Tutorial 1
1.Elaborate on the relationship between logistics strategy and marketing effort
Marketing is concerned with
supplying customer demand in the marketplace. As a component of the marketing
process, logistics enables the firm to fully implement the marketing concept.
All elements of the marketing mix (4-P’s) - product, price, promotion and
place/distribution - must act in concert in order to satisfy two dual purposes;
that is, satisfying customers and achieving a profit for the firm.
Logistics' ability to meet
customer demands in terms of delivery speed, product location, condition of the
product, and other service factors, enables the organization to satisfy its
customers, and often obtain a competitive advantage if it can provide high
levels of service at competitive prices.
Integrating the components of
logistics, as well as the functional areas of marketing, production, accounting,
and others, allows organizations to achieve synergies and make optimal
cost-service tradeoffs.
An efficient and
effective logistics network will result in improved profitability arising from
cost savings to achieve customer service improvements which, in turn, can
generate additional revenues.
2. Logistics has been given more attention nowadays. Why? There is a multitude of factors that could
be mentioned. They include:
(1) Recognition of the cost and service impacts of the
logistics process;
(2) Profit erosion (losses) in many firms;
(3) Development of the
systems approach and "total cost
analysis" concepts; and
(4) Recognition
of the profit leverage (influence of
power from compettitors) that increased logistics efficiency can have
on the firm.
Other factors that could
be mentioned include advances in computer technology, information systems,
E-commerce and Internet marketing, use of various qualitative and quantitative
techniques, general economic conditions.
3. Identify and explain the logistics opportunity areas (solutions) to face the challenges faced by
logistics today.
reverse
logistics
technology
e-commerce
supply chain management
global logistics activities
4. In your opinion, how does the growth of technology enhance the logistics performance?
Logistics provides time and place utility to
customers. It is involved in providing a level of customer service that, in
turn, impacts the level of customer satisfaction. This is because logistics is
an essential (critical) element in a firm's product offerings and a significant
contributor to successful implementation of the marketing concept, logistics
strategy necessarily must adapt and change to meet the growing needs of
customers. Technology allows firms to increase the efficiency and effectiveness
of logistics operations through the use of computers, information systems, the
Internet, and communication systems. Technology is a key ingredient in the
successful implementation of TQM, quick respond (QR), efficient consumer
response (ECR), ISO 9000, JIT, and SCM programs. For example, the Hudson’s Bay
Company in the "Technology" Box on (p. 41), of how technology has
impacted logistics.
Note: Many examples are
provided throughout the text. This item could be a good final exam question
once students have been exposed to the numerous illustrations of the use of
technology in customer service, transportation, warehousing, inventory control,
order processing, global logistics, and others.
