Transcript of "Louis Vitalis from Nippon Express; ‘Take Your 3PL Sales and Marketing Strategy to the Next Level’"
Nippon Express- A Japanese way to look at Sales & Marketing 日本通運 November 2010
Contents • General Profile • Group Corporate Strategy 2012 • Does Size of your Sales Force Matter? • Never give up the Account Relation! • 3PL business caseNippon Express Europe® Copyright by 2
Nippon Express General: Profile Shareholding company 16.8 billion USD revenues globally (840 million in EMEA) Asset-based 403 million. USD >1,400 locations operating income > 65,000 employees worldwide 2.7 milion sqm warehouse spaceNippon Express Europe® Copyright by www.nipponexpress.com
Group Corporate Strategy 2012 A. Develop Business in Global Markets B. Promote One Stop Sales C. Strengthen Logistics Sales D. Develop New Business Areas E. Develop Small Lot Cargo Business F. Strengthen Regional Sales and Specialized BusinessesNippon Express Europe® Copyright by 4
Does Size of your Sales Force Matter? • Compared to most European Forwarders and LSP we have a very small Sales Force, but we have been able to maintain our size as a 16 billion USD company. • In stead of creating a large Sales Force, we have traditionally built on a Quality Image among Japanese Customers, mainly focusing on Operations, Customer Service and Account Management. • In the past 15 years, also non-Japanese Accounts have found their way to Nippon Express, but this can not be contributed to the size of our SalesNippon Express Europe® Copyright by Force! 5
Never give up the Account Relation! • In 3PL business nothing is for sure and nothing can be taken for granted……. • If your customer wants to change their Logistics Set Up, it may happen that they terminate a 3PL contract. • Usually Account Managers focus on existing or promising prospects, and forget the ones that just said goodbye! • From experience we learned never to turn your back to an Ex-Customer.Nippon Express Europe® Copyright by 6
3PL business case • A large printer manufacturer terminated the German 3PL contract with us in 2008, because they wanted to relocate their central DC to the Netherlands. • Business is just like Sports: sometimes you win, sometimes you loose.Nippon Express Europe® Copyright by 7
3PL business case • However, we kept contact with the customer on both local and global level, so when they decided they wanted to change their Set-Up again (one year later), we were one of the first to hear about it! • The first thing we had to do, was to make sure we understood the Customer’s Key Requirements: – Very Short Time Frame for implementation – Location based on Center of Gravity Study showed Ruhr Area – Availability of Container Terminal nearby – Proven IT infrastructure, which could be set up in short timeNippon Express Europe® Copyright by 8
3PL business case • Business Scale: – 40,000 – 50,000 m2 – 100 – 250 FTE – Temporary Storage of up to 500 containers in nearby Container Terminal • Conditions: – 3 year contract based on: • 1st Year: Stabilization, Improvements • 2nd Year: Benefit from the effects of the Improvements • 3rd Year: More improvements and benefit from the Accumulated EffectsNippon Express Europe® Copyright by – Level of Liability was made depending on our Quality Level – Increase Efficiency and Handling Speed in the DC by 9 involvement in Forwarding Activities as well
3PL business case • An open approach in Tariff Setting: – Show what our costs are and what kind of profit margin we want to achieve – Show that Efficiency Improvement actually lead to lower Total Costs – Reasonable Charges for Value Added Services (manpower etc) – Establish a minimum charge which covers most of our Fixed Costs – Open Attitude concerning start up costs • A strong but practical Quality Approach – Only 2 daily KPI reports:Nippon Express Europe® Copyright by • Dock to Stock & Dispatch Accuracy – Other KPI reports are monthly 10
3PL business case • Create a detailed Master Plan which covers: – General time frame – Analysis Order Data – IT interface set up – Warehouse Infrastructure set up – Stock Transfer Method • Create a Project Organization which matches the Customer’s OrganizationNippon Express Europe® Copyright by 11
3PL business case • Our Core Values which we appealed to in the sales process: – Customer Satisfaction – Quality – Trust – Effectiveness – Responsiveness – Project ManagementNippon Express Europe® Copyright by 12
Arigato Gozaimashita! 13 ® Copyright by Nippon Express Europe
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