** Sagar Sandesh print version ceases to be published from December 31, 2017. New look E-paper would be available from Jan. 1, 2018 onwards. free of cost.**

STUDENTSí CORNER - 99

Having seen the basic components of logistics, let us briefly look into the objectives of logistics.
Logistics is inextricably integral to business of any kind, big, small and medium either in terms of volume or value. It means the objective of logistics in the ultimate analysis cannot be different from the objective of business:  satisfaction of the consumer.  Of course, it is said that satisfaction must not be the goal but delighting the customer must guide the business operations. 
Logistics deals with the movements of the products from the point of origin to the point of consumption; it means it is based on what is now being called Supply Chain.  In the Supply Chain, there will be intermediaries from the place of origin of product to the place of consumption, the number of intermediaries dependent on the nature of business in general. Movement of the products from intermediaries to other intermediaries till the final destination must be smooth without hassles and hurdles.  If any movement between two intermediaries is delayed, the entire supply chain will have the consequences often impacting the logistics cost. And the hiked logistics cost is generally passed on to the end-user, the customer. It means the customer has to pay more for the same product or same service for no fault of his. And he does not like it.  This explains the importance of satisfaction of the consumer.  This again points to the fact that the entire operation of the supply chain and the logistics movements must achieve with no hitches the operational objectives. The major operational objectives are rapid response, minimum variance, minimum inventory, movement consolidation, quality, and life-cycle support.
We shall briefly look into these operational objectives.

Rapid response
It refers to the efficiency of a firm to take the product or service to the customer in the shortest time. To respond at the quickest is to be ready with the product for transport.  Earlier, this necessity drove the firm to stock products in anticipation of demand thus having a swelling inventory. Information Technology has now brought in a radical change in the inventory management. Accuracy and Speed are the greatest merits of the IT, among other things. From the customer expressing his requirement to the supply of the product to his requirement from the firm, with the support of the IT, time has become shortened to the maximum. If decision on the part of the buyer is quick and immediate, the rest of the business process takes not much time. In such a context, a firm must be efficient enough to respond to the customer for his requirements at the shortest time. Rapid response satisfies the customer as his need is fulfilled and it also builds the brand image of the company.
Other objectives we will look into in our next session.

Disclaimer
Copyright © 2018 PORT TO PORT - Shipping Services Portal ( Sagar Sandesh ). All rights reserved.

Follow Us