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The FCL NVO...
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Being around an industry for a certain longevity
helps to put things into perspective. It has been amazing to watch
companies come on the scene, boast, strut around, brag about this or
that, hire people and pay them exorbitant salaries, and then one day
watch them collapse under their own weight, only to resurface again like
a phoenix under another name with the same business model or ethic. So
what is it that enables some companies to survive and prosper,
withstanding the test of time; while others quite simply do not. From a
sales and marketing perspective it boils down to one thing - does your
company add value to the transaction and can they do it for a profit?
and this is the first thing to focus on when making a determination as to
whether a company can be successfully marketed.
In the current business environment, there is no doubt that the FCL
(full-container load) NVOCC (non-vessel operating common carrier) has
its place amongst the hierarchy. We would like to focus our attention on
these values - and in the meantime my competition can call to thank me
because undoubtedly they will benefit from this article also. That's ok,
its about what we give, not what we take.
Value #1: SSL has negotiated 34 carrier contracts, covering every
exit rail ramp, port and point in the USA to 531 destinations scattered
throughout the globe. Doing the math, that is over 10,000 port pairs.
The FCL NVO is not locked into the port pairs and routings serviced by
any one carrier. This allows us to offer multiple choices regarding
carrier, transit time, frequency of service, routings, port calls,
equipment availability, vessel space and other contingencies that I am
sure I am missing here. In a word, choice.
Value #2: we buffer our clients from having to deal with the slow
and painful customer service options thrust upon us by the vessel
operators as they struggle to bring themselves back into profitability.
This allows our clients to focus on servicing their clients rather than
managing the frustration of obtaining simple data. In a word, time.
Value #3: managing service contracts is a daunting task with the
constant and continuous barrage of contract updates, general rate
increases, service changes, global issues, surcharge fluctuations and
additions, and so on. The administration of this is a hidden cost that
many companies are not accounting for. The freakanomics of it all would
probably prove that the cost of administering service contracts cuts
into a significant amount of the overall profits of their ocean product,
not to mention the distress of missing a cost that would ultimately
cause a file to crash and burn. The FCL NVO has become quite adept at
managing this mountain of data. In a word, administration.
Value #4: rate retrieval has become the very core of how service
levels are being judged. The FCL NVO has proven to be relatively
fast at providing rate quotes, especially in relation to the vessel
operators, allowing our clients to get back to their clients much
quicker. Our sales travels have shown that the turnover speed of rate requests
has become the single most important factor in whether our clients will
score with their clients. Of course a competitive rate also carries a
lot of weight. The turnover speed on rate requests is relative to the
nature of the request, the work load of the customer service personnel,
the head count on any given day (i.e. sick leave, vacations, etc), the
status of the technology that helps to produce and communicate the
result, plus any other mitigating circumstances that our industry throws
our way. In a word, speed.
Value #5: the FCL NVO through the very nature of its contract
negotiations, can offer very competitive rates in most trade lanes,
especially those lanes where the volume of traffic allows a certain
economy of scale. In a word, competitive.
Value #6: compared to the alternatives, FCL NVOs can offer a
level of flexibility with their documentation that is unparalleled. Due
to the nature of how we process documents, we can be quicker, more
accurate, and more flexible with the specific documentation and rating
needs of our clients. In a word, flexibility.
Value #7: our sales and marketing personnel are much more
visible, approachable, and have a broader knowledge base having to deal
with 34 individual services rather than just 1 for instance. Our
customer service personnel are still approachable via phone for crucial
customer service instances. Due to the smaller nature of our
organizations containing far fewer levels of management, these same sales and customer service personnel are able
to action issues quicker and more accurately resulting in a more
satisfied client. In a word, approachable.
Value #8: we practice a trait known as terroir, we are
local and our tendency is to carry the unique flavor of our place of
origin. In other words, we are more attuned to our local environments
and the pluses and minuses of each. We realize the value of bonding with
our clients in order to form closer partnerships for success. In a word,
partners.
Just remember, without pain, there would be no motivation to change.
Pain, like necessity, is the mother of invention. I am sure the NVOCC
(consolidator) and its close brother the NVOCC (full container load
operator) have derived their existence from pain. Although there is
always room for improvement, the NVOCC has risen and has survived the
test of time. We at Sea Shipping Line will continue to put our best
effort into minimizing this pain. Thanks for your patience,
understanding, and loyal support.
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