 after the third part of the work, we have discussed logistics and supply-sane management. In this unit 2 we shall discuss mainly about market logistics and supply-sane management. These are all parts of physical distribution. Logistics. You may have come across with this term. Where it is widely used for logistics and logistics. ത༽ത ༽༽র༽༽ ౸ത༽র ༼ ༽༽র༽ is now in the automatic mode and you are in the automatic mode. నినినినొవత్యటితు నినంద్లువిటశని మన్లిసిముందిలిబ్ఱవిమరొయ అసిములాన్త్ష్తు వరిమారొనిస్నంద్చ పత్్విమఎవిమిన్. ప్స్లందుర� the right point of time at the right place in the right possible way at the least cost. So, we shall discuss about market logistics. Then we shall discuss, explain about supply-same management. These are the two learning objectives we have taken up and you will be able to understand these two after attending this particular video. So, what is market logistics? I have just now told you that this has gotten military uses, military origin. So, in the military sense, we have started defined logistics as a procurement and transportation of military materials, facilities and personnel. So, points of work from the base station, the arms, ammunition, the soldiers have to be transported to fight wars, to win wars. So, that's very important. So, logistics is very important. Nowadays, the companies have to sell their finished goods, products to the target market, to the end consumers, otherwise they will lose the market. Those who can serve the consumers better, making the right product available at the right place at the right time at the least cost, they are likely to survive. So, that's why the same thing applies in case of business organizations also like as it is applicable in military organizations. So, today in industrial and commercial world, logistics has acquired a wider meaning. Essentially, it covers activities for the material flow from the source to the processing facilities and subsequent distribution of finished goods. So, from the suppliers will supply the raw material at the point of production, then the factory will produce it, then from the factory, it will ultimately reach to the consumers across the levels. So, where the utility will be created? That is the place utility, time utility. So, right product at the right time, at the right place. That is the right product means the firm utility. So, the council of logistics management defines logistics as follows. That is given in your self-learning material. That logistics management is the part of supply-send management that plants, implements and controls. The efficient and effective forward and reverse flow, forward and reverse flow. Reverse flow is also important. Suppose you are manufacturing some items which are sold through glass bottles. Say some syrups, say cup syrups. Suppose in the pharmacy, those glass bottles break. So, breakage is important. Sometimes some damaged products, some expired products have to be taken. In case of batteries you may have seen, the old batteries are taken back. So, that is the reverse logistics. So, that reverse logistics also have to be taken care of. And, moreover, it also has to take care of storage. Storage of goods. Relatedly, at the same time, it requires lots of information. Related information. So, a sale has taken place. Means what? Order. Order has been executed. Means what? The stock has been reduced. So, since stock has been reduced. So, that stock needs to be replenished. Means what? Now, new things will have to come. So, it requires lots of information sharing. Retailer will have to share information with the wholesaler. Wholesaler will have to share information with the dealer, distributor, like that. So, logistics management is all about all these aspects. So, that the end consumers' requirements can be fulfilled. So, market logistics includes lots of planning. And, it requires lots of infrastructural facilities also. Like storage, go down, go down at the right temperature, at the right places. So, that the transportation cost becomes minimum. So, it requires lots of aspects. To meet demand, implementing and controlling the physical flow. At the same time, the physical flow will have to be maintained in such a manner that the goods do not get damaged. Because ultimately, as a marketer, we need to be focused about what value we are going to deliver to the customers. Customers are value maximizers. They would like to have the right product at the right time at the right place. And, this will be ensured by logistics. What should be the central design? If suppose we are going for multiple layers of channels, means what? There will be lots of problems. So, if in order to reach directly, so nowadays we are making use of e-commerce, is not it? So, with the help of e-commerce, we are disintermediating. Means we are reducing the layers. Directly we are going to establish relationship with the customers. Then what products are to be sourced with what manufacturing facilities? Suppose we are having multiple manufacturing facilities. We are having one factory in Uttarakhand, one in Gujarat, one is in Maharashtra, one is in West Bengal. So, to service the markets in Assam, so the West Bengal factory may be used. If we are going to use the Maharashtra factory to service the consumers in Assam, and if we are going to use the West Bengal factory to service the customers in Gujarat, in that case the cost will multiply. So, we will need to be considered about what manufacturing facilities to be used. Then what should be the information system? We need to have the right type of information at the right places, at the right time. Otherwise, there will be overstocking, there will be understocking, the markets will not be sourced. So, market logistics encompasses several activities. If this, the basis is sales forecasting. How much we are going to sell? That forecasting will give us how much we need to produce. How much we need to produce will give us the