Page 191 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Retail Business Environment Anand Thakur, Lovely Professional University

Notes Unit 10: Logistics and Distribution

CONTENTS
Objectives
Introduction
10.1 The Concept of Logistics Management
10.2 Distribution Process

10.3 The Stages of Distribution
10.4 Benefits of Supply Chain Management
10.5 Trend towards Consolidation of Distribution Channels
10.6 Trends in Supply Chain Management
10.7 Summary
10.8 Keywords
10.9 Review Questions

10.10 Further Readings
Objectives

After studying this unit, you will be able to:
Discuss the Concept of Logistics Management
Explain the Distribution Process
Discuss the Stages of Distribution
Describe the Trends in Supply Chain Management

Introduction

Logistics has always been a central and essential feature of all economic activities. The concept
of logistics as an integrative activity in business has developed within the last twenty years.
Logistics management is a process of strategically managing the movement and storage of
materials, parts and finished inventory from supplier through the firm and on to customers.
Logistics is thus concerned with the management of physical distribution of material. It begins
from sources of supply and ends at the point of consumption. It is, therefore, much wider in its
reach than simply a concern with the movement of finished goods – a commonly held view of
physical distribution. Logistics deals with all activities that facilitate product flow from the
point of raw material acquisition to the point of final consumption as well as the information
flow that set the production in motion for the purpose of providing adequate levels of customer
service at a reasonable cost. Logistics management involves two issues namely, movement of
raw materials to the plant known as physical supply or material management and second, flow
of finished products from the plant to the customers, known as physical distribution. Logistics
management activities can be grouped as primary and secondary activities. We present a list in
the following Table 10.1.

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