What are the objectives of Logistics for a firm

What are the objectives of Logistics for a firm?-LM Blog-05

Logistics is the first condition for determining the purpose of doing any task in a planned and smooth manner. The reason for this is that the purpose is set, the guidelines become clear and successful execution of the work becomes easy. 

The strategy to be followed in the field of logistics also depends on what is the attainable objective. Therefore, it is very important for any firm to clarify the main purpose of the logistics system. There may be different objectives of logistics for different firms, but some of the main objectives, let’s know them here:

1. Improving Customer Service-

The ultimate goal of logistics is to maximize profit in the long run by providing maximum satisfaction to the consumer. Thus, the major objective of all logistics efforts, including logistics, is to improve consumer service. This increase both sales and profits.
Efficient management of logistics helps improve the level of consumer service through economical and effective arrangement of storage, transportation and stock.
Increasing the level of consumer services directly affects the cost to logistics. Therefore, it is necessary for logistics to make a thorough analysis of the needs of consumers and the policies of competitors when making decisions regarding the level of service.

 

2. Reduce Distribution Costs

Reduce Distribution Costs – Another goal that is often a matter of discussion is to reduce the distribution cost of products. The cost incurred on logistics includes expenditure on transportation, storage, maintenance of stock, etc. and the cost reduction on one of these results in increased expenditure on other items.
Therefore, the objective of any firm is to reduce the total cost of distribution, for this, only after properly analyzing the total cost on the alternative system, should choose the system with minimum total logistics cost.
Distribution costs also relate to the level of service provided by a firm it happens. If a firm is determined to provide a lot of service to consumers, then it is natural that the cost of logistics will also be high.

3. Generating Additional Sale

Generating Additional Sale – Another goal of the marketing logistics system is to increase sales of the firm’s products. The firm can attract consumers by improving its distribution system and providing better service at lower prices.
For example, by decentralizing the storage system or using less expensive and more efficient means of transport, a firm can reach more and more parts of the market. At the same time, it can retain its loyal customers by preventing the occurrence of conditions such as goods not arriving on time or not available.

4. Creating Time and Place Utilities- 

Creating Time and Place Utilities- Another goal of the marketing logistics system is to create time-based and spatial utility in products.
If the products are not transported from the product center to the place where there is demand, then there is no use for the consumers. Similarly, it is also necessary to make them available at the time of consumption.
Both these tasks are done through the logistics system. For example, it is beneficial to keep products in warehouses from their plurality to the time of their depletion in order to achieve more local and seasonal utility. For this, the warehouse should be in such a place from where they can be delivered to the consumers at the time of need. Also, the goods stocked in the warehouse should be in sufficient quantity, so that the needs of consumers can be met in times of crisis.

5. Price Stabilization

Price Stabilization – The objective of marketing logistics is to help maintain the prices of goods at a certain level. It is used wisely using available transport mediums and storage facilities by maintaining regular supply of essential commodities in the market.
For example, the textile industry, which needs agricultural raw materials. The supply of this material fluctuates. With regard to the supply of raw materials, if market forces are allowed to function uninterruptedly, the situation is that during the harvest season it becomes very cheap and it is very expensive after the end of this season. it happens.
But during the harvest season, fluctuations can be stabilized by keeping raw materials in the warehouse and providing them in a short time. Thus prices can be stabilized with the help of physical distribution functions.

Go to top
 
Share Anywhere

49 thoughts on “What are the objectives of Logistics for a firm?-LM Blog-05”

  1. Thanks for your publication. One other thing is that individual states in the United states of america have their own personal laws of which affect house owners, which makes it quite difficult for the our lawmakers to come up with the latest set of rules concerning foreclosure on home owners. The problem is that a state has own laws which may interact in a damaging manner with regards to foreclosure guidelines.

    Reply

  5. I would love to add when you do not now have an insurance policy or perhaps you do not remain in any group insurance, you might well benefit from seeking the aid of a health insurance broker. Self-employed or those with medical conditions commonly seek the help of one health insurance brokerage service. Thanks for your post.

    Reply

  6. After looking into a number of the blog articles on your site, I really
    appreciate your way of blogging. I book marked it to my bookmark website list and will be checking back soon. Please check out my web site as
    well and let me know what you think.

