Logistics
1.
Time utility is the easy accessibility of services and products at the right time when the customers need to buy or purchase them. The logistical planning of the company is mainly associated with planning of the business and thus ensuring the utility of time is not put at stake, hence deliveries are made on time. When it comes to companies offering, time utility is mainly addressed through offering the services at the right time to the consumers when they need it. This therefore consist of the time in hours and days or weeks, which a company desires to offer services. The main goal of time utility is therefore to offer the potential consumers with an added value. Time is therefore the main thing that any business should be able to keep in order to make sure that they render the best services to their clients and consumers.
Place utility is making the services or goods readily available to the customers and clients. A good example of place utility is a retail store, this is where consumers can be able to purchase the products. In order to be able to reach most customers, increasing convenience is one of the things which should be looked at carefully and thus ensuring that customers easily access the products that they want without any problems. Moreover, opening stores in different places and using the internet to offer directions to the consumers, can help in making it easy for the consumers to access the products. This consequently promotes consumer convenience hence making it easy for the consumers to be able to purchase the products of their choice without any problems at all.
- What are the benefits/ drawbacks of public or private warehousing?
Both private and public warehouses have advantages and disadvantages based on the way they conduct different services. A private warehouse for instance, is owned and regulated by the same company which owns the goods and products handled and kept in the facility. On the other hand, a public warehouse operates as a self-regulating business offering a wide range of services which include; handling, storage, and transportation at different prices.
Benefits of private warehousing
It offers improved monitoring systems on the handling and storage of products, thus ensuring convenience and proper storage of goods in the facility. Moreover, little or no errors are experienced, simply because the employees of the company handle the products. The cost of warehousing is a bit lower simply because the company stores and handles its own products.
Drawbacks of private warehousing
It is costly for a company to be able to start its own warehouse, thus making it hard for most companies to be able to have private warehouses. On the other hand, private warehouses have a low rate of returns, and may therefore lead the company to bankruptcy if proper measures are not put in place. Moreover, private warehousing is very expensive to run and maintain, and may easily lead the business to the wrong direction.
Benefits of public warehousing
Public warehousing is cheap and more efficient, and it is also effective in achieving increased customer service level. Moreover, they are well situated and easy to locate, thus making it easy for customers to be able to work with them. On the other hand, public warehousing saves a lot of capital due to the distribution of service in the warehouses by its employees.
Drawbacks of Public Warehousing
Poor communication between a pubic warehouse and the manufacturer may lead to poor transfer of information and thus leading to an increase in administrative and inventory costs. Moreover, it lacks specialized services which are required by a company, hence making it hard for a public to render services effectively to a company. On the other hand, they have capacity problems, thus making it hard for companies to be able to store large amounts of goods.
