THIRD-PARTY LOGISTICS
Aligning Sales and Marketing with
Business Strategy
Entering the second decade of the 21st Century, logistics service providers’ mindsets are
focused on growth. There has been a lot written about shipper and LSP relationships—what’s
working and what’s not. But there is plenty of room for improvement. Over the last few years,
LSPs focused on cutting costs and improving customer satisfaction by standardizing operating
procedures, streamlining and integrating IT solutions, managing with KPIs and implementing
scorecards. So what is next on the minds of LSP executives—sales and marketing?
—Valerie Bonebrake, executive vice president of Global Supply Chain Services, Tompkins Associates
SPs were hard hit by the decline in shipper volumes that began in late 2008. Now, after a brutal
year of cutting costs and recession recovery, LSPs
that are focused on comeback are seriously
L
• Going back to the basics by assessing their customer base,
talent base, market position and capabilities;
• Looking deeper at customers and their needs, while also
evaluating new markets and new services;
focused on growth strategies. In late 2009, signs began to
• Defining what really makes them unique;
show, such as Echo Global Logistics completing their IPO, Sad-
• Working hard to quantify their cost-to-serve, so they can
dle Creek Corp. acquiring Service Craft Logistics, Greatwide truly understand where the best opportunities for profitable
Logistics acquiring the fleet business from YRC Logistics and, growth lie;
most recently, Transplace announcing it is being acquired by
CI Capital Partners. And there will be more.
Many LSPs fall short with aligning sales and marketing strat-
egy with business strategy. There is a tendency to undervalue
• Developing go-to-market plans to drive growth for 2010
and beyond; and
• Assessing and acquiring sales talent.
All these efforts take time away from the market—and away
sales and marketing. And with so much focus placed on day- from the customers—to work on the business, test hypotheses,
to-day operational execution, the “big picture” sometimes gets develop strategies and tactics, and identify gaps and plans to fill
lost. When that happens, LSPs and their clients get out of align- them. Teamwork is essential for this effort; it cannot be done in a
ment. The LSP thinks they are doing a great job while the client vacuum. Engaging those closest to the customer and investing in
thinks, “What have they done for me lately?”
The Outlook
In 2010, smart executives are:
the required support and tools needed to create the future state is
critical. Finally, looking closely at sales—people, process and
technology—ensures they have the best talent, utilize appropri-
ate sales methods and take advantage of great CRM tools.
