Logistics Should Embrace CRM

Here’s an interesting article from a staff writer ITWeb, Logistics Should Embrace CRM:

Customer relationship management (CRM) and logistics are not the most likely of couples, yet according to Keith Anderson, COO of Axis, they should be.
“When it comes to delivering products, distributors are increasingly being expected to act as the logistics partners of their resellers,” he says. “While this new role has brought new challenges, including those of maximising visibility and increasing security, they have additionally opened up new possibilities when it comes to creating customer delight.”

CRM promises to be “the next big thing” in logistics, he states. “It is set to change how we do business.”

By integrating CRM into a logistics application, a customer is able to view all of their delivery details online, checking where their stock is in the system.

“This adds huge value throughout the process and creates a distinct competitive advantage. CRM thus enables complete visibility from start to finish. By using the metrics your CRM application is able to generate, management can react quickly to any problem, as well as consistently measure the company against key performance indicators and drive improvements within the organisation.”Relationships add incredible value and often prove to be worth far more than cutting prices and increasing product availability, he says. “As such, it’s imperative to build on these relationships all the time. CRM allows a company to do this based on the functionality it enables. Everyone involved in the process is able to be truly customer-facing and focused because of the crucial customer information at their fingertips.”

Anderson says the logistics space is one where companies can add value and drive competitive advantage। “By integrating logistics with CRM, distributors will not only be able to increase the visibility and transparency of systems and processes, they will also give their customers a means of knowing where their stock is, and an appreciation of the process involved. In this way, distributors can not only drive efficient delivery, but also create customers for life.”

http://crmweblog.crmmastery.com/?p=1029

technological issues that the project aims to resolve,

The type of Scientifics or technological issues that the project aims to resolve,
Unqualified employees (Normally joins the industry directly from school);
High level of transactions;

the transportation and logistics industry is the 3rd largest industry worldwide and does include the overall supply chain providers on a global basis;

1.      3rd LARGEST industry worldwide;

2.      800 Billion dollar Industry;

3.      The industry includes the complete freight Industry, Currier Industry, Logistics, Supply Chain;

4.      Between 250 000 and 300 000 registered companies are part of this industry;

5.      Between 22 Million and 27 Million employees are known to be part of these companies;

6.      18 People on average in every company;

7.      1000 Shipments per company on average;

8.      4-6000 different transactions on a monthly basis by each company

9.      No standardization throughout the industry, nor within the companies; (The average utilization of systems per company is with a minimum of 2 one would be operational and the other financial, irrespectively consolidating the information creates a serious nightmare);

10.  No policies & rulings can be measured; (Due to the large number of systems involved, creates a massive issue to have centralized policy engine, no ruling would mean pricing and measurement issues ;)

11.  High percentage of one off customers;(These numbers are large, as customers can be a one off transaction every couple of months, despite the fact that they might have many shipments, irrespectively they can’t measure on any system these kind of issues);

12.  No real tools that can measure individual & customers KPI; (These issues are on operational and financial aspect, they are problematic from measurement point of view, as well as from the fact that there are many systems involved in the process;

13.  No proper MARGIN policies are in place to be followed & measured within the industry; (Many loses as well as operational issues that are created due to the massive amount of details and systems that are involved in the process ;)

14.  CSSV follow on Standard Operating procedures as well as the service requirements provided to the customers; (No other system can provide this link between CSSV and sales, this link is imminent so the sales agreement can be followed and materialized by CSSV);

15.  Sales measurements, individual KPI; (This is purely to measure performances as well as link it directly to the actual performances of the customers);

8. Pipeline true measurement; (Linked automatically to the actual performances, actions, whereby each of the actions is directly linked to values, that would automatically be translated to a true pipeline value (Probability factor);

16.  Pricing controls; (this element is extremely UNIQUE and will provide GREAT solutions internally and externally for all global & local players, no other solutions like this are available in the market);

17.  Service & Consistent pricing provided to customers;

The Solution

No available CRM/TMS through any major players, or IT companies; (No system that does consolidate financials shipping service and all other elements under one system for management and sales purposes ;)

Specific for the logistics industry; (Very special requirements. Very high amount of details which does have a great need to handle)

On Demand; (Very few on Demand and all are very successful);

Fully integrated to any ERP or accounting systems; (Key area as we have mapped out all services process in full for all the mode of transport)

Personalized BI by individuals, groups, company and customers; (Related to the industry the users recognizes perfectly all the elements);

3 Way Opportunities; (Does create a fully match environment comparing the ERP information the CRM forecasted information, as well as the actual information)

Customer Loss Rulings;( currently on average the industry loses between 3-5% customers on an annual basis, the system work on the above proactively, and does manage the situation on behalf of the user);

Customer Profit and Loss Rulings;

Automated Pipeline Engine;

Comprehensive Internal and External Proposal Engine for all Mode of Transport; (No pricing engines, proposals or any other form of pricing engines are available in the industry)

Bidding Module and Optimization Pricing Engine; (Full optimization of real cost, which will allow companies to improve profitability and eliminate losses dramatically)

Service Measurements Ruling; (No current automated system available, mainly the fact that none can provide Event Management ;)

High level Pricing Module for all Modes of Transport; (a comprehensive engine, however covers all modes of transport as well as directly linked to the purchase terms);

Automated Activities Module (First ever at any CRM, complete directive and a structured elevated process that will turn any average sales person to a successful one ;)

Optimization Engine; (an engine that will help all sales people to improve the data integrity elements which normally would be an issue, as well as provide automatically a better structured information to help and improve the time spend on entering the information)