information how much raw materials we will need. How much machinery is how much processing we shall need. So, accordingly we shall have to place orders to the suppliers. Suppliers will execute. Then ultimately, we also need to see how much orders the market are placing. Now, the retailers will place orders to the wholesalers. Wholesalers will place orders to the distributors. Distributors ultimately will give the things to the CNFSL or maybe to the company. So, from one end forecasting of demand, then execution of demand. And at different levels, the stock will have to be maintained. That inventory levels will have to be maintained. And this is important. So, all these aspects are basically directed towards saving cost and eliminating the unnecessary cost from the system. And you see, lower market logistics cost means what? We will be able to pass on the benefits to the end consumers. We shall have the competitive advantage and ultimately it will help in improving our bottom line performance. Means our profitability will be high. See, physical distribution or market logistics is normally, earlier it was a dark area. Many times it was ignored. But nowadays it is highly realized that there are loss of cost saving potentials as far as physical distribution and logistics are concerned. So, that's why many firms are embracing lean manufacturing. They will produce the right things at the right time at the right place only. And this was originally pioneered by Japanese firms and their masters. I shall be discussing about some of the examples of Maruti Widow Ltd. which was done with Suzuki in collaboration with Suzuki of Japan. They are highly concerned about supply chain management and market logistics. Toyota is one example. So, they are basically concerned about minimum wastage of time and materials and money. They are basically concerned about optimizing all these aspects. So, in a nutshell it can be stated that market logistics helps in getting the right goods to the right places at the right time at the least cost. Then another aspect that is related with market logistics only that is supply chain management, SCM. So, physical distribution is supply chain management. We are talking about two kinds of logistics. One is inbound logistics. The other one is outbound logistics. Inbound logistics means the things which will come from the suppliers to the factory. That is inbound. And the produce goods, finished goods which will ultimately go to the consumers that is the outbound logistics. So, physical distribution has now been expanded into broader concept of supply chain management, SCM. SCM starts before physical distribution and means that it has to start with the supplies. Supplies of materials. Raw materials. Components. Equipment. All these things. So, those things need to be converted, processed and the goods will have to be produced. So, and we will be even broader perspective about how companies suppliers themselves obtain their inputs. So, input, process, output. Input means raw materials, machinery, etc. Processing means within the factory and then the things will be sold to the market. So, I told you about the example of Maruti Width of Limited. Say Maruti Width of Limited, you see the Maruti car. Maruti car uses the tires, the glasses, the mattresses. So many things. So, Maruti procures all these things from the suppliers. Tires will be given by the tire companies. Glass will be given by the glass companies. Bearing will be given by the bearing manufacturing companies. So, Maruti will assemble all these things and which will be collected from different vendors. If the vendors do not give good quality things, the quality of Maruti will be at stake, is not it? So, that vendor management system, training of the vendors so that they provide the right type of things at the right places at the right time otherwise Maruti is going to suffer. So, that is basically supply chain management. It's not only concerned about one particular manufacturer. It's concerned about the various network, the network of service providers, the network of parts providers, the network of raw materials providers. So, that is why supply chain management is very, very important. So, it consists of various stages which take part in conversion of raw material into final products. And it's delivery to the end consumers. So, it's not only includes the suppliers, manufacturers. It also includes distributors, transporters, everyone. Warehouses, retailers, customers. So, within each organization basically it's ultimately the competition is not between say Maruti and Hyundai. The competition is between the network created by Maruti and the network created by Hyundai. So, means what? That is the supply chain aspects. So, it's not only one player. It's the interplay of several players. Nestle, PNG, PepsiCo, Amul, you may have seen, that Britannia, all these are Hindustan Unilever limited. They are known for their own supply chain management system. So, supply chain management encompasses the planning and management of all activities and all logistics. Importantly, it includes coordination and collaboration. As I have told you, it's not one player. It requires coordination and collaboration of several players. Distributors, warehouses, suppliers, right, all these. So, that the customers can be serviced in a better way. So, in a sense supply chain management integrates supply and demand management within and across firms. Within the firm say Maruti Widow limited, how much will be done, how much cars will need to be manufactured, demand forecasting to execute that demand. It will have to depend with the vendors. Vendors will have to supply the right kind of things. So, it's the coordination, collaboration, right, among a number of players that ultimately will ensure the efficiency in logistics management and supply chain management. We shall discuss the remaining part of Unit 8 in the next video. Thank you.