These four functions of marketing logistics help the organization to reach the target customers and deliver the products or services sold by the organization to these customers.
Supply Chain ManagementFinance Innovative supply chain management delivers financial benefits to your bottom line. During the recent economic downturn, many companies stripped layers of cost from their supply chain operations.
These cuts may not have been obvious to target or easy to accomplish. And this focus could transform your supply chain and your organization. In the old days, businesses focused on logistics internally.
Today, however, companies are looking at logistics processes externally through integrating suppliers and customers. That change positions supply chain professionals as the driving force behind opportunities that can result in better financial performance for their companies.
Between 30 and 40 percent of every company is unprofitable by any measure—accounts, products, lines, transactions, orders. And 20 to 30 percent of every company provides all the reported profit and subsidizes the losses.
But this new world of externally focused supply chain management presents significant financial opportunities. Companies are realizing the financial benefits of integrating more with customers and suppliers. What fewer companies understand or do well is recognizing the impact a supply chain can have on the customer value proposition.
Done right, VMI can increase revenues by as much as 30 to 40 percent in the highest penetrated accounts. In sales terms, that translates to increased share of wallet and, ultimately, increased market share.
At the same time, you gain control over your own order pattern variances and substitutions, and get more visibility and better forecasting, which drives down your own costs. This is one area where a supply chain professional can deliver more revenue than a salesperson ever could, Byrnes points out.
VMI also delivers more cost savings than you can achieve by simply managing the orders coming at you. All they could do was look at the order pattern and guess—then carry enough safety stock. He cites one company operating a warehouse where 40 percent of costs are wrapped up in one-off requests from minor customers.
Highly integrated, close relationships are reserved for the best customers—not just the largest. And those customers with growth potential could garner a closer relationship than their business volume might suggest. Traditionally, sales sets a goal for moving customers from where they started to where they should be.
Sales and marketing can identify customers with potential, but supply chain management can determine which customers have the willingness and ability to manage change and become true partners. For high-potential customers, get acquainted with their operations team early on.
Only then should you start investing the resources that will build a closer relationship. Among the qualifying factors, Byrnes cites the operating fit. Some questions to ask are: What can be accomplished if the partnership does everything right?
This is the opposite of the traditional way sales would handle the operations connection—bringing in their own operations team at the end of the sales process for an introduction and a handshake.
Using the new approach, operations personnel almost precede sales in building relationships and identifying strong candidates for the closest partnerships.
The benefits of this closer supply chain relationship include smoothing the order cycle, improving forecasting, and increasing profitability for both customer and supplier.Essentially, a third-party logistics firm may be defined as an external supplier that performs all or part of a company's logistics functions.
This definition is purposely broad and is intended to encompass suppliers of services such as transportation, warehousing, distribution, financial services, and so on. Or, on the other hand, if delivery is a key part of corporate and marketing policy, the manufacturing operation can emphasize high finished and semi-finished inventory.
Question: Discuss how logistics interfaces with finance, marketing and manufacturing from an inventory stan Discuss how logistics interfaces with finance, marketing and . Logistics Research is a peer-reviewed open access journal published under the SpringerOpen brand.
The Journal features fundamental and applied research in the fields of logistics and supply chain management from an interdisciplinary perspective spanning from logistics management to logistics . Discuss how logistics interfaces with finance, marketing and manufacturing from an inventory standpoint.
Discuss capital cost and include both the hurdle rate and WACC in your answer. This is the end of the preview%(1). Purchasing / Manufacturing.
If an organization is involved in the manufacturing of products of any kind, logistics and transportation are absolutely critical. The lifeblood of the organization is the raw materials and components that are planned, purchased, scheduled, and delivered to .