Systems elements of marketing logistics.....

Marketing logistics consists of two main components namely, Physical Supply (PS) or material management which is concerned with inward movement of raw material, components and spare parts, consumable stores, machinery, machinery, tools, etc. while the other element, Physical Distribution (PD), refers to that part of logistic systems which is concerned with the outward movement of finished products from the point of origin (for example, exporter's point) to the ultimate destination. The activities falling under the PS and PD are closely interlinked due to the reason that in a majority of the cases, the outward movement or physical distribution management of the products of the suppliers becomes the physical supply management of the importers or consumers at the other end or ultimate destination. Hence the system elements of marketing logistics are common both to Physical Supply (PS) and Physical Distribution (PD). These common elements are -

Raw material acquisition: Raw materials required for production are required to be brought in required quantities and at the right time so that uninterrupted production becomes possible and production can done in accordance with schedule. In addition, it is also necessary to purchase, transport and store fuels, maintenance materials, packaging materials, etc. in advance.

Inventory management: Every business needs to hold stocks of different products, raw, materials, consumable store, semi-processed and processed goods. These stocks or inventories (which are required to meet present and future demand) are the link between a customer's orders and a company's manufacturing activity, wherein customer order draws down inventory level manufacturing activity builds it up. A right balance is necessary as carrying of too much inventory is not cost-effective while too little stock may result in production problems.

Warehousing: Warehousing is essentially a storage function and is very important from marketing point of view. In many lines of business goods are produced considerably in advance of the time of sale and consequently they have to be stored for varying periods of time and thus bridging the time gap between production and demand. Functions of warehouse include receipt of goods, identification of goods by recording and numbering, sorting for appropriate storage, hold goods under protection until needed, marshal the shipment and prepare records and advice, etc.

Packaging and utilization: Packing and packaging play an important role in physical distribution system due to the reason that customer is interested in getting the product without any damage or loss. While preparing goods for shipment, care should be taken care that the same are properly packed, marked and labeled.

Transportation: It is the most important single element constituting the 'hub' of the whole logistic system on which the efficiency of other elements depends to a larger extent. It is an important responsibility in the physical distribution management both from cost standpoint and from service standard. The most important aspect of transportation decision concerns such issues as what modes of transport should be used because it is the chosen mode of transport which can either make or mar the time and cost efficiency of all other elements of marketing logistics.

Insurance: Risk management is another important element of the trade logistic management. Although an exporter is supposed to take care of risk management in terms of payment as well as cargo, in the case of physical distribution management, the later is of greater concern to him. For this, cargo insurance ( commonly known as 'marine cargo insurance' irrespective of the mode of transport).

Communication and control: Information is the lifeline of a logistic system because without accurate and correct information, the system cannot respond efficiently. Besides, timely and correct information acts as a key component in the planning operation and control of logistic system. Traditional methods of communication comprises mails, telegrams, cables, telephones etc. IT has now made it possible to convert many of the problems in transportation, inventory management, packaging and warehousing into computer language by means of which operation of the system as a whole can be examined through model building and simulation.

Physical distribution is a major cost in any global business and can often be a critical element affecting a business' competitiveness. Traditionally, logistic management has focused on efficiency and minimisation of costs. However, as service has become more important, management focus has now shifted to concentrate more closely on maximising the return on investment, and serving the customer more profitably.

The days of straightforward transport management are getting phased out and the business of today is entering the stage of 'Totally Integrated Logistics' - in which warehousing, material handling, inventory management and communication are all recognised as an integral part of the transportation process. But in India, the marketing logistics concept, relatively speaking, is a new subject. Since it is now being recognized as the most promising area of cost reduction in global business, Indian exporters need to be more aware about logistic planning in their business.

The difference between Supply Chain and Logistics...

In many organizations Supply Chain and Logistics are used interchangeably, they are however different concepts with subtly different characteristics and targets.
In definition, Logistics usually refers to interface activities that occur in a single organization and typically include processes such as procurement, inventory, storage and distribution and in some cases maintenance.
A typical supply chain organization would include all of these whilst also including new activities such as finance, commercial, customer and supplier management and product development. Supply Chains will typically take a view of many organizations as a single entity focusing on the flow of products and commodities. Further, Supply chain will typically focus on the services that are required to fulfill the customer.

Trucking Companies Go Green with New Software Technology ...

(Bloomfield, CT – September 4, 2008) Without question, two critical areas for today’s trucking company owner are controlling fuel costs, and receiving their payments quickly and on time. Increasingly, savvy trucking company owners are using technology in innovative ways to help in these areas and make their trucking businesses more "green" at the same time.

