INTEGRATED LOGISTICS AND BUSINESS MANAGEMENT

2009-10-20T17:51:00.000-07:00

Today, more and more business managements are adopting the concept of integral logistics management. This concept recognizes that providing better customer service and trimming distribution costs require teamwork, both inside the business management and among all the marketing channel organizations. Inside, the business management's various departments must work closely together to maximize the business management's own logistics performance. Outside, the business management must integrate its logistics system with those of its suppliers and customers to maximize the performance of the entire distribution system.

Cross-Functional Teamwork Inside The Company:

In most of the companies, responsibilities for various logistics activities are assigned by the business management towards the different functional units__marketing, sales, finance, operations, purchasing. Too often, each function tries to optimize its own logistics performance without regard for the activities of the other functions. However, transportation, inventory, warehousing, and order processing activities interact, often in an inverse way. Lower inventory levels reduce inventory-carrying costs. But they may also reduce customer service and increase costs from stock outs, back orders, special production runs, and costly fast-freight shipments. Because distribution activities involve strong trade-offs, decisions by different functions must be coordinated to achieve better overall logistics performance. The basic goal of the business management of integrated supply chain management is to harmonize all of the company's logistics decisions. Close working relationships among functions can be achieved in several ways. Some business managements have created permanent logistic committees, made up of managers responsible for different physical distribution activities. Business management can also create positions that link the logistics activities of functional areas. For example, procter & Gamble has created supply managers, who manage all of the supply chain activities for each of its product categories.

Building Logistics:

Business management must do more than improve their own logistics. They must also work with other channel partners to improve whole-channel distribution. The members of a distribution channel are linked closely in creating customer value and building customer relationships. One company's distribution system is another company's supply system. The success of each channel member depends on the performance of the entire supply chain. For example, WalMart can charge the lowest prices at retail only if its entire supply chain__consisting of thousands of merchandise suppliers, transport companies, warehouses, and service providers__operates at maximum efficiency. Smart business managements coordinate their logistics strategies and foge strong partnerships with suppliers and customers to improve customer service and reduce channel costs.

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Business Management Information

DISTRIBUTION CHANNELS CONTROLLED BY A BUSINESS MANAGEMENT

2009-10-20T17:48:00.000-07:00

The international company's business management must take a whole-channel view of the problem of distributing products to final consumers. There are three major factors between the seller and the final buyer. The first factor, the seller’s headquarters organization, supervises the channels and is part of the channel itself. The second factor, channels between nations, moves the product to the borders of the foreign nations. The third factor, channels with in nation, moves the products from their foreign entry point to the final consumers. Some U.S. manufacturers may think that their job is done once the product leaves their hands, but they would do well to pay more attention to its handling with in foreign countries. Channels of distribution within countries vary greatly from nation to nation. First, there are the large differences in the numbers and types of intermediaries serving serving each foreign market.

However, a business management must be make the efficient as well as professional policies is not only the favour of company but also will be authentic for the distributors. Because business management realizes that, with the process and system of distribution its organization will gets the investment. There is another fact that, with the help of the distribution a company or organization may also achieve the publicity of its product besides the investment. So in this way, distribution has dual significance for the business management. On the one hand, the organization will get investment along the enhancement of the distribution of the company. On the second hand, with the entering of the distribution a company may enable to gets publicity in the market.

When a company gets publicity in the market of its product through the distribution, there is no reason the company's product as well as its distribution gets attraction for the public and investors. Therefore, the quality of a good and efficient business management is that, it will have to make the whole system efficient and systematic. Like it never assume that, when the product leave from its company, its responsibility will fulfill. On the contrary, It will have to make the professional and sharp availability for the general public. A good business management makes the attractive skeams for the distributors that they may able to get the extra benefit from the company's skeam. So in the end, we came to conclude that, the factor of distribution has a significance of back-born for the business management. Because the distributors is the sign or symbol of the company in the market. In this context, a business management must be make the comprehensive and realistic criteria of distribution of the company for the investors. Moreover, a business management must be realizing that, it will have to make such sort of distribution criteria that a reputed investor or businessman will meet with the requirement of distribution criteria.

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