By definition, accounts that qualify for
national account status within the supply chain environment are characterized by several common traits: a centralized,
coordinated purchasing organization with
multilocation purchasing influences, a complex buying process and a need for customized solutions.
Given the various special requirements,
unique demands and extensive demographics encompassing these large, complex
accounts, logistics professionals are increasingly introducing national account programs
within their organizations to better devote
their corporate resources toward serving
these valuable customers.
“These programs aim to help customers
simplify purchasing, streamline and improve
productivity, receive predicable competitive
pricing, and deliver supplier reliability,” says
John Hagi, director of national accounts for
AIT Worldwide Logistics. “Installing a comprehensive national account management
approach within a small to midsize business
environment requires financial investment,
long-term focus and multifunctional capabilities along with realignment of the sales
organization.”
Smart Business sat down with Hagi to discuss the risks and benefits associated with
implementing, maintaining and managing a
successful national account program within
a logistics organization.
How is the business relationship enhanced
when a customer becomes a national
account customer?
As the national account and supplier relationship develops, the extent of information
sharing across the organizations advances.
Once the relationship moves from that of
vendor to partnership, the supplier firm
enhances its knowledge of the national
account’s business environment, playing a
pivotal role in helping to meet the national
account’s goals. Customer-centric enhancements often include dedicated customer support, IT synchronization, top account status
and executive-level sponsorship.
The supplier will also often be driven by its
customer to develop new product offerings.
Simultaneously, the national account
secures better information on the supplier firm’s competencies and develops technologies to improve its own strategy development. In essence, developing this heightened
understanding leads to improved performance and optimization of operations for both
organizations.
Critical success factors for a national
account program include organizational
alignment, senior management commitment,
streamlined processes and systems for communications and information management,
selecting strategic accounts, account planning and rollout, relationship and program
metrics, and the potential to realize the benefits of a mutually profitable strategic account
relationship.
How can a national account program benefit
the entire logistics organization?
National accounts benefit the entire organization through increased revenue, leveraged
purchasing, product and IT development,
and overall general synergies across the
organization. Furthermore, skill development within the local sales organization is
often driven through team selling to national
accounts, resulting in a local sales force that sells with skill to both small companies and
larger, more diverse organizations.
It’s not unusual for a company to feel
bogged down or overwhelmed by the heavy
demands of a national account when there
are so many other ‘eggs in the basket,’ so to
speak. But as with any account, suppliers
must maintain a level of internal control as it
relates to the service demands of a customer.
This becomes even more critical when developing business with national accounts, as the
risk of failure increases when venturing into
unproven service or market segments.
Providers must stay true to their core while
also remaining open to venturing into new
sectors.
When tackling national account business,
how does the sales pitch and cycle have to
change?
The ‘sales pitch’ changes dynamically when
selling a national account program to a customer. First and foremost, the customer’s
purchasing behaviors are different, as the
sales take place at many levels and from
within multiple departments. The complexity
of the sale increases exponentially from a
contractual standpoint within the purchasing
organization to the end user at the shipping
level. This complexity is further compounded by local mores within a national account
as well as those of the supplier.
The sales effort must become a well-balanced act between local and national sales.
Companies must master the challenges of
adapting to this extended sales cycle and
degree of supply chain complexity while
identifying the individual incremental steps
necessary to close the sale and synchronizing
collective efforts on the local and national
level.
In today’s slowing economy, sales teams
must also be ultrafocused on value, not price.
Customers are increasingly being faced with
challenges affecting their business’s bottom
line, and the savvy salesperson identifies
opportunities to provide solutions that bring
real value to his or her customer without simply taking the ‘do more for less’ approach.
JOHN HAGI is director of national accounts for AIT Worldwide Logistics, Inc., headquartered in Itasca, Ill. Spanning numerous nationwide locations and an ever-increasing network of international partnerships, the global transportation and logistics provider delivers tailored solutions for a wide variety of vertical markets and industries. Reach him at [email protected] or (800) 669-4AIT (4248).