Lowering Fuel Costs and Reducing Fuel Consumption

A good Fuel Optimization solution allows your trucking company to find the best truck stop fuel prices along each route, typically providing significant fuel savings per gallon and reducing out-of-route miles by as much as 25%. While we can’t control the price of diesel fuel, we can use smart tools to get the most mileage out of every dollar. Prophesy has been an innovator in this area since introducing our FuelLogic solution in 1996. In these times, tried and true solutions like these are must-haves for many trucking companies. A pleasant "green" side effect is that less fuel is used overall and trucking companies can take pride in doing their part for the environment. (To read about the Top 5 Misconceptions of Purchasing Fuel over the road, click here or visit www.mile.com/promo/optimize-fuel/optimize-fuel.htm.)

Getting Paid Faster and Improving Cash Flow

Another headache for trucking businesses during tight economic times is getting their invoices and open receivables paid as quickly as possible. Most trucking companies have instituted fuel surcharges, which makes it more critical than ever to get paid quickly to help cash flow. Many trucking companies are eliminating the paper shuffle altogether by implementing EDI and/or a Document Imaging system. This enables them to instantly bill customers as well as to scan and store PODs, BOLs, Freight Bills, Confirmations, and all other critical trip documents, so that they are available to email to customers as soon as the load is complete or any other times when paperwork is requested. By billing and scanning documents electronically, these companies not only increase efficiency but shorten the payment cycle significantly. The added "green" benefit here is of course far less paper, postage, ink, and envelopes used.

About Prophesy FuelLogic:

This trucking industry-preferred fuel purchase optimization software will reduce your diesel fuel costs using powerful fuel optimization technology and current diesel price information, in conjunction with the existing fuel cards, fuel purchase networks, and negotiated fuel discounts held by your trucking company.

About Prophesy Document Imaging:

Never waste time searching for load paperwork again! With Prophesy Document Imaging all of your critical truck documents are available at your fingertips and viewable on-screen, on demand. Your customers will love your shortened response time, and your team will love the way our document scanning capability allows them to safeguard documents, save time, and make their job easier. Simply print, fax, or email the form that your customer or vendor requires, and your work is done.

About Prophesy EDI:

Prophesy Dispatch offers powerful EDI (Electronic Data Interchange) compliance capabilities, built exclusively for the Trucking Industry. This time-saving software allows you to transmit critical forms to your customers or trading partners via EDI technology in real time (including forms 204, 990, 210, and 214). Utilizing the document imaging, scanning, and rendition billing technology of Prophesy Dispatch Software, Prophesy's EDI software reduces paper shuffle and reduces time spent, while increasing your customer satisfaction rating. Prophesy Dispatch & Accounting with EDI offers accurate, secure, and virtually instant data exchanges, facilitating freight billing and allowing your growing trucking company, brokerage, or private fleet to keep pace with many of the largest companies in the transportation industry.

What is multimodal transport system?

Multimodal Transport System

A multimodal transport system integrates different geographical scales from the global to the local. With the development of new modal and intermodal infrastructure, urban regions have a growing accessibility to the international market; several parameters of regional transportation are transformed, or at least significantly modified. The above figure represents the regulation of movements of a corridor within a multimodal transportation system composed of a set of competing hub centers where converge regional and local transportation networks. Depending on the geographical scale being considered, the regulation of flows is coordinated at the local level by distribution centers, commonly composed of a single transport terminal, or at the global level by articulation points, composed of major transport terminals and related activities.

An articulation point can simultaneously have a modal and intermodal convergence of functions; particularly if it is the interface between several modes. Its modal function relates to its while its intermodal function indicates its level of service. The regional multimodal network converges at major articulation points allowing linkages with the international transportation system through a maritime / land interface. Port cities are the main agent of that function. Containerization has particularly developed the maritime / land interface. It insures flexibility of shipments and several ports have opted for this multimodal transportation technology to keep and consolidate their status of hub center.

Institutes offering logistic courses....

IISWBM (indian institute of social welfare and business management)

website: www.iiswbm.edu


Asian council of logistics management.


website: www.asianclm.com

Software related to logistics.......

Software is used for logistics automation which helps the supply chain industry in automating the work flow as well as management of the system. There are very few generalized software available in the new market in the said topology. This is because there is no rule to generalize the system as well as work flow even though the practice is more or less the same. Most of the commercial companies do use one or the other of the custom solutions.

But there are various software solutions that are being used within the departments of logistics. There are a few departments in Logistics, namely: Conventional Department, Container Department, Warehouse, Marine Engineering, Heavy Haulage, etc.

The software used in these departments are,

Conventional department : CVT software / CTMS software /

Container Trucking: CTMS software /

Warehouse : WMS /

What is Logistic management?

Logistics is the management of the flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption in order to meet the requirements of consumers (frequently, and originally, military organizations). Logistics involve the integration of information, transportation, inventory, warehousing, material-handling, and packaging.