Logistics is the systematic process in which goods are moved across a company. Whichever strategy that a company puts into action has a significant impact on the financial results of the company. Companies may come to a decision to involve a third party to enhance the supply chain management with the aim of reducing the cost of production and distribution of goods to consumers. Others do so with the hope of reducing the time taken from production and manufacturing to the time the goods reach the consumer.
Proper and appropriate handling and processing of orders from consumers will in the end lead to high profits. This is because it will reduce the cases of customer dissatisfaction because of receiving items contrary to what they ordered. In cases like these, the company will have to incur other expenses to cater for return of goods rejected by consumers because of unnecessary confusion.
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Leinbach and Capineri ( 2007) argue that the mode and arrangement of transport system chosen by a company will determine if they will make a profit or a loss. The goods being transported will have to be considered to ensure that the quality of the goods is maintained and that they are delivered safely and on time. Perishable and fragile goods have to be delivered under the shortest time possible to avoid making the manufacturer or incur additional costs in the process that they get spoilt or are stolen before they are delivered. Poor transport leads to losses.
Marketing of goods has a significant effect on whether it is going to operate on losses or profits. Proper marketing management will involve promotion and pricing. Proper and adequate research and study of trends in demand of goods will really boost the marketing process leading to huge profit returns. (Wood, 2002)
References
Leinbach, T. R., & Capineri, C. (2007). Globalized freight transport: Intermodality, e-commerce, logistics, and sustainability . Northampton, MA: Edward Elgar.
Wood, D. F. (2002). International logistics . New York, NY: AMACOM - American Management Association.
