The systems and total cost approaches to logistics Logistical relationships within the firm
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Marketing channels
Activities in logistic channel
Logistics careers

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ⅠEconomic impacts of logistic
Four general types of economic utility:
⑶ Place utility: having products available where they are needed by customers; products are moved from points of lesser value to points of greater value.(e.g.from warehouse to supermarket shelf)
Business logistics Distribution Industrial distribution Logistics

Logistics management Material management Physical distribution Supply chain management
Logistics become more and more important since 1980, for five reasons as follows:
⑶Technological advances ⑷The growing power of retailers Definition of power retailers: wield great power than the companies that supply them, such as mass merchandisers and category killers, are characterized by large market share and low prices.
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Marketing channels
Activities in logistic channel
Logistics careers
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Ⅱlogistics：what it is ：
Because of tremendous and rapid change in business logistics, it was referred to different meanings as following:

Economic impacts of logistic
logistics：what it is ：
The increased importance of logistics
The systems and total cost approaches to logistics Logistical relationships within the firm

Rising customer expectations: made-to-order, direct-to-consumer, time-compressed, high-customization
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ⅢThe increased importance of logistics
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Ⅱlogistics：what it is ：
Why is the purpose of logistics “to meet customer requirements?
⑴ Logistics strategies and activities should be based on
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ⅢThe increased importance of logistics
Logistics become more and more important since 1980, for five reasons as follows: ⑴ A reduction in economic regulation ⑵ Changes in customer behavior
Market demassification: flexible logistic system Changing family roles: women are in workplace→extended store hours, home delivery of purchased items, ready-to-eat-ready-to-cook foods.

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Ⅱlogistics：what it is ：
This definition is ananlyzed to six details: Status: part of supply chain management Activities: plans, implements and controls Goal: efficiency ( how well company resources are used to achieve what a company promises it can do ), effectiveness (how well does a company do what they say they’re going to do? ) Channel: forward flows (toward the point of consumption) ; reverse logistics (originate at the point of consumption). Object: goods, services , and related information Purpose: meet customers’ requirements

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ⅠEconomic impacts of logistic
Four general types of economic utility:
⑴Pocessession utility: the value or usefulness that comes from a customer being able to take possession of a product, be influenced by payment terms ⑵Form utility: a product’s being in a form that can be used by the customer and is of value to the customers.(e.g.,allocation)
customer wants and needs;
⑵ Different customers have different logistical needs and
wants. This leads to two logistical strategies:
Mass logistics: (a one-size-fits-all logistics approach) every customer gets the same type and levels of logistics service, resulting in some customers being overserved while others are underserved. Tailor logistics: groups of customers with similar logistical needs and wants are provided with logistical service appropriate to these needs and wants.

Changes in strategy: CPFR(collaborative planning, forecasting, and replenishment); improve inventory turnover. ⑸ Globalization of trade
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Economic impacts of logistic logistics：what it is ：
Company Logo
ⅠEconomic impacts of logistic
economic impacts of logistics： economic utility Definition of Economic utility: the value or usefulness of a product in fulfilling customer needs
The systems and total cost approaches to logistics Logistical relationships within the firm
6 7 8
Marketing channels
Activities in logistic channel
Logistics careers
LOGO
Contemporary Logistics
10级物流管理 中央财经大学 10级物流管理 刘迎欢
Contents
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Economic impacts of logistic
logistics：what it is ：
The increased importance of logistics