For solid and steady business growth, it is critical to keep in mind that Logistics and Marketing live in symbiosis
In this article I explain, why, Logistics of a Company is a fundamental element for both organization and Corporate Marketing. It involves every division of the Company and is therefore strategic to the Business.
And so it is, that lying on the beach bed in Riccione I find myself writing this article.
I have been thinking about this for several days. The need to put it all down on paper, became apparent after I was involved in a couple of Strategic Marketing Projects , which required major involvement of the entire Corporate Logistics.
Since I don’t like to take anything for granted and since, often times, we see Logistics, as the last organizational link that has to take care of simple shipping, I thought I would give my personal view.
Imperative for every Entrepreneur is to make a concrete plan, of his Business, that foresees the ‘ evolution of his Company in the next 5 years.
And today, very little is concrete. Uncertainty reigns supreme.
Sometimes companies run in the middle of the sea, driven by mixed winds, and at the helm, the Entrepreneur does not know which course to choose.
The future, as we all know, depends on the choices of the present.
This article was also inspired by a book I read several years ago, written by an American General.
The book explains how, the determining element in winning a war is Logistics.
I always thought that the key element depended more on the number of troops, armaments and technology. Not on logistics.
In the competitive war for Business can it be different? I say no.
Marketing and Logistics are critical.
In fact, today to dominate the Market it is not only essential to produce well, but also to move goods quickly and correctly.
If we produce a great product but deliver it poorly and/or late, what good is it?
The Internet has speeded up everything. People are no longer willing to wait.
This is where logistics comes in, not to be confused with just shipping , which is actually a part of it.
Logistics means organization, planning, management.
And if you want to “cause” your company’s success, you must consider marketing and logistics inescapable.
A couple of years ago, I had the opportunity to be part of a guided tour of a large logistics center.
Operational activities entrusted to humans were reduced to a minimum. Everything was handled by robots, automated pallets, intelligent warehouses etc. Great.
The company could handle as much a large order as deliveries consisting of a few products all different. Zero errors, zero delays.
But why is it winning ?
Let’s step into the future and imagine “normal” life 10 years from now.
I think it will not be so different.
Today thanks to home automation we can manage the washing machine remotely, know what products are about to expire in our refrigerator etc.
But what is all this really for?
I say to automate sales, based on a usage forecast.
Let’s try to think when all household appliances are networked.
Large retailers, not warehouse retailers, but global retailers such as Amazon or Wall-mart , will know global consumption habits well in advance, broken down by individual product type, brand, territory.
It will be produced exclusively according to the consumption forecast. Not only that.
Automatically they will be able to formulate bids and promotion on the basis of global trade agreements.
You are at home, a message will appear on the display of your refrigerator, or, better yet, the refrigerator will tell you through a voice you select, that Coca-Cola is about to run out and if you order it now you have a special price. What do you do-not order?
Do you agree with me that marketing and logistics go must dialogue closely?
But this certainly does not stop with basic necessities.
Another practical example?
These days we signed a contract for the supply of a new color printer.
The printer is centrally connected to the supplier and automatically communicates when toner and other wear and tear items are about to run out.
In this way, assistance can intervene promptly, even before the agency has made the report.
This determines a great advantage for both of us. We do not have to worry about managing the supplier.
He can plan the purchase of products, spare parts and most importantly, the intervention of his technicians. Goal for both.
What is the problem?
The reality of Italian companies is small companies, fragmented throughout the territory, in most cases, minimal financial structures and self-financed.
What could happen if a large global group, such as Amazon or Google , were to decide to deliver this service? Total disaster.
They have technology, know-how, logistics, capital, framework agreements with manufacturing companies.
They can afford to purchase huge quantities of materials, consumables, spare parts Etc.
Who could compete with them?
Think that already today, through Google you can manage the printers in your office.
We also think that Google, thanks to the searches we make on its search engine, knows exactly what we want to buy. Out of Toner?
How long do you think it will take to take the extra step and become your supplier?
Now imagine this at the global level.
Perhaps it is clearer now, why, Marketing and Logistics are fundamental, synergistic and strongly linked.
To be successful, therefore, it is essential to team up. To go beyond the typically Italian individualistic logics.
Companies should make buying groups. Share their technicians, know-how, resources, capabilities, warehouses, transportation etc.
Not only should they focus on a specific part of the value chains, so that they become even more specialized.
Think about telephony. Yesterday when a new SIP line was installed (remember that?) the Company’s technician would come out. Today it’s all outsourced to small outside teams who do the installations for all the operators.
I hope I have provided you with some food for thought on the Marketing and Logistics pair.
I invite you to read some articles related to focus. I have spoken little about it here but I assure you that it is critical to your Business: