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Using Logostics to Gain Advantage

In: Business and Management

Submitted By trackboy531
Words 956
Pages 4
Logistics is one of the main functions within a company and the main targets are performance related and cost related. Logistics is the management of the flow of goods between the point of origin and the point of destination in order to meet the requirements of customers or corporations. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging. “The birth of Logistics can be traced back to ancient war times of Greek and Roman empires when military officers titled as 'Logistikas' were assigned the duties of providing services related to supply and distribution of resources.” (…..) This system could have very well begun what we call logistics management in today’s modern time. Logistics has rapidly evolved over the past years. A person can’t talk about logistics without understanding the management structure of logistics which is the push and pull system because companies struggle trying to figure out which strategy to use. Push planning is generally supply driven and is a successful approach when a company owns market share and controls demand for its products. A push strategy combines the resources of retailers, wholesalers and manufacturers to create consumer demand for a product or product line. With this push strategy each phase of the supply chain pushes the merchandise forward to the next step in the supply chain. The manufacturer pushes the merchandise to wholesalers, the wholesalers then pushes the merchandise down to the retailers, and the retailer pushes the merchandise down to the consumers. This is pushed to consumers through the form of a discounted sales pricing. Since the push strategy's focus on value and their frequent use of rebates and other incentives they can be successful in overcoming consumer pricing advances. “A push may also be effective when the consumer is unfamiliar with...

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