sunandaC

New member
“The service of providing the right resources at the right time and right place for efficient and effective performance of a goal-oriented activity, including consumption is called as logistics.”

In simple words, “Logistics is the process of anticipating customer needs and wants; acquiring the capital, materials, people, technologies, and information necessary to meet those needs and wants; optimizing the goods- or service-producing network to fulfill customer requests; and utilizing the network to fulfill customer requests in timely way.”

Logistics is the support element of the enterprise. It helps in managing the movement and storage of:

 Material into the enterprise.

 Goods in the enterprise.

 Finished goods from the enterprise.

Its focus should be upon its inbound logistics system (movement of material within the organization) and its outbound logistics system (meeting the requirements of its customers). The definition above accurately defines the logistics process but is too restrictive under the modern concept of logistics. Logistics, as a support element of the enterprise, incorporates activities beyond those identified in the preceding definition.

Consider an example, the enterprise that introduces a new product or a significant change in the existing product. Support of the new product or feature may require training, the development of technical publications and the acquisition of spare parts and special tools or repair (test) equipment. These items also belong under the umbrella of logistics; thus our definition must be revised to include them.
This is the simplified definition of logistics, which states logistics objective clearly:


“Getting the right item to the right customer, in the right quantity, in the right condition, at the right place, at the right time and at the right cost.”


The right item in the right quantity here prefers to the raw material, finished goods, trained personnel, spare parts or service created, required or procured by a firm based on ordered or forecasted customer (whether internal or external) requirements. This indicates the following role for logistics:

(1)Accurate interpretation of customer requirements or orders or marketing strategy, as also providing manufacturing operations support.

The right customer at the right time and the right place refers to the requirement of:

(2)Precise execution of the process of reaching the product from the point of origin to the point of requirement/consumption.

The right condition concerns:

(3)Suitable care of the product from the point of origin to the point of requirement consumption in order to avoid damage and/or deterioratio

At the right cost indicates:

(4)Efficiency to ensure the lowest cost during execution.


Hence, logistics is the process of accurately interpreting customer requirements or orders or marketing strategy, as also providing manufacturing operations support, with precise execution of the process of reaching the product material from the point of origin to the point of requirement consumption ensuring suitable care of the product material throughout to avoid damage deterioration, continuously ensuring the lowest possible cost throughout the process.


Logistics is concerned with getting products and services where they are needed when they are desired. The responsibility of logistics is the temporal and spatial positioning of raw materials, work in progress, and finished inventories when and where required. Hence, one of the basic functions of logistics is the provision of availability.


FUNCTIONS OF LOGISTICS

 Facility of location & Network design:

Facility of location & network design refers to the design of the geographical structure of logistics facilities from where logistics operations are carried out. The number, size, location of logistics facilities like manufacturing plants, warehouse, cross dock operation, wholesaler & retail outlets affects to the aspects of other logistical function. This activity is necessary location & network structure.

 Information management:

It involves ensuring fast & accurate information for efficient & effective performance of logistical activities. Information also threads together all the activities in to an integrated process. Information gives a link of many activities such as order processing, Inventory management, forecasting, production scheduling. Many firms developed growing interest in logistics because of 1) Advancement in information technology 2) Growing recognition of system approach3) Higher emphases on customer service4) Total cost concept & etc


 Transportation management:

Transportation enables the means of transfer of inventory given the location & network framework developed earlier. This involves the selecting the modes of transportation like Air, Water, Rail, Road & the decisions relating to outsourcing this activities to other agencies.
Selection of the modes of transportation depends on the following factors: A) Speed & reliability B) loss& damage C) Inventories D) Freight rate E) Market competitiveness F) Company policy & customer influence G) External market influences. The aspects of transportation management is an essential factor 1) Facility Location 2) Transportation cost3) consistency.

 Inventory management:

Inventory management concerns with the decision regarding the amount of type & material stored at various facility location. These decisions will be affected by the decision made under the function of facility location & transportation e.g.: the location of warehouse & retail outlets.& modes of transport whether fast or slow will affect the quantity type of material to be stored at facilities location.


 Warehousing management:

Warehousing provide the adequate space for the inventory at the right location, unpack aging, sorting, & consolidation of material & modification of material elements if required .the role of warehouse provide the economic & service benefit to the logistical system. Economic benefits: - movement consolidation, break bulk, cross-dock, processing /postpone movement & stock piling. Service benefits are spot stocking, assortments, mixing & production supports.


 Material Handling system:

Material handling activities are required while unloading, moving & loading material at facilities. These include the variety of mechanical equipment like Conveyors, Forklift, Truck, and Crane. One of the considerations of effective material handling is the minimization of product damage during handling.



 Packaging:

It helps in achieving the objective of maintaining the material in the right condition through the logistics process. Packaging decision is impacted by requirement of other activities like protection & facilitation during transportation, material handing & storage as so ultimately customer requirements.



THREE CATEGORIES OF LOGISTICS

Integrated logistics support, when properly understood and applied, can provide the means to identify and resolve many logistic problems, frequently before they developed. Logistics, in the broadest sense of the word, can be considered as scope of activity comprised of three major areas or subsets.

(1) Subsistence logistics,
(2) Operation logistics, and
(3) System logistics.

Subsistence logistics is concerned with the basic necessities of food, clothing, and shelter .At any given time, within any given environment, subsistence logistics is relatively stable and predictable. Men and women, as rational begings, know within very narrow limits what is needed, how much is needed, where it is needed, and when it is needed. Subsistence logistics is primary activity of primitive societies and is an essential ingredient of an industrial society. It provides foundation of operations logistics.

Operation logistics extends beyond the bare necessities by incorporating systems that produce the luxuries or niceties of life. By definition, operations logistics incorporates the raw material required by the enterprise in the production. This category of logistics is also relatively constant and predictable. All enterprise, from the automobile manufacturer to the fast food chain store can determine the quality of materials and the resources needed for its production with high degree of accuracy. Operation logistic can not, however, determine when a component of the enterprise is going to break down ,what will be required to repair it ,or the duration activity .Operation logistics, which is concerned with the movement an storage of material in to ,through ,and out of enterprise ,provide the foundation for system logistics .

System logistics incorporates the resources required in keeping a system in operating condition. These resources, or logistics elements, are spares and repair part, personnel and training, technical publication, test and support equipment, and facilities. A well designed integration of these logistics elements is critical when, for eg; repair instructions describe one methods of repair and tools are developed for another method . Thus repair may be impossible

VALUE-ADDED ROLE OF LOGISTICS

Four principal types of economic utility add value to a product or service. Included are form, time, place, and possession. Generally, we credit manufacturing activities with providing form utility, logistics activities with time and place utility, and marketing activities with possession utility. We discuss each briefly.

 Form Utility: Form utility refers to the value added to goods through a manufacturing, production, or assembly process. For example, form utility results when raw materials are combined in some predetermined manner to make a finished product. This is the case, for example, when a bottling firm adds together syrup, water, and carbonation to make a soft drink. This simple process of adding the raw materials together to produce the soft drink presents a change in production form that adds value to the product.

 Place Utility: Logistics provides place utility by moving goods from production surplus points to points where demand exists. Logistics extends the physical boundaries of the market area, thus adding economic value to the goods. This addition to the economic value of goods or services is known as place utility. Logistics creates place utility primarily through transportation. For example, moving farm produce by rail or truck from farm areas to markets where consumers need this produce creates place utility. The same is also true when steel is moved to a plant where the steel is used to make another product. The market boundary extension added by place utility increases competition, which usually leads to lower prices and increased product availability.

 Time Utility: Not only must goods and services be available where consumers need them, but they must also be at that point when customers demand them. This is called time utility, or the economic value added to a good or service by having it at a demand point at a specific time. Logistics creates time utility through proper inventory maintenance and the strategic location of goods and services. For example, logistics creates time utility by having heavily advertised products.

To some extent, transportation may create time utility by moving something more quickly to a point of demand. Time utility is much more important today because of the emphasis upon reducing lead time and minimizing inventory levels through logistics-related strategies such as JIT inventory control.

 Possession Utility. Possession utility is primarily created through the basic marketing activities related to the promotion of products or services. We may define promotion as the effort, through direct and indirect contact with the customer, to increase the desire to possess a good or to benefit from a service. The role of logistics in the economy depends upon the existence of possession utility, for time or place utility make sense only if demand for the product or service exists. It is also true that marketing depends upon logistics, since possession utility cannot be acted upon unless time and place utility are provided. Order fulfillment is the critical and often final step for meeting customer requirements.
 

karthik.

Par 100 posts (V.I.P)
ppt on introduction to logistic management
 

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sammitter

New member
hi,
i hope the following material will be helpful to have a fair picture
of logistics management & its application!
 

