Scope of Logistics Management

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Logistics management covers every stage of the physical distribution process, from raw materials and component parts being ordered and delivered to the factory, materials handling and storage, stock control, sales forecasting from which the forecasts of individual components parts, transport and storage requirements are derived. Other functions include order processing, the purchasing and replenishment of stock, packing, delivery, achievement of set service levels, warehouse location, fleet management and scheduling and the management and operation of a logistics information system which acts as a recording system, aids forecasting, scheduling, model building and produces the myriad of documentation needed for the efficient management of the system. This total concept is sometimes referred to as ‘total business logistics management’ or ‘total physical distribution management’.

Marketing has many definitions, one of which relates to the process of getting the right goods to the right place at the right time. This is a simplistic definition, but it does encapsulate the importance of time and place. It has been said by many writers on the subject that it is the mission of the marketing orientated firm to produce goods and/or services that satisfy the needs and wants of specifically defined target markets more efficiently and effectively than competitors. Products can be viewed as a ‘bundle of attributes’, many of which are implied attributes created by branding, packaging and advertising. The core product or service is just a part of the total product offering. In order for the value of goods and services to be fully realised they need to be available to customers at the right place and at the right time.

What the right place and the right time is will, of course, depend on the nature of the product or service. The importance of time and place will also depend on the nature of the product or service and the situation or occasion in which they are used. For...
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