Role of Logistics in the Organization

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Role of Logistics in the Organization

By | August 2011
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The Role of Logistics in the Organization

Logistics is critical to the success of every organization. Once considered an important behind-the-scenes operational activity, logistics is now recognized as a strategic tool for creating customer value and loyalty. Companies like Wal-Mart,Coca Cola,and Nike attribute a great deal of their success to their global logistics systems. They realise that integrating activities within the organization and across the logistics pipeline, building strong relationships with product suppliers, and working with customer-focused logistics service providers are all crtitical to building a competitive advantage through logistics.

• The Marketing Concept

It holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiency than competitors.

• Customer satisfaction. Is a measure of how products and services supplied by a company meet or surpass customer expectations.

Marketing Mix

To create the right marketing mix, businesses have to meet the following conditions:

• The product has to have the right features - for example, it must look good and work well. • The price must be right. Consumer will need to buy in large numbers to produce a healthy profit. • The goods must be in the right place at the right time. Making sure that the goods arrive when and where they are wanted is an important operation. • The target group needs to be made aware of the existence and availability of the product through promotion. Successful promotion helps a firm to spread costs over a larger output.

For example, a company like Kellogg's is constantly developing new breakfast cereals - the product element is the new product itself, getting the price right involves examining customer perceptions and rival products as well as costs of manufacture, promotion involves engaging in a range of promotional...
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