By John Golob, Winmore CMO and Founder

May 28, 2020

Rarely does a business have the opportunity to launch a new product that provides an exponential value proposition.  But what is an exponential value proposition?

A radiologist purchases a state of the art CAT scanner which processes images faster and at greater resolution.  However, the value the new scanner adds to the radiologist’s practice pales in comparison to the exponential benefit the patients receive: it can save their lives.

An exponential value proposition.

We recently launched Customer Solution On-boarding software which enjoys a similarly geometric progression of value as it translates from our customers, freight forwarders and contract logistics firms, to their customers: the manufacturers, retailers and shippers that award them complex and expensive logistics contracts.

Let me break it down. 

When a logistics service provider (LSP) wins a major contract, it faces two significant threats: the hand-off from commercial to operations and the risk of scope creep. 

Changes in staffing at the LSP and their customer can result in misunderstanding, confusion, and uncertainty. Penske’s State of Logistics Report concluded that 42% of shippers believe there’s room for improvement in the coordination of hand-offs between sales and operations. Thus, the LSP must ensure that the information, insight, and context from the RFP and tender process hands off smoothly from the commercial organization to the operational team.

As the logistics company begins the on-boarding process, it faces the second risk: scope creep. This phenomenon tends to happen when changes in personnel or incomplete solution design causes unanticipated requirements and miscommunication.

Uncoordinated information hand-offs and scope creep can erode the operating margin of a customer contract and turn a money-generating initiative into a margin-leaking fiasco—especially since the manufacturer, retailer or shipper often counts on making cost reductions when the logistics implementation goes live.

That’s where we help.  

From the outset, we reduce the risk of scope creep by giving our customers (contract logistics firms and freight forwarders) end-to-end process visibility, project timelines to manage resources, and collaboration feeds to keep everyone informed. Our software powers their RFP and Tender teams and gives them insight, institutional knowledge, and context from the first set of requirements. All of which smooths the hand-off of data from commercial to operational teams.

More importantly, our software accelerates the time-to-value of implementation which helps our customers bring their customers (the manufacturer, retailers, and shippers) live sooner.  By compressing this timeline, our customers recognize revenue sooner, earn more operating margin, and delight their customers in the process.

So how does our software provide the manufacturers, retailers, and shippers with the exponential impact? Given that most logistics projects realign FTE’s into more meaningful roles, the manufacturers, retailers, and shippers enjoy the cost reductions and productivity gains much sooner than freight forwarders and contract logistics firms.

To illustrate: a retailer contracts a logistics firm to bring a new division live on its service in 120 days. The retailer will reassign 50 FTEs when the project goes live and thus save themselves $3.2M.  The logistics firm uses Winmore’s RFP & Tender Collaboration to scope and price the contract and Winmore to manage the customer solution on-boarding.  As a result, information hands off smoothly from commercial to operations with minimal scope creep. The project proves to be so successful that the logistics firm brings the retailer live in 90 days. The LSP recognizes the revenue 30 days sooner. In turn, the retailer can execute its cost reduction initiative 30 days sooner, resulting in a $300K lift to its operating margin. The LSP’s CFO delights. Its CEO raptures. Investors clamor for more shares. 

Bringing our Customer Solution On-boarding solution to market is a win for the LSP and an exponential win for their customers.  That’s a win + (win x win).

– John     [email protected]