STUDENTS' CORNER - 109
In this session, we will see some more points related to inbound
We have already seen some basic points with regard to the objectives
of the logistics. We know now that the
final effective objective of logistics is efficient coordination of all
activities of the company to achieve the goal and maintain it: the effective
unbroken flow of goods from the place of origin to the place of consumption.
We have also seen that inbound and
outbound logistics form part of a larger area of operations called supply-chain
and we also know the difference between the outbound and the inbound logistics.
By the very nature of the inbound and
outbound logistics, the company will have to deal with different set of
stakeholders. As for the inbound logistics is concerned, the company must focus
on its suppliers so that the production of their products flows unimpeded; but,
with outbound logistics, the company must see to it that their stakeholders
like agencies and stockists function properly so that the goods of the company
reach their customers in shape and in time.
The company to be successful must plan
its activities carefully following all the vital principles of marketing and
this planning is what is called logistics strategy.
Let us briefly look into this logistics
strategy a little more but of course only the basics.
The logistics strategy must be comprehensive
in its grasp of the thing, the marketing. It is generally said to have some six
important steps that aim at promoting sound marketing by means of an effective
First of all, the company must choose what
product or what service it proposes to market. Before the final choice is made,
the company is expected to have good knowledge of the market and the market
leaders of that product; in fact, a deep consideration of target for the
product, that is, what kind of customers the company aims to attract for
business—and many more trade-related facts must be attended to with utmost
care. Next, the company must decide upon the primary and secondary markets. And much more importantly, the company must
have a very fair knowledge of the kind of competition it has to face and fight
to win. Then follow the marketing activities which occupy a very top position
in the business administration. Marketing management is the subject that sees
hundreds of books coming out every year. This is only to say that it is a very
vast area demanding consistent application of mind with the focus on the goal
of the company. All these activities are defined in terms of the budget
allotted for them by the company and all these activities are essential for a
business to thrive.
All these steps can be studied under the
Again, it is not still complete; we will look
into inbound freight management in our next session.