TABLE OF CONTENTS
  • The Limitations of Generic Tools
  • Specific Challenges in the Logistics Industry
  • Why Specialized Technology is Essential
  • Building A Specialized CRM Tool from Scratch with Logistics Companies in Mind
  • Conclusion

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    Smooth logistics keep the world running, yet disruptions are inevitable. Generic tools not tailored to this industry's complexities can be a significant problem.

    Imagine your sales reps using their Excel spreadsheets to handle leads, clients, and sales. Your generic CRM crashes every time you input too much information. The result? A system struggling to keep pace with a dynamic industry.

    This is why your current technology needs to be updated every once in a while to accommodate your specific requirements.

    This article aims to explain how using a generic tool may not be enough to tackle the specific challenges of the logistics industry, and how it can affect your business. We will also discuss why choosing a specialized logistics tool can be beneficial.

    Let’s start with the limits of using generic tools.

    The Limitations of Generic Tools

    Although generic tools might seem like a quick fix for logistics companies, they lack the necessary features and can affect efficiency in the long run. These tools offer basic functionalities like lead management and data analysis. But when it comes to logistics, they leave you hanging.

    Moving goods across warehouses, departments, and carriers demands specialized systems like logistics CRM, Transportation Management Systems (TMS) or Warehouse Management Systems (WMS). Generic tools struggle to integrate with these existing systems, creating data silos.

    Imagine using a generic CRM alongside your WMS or TMS. It's like having a fragmented dance performance – your data is scattered, hindering a clear view of your operations.

    As a logistics service provider, you handle a variety of goods, each with unique requirements. Generic software, designed with a one-size-fits-all approach, can't address this. They even lack the flexibility to personalize communication or service offerings for your clients.

    Also, logistics thrives on real-time visibility. Generic tools often lack this crucial element, leaving you and your clients in the dark. That’s why your customers can get frustrated, resulting in a reactive approach to managing problems rather than being proactive.

    The limitations of generic tools translate into real-world problems. Data silos lead to delays and reduced efficiency. Limited visibility breeds customer frustration. The inability to adapt to diverse needs hinders your ability to compete.

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    Specific Challenges in the Logistics Industry

    The logistics industry presents unique challenges. With many moving parts involved in transportation, it can be difficult to find a technology that can handle the challenges below.

    1. Complexity of Services
      Logistics services are quite complex. They involve various processes such as transportation, warehousing, inventory management, customs clearance, and distribution. Communicating their value and benefits to potential clients can be challenging because of the multifaceted nature of the industry.
    2. Long Sales Cycles
      Sales cycles in logistics are complex and long, requiring patience, persistence, and strategy. Prioritize essential information, keep sentences short and direct, and avoid jargon, acronyms, and legal language. Use active voice to increase clarity and assign responsibility.
    3. Intense Competition
      To succeed in the logistics industry, businesses need to be innovative, offer customized solutions, and understand customer preferences. Addressing customer pain points is key to gaining a competitive edge.
    4. Price Sensitivity
      Clients in the logistics industry often prioritize cost efficiency, making them highly price-sensitive. Balancing competitive pricing while preserving profitability necessitates strategic pricing strategies, value-based selling approaches, and a thorough understanding of market dynamics and customer expectations
    5. Slow Quote Turnaround Time
      Delays in delivering quotes can hinder customer acquisition and retention in the logistics sector. Swift and competitive quote generation is essential to capitalize on opportunities promptly and maintain a competitive edge in securing shipments and retaining customer loyalty.
    6. Inability to Measure Team’s Performance
      Efficiently monitoring and evaluating sales team performance is crucial for refining strategies, setting goals, and optimizing operations. The lack of adequate resources and tools for performance measurement can hinder decision-making and impede progress in achieving sales targets and objectives.

    The logistics industry is complex, and relying on a one-size-fits-all technology solution can hinder your business growth. To thrive, investing in specialized technology is essential for effectively selling transportation services.

