Marketing Project on Logistics : Logistics and Inventory Management 2017
MARKETING LOGISTICS
WHAT IS LOGISTICS MANAGEMENT?
Logistics is concerned with getting product and offerings wherein they’re wanted, whilst they may be also favored. Logistics is a hobby that by no means prevent.
Logistics includes major operations:
¨ MATERIAL MANAGEMENT.
¨PHYSICAL DISTRIBUTION MANAGEMENT.
SUPPLY CHAIN MANAGEMENT?
Supply Chain Management [SCM] refers back to the physical community that starts with dealer and stop with customers. Internally SCM includes seamless integration of logistics with the other useful vicinity and externally, works to achieve integration with different trading partners and service employer.
SCM entails:
®Management of waft of products from the provider to the very last consumer.
®System wide coordination of product and information flows. Development of relations and integration of all activities that offer customer price.
Inventory Management?
The essential characteristic of stock control is to limit inventory value, challenge to call for and services constraint .It cope with guiding a company with appreciate to
«Row materials and finished goods stocking regulations.
«Short-time period sales forecasting.
«Number size and vicinity of stocking points.
«Just in time, pull push techniques.
Logistics in India
Studies revel that during India total logistics price represent nearly 10% of country wide GNP out of which forty% is due to transportation alone.
The RITES report on commodity waft for total delivery system have a look at of the making plans commission, government of India, states that import elements of general logistics value in India are produced inventory at supply.
INVENTORY MANAGEMENT
Types of stock: –
TRANSITION INVENTORY: –
This is stock presently undergoing transformation and characteristic as a car for income technology.. It may be either in shape of working development or inside the form of completed goods. The completed items transition stock can either be undergoing nice checker may be within the manner of being transported from the factor of intake.
BUFFER INVENTORY: –
This is the inventory that’s waiting to enter a manufacturing activitie
MAINTENANCE INVENTORY: –
These are inventories, which aren’t concerned immediately inside the conversion process however are necessary to manipulate an company belongings, plant and device.
FUNCTIONS OF INVENTORY:
§ Inventory permits managers to decouple operation.
§ Inventory protects one part of an operation machine from disruptions in other components of gadget.
§ Inventory can offer an facet in opposition to inflation.
§ Inventory permits corporations to fulfill predicted demand.
COSTS OF INVENTORY.
A corporation might bring stock to be able to:
§Reduces price of purchasing by way of increased order masses
And lowering range of orders.
§ AVOID STOCK OUTS
§ Allow variability in supply time.
§ Provide for storage space for WIP
There are 4 important classes of fee related to inventory.
Procurement charges
Out of stock
Costs ¬ Inventory costs ® over expenses
¯
Inventory wearing prices
OUT OF STOCK COST: –
The charges incurred while a consumer locations, as order and order cannot be filled from the inventory to which it’s far usually assigned.
They are in addition divided into classes:
§Lost sales expenses.
§Back order fees.
LOST SALES COSTS: –
These prices arise whilst the patron, confronted without of inventory scenario, chooses to withdraw his order for the product. The price id the earnings that would had been made if the sale gad happened and value of terrible impacts that the inventory out may additionally have on destiny income.
BACK ORDER COST: –
Back order fees that customer will look ahead to his order to be filled so that the sales is not lost however best behind schedule. These create clerical and income fee for order processing additional, delivery and so on. That must be happened to satisfy those back orders out of direction of ordinary distribution channel.
CONCLUSION: –
Inventory manage, manufacturing control and warehouse management are the underlying methodologies that have an effect on the economic success of distribution businesses.
Inventory control is the exercise of planning directing and controlling of stock so that it contributes to the business profitability. Inventory control can help commercial enterprise be extra worthwhile by reducing their prices of goods bought by increasing sales. Inventory managers have to provide for stocks, while wished, make use of to be had storage area efficiencies in order that shares do not exceed the garage space available. All of this is known as inventory manage.
