TSP Business Focus Survey Results
As we approach the end of 2017 and prepare for a tumultuous 2018, we wanted to discover where our network of transportation leaders was placing the focus of their time and energy. For all that participated in the survey, we thank you for taking the time to answer a few questions about your concerns and your resource deployment.
The full results can be found here, but we wanted to provide some insights that we gathered from the data and the responses.
Top Energy Focus: Retention of existing customers
Under the 80-20 rule, 80% of business for 2018 will be manifested in the current customer makeup. Properly servicing a majority of that current business is essential to maintaining your current revenue, but organizations need to be diligent in reviewing the profitability trends of each client to make sure that the focus on maintaining top line revenue is not at the expense of margin and profitability.
Top Energy Focus: Process
Maintaining a consistent approach to customer service that is repeatable and shared across all aspects of the business helps to keep the customers engaged and satisfied in the event that certain people within your organization may depart. The customers should love the company and the company’s service and not be dependent on a particular individual within the company.
Carrier Relations Focus:
Top Energy Focus: Negotiation
Negotiation can be a very transactional process in brokerage, particularly in the spot market environment. It can be difficult to manage the nuances of negotiation when decisions need to be made in minutes. Moving beyond a transactional model, fueled by load boards, towards a single source customer commitment will allow for negotiations based on larger need sets and strategic relationships.
Top Energy Focus: Training
Brokerage Training is really separated into two main development areas: Process and Skills. The system and process training, the ‘blocking and tackling’ of any brokerage is necessary for the tasks of load entry, carrier onboarding and billing – the functional aspect of the daily routines. The skills development allows each member of the team to become more effective in how they perform these functional tasks. Organizations with stronger, higher level skills development in their frontline teams are able to differentiate their service beyond the commodity of transportation service towards a more consultative approach to serving the customer and their needs.
Top Energy Focus: TMS
Building your brokerage for the future requires the right technology tools and partnerships. The TMS options of today offer more complete technology solutions beyond simple load processing. They incorporate or integrate with sales, marketing and analytics tools to better manage the customer and carrier relationships. But the price tags on many require proper due diligence to find the right solution for today, tomorrow and the next stages of your organization’s needs.
Top Energy Focus: Cash Flow
Cash Flow is the life blood of any brokerage. Understanding the DSO (Days Sales Outstanding) and the DPO (Days Payable Outstanding) will provide the necessary funding need metrics of the company to meet financial obligations and, more importantly, invest in the company’s future growth opportunities.
However, understanding and preparing for the risks associated with brokerage operations can help you avoid the punitive costs of uncertainty – large claims, customer default or personnel errors. Set up the right processes, insurance protections and system alerts to protect against the moderate-to-catastrophic risks that could cripple your business.
Top Energy Focus: Growth
Overall, by looking at the top time energy focus areas, there are some inconsistencies. Growth and Retention, while not incompatible, are on opposite sides of the spectrum. Growth is a result of existing customer expansion and new customer acquisition. The lower energy focus on marketing is also at odds with a strategic focus on growth. How we promote our brand and our service offerings/benefits is an important component of lead acquisition and customer expansion.
In general, the top priorities identified in the survey are highly focused on the urgency of the daily motivations and tactical actions of the organization, but are less focused on the importance and strategic directions toward true growth pursuits.
Coordinating the time and energy of your company requires that the leaders and the frontline operators have a collective vision of success – complete with clear expectations, the right measurements and the opportunity to grow themselves as they grow the business.
Having the right partnerships and mentors to build and execute the vision are necessary to achieving the success of which your company is capable. To learn more about how TranStrategy Partners can help you achieve your success and maximize the value of your organization, please contact us at 888-625-1139 or via email at email@example.com.