Question

Using real-world examples, explain

1) the significance of the fact that the purpose of logistics is to meet customer requirements; and
2) the differences and similarities between logistics and marketing functions.

Answer 1

1.

The final purpose of logistics is only two fulfil customer requirement. Take an example of a new PlayStation launch. Whenever a new PlayStation launches, there is a huge demand of the new console. Not only that, the demand is varied across countries (for example, demand is far higher in USA than India) and even inside the country (California will have far higher demand than Montana). The consoles get manufactured in Japan and China. It is the responsibility of logistics to make sure that the consoles reach at the correct place, in right quantity and at right time. All of that is determined by the consumer requirement only.

2. The main differences between logistics and marketing are below-

• Marketing is concerned with creating demand, logistics is concerned with fulfilling that demand.
• Marketing is more centralized function while logistics is a much decentralized function.
• Marketing is less process oriented
• Logistics needs to be much more time bound.

Similarities between marketing and logistics-

• Both are targeted- marketing targets different customer segments, logistics targets different geographies based on the demand created by those customer segments.
• Both are integral part of a company’s end to end process