International-Business-Dr-R-Chandran-E-book

Unit
Packing
Unit load
Protective packaging
Handling systems
216
International Business- Dr. R. Chandran
Logistics and Interrelationship with other functions
Value addition
Packaging
Total
Packaging
Handling
System
Attitude towards distribution and logistics has changed over the past two
decades. For a long time the view prevailed that various elements within
logistics created additional cost for companies. Although there is a cost
associated with the movement and storage of goods, it is now recognised
that distribution and logistics contribute to the value of a product. This is due
to the fact that logistic operations provide the means by which the product
reaches the consumer or end user in an appropriate condition at the required
location.
Dell supplies a laptop within sixty minutes in the US, from the moment
order is placed. Honda Motors delivers car in Europe and North America i9n
ten hours. Many mail order companies use logistics as a major weapon to
win the market today.
It is therefore, possible for companies to compete on the basis of providing a
product either at the lowest possible cost so that the customer will by it,
because it is the least expensive or at the highest possible value to the
customer. Few companies may try to achieve both these objective such as
Hyundai Motors, LG in rural India and Electrolux in Europe. This is
particularly important today as there are many products that are not sold on
the basis of their brand name alone, but also on the basis of availability or
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