Page 164 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

Unit 7: Logistics and Characteristics of Modes of Transportation

People Notes

The most important element of the logistics marketing concept is people. Without effective
people, the other four P’s are meaningless. The logistics executive has the responsibility to
develop a culture for stellar performance from the individuals in the organization. This can be
done in several ways:

First, help develop an enthusiasm for the business. People will strive harder to accomplish
goals that excite them.

Second, develop a commitment to bring ideas to fruition; delegate responsibility and
authority to the people in the logistics organization to make things happen. The logistics
executive must encourage results from the organization.

Third, the logistics executive must develop a team environment within the organization.
A true team environment exists when individual successes can be celebrated by the team
and individual failures shared by the team. Important to the implementation of teams is
the concept of process. Logistics processes must be identified and documented with
individuals owning pieces of these processes. True process ownership is a basic requirement
for a successful team environment.

Fourth, the logistics executive must believe in the “pressure up” concept versus the “pressure
down” concept. In other words, the logistics executive must provide the atmosphere for
individuals to ask for help, to communicate their frustrations, to raise issues with
management, and to have inputs to plans. This pressure goes up through the organization
until a resolution/remedy/positive action is taken.
Finally, the logistics executive needs to be a leader. People will perform for managers because
they have to; they will perform for leaders because they want to. The logistics leader must not
be hypocritical. Leaders set practice by example and people will tend more to follow by example.
The logistics leader must not be afraid to delegate decision-making authority and responsibility.
The logistics leader understands that success comes from the performance of the team, and not
from the performance of the individual.

7.4.3 Logistics in Marketing

Marketing process is successfully completed only when:

1. Arrangements are made to supply the goods through selected distribution channels.
2. Products are produced and priced to satisfy the identified needs of the customers.
3. Goods are physically supplied to the buyers at the place and time selected.

4. An awareness is created among the buyers about the availability of the goods through
advertisement.
5. Other than satisfying the customers’ needs, the marketing process must be profitable to
the seller.
Utility does not merely denote the usefulness of a product to satisfy the customer needs but also
involves the product from a manufacturing facility to the user.

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