LOGISTIS AND IMPACT OF INTERNET ON LOGISTICS

RITU M-COM(E-COM) ROLL NO 15

LOGISTICS DEFINITION
Logistics is the process of strategically managing the acquisition ,movement and storage of material ,parts and finished inventory and the related information flow through an organization and its marketing channels to fulfill orders most cost effectively -council of logistics management ,USA.

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

Supply chain management (SCM)

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

STEPS OF MARKETING LOGISTICS PLANNING

Deciding on the companys value proposition to its customers. Deciding on the best channel design and network strategy for reaching the customer. Developing operational excellence in sales forecasting, warehouse management, transportation management, and materials management. Implementing the solution with the best information system, equipment, policies, and procedure.

Market logistics task calls for Integrated logistics system

Material management Material flow system Physical distribution

Impact of internet on logistics

Integrated logistics system is abetted by Information technology. Information system play a critical role in managing market logistics ,especially computers, point-of sale, terminals, uniform production bar codes ,electronic data interchange and electronic funds transfer. These developments have shortened the order-cycle time, reduced clerical labor, reduced the error rate in document, and provided improved control of operation. They have enabled companies to make promises such as the product will be at dock 25at 10:00 a.m. tomorrow. and control this promise through information.

Market-logistics objectives
Getting the right goods to the right places at the right time for the least cost. For example; The traffic manager favors rail shipment over air shipment because rail costs less. However, because the railroads are slower, rail shipment ties up working capital longer, delays customer payment, and might cause customers to buy from competitors who offer faster service.

Market Logistics Decisions

Four major decisions must be made with regard to market logistics. 1. How should order be handled? (Order processing); 2. Where should stock be located? (warehousing); 3. How much stock should be held? (inventory); 4. How should goods be shipped? (transportation).

Organizational Lessons
1.

Companies should appoint a senior vice president of logistics to be the single point of contact for all logistical elements. This executive should be accountable for logistical performance on both cost customer cost and customer-satisfaction criteria. The senior vice president of logistics should hold periodic meeting with sales and operations people to review inventory operating costs, and customers services and satisfaction, as well as to consider market conditions and whether changes should be made in production schedules.

2.

3.

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

Conclusion
Market logistics strategies must be derived from business strategies, rather than solely from cost considerations. The logistics system must be information intensive and establish electronic links among all the significant parties . Finally ,the company should set its logistics goals to match or exceed competitors services standard and should involve members of all relevant teams in the planning process.