Logistics Management

Logistics management deals with the movement of goods, services and related information from point of origin to point of consumption. The importance of logistics management has increased in today’s environment, marked by the use of speed as a competitive edge (to deliver customer’s orders, for example), development of existing new computer technologies, and increased realization that overall operating costs are extremely sensitive to the various costs of handling and holding inventory.

In progressive companies, logistics management has moved far beyond shipping and receiving to become a differentiating factor in marketing strategy. Logistics is instrumental in meeting such challenges as increasing responsiveness to customers, maintaining market position, stemming price erosion, and maintaining competitiveness in domestic and international markets. Customers and business buyers are increasingly saying “I want it now!” More and more marketers are providing quality products at competitive prices. But that is not enough unless the product is available at the right time in the right place. As electronic commerce becomes more prevalent, marketers face the challenge of developing new logistics systems to deal directly with customers rather than always relying on wholesalers and traditional retail stores for distribution. Technology is a key element in meeting this challenge, as illustrated in “Using Technology: Toys Puts Work before Play.”

The drive to enhance customer satisfaction while simultaneously improving productivity and profitability has put logistics in the spotlight in the marketing efforts of many successful firms. Volvo GM Heavy Truck Corporation, for example, revamped its logistics system to solve a problem of excessive stockouts for repair parts. Dealers were losing business because they could not get parts on a timely basis. Volvo GM, working with FedEx logistics service, set up a distribution center in Memphis, Tennessee, to stock a full line of repair parts. Dealers now call toll-free, and repair customers are wiling to pay premium prices for prompt service available via FedEx. Stockouts are down, dealer revenue is increasing, and Volvo GM has eliminated three warehouses, cutting its total inventory by 15 percent. Perhaps most important, both dealer and customer satisfaction has increased significantly.

To keep customers satisfied, a logistics system should be easy to use and dependable and offer timely information.

Logistics include five key functions: warehousing, materials handling, inventory control, order processing, and transporting raw materials and finished products from origin to destination. In the best logistics systems, these areas are carefully coordinated to gain customer satisfaction at an affordable cost.

Comprehension questions:

1. What does logistics management deal with?

2. What is the importance of logistics nowadays?

3. How do marketers use electronic commerce and technology in logistics management?

4. What should logistics system be to satisfy customers?

5. What functions does logistics system include?

ЗМІСТ

Unit 1 Marketing Communication ……………………………………...4

Grammar: Modal verbs (can, must, may, to be, to have)

Unit 2 Promotion …… …………………………………………………14

Grammar: Modal verbs (need, should, and ought to)

Module Control 1 ………………………………………………………..27

Unit 3 Marketing and Advertising ……………………………………..33

Grammar: Conditional Mood

Unit 4 Public Relations ………………………………………………….45

Grammar: Infinitive Complexes

Module Control 2 ………………………………………………………..57

Unit 5 Consumer Protection …….……………………………………...62

Grammar: Participle

Unit 6 Market Structure and Competition: Market Leaders, Challengers and Followers ……………………………………………..74

Grammar: Gerund

Module Control 3 ………………………………………………………..85

Unit 7 International Marketing ………………………………………...88

Grammar: Adverbial Clauses of Time, Place, Manner

Unit 8 International Management ……………………………………..99

Grammar: Adverbial Clauses of Cause, Purpose, Condition

Module Control 4 ………………………………………………………110

Grammar Reference …………………………………………………..113

Glossary ………………………………………………………………..131

Supplementary Reading ………………………………………………135