BY MITCH MAC DONALD, GROUP EDITORIAL DIRECTOR outbound
will America ever love logistics
(as much as you do)?
SOMEDAY, WE MAY LOOK BACK AT SEPTEMBER 2010 AS A TURNing point for the logistics profession—at least where public perception
is concerned. And if that happens, it will all be due to, of all things, an
advertising campaign.
For the logistics profession, any change in public perception would be
a change for the better. Logistics has long had a public awareness problem, with a profile so low it might be better termed subterranean. And
the problem’s not just with the general public; for years, logistics was
largely ignored by the business community as well. That began to change
in the late 1980s, when some of the field’s leading thinkers advanced the
then-shocking notion that logistics wasn’t just a cost
center, a necessary evil, and shouldn’t be treated as
such. Used strategically, they argued, it had the
potential to drive sales growth and provide a competitive advantage.
One of the proponents of this revolutionary idea
was Jim Morehouse, a consultant at A. T. Kearney.
Morehouse argued that there was a lot to be
learned from the approach industry leaders (think
Wal-Mart) were taking to logistics. At a time when
most of their peers were managing warehousing,
transportation, and distribution as separate functions, the leaders were integrating these activities
under the “logistics” umbrella—in the process,
creating the kind of hyper-efficient supply chain
that sends competitors fleeing.
Although many recognized the wisdom in this thinking and fell in
step, there were holdouts as well. And there are holdouts to this day.
They’re easy to recognize: For instance, they’re the ones who still measure operational performance with outdated metrics like transportation
cost and warehouse “uptime/downtime,” apparently unaware of the
potentially disastrous effects of optimizing one function at the expense
of another. But they’re not likely to be around much longer. In today’s
competitive marketplace, they don’t stand a chance against more for-ward-thinking rivals who know that the true measures of logistics performance are customer satisfaction and revenue growth.
Aside from those throwbacks, however, it’s clear that most people
working in logistics today understand the value of what they do. And
in many cases, their employers do as well. Over the years, more and
more C-level executives have come to understand the critical role logistics plays in corporate success.
But public perception still lags far behind. Although logistics is now
a bigger business than, say, construction, it
remains largely invisible to the public. That’s
long been a source of frustration to industry
leaders, who worry that as long as the logistics
community remains under radar, it will never
hold much sway with lawmakers.
Those concerns have led literally hundreds of
folks, including yours truly, to
participate in think tanks, focus
groups, and other initiatives
aimed at raising awareness in the
past decade. But these efforts
have met with limited success.
Stop someone on the street
today and ask him or her to
define “logistics,” and you’ll likely be greeted with a blank stare.
In mid-September, United
Parcel Service rolled out a multimillion dollar advertising campaign with the theme
“We;Logistics.” The intent, of
course, is to tout Big Brown’s
capabilities. But the profession’s public image
could get a shot in the arm as well. What the
campaign does, in effect, is spell out the same
message the profession has long struggled to
deliver to the world: that logistics can drive
growth and help companies gain competitive
advantage in the global marketplace.
More to the point perhaps, UPS is taking that
message to a mainstream audience.
Sometimes breakthroughs come from the
most surprising places.
Group Editorial Director