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Unit 7: Logistics and Characteristics of Modes of Transportation

Notes
Figure 7.1: Relationship of Logistics to Marketing and Production

Note Logistics is a link between the manufacturing and selling process that leads to the
creation of place and time utility.

7.4.2 Marketing Logistics

In 1991, the Council of Logistics Management (CLM), a prestigious professional organization,
defined logistics as “the process of planning, implementing and controlling the efficient, effective
flow from the point of origin to the point of consumption for the purpose of conforming to
customer requirements”.
Logistics is the art of managing the flow of raw materials and finished goods from the source to
the user. To obtain goods from where they arise to the right place in the right form, at the right
time, at the right cost. “Logistics or physical distribution or distribution logistics is a part of
Marketing Process”.
In order to position logistics in its proper role in today’s business environment, logistics leaders
will have to do a better job of communicating, or marketing, logistics. The time for lamenting
the lack of interest in logistics from senior management is over, and the time to become proactive
is here. The logistics story will be understood when all logistics leaders begin to take the
marketing initiative and the successes of the discipline are recognized.
Logistics executives are eager to be considered important players in the corporate game. They
want to be involved in important decisions, to do something meaningful for the company, and
to be recognized by their peers as members of a winning team. However, it seems that sales,
marketing, and manufacturing enjoy the focus of management attention. Why? Let us suggest
that logistics executives have done a poor job of marketing logistics within the organization.
This concept of “marketing” logistics borrows from the traditional concept of marketing. In
other words, identify your customers, identify their needs, and combine the firm’s resources to
meet those needs. However, the concept of logistics marketing goes a little further. The purpose
of this paper is to introduce the concept of the 5 P’s and to provide the logistics executive with a
framework for its implementation. The following discussion will focus on product, price, place,
promotion, and people as elements of the logistics marketing mix.

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