Logistics Management

Abstract

As we mentioned in Chapter 9, from a marketing standpoint the subject of distribution management is divided into two separate but closely interrelated subject areas — channels of distribution and physical distribution management. Having carefully chosen a network of intermediaries who will take over the management of goods as they move along the channels of distribution, the company next has to think about how these goods can be efficiently transferred from the manufacturer to the consumer. This activity falls within the scope of an area of management known as physical distribution management (PDM), which is a critical area of overall marketing management owing much to the adoption of logistics from the military. However, the term physical distribution management is somewhat outdated. Today the subject is often referred to as ‘total business logistics’ management. This technique is concerned with far more than simply delivering finished products to customers in an efficient manner. It is actually a total system which starts with sourcing and finishes with how transport for outward delivery is planned. In fact logistics management is concerned with the entire process of obtaining materials from suppliers, storing, processing, retrieving and delivering them to the customer.