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  • Transportation.docx
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“The service of providing the right resources at the right time and right place for efficient and effective performance of a goal-oriented activity, including consumption is called as logistics.”

In simple words, “Logistics is the process of anticipating customer needs and wants; acquiring the capital, materials, people, technologies, and information necessary to meet those needs and wants; optimizing the goods- or service-producing network to fulfill customer requests; and utilizing the network to fulfill customer requests in timely way.”

Logistics is the support element of the enterprise. It helps in managing the movement and storage of:

 Material into the enterprise.

 Goods in the enterprise.

 Finished goods from the enterprise.

Its focus should be upon its inbound logistics system (movement of material within the organization) and its outbound logistics system (meeting the requirements of its customers). The definition above accurately defines the logistics process but is too restrictive under the modern concept of logistics. Logistics, as a support element of the enterprise, incorporates activities beyond those identified in the preceding definition.

Consider an example, the enterprise that introduces a new product or a significant change in the existing product. Support of the new product or feature may require training, the development of technical publications and the acquisition of spare parts and special tools or repair (test) equipment. These items also belong under the umbrella of logistics; thus our definition must be revised to include them.
This is the simplified definition of logistics, which states logistics objective clearly:


“Getting the right item to the right customer, in the right quantity, in the right condition, at the right place, at the right time and at the right cost.”


The right item in the right quantity here prefers to the raw material, finished goods, trained personnel, spare parts or service created, required or procured by a firm based on ordered or forecasted customer (whether internal or external) requirements. This indicates the following role for logistics:

(1)Accurate interpretation of customer requirements or orders or marketing strategy, as also providing manufacturing operations support.

The right customer at the right time and the right place refers to the requirement of:

(2)Precise execution of the process of reaching the product from the point of origin to the point of requirement/consumption.

The right condition concerns:

(3)Suitable care of the product from the point of origin to the point of requirement consumption in order to avoid damage and/or deterioratio

At the right cost indicates:

(4)Efficiency to ensure the lowest cost during execution.


Hence, logistics is the process of accurately interpreting customer requirements or orders or marketing strategy, as also providing manufacturing operations support, with precise execution of the process of reaching the product material from the point of origin to the point of requirement consumption ensuring suitable care of the product material throughout to avoid damage deterioration, continuously ensuring the lowest possible cost throughout the process.


Logistics is concerned with getting products and services where they are needed when they are desired. The responsibility of logistics is the temporal and spatial positioning of raw materials, work in progress, and finished inventories when and where required. Hence, one of the basic functions of logistics is the provision of availability.


FUNCTIONS OF LOGISTICS

 Facility of location & Network design:

Facility of location & network design refers to the design of the geographical structure of logistics facilities from where logistics operations are carried out. The number, size, location of logistics facilities like manufacturing plants, warehouse, cross dock operation, wholesaler & retail outlets affects to the aspects of other logistical function. This activity is necessary location & network structure.

 Information management:

It involves ensuring fast & accurate information for efficient & effective performance of logistical activities. Information also threads together all the activities in to an integrated process. Information gives a link of many activities such as order processing, Inventory management, forecasting, production scheduling. Many firms developed growing interest in logistics because of 1) Advancement in information technology 2) Growing recognition of system approach3) Higher emphases on customer service4) Total cost concept & etc


 Transportation management:

Transportation enables the means of transfer of inventory given the location & network framework developed earlier. This involves the selecting the modes of transportation like Air, Water, Rail, Road & the decisions relating to outsourcing this activities to other agencies.
Selection of the modes of transportation depends on the following factors: A) Speed & reliability B) loss& damage C) Inventories D) Freight rate E) Market competitiveness F) Company policy & customer influence G) External market influences. The aspects of transportation management is an essential factor 1) Facility Location 2) Transportation cost3) consistency.

 Inventory management:

Inventory management concerns with the decision regarding the amount of type & material stored at various facility location. These decisions will be affected by the decision made under the function of facility location & transportation e.g.: the location of warehouse & retail outlets.& modes of transport whether fast or slow will affect the quantity type of material to be stored at facilities location.


 Warehousing management:

Warehousing provide the adequate space for the inventory at the right location, unpack aging, sorting, & consolidation of material & modification of material elements if required .the role of warehouse provide the economic & service benefit to the logistical system. Economic benefits: - movement consolidation, break bulk, cross-dock, processing /postpone movement & stock piling. Service benefits are spot stocking, assortments, mixing & production supports.


