Four Functions of Marketing Logistics

Logistics pertains to the process of controlling the flow of goods throughout the supply chain and ensuring that products are delivered within the timeframe requested. Marketing logistics pertains to the process of delivering the information from the producer to the market. While these two components of business do not seem like they correlate, they are actually very dependent on the other and aid in determining consumer demand and increase profit within the operation. 

In order to ensure that you maintain a competitive edge within your operation, it is essential to create an effective strategy regarding your product, price, place, and promotion. These four functions pertaining to logistics and marketing will aid the operation through reaching consumer targets and ultimately delivering the products that are being produced to the customer within the timeframe that they are seeking. When thinking of marketing logistics, it is an absolute must to consider the four functions. Therefore, within this blog, we are going to discuss the four functions of marketing logistics. 

Four Functions of Marketing Logistics 

The four functions of marketing logistics pertains to the following: 

• Delivery of Product - The first function of marketing logistics to consider is locating your customers and how you are planning to get the product to the consumer within the timeframe they are requesting. This could be through locating third-party logistics (3PL) operations or constructing a distribution network of your own that will get your product to your customers with ease. As logistical needs vary from each customer, you need to prepare a plan for these occurrences in order to ensure that customer expectation are always met. 
• Price - Pricing decisions are based on internal and external factors, in which it is important that marketing logistics recognizes these price drivers. The profile of the customer, the product, and the type of order are factors that will ultimately drive the price. These changes will not be controlled through marketing logistics. However, marketing logistics needs to be able to react to these factors and understand how factors may potentially affect consumer decisions. 
• Promotion - Within marketing, promotion is a substantial task/topic that may ultimately lead to increased sales. Promotion is also a topic within marketing logistics. When a new product is being brought to the market, the operation needs to ensure that communication and coordination are being conducted and the correct materials are being produced/utilized. Marketing logistics ensures that entities work together and produce the marketing materials needed in order to adequately sell a product. 
• Place - Marketing logistics enables an operation to be able to simplify the transactions between logistics provider and customer. The overall goal is for the consumer to be blind to how the product arrives so quickly to their doorstep, thus never exposing the backroom process involved with logistics delivery to the customer. This is because output is always more important than the process with consumers. It is also important to have a warehouse or distribution center nearby to customers to ensure that delivery times are fulfilled within the timeframe they are requesting, thus leading to loyal and increased customers.

A software that can aid with the concept of scheduling and output pertains to PlanetTogether’s Advanced Planning and Scheduling (APS) Software. Advanced Planning and Scheduling (APS) Software is a must for modern-day manufacturing facilities that are seeking to take their operation to next level in terms of efficiency and waste reduction. APS Software enables manufacturers to have thorough insight and visibility into their operation and reduce any forms of inefficiencies within the operation, ultimately ensuring that your operation maintains a competitive edge within its industry. 

Advanced Planning and Scheduling Software 

Advanced Planning and Scheduling (APS) software has become a must for modern-day manufacturing operations due to customer demand for increased product mix and fast delivery combined with downward cost pressures. APS can be quickly integrated with a ERP/MRP software to fill gaps where these system lack planning and scheduling flexibility and accuracy. Advanced Planning and Scheduling (APS) helps planners save time while providing greater agility in updating ever-changing priorities, production schedules, and inventory plans.

• Create optimized schedules balancing production efficiency and delivery performance
• Maximize output on bottleneck resources to increase revenue
• Synchronize supply with demand to reduce inventories
• Provide company-wide visibility to capacity
• Enable scenario data-driven decision making

Implementation of Advanced Planning and Scheduling (APS) software will take your manufacturing operations to the next level of production efficiency, taking advantage of the operational data you already have in your ERP.