BUSINESS ENVIRONMENT IN LOGISTICS
The most important characteristics of logistics product offering are execution and dependability; these attributes blend into a reputation. A positive reputation for flawless execution and dependability will enhance logistics to both internal and external customers. Repeated success in these areas will allow customers to develop a positive attitude toward logistics and will give it the credibility it needs to sell new logistics programs. Perfecting the basics and providing customers with job shop logistics services in a dependable manner can be the best logistics marketing tools the logistics executive can implement.
The logistics executive does not have the traditional "product" to market. The logistics product is service, which can be different depending on the customer group. The first step, then, in logistics marketing is to identify the customer. Research has shown that logistics executives have multiple customers, both internal and external to the firm, and that the needs of these customers can be different. Internal customers, like marketing and manufacturing, might require superior logistics service on customer and plant deliveries. Senior management, as an internal customer, might require lowest possible logistics cost so the impact on the firm's bottom line can be minimized. The logistics executive must clearly understand how logistics influences other functions such as marketing and manufacturing. Logistics cannot be managed in a vacuum and the logistics executive must make the effort to thoroughly understand and appreciate the challenges being faced by the other functions.
The logistics needs of external customers are constantly growing and changing. The logistics executive must be sensitive to this, along with being aware of what is driving these changes. Most external customers are not traditional consumers but individuals in other organizations who are having their performance measured on certain...