by Fronetics | Sep 10, 2013 | Blog, Logistics, Strategy, Supply Chain
This post is written by our Marketing Analyst Intern, James Kane. James is a senior at the University of New Hampshire’s Whittemore School of Business and Economics.
A recent article by Patrick Burson in Logistics Management discussed the use of 3PL providers. The article noted that 86 percent of domestic Fortune 500 companies use 3PLs for logistics and supply chain functions, and that the average customer utilizes multiple 3PLs. For example, companies such as General Motors, Procter & Gamble and Wal-Mart each use at least 50 3PLs.
I decided to take a closer look at the use of multiple 3PLs. What I discovered is that companies utilize multiple 3PLs to minimize risk, and to maximize efficiency and revenue; the decision to engage each 3PL is strategic.
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What do 3PLs think about the use of multiple 3PLs? It turns out the majority are ok with it. A growing number of 3PLs see value in companies working with more than one 3PL. A Market Insight Survey found that 51.2 percent of 3PLs polled believe customers should have more than one service provider. Thirty-nine percent of respondents reported that they feel customers should work with just one 3PL and 9.8 percent reported that outsourcing strategies should depend upon the customer and the scope of the venture.
I’m interested. With how many 3PLs does your company engage?
by Elizabeth Hines | Sep 4, 2013 | Blog, Leadership, Strategy, Talent
Let’s face it, meetings can suck. A poorly planned and executed meeting is a waste of time and money, and it can be demoralizing. Meetings shouldn’t be like this. Here are nine tips on how to plan and how to run an effective meeting.
1. Purpose
Every meeting should have a purpose. Meetings are often set up to happen on a reoccurring basis. The reality is that many times these meetings take place solely because they are in our calendars. If there is no reason to hold the weekly meeting this Wednesday, cancel it.
2. Focus
Have a clearly defined singular focus. Having a clearly defined singular focus keeps the meeting on track. If a meeting has more than one focus it is likely that one issue will be covered in far greater detail than the other, that the meeting will get off track, and/or none of the issues will be adequately addressed.
3. Prepare
Do your homework. Prior to every meeting make sure you have read anything you should have read and that you have completed any tasks that you should have completed. Additionally, know the lay of the land. For example, if the meeting is about the company budget and your employees are anxious over budget cuts – know this and be prepared to address your employees’ anxieties.
4. Invite
Invite those who should attend and do not invite people who should not be there. For example, if the focus of the meeting is sales, make sure you invite the sales team. Another example, if the focus of the meeting is the performance of your HR team, don’t invite your research and development team.
5. Leverage technology
Technology abounds and it should be utilized. Getting everyone in the same room is no longer necessary. Take advantage of technology such as Speek, Skype, and GoToMeeting.
6. Communicate
An effective meeting is not a place for you to download or transfer information. If you present information a manner that speaks to attendees you will motivate your employees and create buy-in. (The Heart of Change by Jon Kotter and Dan Cohen is a great resource on effective communication.)
7. Time management
Create an agenda and stick to it. Start the meeting on time and end the meeting on time. A meeting that is scheduled for 10:00-11:00 should not run from 10:15 to 11:15. Furthermore, if a meeting is scheduled for 1 hour, the meeting should last one hour or less (no need to try and fill the last 15 minutes if the agenda has been covered).
8. Facilitate
A meeting needs a leader. If it is your meeting – lead. Leading does not mean speaking at people for an hour; instead it means facilitating the agenda. For example, if an important but off-topic issue is raised during the meeting – don’t allow the meeting to go off on a tangent. Instead, acknowledge the importance of the issue and establish a time to address the particular issue. Handled correctly, your employees will not view this as blowing off their input, but rather they will value the fact that you will allot the necessary time to the issue.
Facilitating the meeting also means not allowing one person to monopolize the meeting. Give everyone the opportunity to provide input, and speak up if the agenda is being hijacked.
9. Action
At the end of the meeting review the action items. Make sure the right people are put in charge of each item, that they know what they need to do, and that they know when the task needs to be completed.
by Elizabeth Hines | Mar 20, 2012 | Blog, Strategy
I recently wrapped up a customer engagement that was centered on marketing effectiveness and sales force optimization. Two big words that represent the quality of a company’s message and the successfulness of their sales force.
I began the engagement like any other, by looking at the data. The company I was working with had really good data sets and measurement tools. It was easy to obtain various types of sales close rates, margin averages, product data and profitability metrics. This company managed these metrics and their sales teams well, but still delivered growth rates that were not consistent with their industry or other company’s in their space. This is a solid, respected, well run and long standing company. Why was it slogging along and lagging their industry growth rates?
Contrary to their executive’s thinking, the answer was in the data they DIDN’T have, not in the data they had collected. They spent all of their energy managing the heck out of their internal metrics, but paid little to no attention outward facing and collecting their customer data.
Here’s what I told them:
Use every customer interaction as an opportunity to collect data. Task your sales and marketing teams with systemically collecting the data. Make it part of their jobs and don’t rely on free form or note taking. This data is gold and forms the base of all your sales and marketing strategies (or it should anyways)
Don’t use broad categories, catch all segments or, my personal pet peeve, the “unknown category. Finely slice your customer data sets so you can understand in minute detail what each customer means to you and what you mean to them.
- Intimately know your best customers and treat them that way.
That’s right, I said it. Treat your customers differently. News flash…not all customers are good customers. Instead of using a transaction mentality, use a relationship mentality and use your customer data to improve customer profitability over time. This will help you determine true “core” customers whose business you want to earn and whose loyalty actually pays off in terms of growth.
