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of the logistics is ‘Life Cycle Support’.
The title itself
suggests briefly the meaning and purpose of the objective; the support must be
for the product throughout, from introduction to exit, so to say. On the line
of human life cycle in general, the product life cycle is said to have five
distinct life-cycle stages; they are, product development, introduction,
growth, maturity and decline. Logistics must be supportive to the product in
all its five stages, to put it simply.
Logistics in the
ultimate analysis means efficient movements of products at every level of
supply chain avoiding delay in delivery of materials to the one who needs them
for further processing or to the one who is the final consumer.
gained great importance today with innovative introduction of products marking
the business scenario. Competition is the breath of business and it drives the
organizations towards focusing on newer products or constant modification of
the products in existence. Shape up or ship out. This is the ever present
guideline today in marketing business. And the success of the introduction of
new products depends solely on timely delivery of the products to the
stakeholders, beginning from the megastockist to the last retailer. And this
timely delivery needs the exclusive concentration on efficient logistics.
Growth phase is
considered the most important phase. Innovation inspires marketing activities
and demand keeps rising. At this phase, quantity occupies the top slot in the
sense that lots of materials have to be purchased to match the market demand
and naturally, the cost of the materials and also of the labour get pegged at a
lower level. Most of the operations remain at a cost effective level.
But, to maintain
the cost effectiveness of the entire operations of the organizations logistics
must be very efficient and fault-free. Supply chain must move on a smooth path.
Care must be taken to ensure supply of materials to requirements and therefore
organizations choose suppliers with operational excellence. Materials must move
from the supplier to the organization in time so that production registers
unhampered progress and the marketing assumes an aggressive style. Every time,
all feel they are racing against time and it is done successfully with an
We will see how logistics
becomes an indispensable tool for a successful business enterprise in other
phases of the product life-cycle in our next session.