Logistics Tool Kit
Focused Marketing Designed to Grow Your Outsourcing Business
In an outsourcing company, which is in the logistics business, the conventional method of operation is to acquire as many clients and as much revenue as possible and worry about the bottom line later. A number of organizations have taken that train to an unfortunate demise. There is a better way! It demands a disciplined focus, a top of mind consistent message and the willingness to say “no.”
This is difficult to do for many reasons:
• It is difficult to find a skeptical or pessimistic sales person or train them to be that way.
• You have to say “no” where the client operates outside of your industry focus, outside your geographic focus, outside your service focus, etc.
• You have to say “no” where the client is small or the likely business with the client is small.
• You have to say “no” where it is clear that the client is not really committed to outsourcing because strong groups within the client are against it or because senior management is not involved in the process.
• You have to say “no” where it is clear that the client does not know what it is doing because it can’t, for example, provide data on volumes of transactions or the like.
• You have to say “no” when the client’s buying team reflects a culture that you don’t feel you could interface or integrate with.
• You have to say “no” where the client is only interested in unloading assets to improve ROA or in getting out of a difficult labor situation.
• You have to say “no” when the client itself presents a risk because its financial situation may be tenuous.
…and you often have to say “no” because, otherwise, you will chase a lot of dreams.
An interesting side effect of saying “no” a lot is that potential clients can become impressed by your focus and plead with you to work with them. This really changes the dynamics of such a relationship.
The ability to take such a strong position and prosper as a result requires a go-to-market strategy that will meet your growth targets and create the situation, within the organization, that is focused on value generation for all clients. There is an ever-building confidence that is derived from a knowledge-based and disciplined position in your chosen market. It’s called success.
To achieve growth in this focused environment you need to continue to develop business from existing clients. Each year a target of 15 percent should come from the people you currently do business with. Planning sessions should be held with each major client, at least annually, to identify and create opportunities to grow the relationship. In addition, these sessions emphasize to existing clients that they come before new clients.
Consistent with the concentration on existing clients, you will only selectively respond to RFQ’s/RFP’s received in the mail (other than with a polite form letter). There is no time for opportunism. The only RFQ’s/RFP’s you should respond to are those you helped draft and are very likely to win as a result.
In the outsourced logistics business, you must build relationships, identify or create a need and then fill that need. Every client has an “A” list of requirements. Find it and fill it.
Marketing expenditures should go to case studies of relationships which will promote your company as being the logistics expert and give the perception of leadership in chosen market sectors and technology.
A case-study approach is very popular with clients and with individual(s) within the client organization responsible for the relationship, because it bolsters their reputations and images, too. It is the old art of story telling, easy to read, easy to understand, with a positive and logical outcome.
No marketing expense should be spent on researching competitors. If you have good client relationships you needn’t worry about the competition, or at the very least, your client will tell you all about the competition.
Frequent seminar participation by a broad cross-section of management is the other major marketing vehicle. This is also case study and technology focused. If this can be teamed with an existing client the power of the message increases many times and the relationship grows.
Building a reputation in carefully selected market sectors and being acknowledged as the superior service provider is a long journey that never ends, but you will enjoy the milestones along the way. They will be recognized by the growth and earnings achievements of your organization as it matures.
Typically, there are few guardians of such a true focus in an organization and they are constantly battling the forces that won’t understand and lack direction. Just say “no.” It sends a powerful message.