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    Logistics Has Gained Importance Due To The Following Trends

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    Logistics is the science of managing the flow of goods, information, and resources between the point of origin and point of consumption. It has become increasingly important in business and daily life due to factors like rising transportation costs, increased globalization, and technological advances enabling more efficient logistics systems. Effective logistics reduces inventory and distribution costs while improving customer service through quick and reliable delivery. It is a key factor in maximizing value for consumers and achieving business and marketing objectives.

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    Logistics Has Gained Importance Due To The Following Trends

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    saaaaay
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    Logistics is the science of managing the flow of goods, information, and resources between the point of origin and point of consumption. It has become increasingly important in business and daily life due to factors like rising transportation costs, increased globalization, and technological advances enabling more efficient logistics systems. Effective logistics reduces inventory and distribution costs while improving customer service through quick and reliable delivery. It is a key factor in maximizing value for consumers and achieving business and marketing objectives.

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    Logistics is the science of managing the flow of goods, information, and resources between the point of origin and point of consumption. It has become increasingly important in business and daily life due to factors like rising transportation costs, increased globalization, and technological advances enabling more efficient logistics systems. Effective logistics reduces inventory and distribution costs while improving customer service through quick and reliable delivery. It is a key factor in maximizing value for consumers and achieving business and marketing objectives.

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    23 views3 pages

    Logistics Has Gained Importance Due To The Following Trends

    Uploaded by

    saaaaay
    Logistics is the science of managing the flow of goods, information, and resources between the point of origin and point of consumption. It has become increasingly important in business and daily life due to factors like rising transportation costs, increased globalization, and technological advances enabling more efficient logistics systems. Effective logistics reduces inventory and distribution costs while improving customer service through quick and reliable delivery. It is a key factor in maximizing value for consumers and achieving business and marketing objectives.

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    http://www.mbaknol.

    com/logistics-management/importance-of-logistics-in-business/

    http://www.oppapers.com/essays/International-Business/325427

    Logistics is a science of management of handling goods, information, and other resources which
    even includes energy and people. It is basically caters with the supply of raw materials and
    produced goods in between the place of production and market or consumers. However this
    science of management had shown its identity in early days within the military organizations, but
    nowadays it has become very common and we can hear this word very commonly in our day to
    day life. There are several logistics companies like DHL, Blue Dart, etc whose offices and
    branches can be seen in our round about, which even shows how common it has become in
    today’s life. However in some of the dictionaries logistics is also defined as the branch of
    military science which clears the cloud about its origin.

    The importance of logistics systems lies in the fact that it leads to ultimate consummation of the
    sales contract. The buyer is not interested in the promises of the seller that he can supply goods
    at competitive price but that he actually does so. Delivery according to the contract is essential to
    fulfilling the commercial and legal requirements. In the event of failure to comply with the
    stipulated supply of period, the seller may not only get his sale amount back, but may also be
    legally penalized, if the sales contract so specifies. There is no doubt that better delivery
    schedule is a good promotional strategy when buyers are reluctant to invest in warehousing and
    keeping higher level of inventories. Similarly, better and/or timely delivery helps in getting
    repeat orders through creation of goodwill for the supplier.

    Thus, as effective logistics system contributes immensely to the achievements of the business
    and marketing objectives of a firm. It creates time and place utilities in the products and thereby
    helps in maximizing the value satisfaction to consumers. By ensuring quick deliveries in
    minimum time and cost, it relieves the customers of holding excess inventories. It also brings
    down the cost of carrying inventory, material handling, transportation and other related activities
    of distribution. In nutshell, an efficient system of physical distribution/logistics has a great
    potential for improving customer service and reducing costs.

    Logistics has gained importance due to the following trends

     Raise in transportation cost.


     Production efficiency is reaching a peak
     Fundamental change in inventory philosophy
     Product line proliferated
     Computer technology
     Increased use or computers
     Increased public concern of products Growth of several new, large retail chains or mass
    merchandise with large demands & very sophisticated logistics services, by pass
    traditional channel & distribution.
     Reduction in economic regulation
     Growing power of retailers
     Globalization

    As a result of these developments, the decision maker has a number of choices to work out the
    most ideal marketing logistics system. Essentially, this system implies that people at all levels of
    management think and act in terms of integrated capabilities and adoption of a total approach to
    achieve pre-determined logistics objectives.

    Logistics is also important on the global scale. Efficient logistics systems throughout the world
    economy are a basis for trade and a high standard of living for all of us. Lands, as well as the
    people who occupy them, are not equally productive. That is, one region often has an advantage
    over all others in some production specialty. An efficient logistics system allows a geographical
    region to exploit its inherent advantage by specializing its productive efforts in those products in
    which it has been an advantage by specializing its productive to other regions. The system allows
    the products’ landed cost (production plus logistics cost) and quality to be competitive with those
    form any other region. Common examples of this specialization have been Japan’s electronics
    industry, the agricultural, computer and aircrafts industries of United States and various countries
    dominance in supplying raw materials such as oil, gold, bauxite, and chromium.

    Furthermore Logistics has gained importance in the international marketing with the following
    reasons:

    1. Transform in the customers attitude towards the total cost approach rather than direct cost
    approach .
    2. Technological advancement in the fields of information processing and communication.
    3. Technological development in transportation and material handling.
    4. Companies are centralizing production to gain economies of scale.
    5. Most of the MNC organizations are restructuring their production facilities on a global
    basis.
    6. In many industries, the value added by manufacturing is declining as the cost of materials
    and distribution climbs.
    7. High volume data processing and transmission is revolutionizing logistics control
    systems.
    8. With the advancement of new technologies, managers can now update sales and
    inventory planning faster and more frequently, and factories can respond with more
    flexibility to volatile market conditions.
    9. Product life cycles are contracting. Companies that have gone all out to slash costs by
    turning to large scale batch production regularly find themselves saddled with obsolete
    stocks and are unable to keep pace with competitors’ new-product introductions.
    10. Product lines are proliferating. More and more product line variety is needed to satisfy
    the growing range of customer tastes and requirements, and stock levels in both field and
    factory inevitably rise.
    11. The balance of power in distribution chain is shifting from the manufacturers to the
    trader.

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