Growth Strategy for a Third-Party Logistics (3PL) Provider
About The Organization
The Organization is a 3PL operating across many countries providing services on Global Logistics and Warehousing. Their operations are pretty stabilized with all the major infrastructure are company-owned. Only a few non-crucial operations and manpower are outsourced. The organization has a standard process across the board and also a well-developed ERP / WMS which is provided as part of the Service. They also have a seasoned global team with deep expertise in Logistics and Supply chain.
The Vision of the Organization is to have exponential growth and funds are not a concern. Even with great market presence and feedback with back up of funding, the organization is not able to spearhead growth.
OPPORTUNITY
Since the Business is at such a large scale, Dipstick Study is used to pick crucial lanes/functions to complete a gap analysis. Since the gap analysis did not yield any key opportunities, a benchmarking study is conducted, even that did not show any issues within the Organization validating. In fact, the Organization sets the benchmark at most of the Key Logistics Performance Indicators.
Finally, an exercise is conducted to capture the Voice of the Customer and a survey is floated to all the customers. The survey results yielded the biggest missing link which negatively impacted the Growth, and it is the Service Portfolio of the Organization.
SOLUTION
Tools Used:
- KANO Model
- Dipstick Study, Benchmarking & Voice of Customer
- KANO Model is built by completing primary and secondary market research. KANO is done specifically to Sector as well as the Product Categories.
- The Service Portfolio and the KANO are mapped side by side and compared; that surfaced all the missed opportunities.
- Two Prong Growth Strategy is defined –
(1) Digitalization enabling Growth
(2) Refreshed Service Portfolio aligned with KANO Model to Upsell and for potential New Businesses
RESULTS
After a 3 Months project and stabilization
- Growth Rate has Improved by 48% (this was only possible by the extensive network and current brand value as perceived by the customers)
- Business growth of 23% from existing client accounts
- 25% of the New Clients are previously Lost Deals