 Material Handling system:

Material handling activities are required while unloading, moving & loading material at facilities. These include the variety of mechanical equipment like Conveyors, Forklift, Truck, and Crane. One of the considerations of effective material handling is the minimization of product damage during handling.



 Packaging:

It helps in achieving the objective of maintaining the material in the right condition through the logistics process. Packaging decision is impacted by requirement of other activities like protection & facilitation during transportation, material handing & storage as so ultimately customer requirements.



THREE CATEGORIES OF LOGISTICS

Integrated logistics support, when properly understood and applied, can provide the means to identify and resolve many logistic problems, frequently before they developed. Logistics, in the broadest sense of the word, can be considered as scope of activity comprised of three major areas or subsets.

(1) Subsistence logistics,
(2) Operation logistics, and
(3) System logistics.

Subsistence logistics is concerned with the basic necessities of food, clothing, and shelter .At any given time, within any given environment, subsistence logistics is relatively stable and predictable. Men and women, as rational begings, know within very narrow limits what is needed, how much is needed, where it is needed, and when it is needed. Subsistence logistics is primary activity of primitive societies and is an essential ingredient of an industrial society. It provides foundation of operations logistics.

Operation logistics extends beyond the bare necessities by incorporating systems that produce the luxuries or niceties of life. By definition, operations logistics incorporates the raw material required by the enterprise in the production. This category of logistics is also relatively constant and predictable. All enterprise, from the automobile manufacturer to the fast food chain store can determine the quality of materials and the resources needed for its production with high degree of accuracy. Operation logistic can not, however, determine when a component of the enterprise is going to break down ,what will be required to repair it ,or the duration activity .Operation logistics, which is concerned with the movement an storage of material in to ,through ,and out of enterprise ,provide the foundation for system logistics .

System logistics incorporates the resources required in keeping a system in operating condition. These resources, or logistics elements, are spares and repair part, personnel and training, technical publication, test and support equipment, and facilities. A well designed integration of these logistics elements is critical when, for eg; repair instructions describe one methods of repair and tools are developed for another method . Thus repair may be impossible

VALUE-ADDED ROLE OF LOGISTICS

Four principal types of economic utility add value to a product or service. Included are form, time, place, and possession. Generally, we credit manufacturing activities with providing form utility, logistics activities with time and place utility, and marketing activities with possession utility. We discuss each briefly.

 Form Utility: Form utility refers to the value added to goods through a manufacturing, production, or assembly process. For example, form utility results when raw materials are combined in some predetermined manner to make a finished product. This is the case, for example, when a bottling firm adds together syrup, water, and carbonation to make a soft drink. This simple process of adding the raw materials together to produce the soft drink presents a change in production form that adds value to the product.

 Place Utility: Logistics provides place utility by moving goods from production surplus points to points where demand exists. Logistics extends the physical boundaries of the market area, thus adding economic value to the goods. This addition to the economic value of goods or services is known as place utility. Logistics creates place utility primarily through transportation. For example, moving farm produce by rail or truck from farm areas to markets where consumers need this produce creates place utility. The same is also true when steel is moved to a plant where the steel is used to make another product. The market boundary extension added by place utility increases competition, which usually leads to lower prices and increased product availability.

 Time Utility: Not only must goods and services be available where consumers need them, but they must also be at that point when customers demand them. This is called time utility, or the economic value added to a good or service by having it at a demand point at a specific time. Logistics creates time utility through proper inventory maintenance and the strategic location of goods and services. For example, logistics creates time utility by having heavily advertised products.

To some extent, transportation may create time utility by moving something more quickly to a point of demand. Time utility is much more important today because of the emphasis upon reducing lead time and minimizing inventory levels through logistics-related strategies such as JIT inventory control.

 Possession Utility. Possession utility is primarily created through the basic marketing activities related to the promotion of products or services. We may define promotion as the effort, through direct and indirect contact with the customer, to increase the desire to possess a good or to benefit from a service. The role of logistics in the economy depends upon the existence of possession utility, for time or place utility make sense only if demand for the product or service exists. It is also true that marketing depends upon logistics, since possession utility cannot be acted upon unless time and place utility are provided. Order fulfillment is the critical and often final step for meeting customer requirements.

Hey sunanda, thanks for sharing such a nice article about the logistics and it is really going to help other. Well, logistics is the management of transportation, flow and storage of goods etc. I am also uploading a document where you can get more detailed information.
 

