Managing all these activities efficiently and effectively for an organization is the main question at the back of the mind of any logistic engineer. Functions • Order processing • Warehousing • Inventory control • Transportation Different performance measures are used to examine the efficiency of an organisation's logistics. The most popular and widely used performance measure is the landed cost . The landed cost is the total cost of purchasing, transporting, warehousing and distributing raw materials, semi-finished and finished goods. Another performance measure equally important is the end customer fillrate. “It is the percentage of customer demand which is satisfied immediately off-shelf”. Logistics is generally a cost-center service activity, but it provides value via improved customer satisfaction. It can quickly lose that value if the customer becomes dissatisfied. The end customer can include another process or work center inside of the manufacturing facility, a warehouse where items are stocked or the final customer who will use the product. Another much more popular derivative and a complete usage of the logistic term which has appeared in recent years is the supply chain . The supply chain also looks at an efficient chaining of the supply / purchase and distribution sides of an organization. While Logistics looks at single echelons with the immediate supply and distribution linked up, supply chain looks at multiple echelons/stages, right from procurement of the raw materials to the final distribution of finished goods up to the customer. It is based on the basic premise that the supply and distribution activities if integrated with the manufacturing / logistic activities can result in better profitability for the organization. The local minima of total cost of the manufacturing operation is getting replaced by the global minima of total cost of the whole chain, resulting in better profitability for the chain members and hence lower costs for the products.
Marketing Management-(MKT-501) VU © Copyright Virtual University of Pakistan 95 Lecture-39 RETAILING Retailing---Tail-end of the Commercial Tunnel Retailing consists of the sale of Goods/Merchandise for Personal or Household Consumption either from a fixed location such as a department store or kiosk. In Commerce, a retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells individual items or small quantities to the general public or end user customers, usually in a shop, also called store. Retailers are at the end of the Supply Chain. Marketers see retailing as part of their overall Distribution Strategy. Shops may be • In Residential Streets, • In Shopping Streets with little or no houses, • Or in a Shopping Centre.
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