This is my third time experiencing a downturn as a business professional. The first time, I was a local branch manager of a freight forwarding company. The second time, in 2009, I led and managed a large regional team for the same company. Now, I own a consulting company helping logistics providers and shippers achieve their international business goals. While the supply chain landscape has changed over the years, business success factors remain the same. To move from survival to success, focus on the fundamentals – first and foremost, providing solutions to your customer’s needs.
In 2017 HBR conducted a time study of U.S. CEOs to determine what the CEOs spent their time on. Surprisingly, the average American CEO devoted only 3% of his time to customers. In my view, during an economic disruption at least half of executive time should be spent on marketing and sales efforts. While this ratio may not always be feasible, a hands-on CEO can drive growth by collaborating with clients at a high level and by being active with customer activities and strategies.
During the Great Recession one of my colleagues told every manager that his job was to get out of the office and speak to customers. This action was constructive in several ways: it focused management on constructive action; it highlighted that growth was everyone’s responsibility; it cemented customer relationships and it gave the company insights into market changes to which it needed to adapt.
Changes in consumer and client behavior may require that your customers adjust their business model. What are your customers telling you? What do they need to develop their future plans and strategies and how can you help them?
· Some clients may need to slow down their international activity due to reduced consumer demand. For these clients, focus on ways you can reduce costs and risk. For example, strip and store solutions, park and save, or deferred transportation service may be welcome. Develop the service and let everyone know what you offer!
· For items that are newly in demand, clients may need help eliminating bottlenecks and speeding up their supply chains.
· Sales channels and delivery methods may have changed. For example, many businesses have experienced increased demand for B2C service with last mile delivery or curbside pick-up service. If you can provide warehouse space in metro areas, let everyone know if you have space available and arrange for solutions in markets where you don’t have your own facilities.
· The trade war continues and with it the burden of extra duty expenses. Are your clients exploring sourcing from new countries? Could they use help with logistics planning, tariff exclusions or submitting duty drawback claims?
To drive growth now, focus on understanding and supporting your clients’ current needs. By communicating and collaborating with clients, you’ll be able to adapt your product or service to the new situation. With your focus on today, you’re also positioning your business for a strong future.
As always, we’re available to support your growth goals with opportunity assessments and targeted marketing plans. Let us know how we may help your international business rebound.
Kind regards,
Lauren Pittelli