Marketing Notes – Logistics Management and Marketing

ABOUT THIS CONTENT
Basic notes from core MBA marketing course, focusing on logistics management and marketing

Logistics Management

  • Design & management of a system that controls the flow of materials into, through, and out of the organization
  • Covers entire range of operations concerned with product movement, including relationships with suppliers and customers – hence marketing
  • Also called Supply Chain Management
  • Goal: Efficient use of resources in achieving the supply chain’s customer service goals

Systems Approach

  • Explicitly recognize & coordinate linkages among traditionally separate logistics functions
  • Recognizes interaction with outside organizations and individuals
  • Creates mutual purpose for all partners in performance, quality, & timing

Strategic Tools

  • JIT – Just-in-time delivery for lower inventory cost
  • EDI – Electronic data interchange for more efficient order processing
  • ESI – Early supplier involvement for better planning of product movement

Logistics Effort

  • Materials Management
    • Controls movement through production processes
  • Physical Distribution Management
    • Inflow of products from suppliers
    • Outflow of finished goods to customers
  • Goal: Effective coordination for maximum cost-effectiveness while maintaining service goals & requirements

Five Decision Areas for Logistics Management

  1. Production
  2. Transportation
  3. Facilities
  4. Inventory
  5. Communications

Logistics and the Environment

  • Changes to its strategic orientation
  • Systematically account for environmental laws, expectations & self-imposed goals
  • Reverse distribution systems retrieval for subsequent use, recycling, or disposal

Example Laws

  • Germany: regulates packaging
  • U.S: taxes on certain chemicals destined for toxic-waste dumps
  • Denmark: refillable bottles for drinks
  • Canada: deposits on beer bottles

Necessary & appropriate response to environmental concerns?
  or
Partially motivated by protectionist reasons?

Other Environmental Issues

  • Retrieval of long-term capital goods
  • Transportation
  • Packaging
  • Firm-specific performance and the environmental burden

Customer Service and Satisfaction

  • Service-sector decisions
  • Sustainable competitive advantage
  • Service levels
  • Customer complaints
  • Customer satisfaction
  • Organizing for customer service
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