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MEANING :
Physical distribution of goods Involve planning, delivering, and controlling the flow of physical goods
demands of the customer must be met at a profit that increases revenue for the orginization.
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Production
Materials Management
Physical Distribution
Logistics is the movement and storage of inventories (raw materials, work-in-process, finished goods, and consumed/scrap materials) throughout the supply chain
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1- Identify customers needs 2- Developing goods and services to identify those needs. 3- Communicating information about the product to the customers. 4- Making customers
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NO
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DELIVERING THE PRODUCTS TO THE CUSTOMERS AS NEEDED MAKES MARKETING MORE SUCCESSFUL
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CREATING
A CUSTOMER IS A MAJOR TASK OF MARKETING BUT DELIVERING THE GOODS TO CUSTOMERS SO CREATED IS MOST CRITICAL TASK
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NON AVAILABILITY OF THE PRODUCTS KICK THEM OUT FROM THE MARKET
WHEN
WHERE
WHAT AMT.
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SO ONLY MARKET LOGISTICS MAKE MARKET SUCCESSFUL 10 Free Powerpoint Templates Page
Transportation
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1.ORDER PROCESSING
Order Processing includes the following activities: Receiving Recording Filling Assembling Order of shipment
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2. WAREHOUSING
Warehousing is the act of storing goods. It includes: 1. Movement 2. Storage of finished goods.
3. Time and Place Utility So company must decide on how many and what type of warehouses it needs ,and where they will be located .
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Every company must store its goods while they wait to be sold. EXAMPLE :-Snapper ,toro and other lawn mower manufacture must produce all year long and store up their product for the heavy spring and summer buying season.
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3. INVENTORY
Inventory control means keeping the overall costs associated with having inventory as low as possible without creating problems.
Must balance between too much and too little inventory.
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Transportation
Nations largest carrier, cost-effective for shipping bulk products, piggyback
Railways
Roadways
Flexible in routing & time schedules, efficient for short-hauls of high value goods
Waterways
Low cost for shipping bulky, low-value goods, slowest form
Airways
High cost, ideal when speed is needed or to ship high-value, low-bulk items
Pipelines
Economical,No danger of waste,andUnderground Move items Templates Free Powerpoint like coal, gas and crude oil Page 18
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CREATION OF UTILITIES.
3 PHASE OF MARKETING
RIGHT PLACE
RIGHT QUANTITY
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CREATION OF UTILITIES
PLACE UTILITY TIME UTILITY
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SHIPPING(5%)
INVENTORY CARRYING(10%)
WAREHOUSING (25%)
TRANSPORTATION(45%)
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case study: In mumbai Dabbawallas deliver great value through efficient distribution system
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Every day ,more than 200,000 office goers in India's commercial capital Mumbai- get their lunch delivered at their offices. The lunch is not provided by their office, nor is it bought from a nearby cafetaria.it is their home cooked lunch, bought from their respective homes located far away from their offices and it is brought and delivered day after day, on dot at a negligible cost.
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CONCLUSION
In todays global marketplace, selling a product is sometimes easier than getting it to customers. Companies must decide on the best way to store , handle and move their products and services so that they are available to customers in the right assortments, at the right time and in the right place . Logistics effectiveness will have a major impact on both customer satisfaction and company cost.
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