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Capital Transportation Logistics Sales Staff Implementation. 2012. Who is CTL?. a team of professionals with a combined experience of over 150 years in transportation, freight auditing, payment, and process improvement. We are committed to quality customer service.
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Capital Transportation LogisticsSales Staff Implementation 2012 Transportation Management Consultants
Who is CTL? a team of professionals with a combined experience of over 150 years in transportation, freight auditing, payment, and process improvement. We are committed to quality customer service. Our Mission…deliver success to our customers through cutting edge technology and process design that helps reduce transportation logistics costs and improve productivity in today’s intensely competitive environment. Transportation Management Consultants
CTL Staff Paul St.Germain Laura Walsh Ryan Verranault Executive Staff Department Managers Richard Haney Nick Cooney Karen Byron Erin Verranault Gregory Cooney Mary Niedzwieki Transportation Management Consultants
CTL Hierarchy Transportation Management Consultants
CTL History Transportation Management Consultants
What Does CTL have to Sell? A unique world class transportation management solution originally developed for GE Capital and their 600 companies that they owned or controlled Transportation Management Consultants
CTL's 4-Step Process Discounted Pricing Carrier Selection Freight Payment Management Reporting A Proven and Measured Approach Reduces Transportation Costs (between 8-15% or more) Optimizes choice for low cost carrier selection and service modes Improves Cash Flow (4-8% additional savings) Uses detailed analytics to ensure continued savings Transportation Management Consultants
Discounted Pricing Transportation is a commodity, and our consortium purchasing power allows CTL to negotiate prices that our Clients typically cannot obtain on their own. We contract with top-tier carriers. We manage over $150M in LTL Freight Domestically Results to Customer: 8-15% Reduction in Transportation Spend Improves Productivity by taking the time consuming negotiating process out of the process and allowing personnel to focus on other tasks at hand 1 Transportation Management Consultants
Carrier Selection CTL’s on-line TransRater optimizes carrier selection, transit times, and pricing. The easy-to-use software allows Clients to make the best shipping decisions and prioritizes low-cost and best service. Able to integrate to ERP and even further enhance cost savings and productivity. Results to Customer: Balances your Customer needs while providing cost reductions to your bottom line Improves productivity and simplifies the process by showing all options on one screen versus visiting multiple applications and websites to obtain data 1 2 TransRater Transportation Management Consultants
Freight Audit and Payment CTL’s 40-point, in-depth pre-payment audit captures information from carrier invoices, bills of lading, delivery receipts, an inspection reports; corrects errors; and processes and consolidates all freight bills into one easy-to-read weekly invoice for payment. Results to Customer: Saves an additional 4-8% savings in carrier errors alone Improves productivity by CTL capturing general ledger detail and cost center allocations 1 2 3 Transportation Management Consultants
Management Reporting The final stage of the process delivers actionable management reports, providing a real-time overview of transportation information specific to your operations. We believe if you can measure a cost, you can control it. Results to Customer: Provides timely and accurate transportation management performance reports Improves productivity by building a database that can ensure transportation compliance and highlight opportunities for additional savings 1 4 2 3 CapitalWorks Transportation Management Consultants
Cost Savings to Customer Hard Savings Soft Savings More informed customer services decisions Balance customer needs and costs Access to logistics expertise Comprehensive shipping data history Improved productivity Finance Operations Purchasing Customer Service • Lower rates - 8% - 15% • Reduced processing costs 80% • Audit Recovery 4% - 8% Transportation Management Consultants
Additional Services Transportation Management Consultants
How Does CTL Sell? Transportation Management Consultants
Decision Makers Best Worst Director of Logistics Transportation Manager Traffic Manager Warehouse Manager Purchasing Manager • CEO • President • CFO • Controller Caution • VP of Operations Caution Transportation Management Consultants
Chances of closing a deal with the following contacts… 1 in 1000 or 0 • Director of Logistics • Transportation Manager • Traffic Manager • Warehouse Manager • Purchasing Manager Transportation Management Consultants
Decision Makers and Qualifications Transportation Management Consultants
C-Level people get involved when: • The decision could impact a customer • Results have a significant financial impact • The decision effects multiple departments • It requires a vendor change • The decision could change their image in the marketplace or the community Transportation Management Consultants
C-Level Must Do’s Prospecting messages Less than 20 seconds Why How How Much How Soon • Be specific; no fluff, no maybe’s • Time specific for all deliverables • Never miss a delivery date • Don’t bruise their ego with questions they don’t have the answers to Transportation Management Consultants
C-Level Communication You: We reduce a company’s shipping costs 8 to 15% using $150 million in buying leverage in 30 days without changes in their operations or quality of service. Prospect: Hello, I’m Mr. CFO. What does your company do? • Message content – ALWAYS: • Clear • Concise • Compelling Mr. CFO, What other major expenses could you reduce by%% or $xxx in 60 days without investing a dime or changing your operations or quality of service? Transportation Management Consultants
Good Customer Profile Characteristics How to Prospect SalesLogix – Hoover database CTL leads References Trade associations Marketing Partners – Agile Client Referrals Private Equity • Annual Sales $10-$700 Million • Use Several Modes; LTL, TL, Parcel • Annual LTL Spend $150K-$10M • Freight is 5%-8% of COGS • Private 80% Public 20% • Manufacturer, Distributor, Ecommerce • Ships Nationally • Single or Multiple Locations • Does not have a logistics department • Limited logistics technology • Used a 3pl 25% - Not Used 75% • Their Savings Expectations 5-15% Transportation Management Consultants
Bad Customer Profile Characteristics What to avoid Food Manufacturing (fresh) Beverage Products Agriculture, Forestry, Fishing Mining Utilities Construction Selective Transportation and Warehousing Finance and Insurance Services Public Administration • Annual Sales > $10M or < $700M • Only ships Parcel or International or TL • Annual LTL Spend >$150K or <$10M • Ship within 1 state only or is all international • Has their own logistics department • Used 3pl 25% Not Used 75% • Their Savings Expectations < 15% in Hard number savings Transportation Management Consultants
Qualify C-Level Shipping Profile info Annual Spend LTL, TL, Parcel Current Carriers Terms – PPA, PP Current 3PL Provider Location Type Special Equipment Customer Type – Retail, Mfg, Whs • Are they interested in saving on logistics costs in the next 60 days? • What would be meaningful savings to them? • If we could meet their savings objectives would they consider doing business with CTL? Transportation Management Consultants
Red Flags • Reluctance to commit to “Sequence of Events” • Decision maker pushes you to a lower level • Uncertain about critical information • Information without an appointment • Resistance and delay in getting data • Buying influence new to the job • A new person is brought into the deal • Overly friendly buyer to unknown salesperson Transportation Management Consultants
How Do CTL Clients Benefit?& where to insert this in your presentation • Company Viability • Product/Services Fit • Support • Financial • Risk Transportation Management Consultants
Company Viability 13 Years of continuous growth and profitability Backing of a stabile Public Organization Management transportation experience Long term Client Loyalty Relationship with Carriers Transportation Management Consultants
Product/Services Fit • Complete integrated process for transportation management • Continued investment in new services to meet the needs of Clients • Customer needs drive the direction of new services • A proven process developed by GE to manage 600 operating units Transportation Management Consultants
Support • A dedicated Customer Service Team • Availability and response time • Depth of knowledge • Technology support tools Transportation Management Consultants
Financial • No up-front investment • No internal resource required • Savings start in 30 days • Actual savings measured monthly • Fees based on savings Transportation Management Consultants
Risk • No financial commitment • No change in operations • One year agreement • 30 days to implement • Rates protected by contracts with carriers Transportation Management Consultants
The Sequence of Events Sequence Why have a Sequence? Control vehicle for the sales cycle Pain, Reasons & Visions Bite size chunks – buyer feels in control Both Buyer and Seller in control-Win win Buyer accepts plan by changing Until buyer changes, they don’t own it Seller can stop early is buyer not on track with commitments Seller can close on the major steps Provides a measure of completion • Executive Overview • Operations Evaluation of CTL • Benefit Analysis & Agreement Review • Agreement Execution • Implementation Transportation Management Consultants
Executive Overview • Agenda for Meeting with C-Level: • An introduction to Capital Transportation Logistics • Review how our savings process helps another company • Learn more about your business and transportation management objectives • At the end of the meeting we can mutually agree on moving forward or not. • Is there anything you’d like to add. Transportation Management Consultants
What to Review in Executive Presentation • CTL Introduction • GE Story • 4 Part Process Review • CTL Website or PowerPoint • How we move forward • BA Example • Summary of Shipping Profile • Sequence of Events • Close Transportation Management Consultants
Be Prepared, __ __ __ __ Happens Ever had this happen? Or heard this? We need to shorten the time We can use my office Want to meet the traffic manager Thought Seymour would be interested I’ll need an extension cord You can use my computer Let’s get our IT person • Decision maker leaves after 10 minutes • People you don’t know show up • IT and the Firewall block • Conference room not available • Projector gone • Can’t Login • Unbearable internet speed Transportation Management Consultants
Why Prospects Don’t Move ForwardBefore the Benefit Analysis event Freight is not on their radar Not willing to switch carriers Can’t get anyone interested Happy with their current 3pl provider Freight is not a significant expense Not willing to provide bills for BA Overconfident that they have the best rates Service is more important than savings “We have some very unique shipping needs” “We don’t pay for freight, we bill our customers” Have had a bad experience with 3pls “Other studies showed no savings” Transportation Management Consultants
Benefit Analysis What is it? What do you need? Minimum of one month’s worth of freight bills All Locations Represent a typical month If bills can’t be provided a datafile will do Minimum requirements(origin, destination, class, weight, total paid, carrier used) A statistically accurate analysis of LTL shipments that demonstrates the savings from CTL’s lower rates Transportation Management Consultants
Benefit Analysis Meeting Agenda for Meeting : Shipping Profile Summary – Review to ensure they agree and it is correct before moving forward Benefit Analysis – Review entire study and end result savings to bottom line Summary of Savings & Fees – Review Executive Summary and how CTL is compensated Business Agreement – Review LOA and contract – leave with Transportation Management Consultants
Sample BA Transportation Management Consultants
Executive Summary Transportation Management Consultants
Why Prospects Don’t Move ForwardAfter the Benefit Analysis Event Wrong contact level The Salesperson has failed to sell management on the value. The Salesperson sold only rates and not the process The Salesperson did not get an if then upfront commitment. The Salesperson failed to sell the prospect’s organization The Salesperson did not react to Red Flag issues CTL rates were not competitive. Savings were not enough to consider changing Failure to negotiate a Win Win business agreement Transportation Management Consultants
Proposal process meeting Agenda for Meeting : Letter of Authority Agreement Review Agreement Preparation Transportation Management Consultants
Executive Summary Transportation Management Consultants
LOA – Letter of Authority Transportation Management Consultants
Once you have given the prospect what they can save and the agreement with the service details, fees and implementation costs, how much control do you have over the situation ? Transportation Management Consultants
ZIP! Does this sound familiar?? • How’s it going • Have you reviewed my proposal yet • Hang in there CTL • My boss has been really busy with his/her trip to Mars • Don’t worry • When did that happen, I’m shocked Transportation Management Consultants
CTL Clients Transportation Management Consultants
Case Studies Transportation Management Consultants
Stoneridge Customer Since 2009 Customer Demographics • Industry – Automobile Parts Manufacturer • Employees – 10,800 • 2011 Sales - $765.37 M Pain Points in 2009 • Current 3PL no solutions • No audit process • High costs Expedited & LTL Freight Audit Savings since becoming CTL client = $193,861.41 Transportation Management Consultants
MacDermid Customer Since 2003 Pain Points in 2003 • 3 Divisions & 14 offices • 25 different carriers • No audit process • No Visibility Customer Demographics • Industry –Chemical Manufacturer • Employees – 2,100 • 2011 Sales - $728.77 M Freight Audit Savings since becoming CTL client = $709,995.13 Transportation Management Consultants