The close of an exercise has arrived, and has it met the estimations made? How has the commercial team performed? Has the freight budget been met? Then it is suddenly time to prepare for the upcoming business year.
Each closing and opening of the year repeats the same themes. Preparation of calculations, balance sheets, department meetings, management meetings, the business outlay, what bills have amounted, pending sales and then, to prepare a freight budget for the next financial year.
In relation to the annual budget and the commercial strategy of a freight forwarder, of whatever size, we are going to see how an automatic pricing system can contribute to our finances and freight budget in a positive way. We will also see how our habits will be greatly improved.
Reduce the burden of work on the commercial team
The expenses of a commercial team in a freight company are very high. They are estimated to be at around 40-55% of the total outgoing costs. However, is it accurate? Do the commercial team have enough time to take value added commercial actions, including bettering contact with clients, dedicating time to making visits, obtaining new clients and concentrating themselves on new business leads? Often our commercial team only ´pick at´ certain offers.
To implement an automatic system will reduce the ´picking at´ time to 0. We can keep the updated rates in the system as we get them from our providers (airlines, shipping companies, and transport companies). Therefore, the effort to make 1 or 10,000 offers is the same. Even without considering the incorporation of new trade, we have the capacity to increase our sales exponentially.
Now it is time to capitalise on our great commercial team. It is only a question of using the correct technological tools that are available in our sector at a reasonable cost.
Increase sales, without investment
Again, the automation of our pricing system will allow us to sell more:
- We will have a greater capacity for quotations, which means more chances of getting confirmed sales.
- We will be quicker at pricing, which ensures greater success during the sales process.
- To automate will also allow us to improve our organisation of offers, clients, previous sales, and being able to make targeted campaigns. For example, we can sell new services to existing clients.
- An innovative and efficient pricing system can attract new clients, as well as affirming existing client relationships.
- Moreover, we can share rates with our agents, converting them into long-term partners.
Let´s not forget that our commercial team has more time and information available to plan high value added actions at a commercial and operative level. They can take the relationship with our clients to the next level. We need to focus our efforts on them. Ensuring that the freight budget is on track and also maximising sales is key to our market, so let´s invest in our future today.
For more information regarding automatic pricing systems for freight forwarders, please visit or contact Freightalia.