IMK-MBA(2018-20) BATCH- MARKETING MANAGEMENT

Supply chain and logistics in marketing

23/05/2019
Presented by
Vibu chandran
 INTRODUCTION
Supply Chain Management Defined
SCM is the integration of all activities associated
with the flow and transformation of goods from raw
materials through to end user, as well as information
flows, through improved supply chain relationships, to
achieve a sustainable competitive advantage.
Logistics Defined
Logistics is the process of planning,
implementing and controlling the efficient, cost-
effective flow and storage of raw materials, in-process
inventory, finished goods and related information from
the point of origin to point of consumption for the
purpose of conforming to customer requirements.
The Logistics/Supply Chain Mission
Getting the right goods or services to
the right place, at the right time, and in the
desired condition at the lowest cost and highest
return on investment.
Major objectives for any company logistics planning:•
1. On-time delivery
2. Effectively meet emergency needs
3. Willingness to take back defective goods and
resupply them quickly.
Market industry can be broadly classified into three
broad segments, namely:
1. Pure transporters
2. Integrated transporters with warehousing
facilities
3. Third-party logistics service providers (3PLs)
Pure & Integrated Transporters
Transporters are involved only in the physical
movement of goods. They can be classified as –
small, medium and large based on the ownership
pattern of vehicles and their revenue
Third Party Logistics (3PLs)
Third-party logistics service providers
(3PLs) are involved in the complete value chain of
logistics management including inbound logistics,
supply chain management, tracking and data
reporting, warehousing, deliveries, and outbound
logistics..
 Inbound and outbound logistics
Inbound logistics
Receiving storing and taking care of
materials handling, inventory control, scheduling
for production, Interface with company’s
suppliers, vendors and other service providers
Outbound logistics
Distributing finished goods to dealers/
stockiest/customers
 Supply chain management is the handling of the entire
production flow of a good or service — starting from the raw
components all the way to delivering the final product to the consumer.
6 components of SCM
1. Planning
2. Sourcing
3. Making
4. Delivering
5. Returning
6. Enabling
Planning—Enterprises need to plan and manage all resources required to meet
customer demand for their product or service.

Sourcing
Companies must choose suppliers to provide the
goods and services needed to create their product.. Key processes include
ordering, receiving, managing inventory, and authorizing supplier payments.
 Making
Supply chain managers coordinate the activities required to
accept raw materials, manufacture the product, test for quality, package for
shipping, and schedule for delivery.

Delivering
Often called logistics, this involves coordinating customer
orders, scheduling delivery, dispatching loads, invoicing customers, and
receiving payments.
Returning
The supplier needs a responsive and flexible network to take
back defective, excess, or unwanted products. If the produce is defective it needs
to be reworked or scrapped. If the product is simply unwanted or excess it needs
to be returned to the warehouse for sale.

Enabling
To operate efficiently, the supply chain requires a number of support
processes to monitor information throughout the supply chain and assure
compliance with all regulations. Enabling processes include finance, HR, IT,
facilities, portfolio management, product design, sales, and quality assurance.
 Logistics in Marketing
Logistics Marketing
Logistics marketing is the process of planning, implementing and
controlling the efficient, cost-effective forward and reverse flow of raw materials, in-
process inventory, finished goods, services, and related information from point of
origin to point of consumption for the purpose of conforming to customer
requirements. Council of Logistics Management
“Logistics Management is that part of Supply Chain Management that plans,
implements, and controls the efficient, effective forward and reverse flow and storage
of goods, services and related information between the point of origin and the point of
consumption in order to meet customers’ requirements.”
Market logistics
Physical distribution starts from the factory
Manager chooses a set of
1. Warehouse (Stocking point)
2. Transportation carriers that will deliver the goods to final destination in the
desired time and lowest total cost
Purpose of Warehousing
To provide desired level of customer service at the lowest possible
total cost
It is that part of the firm’s logistics system that stores products at
and between point of origin and point of consumption and provides info to
management on the status, condition and disposition of items being stored.
Warehouses
1. Support manufacturing
2. Mix products from multiple facilities for shipment to a single customer
Distribution Warehousing
The objective is to set up a network of warehouses closest to the customer
locations to service markets better and minimize cost
Transportation
It is a Very important in the Logistics function
Transportation Principles
1. Continuous flow
2. Optimize unit of cargo
3. Maximum vehicle unit – capacity utilization
4. Adaptation of vehicle unit to volume and nature of traffic
5. Standardization
6. Maximum utilization of capital, etc
Reverse Logistics
Movement of goods from the market or customer back to the company
Advantages of Rail
Economy – more so for goods over long distances
Efficiency of energy
Reliability – not affected by weather conditions
Disadvantages
1. Uneconomical for small shipments and short
distances
2. Not suitable for remote stations
3. Costly terminal handling facilities
4. Inflexible time schedules
Road Transportation Advantages
1. Flexibility – routes and loading routines can be
easily altered, operate day and night
2. Less capital costs
3. Fast turn-around
4. Minimum delays
Disadvantages
1. Unsuitability for heavy loads – rail transport
more economical for bulk loads
2. Unsuitability for long distances
Air Transport Advantages
1. Faster mode
2. Broad service range
Disadvantages: –
1. High cost
2. Weather affects flight conditions
3. Limitations on heavy consignments
Water Transport
Advantages: –
1. Mass movement of bulk
2. Lowest cost
Disadvantages: –
1. Not for quick transit
2. Suitable for certain types on commodities
only
 Conclusion

In the above we discuss that what is Supply chain and logistics in marketing
,and how these are used in performance of the organization.