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Definition

Market logistics

Market logistics includes planning the infrastructure to meet demand, then implementing and controlling the physical flows of materials and final goods from points of origin to points of use, to meet customer requirements at a profit. Market logistics planning has four steps:

  1. Deciding on the company’s value proposition to its customers. (What on-time delivery standard should offer? What levels should attain in ordering and billing accuracy?)
  2. Selecting the best channel design and network strategy for reaching the customers. (Should the company serve customers directly or through intermediaries? What products should we source from which manufacturing facilities? How many warehouse should we maintain and where should we locate them?)
  3. Developing operational excellence in sales forecasting, warehouse management, transportation management, and materials management.
  4. Implementing the solution with the best information systems, equipment, policies, and procedures.
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