Item life cycle is the development of a product through the four stages of its time on the market. The four life cycle stages are: Introduction, Growth, Maturity and Decline. Every product has a life cycle and time spent at each phase differs from product to product.
Life Cycle Through the Stages
In the Introduction phase the product comes to the market and the Company appears to get a foothold on the earnings ladder:
Establishing branding and reassuring the market of the quality of the new product.
An initial low pricing policy to get from the market, though with very little competition, price could be high to recoup development costs.
Option of a distribution model to get the item on the market.
Promotion of the item through aiming it at specific target groups such as online forums.
With growth established, Maturity is just another stage of the life cycle. The Business deals with this by:
Including characteristics which will produce the product differ from the inevitable competitors that enter the market.
Cutting price to counter competition.
Flyer distribution stations and using incentives to encourage stores to stock the first product in preference to newcomers.
New promotions that aim to show differences between products.
Following the Decline happens the business will consider:
Maintaining the product available on the industry but adding or removing features or finding new applications for it.
Decreasing costs and production and keeping it just to have a niche sector of the market.
Discontinuing the solution or selling the production rights to another company.
By maintaining a strong hold over the four stages of a product life cycle, a business can increase returns and realise when the time is right to divest itself of their merchandise. By not doing so may cost the business money and create a limited life cycle for your product.
Logistics is used more broadly to refer to this process for organizing and moving resources — people, materials, inventory, and equipment — from 1 place to storage at the desired destination. The term logistics originated in the military, referring to the movement of equipment and supplies to troops in the region.
Logistics vs. Supply Chain Management
Logistics and supply chain management are terms that are frequently used interchangeably, but they actually refer to two aspects of the procedure.
Logistics describes what happens inside one company, by way of instance, shipping and purchase of raw materials, packaging, shipment, and transportation of products to vendors, for example. While supply chain management refers to a larger network of outside organizations that work together to deliver products to customers, including vendors, transportation providers, call centers, warehouse providers, and others.
The management of logistics may involve some or all of the following business purposes, including:
Though a lot of small companies revolve around the design and creation of the products and services to best meet customer requirements, if these products can not reach customers, the business will fail. That’s the substantial role that logistics plays.
But logistics also impacts other areas of the business, too.
The more efficiently raw materials can be obtained, transported, and stored until used, the more rewarding the firm can be. Coordinating resources to allow for timely delivery and usage of substances can make or break a company.
And on the flip side, if goods can not be produced and shipped in a timely manner, consumer satisfaction can diminish, also negatively impacting a corporation’s profitability and long-term viability.