation and storage quickly and some of the key elements in WMS and TMS.
The last few years has witnessed a renewed interest in the logistics for both scholars and the commerce industry. The development can be attributed to a number of factors, but the most prominent is the realization by the commerce professionals and scholars of the significant levels of efficiency achievable through effective planning, management, and control of operation processes across the supply chain. Information technology has also contributed to the growing attraction to the field of logistics. Advances in IT have made it possible for organizations to integrate sophisticated decision making systems in their operation processes. The systems have simplified monitoring processes across the chain supply, collection of information, and control of business strategies.
One of the most important aspects to consider when comparing the current purchasing strategy with the proposed one is the impact of direct deliveries from external suppliers to the central warehouse on the lead times of spare parts which are ordered by the warehouse planners. Lead times have a big influence on inventory planning and replenishment policies and lead time savings can be very beneficial for the business of a warehouse and the performance of a SPSC (de Treville et al. 2004). Hiller and Liebermann (2001) regard unnecessarily long lead times as a form of waste and minimizing or avoiding waste as a key component of superior inventory management. In the current setting, three stages of the SPSC are involved in the purchasing
There are a number of worthwhile improvements in the fourth edition. We have included many more references and examples from general business and other literature because of the impact of logistics on a variety of business processes. This edition covers the academic and trade literature in the area of logistics extensively, and includes the most up-to-date information and examples. Readers will notice the significant number of citations from the year 2000. We have retained those elements that are "timeless" and those that made the previous editions successful.
Deal with the management of the flow of goods or materials from point of origin to point of consumption, and in some cases even to the point of disposal. Logistics is not confined to manufacturing operations alone. It is relevant to all enterprises, including government institutions such as hospitals and schools, service organization such as retailers, banks and financial service organizations. Logistics is dependent upon natural, human, financial and information resources for inputs. Suppliers provide raw materials, in process inventory and finished goods. Management actions provide the framework for logistics activities through the process of planning, implementation and control. The outputs of the logistics system are
Logistics management’s primary focus is on optimizing the delivery of service to customers, by managing complex tradeoffs between customer service, transportation, warehousing and inventory. Some World Class companies have been able to reduce the costs of their logistics operations to 50% of the levels of their competitors.