is brought to the table . There is a case of one failed strategy of product launch that was based purely on geographical distance as read from readings only . This had not factored in actual physical terrain barriers and climate ( heavy equatorial rains with no access roads ) in the target market . When logistics team was brought into the picture , the whole plan was found not to be cost effective and would have led to massive transport losses , trying to use alternative means for delivery of inbound supplies , and possibly product quality issues . The planned market storm activities also failed !
Marketing and logistics relationships are exemplified more in the selling process . This however , does not undermine the behind-the-scenes marketing strategy definition process . Marketing strategy definition is the foundation of successful sales execution . It is therefore critical that logistics teams are involved at the concept and design stages . This makes the execution stages ( the selling process ) easier . All the loops must remain connected . At the design stage , marketers are concerned with ensuring that all information about the product is available . Logistics plays the critical role of quantifying and qualifying data required to support all activities like promotion and communication to bring clarity and shared understanding . If this is missed out , execution strategies are bound to fail .
It is not so hard to connect execution of actual selling process to the logistics side of the business . This is where the congruence is more visible . Logistics team connect the moves to storage , returns , outlet planning and designs , inventory levels , order and re order levels , channels , delivery times , packaging and all activities leading to the final customer . It is therefore , critical that all these parameters of the logistics are communicated . The quality of the logistics services is affected by visibility and communication of the information about the desired moves to be made about products to the target customers .
After the sale is made , marketers worry turns to whether the customer has been satisfied . If satisfied , customers may give positive feedback about the product , and even place new orders . There are expected logistics interfaces too , either by returns made ( say of packaging or rejected products ) and triggering account receivables process . After all the climax of making a sale is qualified through customers paying for the good or service . Logistics team can at this time trigger the connection to accountants . Remember the story of returns on investment in marketing and that cash is after all king ? Logistics now plays a critical role in initiating or even finalizing the accounting processes .
In the event that customers are not satisfied by the delivery , product returns and refund processes may be triggered . Marketers would be keen to understand this as a missed outcome . This may be caused by many factors e . g . product quality , late delivery , wrong product and wrong pack sizes . The causes of customer dissatisfaction can be attributed to both marketers and the logistics team . Hence , the need for another convergence , in the continuum of chasing customer satisfaction which ultimately leads to better profit returns . Realignment is then critical to pick lessons and improve on to the next selling process or even the redesign of marketing strategies .
On making a successful sale , the next move should be to make another successful one . Then grow on scale by building on customer loyalties . The success should drive customers to make the company product a top of mind choice . The iterations should be based on continuous learning and improvement . Logistics and marketing synergies should be encouraged and nurtured . Excellence in customer service can only be achieved when the two work together . Customers will be willing to pay for real value created and added to them .
As seen , companies must recognize and uphold the symbiotic relationship that exists between logistics and marketing . Management must ensure that these critical functions are integrated . Effective collaboration between the two functions creates great harmony and delivery of exceptional customer satisfaction . A dysfunctional relationship will definitely result in dire negative outcomes . These present themselves as chaos .
No one would like to be in the mode of crisis management , which manifests itself as stock outs , lost sales , late deliveries to customers , extra shipping costs , high operational costs like storage costs arising from poorly planned and executed warehousing , overtime costs , and production re works including defects management . The ultimate undesired outcome is loss of customers and profits . All these can be avoided by ensuring that logistics teams work in a deliberate and collaborative manner with marketing teams . Execution of marketing strategies becomes easier as a result of this collaboration .
Luckily , with advancements in technology , data analytics support collaboration of different functions in companies . Data is now a key resource and enabler in strategic planning and execution . Logistics teams and marketers would benefit more from enhanced visibility of activities and monitoring of product quality parameters like expiries , temperature controls and inventory levels . Deploying technology for data exchange and real time engagement with customers enhances customer satisfaction .
When marketers link up with logistics teams , facing accountants or the gate keepers of marketing plans , becomes an easy walk in the park . The trio can make things work easier . Most importantly , customers will be happy and they will be more satisfied . And the investors and shareholders will enjoy optimized returns on investment . So , let logistics be part of your marketing game plans . And win !
CPA Michael Nzule is the Finance & Strategy Director of Mitchell Cotts Freight Kenya Limited , a leading total logistics services provider in Kenya . He holds an MBA in Accounting , with specialization in Marketing , and a Bachelors of Commerce ( Accounting Option Hons ) from the University of Nairobi . He is a member of the Institute of Certified Public Accountants of Kenya ( ICPAK ). Views expressed here-in are personal . You can commune with him via mail at : Mikemaithyanz @ gmail . com .