Distribution Channel Structure

The channel structure refers to the group of channel members to whom a set of distribution tasks has been allocated. The channel structure plays a vital role in the physical distribution of products. It primarily facilitates product flow from the manufacturer to the end consumer through a hierar­chy of channel members. The typical distribution

1 Comments

Logistic Requirements of Channel Members

The role of a channel member is crucial in the distribution process. According to Alderson, the marketing channel takes care of the five gaps between production and manufacturing. First, the channel takes care of the time gap between the production activity and the purchase of products by the consumer at discreet intervals. Thus, the

1 Comments

Channel Members

The marketing channel structure consists of a variety of intermediaries performing distribution tasks. These tasks differ in terms of financial involvement, relationship with manufacturer (place and time context) and the functions performed. 1. Wholesaler Wholesalers are quite common in consumer goods industry. They operate as full-fledged market­ing organizations, purchasing goods from the manufacturers in

1 Comments

Channel Strategy

The design of the logistical program to serve a given channel structure depends on the channel strategy of the enterprise. The channel strategy is based on the broad principles through which the firm expects to achieve its distribution objectives for the target market. Depending on the nature of the product, industry practices and market

2 Comments

Logistics Support to the Distribution Channel

The success of the distribution channel depends largely on the effectiveness and efficiency of logistic operations of the firm. Channel management is essentially involved in the control of prod­uct flow, information flow, promotional flow and ownership flow. However, the product flow and related information flow are taken care of by logistics management. The channel

Catalysts for Outsourcing Trends

Today, business organizations across the world are struggling to compete not only for growth but mere survival. The factors responsible for this are the liberalized economies of countries across the world, globalization of businesses and recessionary trends in the markets. Moreover, the customer has become more demanding and is looking more for value-added services

2 Comments

Benefits of Logistics Outsourcing

In a logistics operation considerable quantities of materials are required to be transported and stored at various locations. Raw materials and components are to be moved over long distances from vendor supply points to production centres. Starting from outsourcing of IT and HR functions, Indian corporations have come a long way and understood the

1 Comments

Third-Party Logistics

The trend of using a strategic partnership in integrated logistics has now become an accepted practice in the industry. These partners are called “third party service providers” or 3PL (short for third-party logistics) firms. These firms are external to the company and provide one or more aspects of their entire logistics service product portfolio.

1 Comments

Fourth-Party Logistics

IT industry is playing a major role in logistics and supply chain management. Today, the integra­tion of logistics, which is a complex exercise, is totally dependent on the support of IT. Third-party logistics suppliers are providing logistics solutions to their clients, based on their experience and domain knowledge that they have acquired and developed

7 Comments

Selection of Service Provider

The decision on the selection of the service provider is a strategic one and it has long-term effects on the customer service capabilities of the organization. In the Indian context, majority of corpora­tions still have a traditional outlook and want to perform all management functions by themselves, without losing control over any of the

2 Comments

Value-Added Services of Logistics Outsourcing

Due to stiff competition for differentiation in the logistics industry, the service providers are now offering their clients some additional services, besides the regular logistic service offerings. The addition covers a whole gamut of specialized and customized processes, which are available to the customers. Some of the value addition functions are discussed below. Cross-Docking

1 Comments

Logistics Service Contract

Corporations are outsourcing logistics operations to 3PL or 4PL firms to obtain cost and service benefits for building competitiveness. In addition to this, the other expectations are value addi­tion in customer value delivery process, diversion of risk and reduction of liabilities. The service supplier has to organize assets, add manpower, hire facility on lease

Critical Issues of Logistics Outsourcing

After liberalization of the Indian economy in 1991, entrepreneurial activities in India grew mani­fold. Many foreign companies began their trading activities on the Indian soil to get a share of the large, untapped Indian market. As a result, the heat of competition is being felt across all sectors of the economy. To counter competition,

1 Comments

Value Proposition of Logistics Outsourcing

Logistics service providers help a business corporation to achieve two goals: to reduce operating cost and to increase revenue. As the service provider organizes the required logistics assets, the investment in owning the logistic assets on the part of customer is reduced. This in turn allows the firm to invest in more productive activities

1 Comments

A New Way of Shop and Pay

The progress in technological innovations has totally changed the way business is done in the industry. Traditionally, shopping or buying has been a personalized behavior of the consumer. From the days of trading and bartering till recently, the buying and selling activities were typically performed within the limitations of time and space boundaries. However,

2 Comments

E-Commerce: Requirements on Logistics

E-commerce is a new way of shop and pay. The customers are large in numbers and buy only a small quantity with each transaction. This results in the accumulation of a large number of small packets for delivery to customers unknown to the seller. In e-commerce, the demand in shipment is unpre­dictable. The suppliers

1 Comments

Logistics – The Backbone of E-Commerce

E-commerce has revolutionized the way business is done and the way goods are sold and deliv­ered to the customer. Logistics plays a vital role in delivering the products to individuals with speed and complete order flexibility. The logistics solutions are provided by the companies— manufacturing or dot-com—operating in the B2B or B2C domain, wherein

2 Comments

E-Logistics Structure and Operation

A firm desirous of offering goods on the Internet needs to develop a proper infrastructure for elec­tronically integrating all the operations of logistics in order to ensure customer satisfaction before, during and after the buying process. 1. Order Processing The customer, after opening the website, may select one or more items for purchasing. Many

2 Comments

Logistics Resource Management

Logistics resource management (LRM) is a new IT tool providing browser-based software for automating, planning, managing and optimizing the e-commerce logistics activities. It is a plat­form for the command and control of logistics execution, which can also operate as a central clear­ing house of logistics data to meet a variety of other decision-making needs

1 Comments

Role of Technology in Logistics

Technology is playing a major role in the operational effectiveness and efficiency of various func­tional areas of the management. Information technology helps in real-time information processing and analysis. Due to robotics and automation technologies repetitive operations can be done with great speed and accuracy. On the communication front, the ease and speed in connectivity

1 Comments