Sales and Business Models in the Logistics Industry : Ensuring Growth with Innovative Strategies

This book shows how logistics service providers can develop viable strategies for sustainable growth and thus position themselves for the future. The logistics industry is changing rapidly, and in this one of the most fiercely competitive industries, predominantly stationary distribution organizations are helping to keep their own companies on track for success. However, the existence of these companies has never been more at risk than it is today, as most not only have outdated IT, but also a deficient distribution structure. Especially during the high rate increases of recent years, most companies fell far short of their earnings potential. In terms of volume, they are no longer growing at a sufficient rate or are even risking their continued existence. The author explains the new rules for success in the logistics industry using examples and shows step by step which trends the future will bring and which strategies must be used to meet these demands today. The book also makes clear how logistics companies can establish a lasting high-performance culture in their sales department and how they can succeed in winning over sales staff and retaining them in the long term. Foreword 6 Preface 8 Contents 11 1 Upheaval in the Logistics and Sales World: Five Trends You Need to Know! 14 1.1 Trend 1: Disruption Causes Tension 14 1.2 Trend 2: Exponentially Accelerated Change Requires Strategic Adjustments 19 1.3 Trend 3: Sales Struggles with Bureaucratic Shackles 21 1.4 Trend 4: Sales Becomes More Digital 22 1.5 Trend 5: Closing Rates and “Hit Rates” Gain Importance 24 References 29 2 The Most Important Players and Business Models at a Glance 30 2.1 Why a Good Business Model is Essential for Survival 30 2.2 The Business Models in the Logistics World 37 2.2.1 Category 1: Capital-Intensive Shipowners and Airlines 37 2.2.2 Category 2: Less Capital Intensive—Carriers 45 2.2.3 Category 3: Rising Stars—Start-Ups 57 2.3 How to Adapt a Business Model 58 2.4 How to Check Your Business Model for its Competitiveness 59 2.5 Defense of the Business Model against Related Industries 64 2.6 Derivatives from the Business Model Adaptation for Sales 65 2.7 Interview on the Topic of Record High Freight Rates 67 References 70 3 Sales Management: A Guide to Creating a Long-term Performance Culture 73 3.1 From an Autocratic to a Meritocratic Leadership Style 75 3.1.1 The Unfair Balance of Power and Force 76 3.1.2 Characteristics of a Meritocratic Leadership Style 78 3.2 The Basics of a Performance Culture 80 3.2.1 Smoothing Disproportionate Performance Distribution 80 3.2.2 The Right Sales Team Size 81 3.2.3 Who is Allowed to Stay in the Team? 82 3.2.4 Increasing Return on Sales 83 3.2.5 Gross Profit 83 3.2.6 The SEAL Elite Squad 84 3.2.7 Virtual Sales Team 84 3.2.8 The Entrepreneurial Added Value 85 3.3 Make Recruiting the Best Talent Your Top Priority! 86 3.4 Stakeholder Management: Efficient Linkage with Operational and Product-related Departments 88 3.5 Weighting of the Incentive System 89 3.5.1 Progressive Incentive System and Recognition 89 3.5.2 New Business Bonus—Extrinsic 90 3.5.3 Bonus New Business Profit—Intrinsic 91 3.6 Remove Typical Performance Obstacles from Your Path 91 3.6.1 Example Bureaucracy 93 3.6.2 Example Pipeline Reports 94 References 96 4 How to Win and Retain Talent in the Company 97 4.1 Three Things You Need to Know Before You Hire a New Salesperson 99 4.2 What Really Matters When Hiring New Employees 103 4.3 How to Structure & to Conduct Successfully the Job Interview with an Applicant 103 4.4 Overcoming the Shortage of Skilled Workers 107 4.4.1 Solving the Skilled Worker Problem 107 4.4.2 Using the Principle of the Wisdom of the Many 112 4.5 Retaining the Best Salespeople in the Company 114 4.5.1 Solving the Resource Problem at the Operational Level 117 4.5.2 More Conflict Hotspots in Practice 118 4.6 Which Skills will be Required in the Future Hybrid Sales 121 References 123 5 Cross-Selling and Hidden Customer Needs—The Sales Turbo 124 5.1 How a Dream Becomes Reality 124 5.1.1 Creating a Culture of Togetherness 125 5.1.2 Making Employees Part of the Solution 125 5.1.3 Regularly Review and Update the Cross-Selling Process 126 5.2 The Importance of Hidden Customer Needs 126 5.3 Determination of the Cross-Selling Potential 130 5.4 Practical Guide: Creating a Systemic Cross-Selling Organization 135 5.4.1 The Five Biggest Cross-Selling Killers and How to Avoid Them 135 5.4.2 How to Implement Cross-Selling Based on Six Central Success Criteria 140 5.5 The Implementation Phase of Cross-selling 158 References 163 The logistics industry is changing rapidly. In this fiercely competitive sector, predominantly static sales organizations are working hard at keeping their companies on track for success. However, the existence of these companies has never been more at risk than it is today, as most not only have outdated IT systems, but also rely on suboptimal commercial structures. Most companies have fallen far short of their earnings potential, especially during the high freight rate increases of recent years, and in terms of sales volume, they are no longer growing at a sufficient pace or are even risking their continued existence. This book studies how logistics service providers can develop powerful strategies for sustainable growth and position themselves for future success. The author outlines these new rules using examples and step by step guides to take readers through the emerging trends and to outline strategies required to meet the changing demands of the future. The book also makes clear how logistics companies can establish a lasting high-performance culture among their sales teams and how to succeed in winning over sales staff and retaining them in the long term. The author Alexander Nowroth is Managing Partner of LEBENSWERK CONSULTING GROUP based in Düsseldorf, Germany. His consulting clients range from well-known corporations to large family-owned enterprises, all benefiting from his international experience in the shipping and logistics industry