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Unit 2: Introduction to Logistic

2.7 Summary Notes
2.8 Keywords
2.9 Review Questions
2.10 Further Readings

Objectives

After studying this unit, you will be able to:
 Understand the Definition and Concept of Logistics
 Explain Logistics Value Proposition
 Discuss the Work of logistics
 Describe Logistical Operations

 Understand the Logistical Operating Arrangements
 Explain the Logistical Operating Arrangements
 Discuss Logistical Operating Arrangements

Introduction

Logistics is the one of the most important segment of the phenomenon of Marketing in business.
It is a subset of Supply Chain Management. In the business functioning, the trader gets order for
supply of his goods or services through his marketing executives or directly from customers
and then to execute the order to the satisfaction of the customer, the trader or his supplier
company prepares the Logistics i.e., procures the product or services, puts labels on them, or
gives some identification trademark name to them, makes necessary packing and packaging so
as to save them from damage of any kind during loading, unloading, handling, transportation
etc., till is supplied to the end customer. More simply, it is a bundle of goods finally ready to be
supplied to the customer. In Logistics study, all factors contributing till the last stage, when the
goods or service is finally supplied to the consumer are systematically studied.

2.1 Definition and Concept of Logistics

The word, ‘Logistics’ is derived from French word ‘Loger’, which means art of war pertaining to
movement and supply of armies.
1. A military concept

2. Fighting a war requires:
(i) Setting an objective
(ii) Meticulous planning to achieve the objective

(iii) Proper deployment of troops
(iv) Supply lines consisting of weaponry, food, etc.
3. A logistics plan should be such that there is minimum loss of men and material.
Similar to fighting a war in battlefield, marketing managers also prepare a suitable logistics
plan that is capable of fulfilling the company objective of meeting the demand of targeted
customers in a profitable way.

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