Scribd
Upload
376 views4 pages

Role of Logistic in Philips

Philips is a large electronics company founded in 1891 in the Netherlands. It is known for energy efficient lighting and medical imaging equipment. Logistics are important for Philips' operations and involve inventory management and distribution activities. Philips uses logistics strategies like outsourcing logistics to third parties and inventory management software to control costs and deliver products efficiently. It has a large distribution network in India to reach both urban and rural customers.

Uploaded by

Sahil Anand
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
376 views4 pages

Role of Logistic in Philips

Philips is a large electronics company founded in 1891 in the Netherlands. It is known for energy efficient lighting and medical imaging equipment. Logistics are important for Philips' operations and involve inventory management and distribution activities. Philips uses logistics strategies like outsourcing logistics to third parties and inventory management software to control costs and deliver products efficiently. It has a large distribution network in India to reach both urban and rural customers.

Uploaded by

Sahil Anand
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

 ROLE OF LOGISTIC IN PHILIPS

Philips is the multinational innovativeness that I have chosen for this assignment. Philips is a
company instigated from Eindhoven, the Netherlands and was founded in year 1891 by Anton
and Gerard Philips. Philips begun industrial carbon-filament lamps and by the turn of the
century, had become one of the largest producers in Europe. Philips is one of the biggest
electronics companies in the world and known as market spearhead in energy saving lighting
resolutions, medical analytical imaging, consumer electronic and others. Although Philips have
comes out many types of electronic products, such like television, radio, MP3 player but their
essential product are lamps. Which means Philips is more know-how or profession in
manufacturing lamps.

LOGISTIC STRATEGY OF PHILIPS

1|Page
Logistics are basically the activities that involves Materials Management and Distribution. The
materials management activity help Philips plan how to control their inventory level in the most
operative ways and do not keep too many inventories which can add cost to the logistics activity.
The example of logistical strategy that can manage the inventory of a company is Inventory
Management Software. For the circulation activity, Philips can choose what transportation
manners that is most suitable use in deliver the finished products from warehouse to distribution
centres and finally to customer.

The example of logistic strategy that can help to accomplish the distribution activity is by
outsourcing to the third party logistics. Logistics approach of a company is to define the most cost
operative of the service levels that perform by the logistics organization of the corporation.
Besides, the logistic strategies can give competitive advantage and help to detailed product lines,
explicit countries or precise customer. By the way, Philips does have executed few logistic
strategies in its overseas operations. For example, the multitude country of Philips which is Philips
Malaysia has applied few logistical strategies, there are outsource logistics to third party logistics
and adopt Inventory Management software. The reason that Philips Malaysia implements logistic
strategy is to acclimatize to the flexibility of supply chain by make changes to organization to offer
a best service levels.

2|Page
PURCHASE PROCESS

STEP 1 : PR is generated - Purchase request is a note created against MR. it contains the list of
items which are needed to be purchased by the purchase department. Quantity, discription,
budget and delivery time.

STEP 2 : PR is sent to the purchase department.

STEP 3 : PO is generated by the purchase department.

Purchase order is created by the purchase department, which contains the type of goods required
by the company. It contains the specifications and discription of goods required.

PO is given to different vendors and quations are called. According to our requirements, a
particular vendor is selected and order is placed

STEP 4 : Vendor supplies the goods to the warehouse and then the goods are accepted after the
required quality check.

3|Page
STEP 5 : Payment is made.

Distribution

Philips own one of the biggest distribution network in rural areas and semi-rural areas. To
enhance its geographical reach of its products, company expand its distribution and logistics
network and Philips carried out an extensive product wise mapping exercise over 540 districts
across India. Philips has plans to serve over 4,200 towns in semi-urban areas.

VALUE CHAIN STRATEGY: Value chain is same as value-adding activities which are
transform inputs into outputs, then add to the bottom line and leading to competitive advantage.
The inbound logistics activities are resources handling, warehousing and inventory control of
raw materials, operations are the procedures such as packaging, assembly and machining,
outbound logistics activities are distribution vehicle operation, scheduling and order processing.
Besides, the secondary activities of value chain such as technology is an important source of
competitive advantage, because company need to innovate to reduce costs and sustain
competitive advantage , technology that were comprise are production technology, internet
marketing activities, customer relationship management.

OUTSOURCING - Outsourcing means subcontracting a part of activity to a third party


company to perform, although that activity could otherwise be performed by in-house workers.
Normally a company definite to outsource some of the production activity is due to some reason
such like nonexistence of expertise, cost efficacy and competitive advantage. Philips decided to
not make the tackle lamps by themselves and choose to buy the gear lamps mechanisms from
China. This is because Philips found that if make the tackle lamps by themselves, it would more
expensive. For example, in the inbound logistic activity of Philips, Philips buys components
which are known as gear lamps from China and use on assemble process and finally comes out a
finished product such like lamps.

4|Page

You might also like