Question

(Please provide references for answers)

Q1. Define logistics as discussed in the lectures? Explain in brief with the aid of drawing the goals of logistics? (5+ 15= 20 Marks)

(Please provide references for answers)

Answer 1

Logistics - It is the process of planning, coordinating and executing an effective transportation system. In the other words, movement of goods through various channels in order to meet customer requirements in a right time at right place in a cost effective manner.

Goals of logistics : The goals and objectives of logistics are as follows -

1. Improved efficiency in the fulfillment of the orders
2. Increased top line and bottom line (Sales and Profits)
3. Improved customer service and customer satisfaction
4. On-time delivery at right time to right place.

Improved efficiency in the fulfillment of the orders - This means, that the supplier should fulfill the customer's order at right time in right quantity efficiently without any backlogs. The fulfillment of the order by the supplier is directly proportional to the customer satisfaction.

Increased top line and bottom line - The main aim of logistics is to ensure that the organization meets its goal of increased sales and improved profits year on year.

Improved customer service and customer satisfaction - One of the goals of logistics is to improve the customer service. Better the customer service, better is the customer satisfaction. Customer service is directly proportional to the customer satisfaction.

On time delivery to the right place, to the right customer at the right time will ensure customer satisfaction, increased efficiency and all this will make sure customer stays loyal to the supplier.