Our Work – Strategic Solutions
B2B Customer Segmentation Strategy
The Strategic Challenge
In 2008, senior executives at a top 25 3PL were concerned their long established business strategy was becoming obsolete. The executives realized powerful external marketplace changes – a frenzy of U.S. corporate mergers and acquisitions; increased supplier consolidation; and much larger multi-national competitors – threatened their firm’s future viability.
Their New Business/Prospect pipelines were empty.
Logistics industry research indicated 2/3’s of all logistic customers intended to consolidate their roster of 3PL suppliers.
Client was concerned that in an increasingly global economy, multi-national logistics competitors would be preferred over a primarilty U.S. domestic 3PL provider.
Corporate mergers and consolidation were transforming the character of their customer base. In rapid succession:
P&G had acquired Gillette (2005)
Johnson & Johnson has acquired Pfizer Consumer Brands (2006)
Nestle had acquired Gerber (2007)
M&M Mars had acquired Wrigley (2008)
And the corporate mergers/customer consolidation trends have continued
The Solution
Stricter evaluation of long term customer profitability.
More rigorous new business prospect segmentation and targeting.
Increased emphasis on generating new business from profitable current customers.
New focus on identifying points in corporate business cycle when prospects would be most receptive to new 3PL solutions.
Emphasize client’s many “last mile” strengths vs. their larger, multinational competitors:
Superior Service;
Agility and responsiveness;
Greater flexibility; and
Local market expertise.
Results
- Record revenues and profits in 2009 and 2010
- Client Emerged as a forward thinking, 21st century 3PL.
- Acquired in late 2018 by CJ Logistics.
