November and December are traditionally stagnant months for us. This time of year, we do not make the gains that we see through the middle of the year. Last year, I wrote about not giving up, at this time of year, and making the effort to continue to grow. This year should be no different.
As GlobalTranz matures, we continue to receive more opportunities with Fortune 500 companies. We continue to improve the bid process and secure portions of organization’s transportation spend. We are bidding on LTL and FTL lanes that make sense for our companies to connect on.
Getting into the bidding process is fairly easy and most companies will allow 3PL’s to bid on their freight. Once you have recieved the bid, it is up to the pricing department for LTL, and Market Analysts for FTL, to figure out where that sweet spot is to connect. I know that when you look at a multi-million dollar spend, and we come back with the hopes of securing 5-10% of it, it seems discouraging. What you have to really look at is the opportunity to handle anything for a company. Then over-perform on that small piece of business for the entire year, while building the relationship. Last year was our first year bidding on FTL freight in this manner. We currently have four Fortune 500 companies we source equipment for. Two of these companies have a monthly “scorecard”. One has us at a 97.8% and the other 100%. We just completed the bid for one of these companies, even though we are handling less than 5% of their current busines. Because of our scorecard this year, they sent their logistics teams to our facility. We are expecting this customer, that is at $100K annually, to reach around $3MM next year.
Michael Bookout, Executive VP of Sales and Pricing, and I, are actively seeking bigger relationships, larger opportunities, and will assist in getting these customers on board.
Let us know if there is anything we can do to help you get in front of the bid season for next year. Happy Holidays!