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  • Logistics.pdf
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bhautik.kawa

New member
“The service of providing the right resources at the right time and right place for efficient and effective performance of a goal-oriented activity, including consumption is called as logistics.”

In simple words, “Logistics is the process of anticipating customer needs and wants; acquiring the capital, materials, people, technologies, and information necessary to meet those needs and wants; optimizing the goods- or service-producing network to fulfill customer requests; and utilizing the network to fulfill customer requests in timely way.”

Logistics is the support element of the enterprise. It helps in managing the movement and storage of:

 Material into the enterprise.

 Goods in the enterprise.

 Finished goods from the enterprise.

Its focus should be upon its inbound logistics system (movement of material within the organization) and its outbound logistics system (meeting the requirements of its customers). The definition above accurately defines the logistics process but is too restrictive under the modern concept of logistics. Logistics, as a support element of the enterprise, incorporates activities beyond those identified in the preceding definition.

Consider an example, the enterprise that introduces a new product or a significant change in the existing product. Support of the new product or feature may require training, the development of technical publications and the acquisition of spare parts and special tools or repair (test) equipment. These items also belong under the umbrella of logistics; thus our definition must be revised to include them.
This is the simplified definition of logistics, which states logistics objective clearly:


“Getting the right item to the right customer, in the right quantity, in the right condition, at the right place, at the right time and at the right cost.”


The right item in the right quantity here prefers to the raw material, finished goods, trained personnel, spare parts or service created, required or procured by a firm based on ordered or forecasted customer (whether internal or external) requirements. This indicates the following role for logistics:

(1)Accurate interpretation of customer requirements or orders or marketing strategy, as also providing manufacturing operations support.

The right customer at the right time and the right place refers to the requirement of:

(2)Precise execution of the process of reaching the product from the point of origin to the point of requirement/consumption.

The right condition concerns:

(3)Suitable care of the product from the point of origin to the point of requirement consumption in order to avoid damage and/or deterioratio

At the right cost indicates:

(4)Efficiency to ensure the lowest cost during execution.


Hence, logistics is the process of accurately interpreting customer requirements or orders or marketing strategy, as also providing manufacturing operations support, with precise execution of the process of reaching the product material from the point of origin to the point of requirement consumption ensuring suitable care of the product material throughout to avoid damage deterioration, continuously ensuring the lowest possible cost throughout the process.


Logistics is concerned with getting products and services where they are needed when they are desired. The responsibility of logistics is the temporal and spatial positioning of raw materials, work in progress, and finished inventories when and where required. Hence, one of the basic functions of logistics is the provision of availability.


FUNCTIONS OF LOGISTICS

 Facility of location & Network design:

Facility of location & network design refers to the design of the geographical structure of logistics facilities from where logistics operations are carried out. The number, size, location of logistics facilities like manufacturing plants, warehouse, cross dock operation, wholesaler & retail outlets affects to the aspects of other logistical function. This activity is necessary location & network structure.

 Information management:

It involves ensuring fast & accurate information for efficient & effective performance of logistical activities. Information also threads together all the activities in to an integrated process. Information gives a link of many activities such as order processing, Inventory management, forecasting, production scheduling. Many firms developed growing interest in logistics because of 1) Advancement in information technology 2) Growing recognition of system approach3) Higher emphases on customer service4) Total cost concept & etc


 Transportation management:

Transportation enables the means of transfer of inventory given the location & network framework developed earlier. This involves the selecting the modes of transportation like Air, Water, Rail, Road & the decisions relating to outsourcing this activities to other agencies.
Selection of the modes of transportation depends on the following factors: A) Speed & reliability B) loss& damage C) Inventories D) Freight rate E) Market competitiveness F) Company policy & customer influence G) External market influences. The aspects of transportation management is an essential factor 1) Facility Location 2) Transportation cost3) consistency.

 Inventory management:

Inventory management concerns with the decision regarding the amount of type & material stored at various facility location. These decisions will be affected by the decision made under the function of facility location & transportation e.g.: the location of warehouse & retail outlets.& modes of transport whether fast or slow will affect the quantity type of material to be stored at facilities location.


 Warehousing management:

Warehousing provide the adequate space for the inventory at the right location, unpack aging, sorting, & consolidation of material & modification of material elements if required .the role of warehouse provide the economic & service benefit to the logistical system. Economic benefits: - movement consolidation, break bulk, cross-dock, processing /postpone movement & stock piling. Service benefits are spot stocking, assortments, mixing & production supports.


