STUDENTS' CORNER - 109

Inbound Logistics
In this session, we will see some more points related to inbound logistics.
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 plan.
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 logistics strategy.
Again, it is not still complete; we will look into inbound freight management in our next session.