Logistics and Distributions Management

Logistics and Distributions Management

       Companies require a good flow of materials/products to avoid any case of wastage or incurring unnecessary extra cost. Hence the introduction of logistics operations in businesses. Logistics is the process of linking the supplier to the producer/company and then to the consumer. According to Christopher (2016), logistics managers meet their objectives by managing the procurement activities, storage, and monitoring movements of products within the company and later through the marketing channels to the consumer. Logistics and distribution are crucial in today’s business, noting the advancement of the technology that has opened global business networks. Hence people can now transact business from different parts of the world without physical movement. For example, a procurement manager can purchase raw materials from abroad while in the office. Hence logistics and distribution come in to bridge the gap. This paper examines how business people can coordinate logistics to enhance consumer value and principles that affect purchase decisions.

According to Christopher (2016), it is high time for every business person to realize the fierce competition in the market. Additionally, consumers are not only considering the quality and prices of the products but also value addition, such as accessibility in this case how quick and reliable does the company deliver their products to customers. Therefore, as organizations strive to compete in terms of product quality and prices, they should consider the part played by logistic management and services. Precisely, Logistics can meet consumer values by ensuring that products are available and on time. On top of that, it ensures there is consistency in delivery, hence eliminate customers’ fear of stock run-out. Last but not least, through well-structured logistics, customers find it easy to place orders without technicalities. Eventually, various companies have discovered that logistics and distribution services are the key players in creating extra customer value as well as satisfaction, which has facilitated the demand and growth of logistics services (Christopher, 2016).

       Iceberg Effect: Most consumers are fast to judge products according to the way they are presented to them without creating much attention to more in-depth details of such products. Hence logistics services that provide the best services of the finished product are more likely to win more customer than companies which concentrated only in advancing quality of the product at the production phase. Precisely, the iceberg effect reveals how customers judge products by the outer look, and many end up buying products guided by such judgments only to realize later the actual characteristics of such products (Faiz, 2015). Therefore, customers should realize that producers pay match attention to the outer look of the product to attract more customers.

       Perception versus Reality: Every stakeholder would want to benefit from activities that he or she is engaged in. Additionally, many people will perceive logistics as just delivery of products from either the seller to the buyer without realizing the real activities that take place within logistics. Therefore, perception and reality reveal the need for the stakeholders to work closely with each other so that either party can realize the collaborative effort needed for better results. More so, the significant impact of those principles is the revelation that people differ in perception, and the differences work well when they realize the fact, which will foster corporation.

Nevertheless, perception principle is the act of judging products in the first encounter whereby sometimes beliefs direct such judgments (Tan, Ooi & Goh, 2017). For example, a consumer may prefer Adidas products to Nike products just because of the product name. On the other hand, the reality concept is where the consumer takes time to analyze the product in and out to make settle in a solid decision when purchasing. Iceberg theory is where a customer decides to buy or not to buy based on the quick look of the product. Eventually, every employee would like to recommend products that he or she has confidence in. Otherwise, the purchase will lay blame on him/her if they do not fit the intended purpose, or the purchaser realizes the defect after such a recommendation. According to Faiz (2015), producers usually consider appealing features on the product to attract customers.

Additionally, others take advantage of their reputation, although it is not always a guarantee the product is the best considering fierce competition in the market. Therefore, after realizing that part, each principle plays the employee will be in a position to consider the reality principle as the last step to arrive at the best decision and give advice. On that account, the reality reveals the actual quality of the product, which is an essential element when making a purchase decision.

In conclusion, logistics services have developed, and the demand is high since many investors/business people have realized its part in businesses. Perhaps, apart from linking buyers and sellers, managers are using it to meet consumer satisfaction like timely delivery of services which highly valued by customers. Principles such as iceberg, perception, and reality impact business interaction among stakeholders as well as contribute much to purchasing decision

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