Marketing logistics is a crucial component in the process which connects businesses to their customers and suppliers. In this blog post, we'll cover the basics of marketing logistics. We'll talk about what it is and why it's important to understand how it works. We'll also discuss the benefits that come with understanding basic marketing logistics.
What is Marketing logistics?
Marketing logistics (also known as logistics for short) is a process of planning, implementing, implementing and controlling the movement of materials/components from suppliers to production as well as finished product with related information from the point of origin to points of consumption.
Stages in Marketing Logistics
Marketing logistics is divided into 3 main stages:
Inbound logistics: Manage and optimize the movement of input materials and related information from suppliers to production sites.
Outbound logistics: Manage and optimize the flow of output products and related information from the factory to the point of consumption (intermediaries or target customers).
Reverse logistics: Manage and optimize the movement of defective, wrong or damaged materials and products during transportation to suppliers or the company.
The goal of Marketing logistics
The ultimate goal of Marketing logistics is to reduce supply chain operating costs through optimizing supply chain stages, and to help businesses provide products/services and other values to customers with the lowest cost.
The cost factor is always inversely proportional to service quality or customer satisfaction. Excessive cost minimization will cause customer service quality to decline, as well as setting costs too high will be a financial burden for businesses. Therefore, the cost and service quality must be adjusted at the optimal level depending on the situation, resources and business environment of each enterprise.
Roles of Marketing logistics
Marketing logistics takes on the following roles:
Based on the characteristics of each product, businesses will arrange warehouses in many different forms and sizes. Enterprises need to calculate whether the warehouse location in the strawberry is reasonable, how much is the size of the warehouse needed, how much is the design inside the warehouse, how many shelves and lots are there to just meet the quantity of goods. inventory, saving costs, convenient for transportation in and out of warehouse.
2. Inventory management
Although inventory management is a small step in the supply chain, it can affect the performance of the entire supply chain, thereby affecting the quality of customer service. The classification and arrangement of materials and finished products in a reasonable and scientific manner will help businesses easily inventory the quantity, avoid loss and damage, as well as speed up the transportation progress, ensuring the quality of goods. In addition, regular inventory will help businesses keep their inventory at an optimal level (just enough to supply to the market in a certain period of time). Importing or producing too much inventory compared to market demand will increase warehousing costs, accompanied by risks such as damage, fire; On the contrary, if the inventory quantity is too small, it will reduce the ability of the enterprise to meet market demand and the quality of customer service.
Transporting materials and goods is the main job in supply chain activities. Depending on geographical location, product characteristics, and time required, businesses will choose different modes of transport.
There are 5 popular modes of transport:
- Trucks: suitable for short delivery
- Train: suitable for long-distance delivery within the country
- Vessel: Suitable for import and export delivery, low cost, long delivery time.
- Airplane: Suitable for import and export delivery, high cost, short delivery time.
In fact, to optimize delivery quality and costs, businesses can combine multiple modes of transport.
The choice of transport method will affect the operating budget of the business, the production process, the delivery process, the delivery quality, the condition of the goods after delivery, thereby affecting the cost. and product/service quality. Therefore, choosing the right form of transport is extremely necessary.
4. Contacting & Connecting
In addition to the function related to transportation and circulation, Marketing logistics also undertakes the work of communication as well as information gathering between the participants in the distribution channel system. This work is to ensure that businesses can collect information related to customer feedback, distributors can understand production schedules, new changes in sales policies of enterprises. , and the manufacturer provides the right quantity and quality of raw materials as required by the business, thereby creating a close link between customers, suppliers, distribution agents and businesses.
Marketing logistics is an important part of the process that connects businesses to their customers and suppliers. The role it plays can be adjusted at different stages in order to meet each business’s needs, but there are some constants throughout: inventory management, transportation, and customer communication. In case you are the company or the marketer, please ensure that you have the right amount of goods on hand will help with quality control; choose a transport method that suits your delivery time requirements will save money in both operating costs and production delays; communicate effectively with your clients may lead them back into your store or website for more purchases down the line.