Transport – Logistics industry
The client is a global market leader of the international express and logistics industry.
Due to the clients size and complexity of their customer contracts experienced long processing time for both new and renegotiated contracts,furthermore their were no common repository of the signed contracts.
As new customers can not and will not ship with the client before a contract has been finalized and processed, this will in some cases lead to that the client is missing out on orders for up to six weeks before the contrat has been finalized and signed.
Peak Consulting Group performed a sales process analysis in order to automate workflows and increase visibility
Peak Consulting Group (Peak) interviewed key ressources across the client organization, the contract complexity and contract similarities as well as analyzed the interaction between sales department and the various number of product and ordering systems from which the products come from and in which the customers profiles are created in.
The order process’ main bottleneck was that a contract proposal is placed on a network drive for review by a number of departments, ranging from legal to operations, though not sufficiently orchestred.
- Peak helped identify the ’must have’ paragraphs of a standard contract, and a number of customer profiles that each has an agreed set of tolerances against them.
- Peak defined automated processes to support this as well as their interaction with the backend systems.
- Peak documented all of the above into RFP materials.
Peak helped builing the business case for the investment needed and the return on investment time (ROI).
Within the newly defined setup, then for a given client due the companys financial capacity and/or order history it can be matched to a profile, and thus the sales agent has a number of tolerance he can work within. In case the contract is kept within these defined tolerances for that specific profile, then the contract is automatically approved and stored electronically and can be sent to the client for final signature.
In case as contract fall outside tolerances the acceptance flow is followed, though automatic notification and automatic reminders in the the internal mail system, the relevant ressources will be prompted for action and the Head of the sales department can monitor the progress and status of all contracts across the department at all times.
The sales agent can always retreive old contract data, and the new contracts are automatically populated into the backend systems. This has two additional benefits: a) a sales agent does give his clients an additional discount based on wrong or missing information and b) data is not missing or wrongly entered.
The overall result was that the ordering process went from a worst case of six weeks to a worst case of one week, and in the best case contract signing could be in place within only a couple of days after the negotiations had taken place. The return of investment was calculated to only nine months.