Marketing and Trends in Logistics

Study Notes

Essence of Marketing in Logistics

Marketing logistics is essential for ensuring goods reach the right customers at the right time and places.
A thorough marketing logistics plan analyzes the need, delivery method, timing, and information sharing requirements for finished products.

Current Trends in Logistics

Automation and Robotics: Warehouses are increasingly adopting automated systems such as robotics and AGVs to enhance efficiency and reduce labor costs.
Sustainability Initiatives: Companies are implementing eco-friendly practices, including electric vehicles, energy-efficient warehouses, and route optimization to reduce carbon footprints.
Blockchain Technology: Blockchain introduces transparency, security, and traceability into supply chains.
Last-Mile Delivery Innovations: Solutions like drones, autonomous vehicles, and local delivery partnerships are improving last-mile efficiency
Data Analytics and AI: Advanced analytics and AI are used to optimize inventory management, demand forecasting, and real-time tracking, ultimately leading to cost reduction and enhanced decision-making.

Road Transport

Economic Aspects: Road transport has relatively low fixed costs, especially when operating on publicly funded high-speed and toll-free roads. However, variable costs per kilometer are high, with substantial fuel, tire, maintenance, and labor expenses.
Strengths: Road transport excels in short-distance shipments and high-value goods. Its flexibility allows for door-to-door delivery, and its speed is suitable for short and medium distances.
Suitable Applications: Delivery of perishable foods and e-commerce deliveries within cities and states are examples of suitable applications for road transport.
Challenges: Legislative control and driver fatigue pose challenges for long-haul road transport.

Multimodal Transport

Definition: Multimodal transport combines multiple modes of transportation, such as rail carriers, air cargo freight, and truck carriers, to deliver a shipment.
Single Carrier: A single multimodal transport operator or provider handles the entire process, relying on a network of smaller carriers.
Evolutionary Developments: Technological advancements in air transport, safety regulations, and communication systems have significantly impacted global transportation services.
Complexity: The intermingling of various transport modes has increased complexity in efficient, reliable long-range transport planning.
Contractual Challenges: Identifying the legally liable party when considering claims can be difficult.
Indian Government Regulation: The Multimodal Transportation of Goods Act 1993 addresses the practical and legal complexities associated with multimodal transport.
Features:
- Shippers provide detailed shipment information to the multimodal transport operator (MTO).
- The MTO performs independent inspections to ensure accuracy.
- The MTO is fully responsible for the goods' safety and integrity.
- The MTO guarantees on-time delivery within the contract.
- Delivery is complete when goods reach the owner.
- The customer has the right to access information about all contractors involved.
- The contract includes explicit cost details.
- Scheduling is crucial, and missed deadlines result in financial compensation for the customer.
- Multimodal transport is typically used when direct communication between the supplier and recipient is absent, or when alternative modes are too costly or time-consuming.
- The MTO undertakes tasks such as document preparation, contracting with carriers, terminal leasing, and customs clearance.

Distinction between Intermodal and Multimodal Transport

Intermodal Transport: Involves several companies participating independently in the transportation process.
Multimodal Transport: Involves a single company responsible for the entire process.
Responsibility: In intermodal transport, responsibility is distributed among all participants, leading to complications in determining liability for damage.
Documentation: Intermodal transport requires multiple packages of documents for each company involved, while multimodal transport utilizes a single package covering all goods.