    Why Specialized Technology is Essential

    Specialized technology acts as the engine that propels your logistics operations forward. It offers distinct advantages over generic solutions:

    1. Tailored Features for Logistics Operations
      Imagine trying to fit a square peg into a round hole. That’s the same as using a non-specialized technology for a unique industry. Generic software might offer broad functionalities but often lacks the nuanced features crucial for logistics success. Specialized logistics technology is designed with your specific needs in mind.Features like:

      • Real-time Market and Historical Lane Rates
        A specialized logistics quoting tool optimizes pricing by leveraging real-time market rates, historical lane data, and customer-specific margins. This unique combination empowers you to win more deals and increase profitability.
      • Logistics Sales Reports
        A tailored tool can provide detailed logistics sales reports, including breakdowns of customer lane conversions, awarded lanes, and sales rep performance. Combined with traditional CRM analytics, these insights empower you to measure and enhance your sales team's effectiveness.
      • Logistics Sales Dashboard
        A specialized dashboard can give you comprehensive insights into your 3PL company's sales performance and operations. You can even analyze logistics-specific metrics like shipment volume, frequency, and client performance over any desired period.
    2. Seamless Logistics Integrations
      Logistics is a complex ecosystem with established, standardized processes. However, the industry is also constantly evolving with new technologies.Given this unique nature, a specialized logistics technology is designed to integrate seamlessly with various applications.For freight and analytics, specialized technology should effortlessly work with popular platforms like DAT, Truckstop, and truckloadrate.com. These platforms ensure that you have access to accurate market data and insights.Even though Google Maps can support shipping and delivery needs, it’s not meant for the logistics industry. A much better approach is to use applications that support truck-specific routing and mileage. PC*Miler, Mile Maker by Rand McNally, Prophesy Dispatch, and TomTom are some of your routing, mileage, and mapping solutions.

      You need systems working smoothly together to optimize efficiency in managing your loads, carriers, and drivers. This is where a TMS software solution that integrates with your logistics CRM comes in. LoadPlus, Mcleod, Tai Software, and Rose Rocket are popular TMS solutions choices.

      The seamless interplay between these technologies empowers transportation service providers like you to make informed decisions, reduce costs, and deliver exceptional service to your clients. Indeed, another way to stay competitive.

    3. Scalability to Meet Evolving Business Needs
      The logistics landscape is constantly changing. As your business grows, shipment volumes fluctuate, and customer demands shift, you need technology to keep up. Generic software often can’t adapt to these changes, making scaling your operations difficult.That’s where specialized logistics technology comes in. It’s built to grow with your business, ensuring you can handle new challenges and seize opportunities without being held back by outdated software. This means your technology evolves alongside you, keeping your operations efficient and responsive no matter what changes come your way.

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    Building A Specialized CRM Tool from Scratch with Logistics Companies in Mind

    For logistics companies, sifting through CRM tools can feel like a never-ending loop of frustration. You're bombarded with the same marketing messages, all of which say you can track your sales every step of the way. But the reality is that most CRMs just don't speak the language of logistics.

    Generic CRMs are one-size-fits-all solutions that lack specialized logistics features. They can't generate professional quotes efficiently or even create specific logistics reports. If you want custom-built solutions, it can get costly.

    This dilemma is precisely what Phil Magill, owner of Transportation Management Solutions, faced. He echoed a common sentiment: Try to find a CRM tool that is out-of-the box fully functional and meaningful for 3PLs. It doesn’t exist.

    The lack of specialized CRM options for logistics companies led to the creation of Supply Chain Relationship Management (SCRM). SCRM offers features specifically designed for your industry needs, which can help you:

    • Gain a clear view of your business with a comprehensive logistics dashboard that tracks awarded lanes, shipment frequency, and key client information.
    • Secure more business with a built-in quoting tool that allows you to generate professional quotes in minutes.
    • Make informed choices with powerful logistics reports that provide valuable insights into your sales performance.

     

    Conclusion

    Generic tools might seem enough for short-term use, but they just don't cut it when it comes to the logistics industry's unique needs. They lack the specialized features, real-time visibility, and integration capabilities necessary for smooth operations. This can lead to inefficiencies, slowdowns, and frustration for your team and customers.

    Specialized logistics technology, on the other hand, is designed to handle the industry's specific challenges. With tailored functionalities, seamless integrations, and the ability to scale with your business, it can transform your operations and boost your customer service.

    Investing in a specialized solution isn’t just about staying competitive—it's about driving growth and efficiency in your business. If you're ready to see the difference a specialized tool can make, it's time to take action. Schedule your demo now.

    Thank you for reading our article. For more educational content, you can explore all our blogs here. You can follow us on LinkedIn, Twitter, or Facebook to get supply chain industry trends and efficiency tips. If you have other inquiries or suggestions, do not hesitate to contact us through this link.

    ABOUT AUTHOR

    Hector Sunol Information Technology Expert

    Hector is IFS’s co-founder and CEO, with over 21 years of experience leading and managing companies and IT operations for large and mid-size businesses. Hector is also the co-founder and CEO of Cyzerg, a technology company specializing in innovating software solutions for warehouses and DCs. Before IFS and Cyzerg, Hector was senior director of technical operations, overseeing an e-commerce website with more than one million monthly transactions.