STUDENTS' CORNER - 106

Next objective of the logistics is ‘Life Cycle Support’.

The title itself suggests briefly the meaning and purpose of the objective; the support must be for the product throughout, from introduction to exit, so to say. On the line of human life cycle in general, the product life cycle is said to have five distinct life-cycle stages; they are, product development, introduction, growth, maturity and decline. Logistics must be supportive to the product in all its five stages, to put it simply.

Logistics in the ultimate analysis means efficient movements of products at every level of supply chain avoiding delay in delivery of materials to the one who needs them for further processing or to the one who is the final consumer.

Logistics has gained great importance today with innovative introduction of products marking the business scenario. Competition is the breath of business and it drives the organizations towards focusing on newer products or constant modification of the products in existence. Shape up or ship out. This is the ever present guideline today in marketing business. And the success of the introduction of new products depends solely on timely delivery of the products to the stakeholders, beginning from the megastockist to the last retailer. And this timely delivery needs the exclusive concentration on efficient logistics.

Growth phase is considered the most important phase. Innovation inspires marketing activities and demand keeps rising. At this phase, quantity occupies the top slot in the sense that lots of materials have to be purchased to match the market demand and naturally, the cost of the materials and also of the labour get pegged at a lower level. Most of the operations remain at a cost effective level.

But, to maintain the cost effectiveness of the entire operations of the organizations logistics must be very efficient and fault-free. Supply chain must move on a smooth path. Care must be taken to ensure supply of materials to requirements and therefore organizations choose suppliers with operational excellence. Materials must move from the supplier to the organization in time so that production registers unhampered progress and the marketing assumes an aggressive style. Every time, all feel they are racing against time and it is done successfully with an efficient logistics.

We will see how logistics becomes an indispensable tool for a successful business enterprise in other phases of the product life-cycle in our next session.