 Material Handling system:

Material handling activities are required while unloading, moving & loading material at facilities. These include the variety of mechanical equipment like Conveyors, Forklift, Truck, and Crane. One of the considerations of effective material handling is the minimization of product damage during handling.



 Packaging:

It helps in achieving the objective of maintaining the material in the right condition through the logistics process. Packaging decision is impacted by requirement of other activities like protection & facilitation during transportation, material handing & storage as so ultimately customer requirements.



THREE CATEGORIES OF LOGISTICS

Integrated logistics support, when properly understood and applied, can provide the means to identify and resolve many logistic problems, frequently before they developed. Logistics, in the broadest sense of the word, can be considered as scope of activity comprised of three major areas or subsets.

(1) Subsistence logistics,
(2) Operation logistics, and
(3) System logistics.

Subsistence logistics is concerned with the basic necessities of food, clothing, and shelter .At any given time, within any given environment, subsistence logistics is relatively stable and predictable. Men and women, as rational begings, know within very narrow limits what is needed, how much is needed, where it is needed, and when it is needed. Subsistence logistics is primary activity of primitive societies and is an essential ingredient of an industrial society. It provides foundation of operations logistics.

Operation logistics extends beyond the bare necessities by incorporating systems that produce the luxuries or niceties of life. By definition, operations logistics incorporates the raw material required by the enterprise in the production. This category of logistics is also relatively constant and predictable. All enterprise, from the automobile manufacturer to the fast food chain store can determine the quality of materials and the resources needed for its production with high degree of accuracy. Operation logistic can not, however, determine when a component of the enterprise is going to break down ,what will be required to repair it ,or the duration activity .Operation logistics, which is concerned with the movement an storage of material in to ,through ,and out of enterprise ,provide the foundation for system logistics .

System logistics incorporates the resources required in keeping a system in operating condition. These resources, or logistics elements, are spares and repair part, personnel and training, technical publication, test and support equipment, and facilities. A well designed integration of these logistics elements is critical when, for eg; repair instructions describe one methods of repair and tools are developed for another method . Thus repair may be impossible

VALUE-ADDED ROLE OF LOGISTICS

Four principal types of economic utility add value to a product or service. Included are form, time, place, and possession. Generally, we credit manufacturing activities with providing form utility, logistics activities with time and place utility, and marketing activities with possession utility. We discuss each briefly.

 Form Utility: Form utility refers to the value added to goods through a manufacturing, production, or assembly process. For example, form utility results when raw materials are combined in some predetermined manner to make a finished product. This is the case, for example, when a bottling firm adds together syrup, water, and carbonation to make a soft drink. This simple process of adding the raw materials together to produce the soft drink presents a change in production form that adds value to the product.

 Place Utility: Logistics provides place utility by moving goods from production surplus points to points where demand exists. Logistics extends the physical boundaries of the market area, thus adding economic value to the goods. This addition to the economic value of goods or services is known as place utility. Logistics creates place utility primarily through transportation. For example, moving farm produce by rail or truck from farm areas to markets where consumers need this produce creates place utility. The same is also true when steel is moved to a plant where the steel is used to make another product. The market boundary extension added by place utility increases competition, which usually leads to lower prices and increased product availability.

 Time Utility: Not only must goods and services be available where consumers need them, but they must also be at that point when customers demand them. This is called time utility, or the economic value added to a good or service by having it at a demand point at a specific time. Logistics creates time utility through proper inventory maintenance and the strategic location of goods and services. For example, logistics creates time utility by having heavily advertised products.

To some extent, transportation may create time utility by moving something more quickly to a point of demand. Time utility is much more important today because of the emphasis upon reducing lead time and minimizing inventory levels through logistics-related strategies such as JIT inventory control.

 Possession Utility. Possession utility is primarily created through the basic marketing activities related to the promotion of products or services. We may define promotion as the effort, through direct and indirect contact with the customer, to increase the desire to possess a good or to benefit from a service. The role of logistics in the economy depends upon the existence of possession utility, for time or place utility make sense only if demand for the product or service exists. It is also true that marketing depends upon logistics, since possession utility cannot be acted upon unless time and place utility are provided. Order fulfillment is the critical and often final step for meeting customer requirements.

Hey,

Here i am sharing Designing the Supply Chain Management National Occupational Standards, please check attachment below.

Thank you!
 

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