In short, know your customers better than yourself (or at least as good as) and watch your growth rates consistently improve.
by Elizabeth Hines | Feb 24, 2012 | Blog, Strategy
Let’s face it, there’s a clear and distinct difference between selling traditional logistics and selling integrated logistics and supply chain solutions. The key difference is; one is a product offering and one is a solution. When you try and sell solutions like you are selling a product, it’s like bringing a gun to knife fight…usually with similar results…your sales cycle is DEAD.
The product sale is really a commodity. Commodities come with an “each” price or a “per pound” pricing matrix, etc. It usually is a short or shortened sales cycle and negotiations revolve around the total price and your typical supplier performance metrics.
The solution sale is much different. This sale is one that requires client discovery, isolation of unique client pain points (that only your solution can address effectively), and being able to drive distinct value for the client, and in turn, for your organization. This sales effort is highly specialized and requires selling time (sales cycle) that is much more detailed than a product sale. That being the case, you need to be sure that your close rates are high enough to justify the work load and sales cycle needed. You also need to be sure that the deals you close have a deal size that reflect the sales effort and cycle time (said another way, is the deal worth winning?)
I have been involved with organizations that sell products and those that sell solutions. Both can be successful, as long as you sell products like products and solutions like solutions. Here are a few tips on how to sell solutions so that you are not the one bringing the knife to the gun fight!
- Prepare, prepare, prepare. So often I see sales teams go into client meetings with no sales plan, no call to action, and no deliverables for themselves or the client. These “feel good meetings” are better left to conference calls or not done at all. Every client interaction should be a detailed exchange of ideas that enable you to discover ways to position your service offering at its highest value within your client. If not, you are wasting your time.
- Does you solution fit? Sure, we would like to think that our company’s solution is the next best thing since sliced bread. Truth be told, that’s not the case. If there’s no solution fit, there’s no sale. Discovering that early will save your credibility with the client for the future and save you embarrassment internally as well.
- Can your company win? We have all been there. We have the best solution for the client, but we still don’t win. Yes. It happens. Internal competition, the deal politics, and incumbent vendors all play a part. That’s not to say you only engage when there’s no competition, not the case at all. But if the engagement odds are grossly out of line, walk away early. No one gets paid for working a deal hard and getting second place.
- Do you want to win? You remember this feeling. You win a deal that doesn’t qualify internally in terms of size (too small), or you take it so thin in terms of margin that the profit doesn’t add up (too lean), or worse, you’ve over sold your capabilities and now your organization needs to stand on its’ head to break even (too bold). In selling solutions, size does matter. Don’t compromise here.
- Can the customer pay? Sure we all would like to think that the customer will pay us. But there’s alot that goes into that piece that needs to be discovered early in order to make the whole deal come together. First, only target companies viable for the long term. Sounds simple, right? Do your financial homework here and involve your credit department early in the prospecting phase. Second, even billion dollar companies have budgets. Is your client’s RFP approved? For how much (relates to #4 above)? Over what time frame? What will the terms be? No one likes to talk money until the end. I always suggest an early talk about budget to get an answer to whether to engage or not (deal size) as well as parallel discussion of deal terms so that you can craft those along the way. No money surprises at the end.
These are five important areas to explore early in the cycle in order to maximize your success rates. All it takes is sales discipline… which is another hot topic and blog to come.
by Elizabeth Hines | Feb 22, 2012 | Blog, Strategy
Over time, we discovered that throwing electronics away is extremely damaging to the environment. With the increasing innovation of new and trendy electronic devices continually entering the marketplace, there is high turnover and greater demand than ever before. Manufacturers and retailers are seeking partnerships with third party logistics (3PL) providers that can decrease e-waste through reverse logistics for used and outdated devices. With consumers more concerned about their carbon footprint, manufacturers and retailers as well as their supply chain partners have a commitment to reducing negative impact on the environment.
Fortunately, profitable businesses that have capitalized on this emerging green and are known as “urban miners.” In general, there are now two primary methods for disposing of our personal e-waste supply.
- Trade in the device for the latest model. This is common with smartphones, since they’re small and easy to carry. The process is convenient for the providers and device manufacturers as well. It’s the proverbial “win-win.”
- “Take-back” events. Typically orchestrated and sponsored by your local municipality, school, or civic organization, these are a local recycle e-waste process. It’s best for devices that are not readily exchangeable in their current form. You’ve probably seen flyers or advertisements encouraging you to bring your dead electronics to a local school parking lot or municipal depot where they will be loaded on a truck, never to be seen again, all in the name of charity and ecology.
There’s Gold in ‘Urban Mining’
While the local organization that hosts the event gets a portion of the fees paid to dispose of the electronics, it’s the e-waste disposal companies that do especially well.
Known as “Urban Miners” in the disposal world, these e-waste disposal companies aggregate millions of pounds of commodities that are bought and sold in a secondary market every day and shipped all over the world. E-waste disposal companies are mining items like plastics, precious and non-precious metals, and rare earth minerals from our basements and closets. It’s one of the most profitable and reliable forms or reverse supply chain.
There is no better testament to the old adage, “One man’s trash is another man’s gold.” I’m not saying this is an easy process. You need to be able to aggregate tons of e-waste material (literally) in order to make money. You need to have the “right” e-waste material, meaning recyclable and not so much disposable, and you need to have your fixed costs low enough to be able to afford the high-touch breakdown process. That’s one reason you see these take-back events popping up more often. These aggregators need tonnage in order to make the model work.
Sometimes they win. Sometimes they lose. But they are providing a service by relieving us of our e-waste in a compliant manner; and they’re supporting the charity or organization with some sort of share of the day’s take, and keeping the green theme going… thus, a win-win-win.
Today’s modern-day gold rush is happening right in our neighborhoods and cities. Instead of a pick and shovel, urban miners’ tools are a truck, a forklift, and a well-placed flyer.