    Reply

  10. Thanks , I’ve recently been searching for information about this topic for a long time and yours is the best I have found out so far. But, what about the bottom line? Are you positive concerning the source?

    Reply

  12. What i don’t realize is if truth be told how you’re no longer really much more well-favored than you may be now. You’re very intelligent. You know thus significantly in the case of this subject, made me in my opinion imagine it from so many numerous angles. Its like women and men aren’t interested unless it抯 one thing to accomplish with Girl gaga! Your individual stuffs excellent. Always deal with it up!

    Reply

  13. Howdy! I could have sworn I’ve been to this blog before but
    after browsing through some of the post I realized it’s new tto me.

    Nonetheless, I’m definitely delihted I found it annd
    I’ll be bookmarking and checkinng back frequently!

    Reply

  23. Howdy! I could have sworn I’ve bwen to this blog before but after browsung through some oof the
    post I realized it’s new to me. Nonetheless, I’m definitely delighted I found it and I’ll be bookmarking and checking back frequently!

    Reply

  28. Wow, amazing blog layout! Hoow long have you been blogging for?
    you made blogging look easy. The overall look of your web site is excellent,
    as well as the content.

    Reply

  33. Hello! Someone in my Facebook group shared this site with us so I came to give it a look. I’m definitely loving the information. I’m bookmarking and will be tweeting this to my followers! Superb blog and outstanding design.

    Reply

  35. Undeniably imagine that that you stated. Your favorite justification seemed to be at the web the easiest thing to bear in mind of. I say to you, I certainly get irked at the same time as other people consider issues that they just don’t recognize about. You controlled to hit the nail upon the highest and also defined out the entire thing without having side-effects , other folks could take a signal. Will likely be again to get more. Thanks

    Reply

  37. I don抰 even know how I ended up right here, but I believed this put up was once good. I don’t recognize who you are however definitely you are going to a famous blogger for those who aren’t already 😉 Cheers!

    Reply

  39. I do not even know how I ended up here, but I thought this post was
    great. I don’t know who you are but certainly
    you are going to a famous blogger if you are not already
    🙂 Cheers!

    Reply

  41. It抯 really a nice and helpful piece of info. I抦 satisfied that you simply shared this useful info with us. Please stay us up to date like this. Thank you for sharing.

    Reply

  42. I found your blog web site on google and check a couple of of your early posts. Proceed to maintain up the very good operate. I simply further up your RSS feed to my MSN Information Reader. In search of ahead to studying extra from you afterward!?

    Reply

  43. I must get across my passion for your generosity for persons that actually need help with this important question. Your very own commitment to passing the message all through became surprisingly invaluable and has specifically enabled some individuals just like me to attain their targets. Your own interesting tips and hints signifies a great deal to me and substantially more to my fellow workers. Regards; from all of us.

    Reply

  44. Howdy are using WordPress for your blog platform? I’m new to the blog world but I’m trying to get started and set up my own. Do you require any html coding knowledge to make your own blog? Any help would be really appreciated!

    Reply

  45. One thing I’d really like to say is car insurance cancelling is a dreaded experience so if you’re doing the right things as being a driver you may not get one. A number of people do have the notice that they are officially dumped by their insurance company they have to scramble to get extra insurance following a cancellation. Cheap auto insurance rates are usually hard to get from a cancellation. Knowing the main reasons pertaining to auto insurance cancellations can help owners prevent sacrificing one of the most critical privileges accessible. Thanks for the concepts shared by means of your blog.

    Reply

  46. Fantastic website you have here but I was wondering if you knew of any user discussion forums that cover the same topics discussed in this article? I’d really love to be a part of group where I can get comments from other experienced people that share the same interest. If you have any recommendations, please let me know. Appreciate it!

    Reply

  47. Hi there to all, how is all, I think every one is getting more from this
    web page, and your views are good designed for new users.

    Reply

  49. Hello would you mind stating which blog platform you’re working with? I’m going to start my own blog in the near future but I’m having a difficult time selecting between BlogEngine/Wordpress/B2evolution and Drupal. The reason I ask is because your layout seems different then most blogs and I’m looking for something completely unique. P.S Apologies for being off-topic but I had to ask!

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *