Transportation Logistics To Fit Your Needs

Not only businesses, but sometimes people also, require the fast and efficient shipment of different packages, which can be time consuming, difficult and rather expensive, especially when trying to manage the supply chain for international shipments, when trying to deliver hazardous packages or objects with odd shapes. That is why many people choose to entrust this task to transport logistics company, that can manage the supply chain, offer various shipping services (overland, air and ocean freight, charter, intermodal, warehousing), as well as other services such as customs brokerage, consulting (finding the right shipping strategy, developing a logistical plan to save you time and money, customized logistic solutions).In this article, we are going to talk about a few of the options a transport logistic company can offer and how they can make your life easier. There are a lot of companies that focus on this industry, so it is important to understand your options in order to make the best choice possible.

The majority of these companies offer a full package of services, like those we mentioned before. However, there are some companies that are active in the transportation logistics field, but offer only a part of these services, making it important for you to determine just how many of them you truly need.We are going to begin with the courier services offered by transportation logistic companies. Many of them are resellers of courier services, meaning that letter services can sometimes be smaller than those of the original courier service.Now we are going to talk about the air freight service, a service offered by many transportation logistics companies and requested by many clients. Let’s say you have to urgently send a package and you don’t want to spend the big amounts of money by sending it overnight with FedEx or UPS. If sending it is so urgent that using an overland delivery is out of the question, the only choice is to send it by air freight. Many transport logistics companies can send your package via air cargo. They are going to place your package on the cargo flight that are scheduled to take off, but are not already full. This way, you can make sure that even the most heavy of packages reaches its destination, however far away it may be.A third service that is highly requested, due to the fact that it has proven to be one of the most cost efficient of all delivery methods, is ocean transit. However, if you rely a great deal on the timeliness of the delivery, sending packages through ocean cargo shipments may prove inefficient, because ocean shipment depend a great deal on weather conditions, the chosen route and other factors.

Lastly, we are going to talk about charter. If you company needs to make shipments that are very large, the most practical and cost efficient solution may be renting a chart. Many transportation logistics companies have connections with charter shipping partners and can facilitate such a process, allowing their clients to save great amounts of money.If you want to find out more about other services, such as intermodal deliveries, warehousing or customs brokerage, don’t hesitate to go on the sites of transportation logistics companies and make an extensive research.

Rep V. Direct: How to Best Organize a Sales Team

Sales executives are constantly searching for the ideal structure of the sales team. Should the team be composed only of direct sales people? Should the team be composed only of manufacturers’ representatives? Experience shows that a hybrid sales organization, composed of a blend of direct and indirect sales employees (manufacturers’ representatives), combines optimal performance, cost effectiveness and flexibility.If one observes several sales organizations over an extended period, she’s able to see that relatively often, sales executives make sweeping changes to those organizations, from all direct to all rep, and from all rep to all direct. Invariably, the observer is able to note that sales management ultimately reverses many of those sweeping changes. Sometimes sales executives benefit from observing changes made by others. Unfortunately, too many sales executives develop the understanding of the benefits of a hybrid organization by making one or more poor decisions and then repairing the organization after problems surface. The most durable of sales organizations are those that use a hybrid technique, employing a mix of both direct sales staff and manufacturers’ representatives. Sales teams composed entirely of all direct people or entirely of manufacturers’ representatives are generally not ideal.Why “Direct Only” Teams Are Not IdealMany CEOs and executive teams believe that the best way to build relationships with customers is with a sales team composed only of direct employees. In this example, sales staff cannot be distracted with unrelated business and other product lines. No one can blame the inexperienced CEO and executive team for thinking this way. A salesperson is able to devote 100 percent of this time to the company. A direct sales team suffers from far fewer distractions than a rep sales team. However, experienced CEOs and executive teams understand that they must thoroughly look at a direct sales team before converting to it. Direct sales teams are quite expensive to train and support. The company must support offices in all major markets. Those offices bring along with them assorted costs: rent, administrative support, office equipment, utilities, etc. A competent manager who can work well and represent the company without direct supervision must manage the office. The company must train and occasionally upgrade each office manager.When sales are growing, the office manager must hire and train new sales staff. The company must train the manager in hiring and training techniques. The company must also train the office manager in firing techniques, in hopes of avoiding legal problems.As sales grow, the office must expand to meet growing demands upon the sales office. Cost of sales rises as sales grow. Sales, however, do not grow forever. Ultimately, sales flatten and roll over. Sales usually roll over earlier and more abruptly than hiring plans. Sales may dip at anytime during the year, but hiring plans are usually set at the beginning of each calendar or fiscal year. As a result, hiring is sometimes still underway when industry and office sales are falling. Such dynamics create an environment whereby cost of sales, (as measured by the total cost of running the sales office, divided by the total revenue that the office generates, expressed as a share of sales) rises rapidly.

When a sales office has healthy sales, the company can manage its cost of sales and support them at a predetermined level. If sales grow for a long period, the company can manage the office to cut cost of sales. The sales office can benefit from economies of scale. A sales office supporting 20 salesmen doesn’t need more copiers, fax machines and conference rooms than an office supporting only 10 salesmen. Unfortunately, sales ultimately roll over. It is difficult to cut costs immediately. The office manager must usually see several months or quarters of declining sales before realizing that he must cut costs, including headcount. During this time, cost of sales rises, sometimes well above tolerated levels. The sales office manager and the company cannot cut costs quickly. Which is a chief reason that totally direct sales teams are undesirable.Why “Rep Only” Teams Don’t Yield Peak PerformanceRep only sales organizations afford a number of benefits to the sales executive. The sales teams are already in place. Hiring and firing of salesmen is not the direct responsibility of the sales executive or his regional sales managers. Manufacturers’ representatives generally hire and fire as sales move up and down. The cost of running a rep only sales organization rise and fall directly with the level of sales. A significant benefit of the rep only sales organization is that cost drops immediately when sales drop. It’s possible to accurately forecast cost of sales as a share of total revenue. Cost can never get out of control by hiring too many salesmen, buying too many computers, or leasing too large an office; not infrequent problems for direct sales organizations.Manufacturers’ representatives are not always the panacea for companies looking to hire or expand a sales organization. Large customers often demand direct sales staff; not indirect staff from a manufacturers’ representative. Large customers view their largest suppliers as strategic partners, and like the ability to communicate directly with those suppliers. Communications is sometimes slower and less clear when a customer must communicate with a manufacturers’ representative, who in turn communicates with the supplier. Customers may set the style with which they deal with suppliers as part of their purchasing strategy. For example, they may decide to deal with no more than two or three suppliers on any commodity and to deal with those suppliers directly. This disallows conducting business through manufacturers’ representatives. A supplier must recognize and honor such a strategy, or be ready to suffer undesirable consequences. A supplier must never turn a tin ear to a request from a customer demanding direct sales representation.Large suppliers view their largest customers as strategic partners, and like the ability to communicate directly with those customers. They view the delay when communicating through a manufacturers’ representative as an unnecessary burden. When large suppliers invest management time with strategic customers, they do not want to dilute that investment by sharing management time with manufacturers’ representatives. The incapacity to offer direct coverage to strategic customers is the primary reason that a sales team composed only of manufacturers’ representatives is unattractive.First and Foremost: Do No HarmRecognizing that something is wrong, many sales executives make bold, sweeping structural changes to their sales teams. Fire all reps and hire a direct sales team. Fire all direct salesmen and hire a network of manufacturers’ representatives. Either approach will certainly repair some problems. More than likely, however, extreme changes are very prone to creating new problems of equal or greater scale.Why do so many companies replace one poor-performing sales organization with another that destined to yield performance that is no better than the original? The two most common reasons are inexperience and weakness of the sales executive compared to the rest of the management team. Perhaps the inexperienced sales executive has risen through a single company with an all-direct or all-rep sales force. Now, managing the global sales organization, he opts for sweeping change from all-direct to all-rep, or from all-rep to all-direct sales without benefit of understanding thoroughly the benefits and problems with either a pure-rep or pure-direct organization. Alternatively, the inexperienced sales executive may have developed his management skill at a company employing an all-direct sales organization. He may not feel comfortable managing if hired into an all-rep company. No one can fault a sales manager if he sees massive problems and concludes that he must make sweeping change to an all-direct sales organization. Only inexperience allows him to make a major, highly disruptive change.Another reason companies make dramatic changes in the structure of a sales organization is that the sales executive is weak. If cost-of-sales, expressed as a share revenue is too high, the CEO, the rest of the executive team, or both can apply pressure on the sales executive to affect change and cut cost. If the sales executive lacks the strength to defend his team or the structure of the sales organization, he merely becomes the messenger, not the manager.

The message to the sales executive feeling pressure to make sweeping change in a sales organization is to adhere to the Hippocratic Oath: First, do no harm. Any sweeping change imposed upon the structure of a sales team will initially be disruptive. Make sure to justify the disruption and be very sure that the change, once implemented, is most likely irreversible. Sweeping change brings disruption, higher cost of sales and lower productivity. All of this might be worthwhile. However, if a sales manager imposes sweeping change and then reverses course within a year or two, disruption from the reversal is much greater and more costly. A reversal of an organization change brings with it disruption, higher cost of sales and lower productivity just like the original change. However, an organizational reversal can erode the sales team’s enthusiasm. A company can handle disruption, higher cost of sales and lower productivity if repaired relatively quickly. Repair of an unmotivated sales team takes much more time.”Hybrid Sales Teams” Work BestA supplier always looks to optimize its sales organization. If a company continuously focuses on cost of the sales organization, use of manufacturers’ representatives is mandatory. The benefits of manufacturers’ representatives are too great to ignore. However, manufacturers’ representatives may not satisfy the requirements for some customers. Strategic customers demand direct interface, excluding the use of reps. The best alternative then, is to merge some of the best features of both a rep and a direct sales organization. Implement a direct sales team to cover the sales to all strategic customers, while simultaneously bringing about a sales team of manufacturers’ representatives to cover all other customers.A hybrid sales team benefits from the cost effectiveness of manufacturers’ representatives. The same team can deal directly with strategic customers. The sales executive may take advantage of the non-disruptive flexibility when adding or deleting customers on strategic customer list. A secondary benefit of a hybrid sales organization is bench strength. Well-seasoned, top-performing direct sales personnel represent a talent pool from which from which to draw regional sales managers.ConclusionExperience shows that a hybrid sales organization, composed of a blend of direct and manufacturers’ representatives combines optimal performance, cost effectiveness and flexibility. The most durable sales organization is one that uses a hybrid technique. Sales teams composed entirely of all direct staff or entirely of manufacturers’ representatives too often underperform.

The Basics of Direct Mail Lists

Direct mail lists provide opportunities for businesses to acquire, retain and create loyal customers. Yet which lists are typically the best performing lists? How do you go about finding mailing lists? And once you’ve found a list, how do you know if your investment paid off?Direct Mail List BasicsDirect mail lists generally fall into three categories:
Company owned lists: These are direct mail (or email) lists that you’ve created on your own. Many online business include an opt-in box on their website so that customers and visitors can choose to provide their email address in exchange for information, news, white papers and other gifts. Companies can also create their own “house lists” as such lists are called by using records of previous purchases and leads to create a basic mailing list. For direct mail, you can use physical addresses without tacit permission. For email marketing, always use an opt-in method and only conduct permission-based marketing to avoid getting branded as a spammer.
Response lists: Response lists are rented by companies that specialize in mailing lists, called list brokers. Such a list is based on past purchasing or response behavior and may include catalog mailing lists, direct mail or direct television buyers, or magazine subscribers. Many companies make money by renting their list out to other companies. The idea behind using such a list is that past purchasing behavior is the best indicator of future purchasing behavior. In other words, if someone responded to a direct TV ad for jewelry, chances are better that they’ll respond to another offer for jewelry. List brokers often add additional selections for an extra fee, such as 3 month buyers. This allows you to target people who have recently bought such an item. Again, based on years of data from many industries, these are people most likely to respond again to similar offers, which is why direct marketers seek out such lists.
Compiled lists: Compiled lists are created or compiled from public records. Such lists used to be based on DMV records but now are mainly typed into computers directly from telephone books. Sometimes public data such as census data is appended to the list, providing some ability to sort by income and other factors from census data. Compiled lists are the least expensive but also the least likely to respond to specific offers. Going back to the jewelry example, you may rent a compiled list of people living in a high income zip code, thinking that they are likely to buy jewelry from a direct mail order catalog. But you have no way of knowing from the compiled list if such people are comfortable shopping online, by phone or from a catalog. A response list indicates that in the past, such consumers have done so – and are more likely to do so again.

There are general list brokers who offer a wide range of mailing lists and specialist such as Market Data Retrieval that focus solely on industry, such as education in the MDR example. Ask colleagues for the best list brokers in your industry.Renting Mailing ListsOnce you’ve found a company offering lists, search their catalog or talk to a list broker on the phone. Share your ideal client profile; who are you targeting? The list brokers will suggest several lists and email or fax you data cards. Such cards provide the facts about the list: who is renting it, whether it is compiled or response, and data selects available. Data selects are optional methods to use a computer to narrow down the most likely prospects to respond to your offer. Select may include age, gender, products purchased, or recent shopping behavior.Lists have a base cost per thousand. Typically list companies will not rent fewer than 10,000 records, so take the cost per thousand records, multiple that by 10, and that gives you the minimum amount of money you will have to spend on a list. There may be additional charges added on for various selections or to actually generate the list from the computer.Make sure that the list has been updated recently. Good list companies run their lists through several databases obtained from the Direct Marketing Association and the US Post Office. These include removing the names of deceased persons, updating lists with the new addresses of people who have moved, and suppressing (removing) people who have requested to be on the “Do Not Mail” list or preference list from the Direct Marketing Association. All of this may add costs at the beginning of a list rental process, but think about the money wasted mailing pieces to people who cannot respond. If they’ve moved, died, or hate junk mail, why mail to them in the first place? You’re spending money on the creative design, the printing, the mailing house costs and postage, so save the money and don’t mail to those people.Testing and Use of Direct Mail ListsAlthough the minimum amount of names on n a typical direct mail list rental is around 5,000 to 10,000 names, many companies will allow you to rent a smaller segment for testing. Be sure to code your direct mail pieces with a unique phone number, source code or another method to track responses so you can see which list performed the best.

Mailing lists are rented for one time use or multiple, unlimited uses. You’ll be asked up front to specify which use you intend and most companies ask for a sample mail piece. One of the most frequently asked questions people new to direct mail ask me is, “Why can’t I just pay for one time use and then reuse the list, since most lists are provided electronically nowadays?” The answer is simple: you will be caught! Mailing list companies include addresses called “seeds” on their list which look to you and me like just any other name on the list, but actually go back to the company or to someone employed by the company to monitor the list. If you’re caught using a mailing list more times than you paid for it, you are subject to legal prosecution, fines or both. It’s not pretty. Don’t do it.Direct Mail in Today’s MarketDirect mail has been around since the late 1800′s when catalogs opened a world of new goods to rural Americans. Although a large number of consumers have moved their shopping online, many still prefer to look at an old-fashioned catalog before buying. Direct mail can entice and invite consumers to visit a website to order. A good mix of old-fashioned direct mail marketing, postcard marketing, and a robust website with search engine optimization techniques in mind is a winning combination to acquire, retain and create loyal customers – and make money in the process.Get Marketing Help – Fast