In the logistics industry, growth and market share are notoriously hard-fought between competitors and in 2022, it became apparent that members of UK pallet networks were facing challenges to win new business and continue to grow within the market.
To succeed in the logistics sector, commercial ingenuity is imperative, so the Pall-Ex Group’s Commercial Department introduced a strategy to improve the commercial support on offer to members and provide businesses with the tools and support needed to increase profits.
In December 2022, twenty members received a thorough commercial review of every aspect of their business and were given an insight into the commercial support that Pall-Ex Group offered.
Following the feedback from the initial commercial reviews, an 18-month action plan was implemented with the ambition that all of Pall-Ex Group's 130+ members would receive a full commercial review with the main objectives being increasing network volumes and improving overall business performance.
The Member Commercial Programme was supported on a wider scale by team members from the Marketing, Analytics, Recruitment and Network departments to provide a comprehensive solution to the issues faced.
This included recruiting Business Development Managers to sell on behalf of members, utilising an external sales training platform, introducing a Customer Relationship Management (CRM) system and improving commercial visibility through an analytics platform.
Sales
The recruitment of six Pall-Ex Group regional Business Development Managers allowed members, without dedicated sales personnel, the tools and resources needed to secure new customers and increase member volumes network-wide.
Martin Halliday, Commercial Director of FreightForce, comments on how beneficial the support has been for his business, “The support from the BDM team has been invaluable over the last year. Having access to industry knowledge and commercial acumen has given us the right support without having to invest into our own dedicated resource.”
Training and Analytics
Providing members with the tools to be able to succeed and transform their business was a key objective when creating the Member Commercial Programme. This objective was supported through a partnership with the Sandler Training Academy, to provide a bespoke sales education to every member at no extra cost.
Alongside offering sales training, Pall-Ex Group also implemented ‘the commercial suite’ – an automated KPI and reporting system where members can access vital business data, including customer rates, margins and profitability.
Marketing
To improve lead generation opportunities for members, the Pall-Ex Group marketing team integrated HubSpot, a CRM system, to allow prospects to be identified and provided with bespoke marketing materials.
A library of marketing E-shots, highlighting the key services available to customers, was created and sent out via HubSpot, helping members to attract new customers and view engagement analytics. Since launching, over 80,000 E-shots have been sent out and there are now thousands of prospects active on the system. Currently, 64% of members have been enrolled onto HubSpot, exceeding the rollout forecast by 14%.
Pall-Ex Groups marketing team also provided members with social media and website support to grow brand awareness, with one member acquiring 18 new accounts from increased LinkedIn exposure as a result of receiving a social media strategy and content from Pall-Ex Group.
Commercial Review
Since beginning over two years ago, all of Pall-Ex Group’s 130+ members have undertaken or been offered a commercial review, receiving a rates and pricing evaluation, training on Nexus to obtain key data, mystery shopper calls, a full competitor analysis and a full website and social media review.
The reviews aim to analyse the commerciality of members and highlight key areas where improvements could be made. Members are given feedback and areas to work on and re-evaluated after six months to assess the improvements.
Long-standing shareholder member Cartwright Bros Haulage has received two commercial reviews since the programme began and Mark Neave, Business Development Manager, reflects on the improvements the business has experienced since: “The commercial team provided us with detailed analysis and advice on how to improve our current processes. Following this advice, we have seen huge success with the number of sales leads and enquiries which have progressed into long-term business relationships.”
Results
The results of the Member Commercial Programme have surpassed all expectations, with businesses gaining the confidence and knowledge needed to drive sales and see tangible benefits to their commercial viability.
The success of the programme lies in its comprehensive approach, addressing multiple facets crucial to member success. It is always important to ensure that members not only survive but thrive in an extremely competitive market.
Within the last 18 months, the entire network has benefitted from an influx of new customers, with additional member pallets being brought into the network, leading to increasing profits per member. Looking to the future, Pall-Ex Group will continue to invest profits int o further enhancing the support provided.
Michelle Naylor, Commercial Director at Pall-Ex Group, comments on the initiative: “Commercial success is at the forefront of the network's priorities and the Member Commercial Programme has ensured we have given our members the tools and knowledge needed to thrive in a challenging sector.
I am confident that the Member Commercial Programme will continue to transform businesses within the network and foster continued growth for our members, cementing Pall-Ex Group’s position as a market-leading network.”