CHICAGO—The trucking industry continues to evolve, with new regulations and operational models, along with recent challenges such as the COVID pandemic and a lingering freight downturn. But one thing hasn’t changed: the customer’s needs, explained Lynn Olson, senior director of supply chain and logistics at national women’s clothing retailer Maurices.
Providing a shipper’s view at the Carrier Logistics Inc. user conference here, Olson noted when she began her career in logistics 30 years ago, the TMS was a prototype developed by an air carrier, and Microsoft Windows was new.
“Now everything's automated, managed by AI, with self-driving vehicles, tractor locations, customer service chatbots, and we can all manage the drivers’ performance, with no more paper logbooks,” she said. “But what hasn't changed to me, the customer, is we still want all the things we ever wanted, but we want them faster and we want them cheaper.
“It comes down to three things: Can you service my needs? Is the service priced right? And do you bring the technology needed and expected for such services?”
While everyone knows the supply chain is built on relationships, those relationships have become harder to develop as traditional networking at local transportation club gatherings has been largely displaced by internet-enabled communications networks. But relationships remain crucial, Olson continued.
“Meeting your customer where they are in their journey is how you get a relationship to take root and blossom into a long-term partnership,” she said.
For Olson, service, price, and technology are the three legs of a successful partnership, and “if one of them is weak, the entire stool is unstable; getting the balance right is critical.”
What does the customer need?
The service aspect is based on a carrier’s understanding of the customer’s needs and being willing and able to adjust the service to meet those needs—and not expecting the customer to adjust to the service offered. Of course, it can be challenging to understand what a potential customer is genuinely looking for, but any sales pitch should at least show some effort to find out before that first phone call or email.
“Asking a customer to meet and say, ‘tell me about your company’—that's frustrating,” she said. “That basically tells me that you did little or no work to know who I was or who my company was before you came in the door.”
Complicating matters, sometimes that customer—or the person taking that first phone call—might not know what they need or can’t quite explain it. That’s where communication and “really listening” comes in.
“Get the customer talking; help them to problem solve with you,” Olson said. “It creates a great base for your relationship and teaches them points about your services and your industry, without making them feel—for lack of a better word—stupid. It's basic critical thinking, a skill that not everybody has but is well worth learning on both sides of the relationship.
“The way you engage with your customers matters just as much as the service you provide. Building trust through respect and patient engagement can create loyalty that will last for years.”
As an aside, Olson noted that very few women were in logistics when she began her career, but she still faces inappropriate comments.
“I've seen it and I've heard it all, and it doesn't bring you closer to connecting with your customer or make your statement cute,” she said forcefully. “It just shows disrespect.”
Case studies can be a good aid for showing a customer how the carrier has solved similar problems for other customers—but make sure those case studies are on point.
“Selling a customer something they don't need doesn't move the needle for anyone,” Olson said.
See also: Carrier Logistics expands air freight clientele with addition of Eagle Air Freight
Do the math on pricing
Once a carrier understands the customer’s needs and has services that will meet them, the discussion can turn to pricing.
“Pricing is always a significant consideration, no doubt, and it's important. Customers do have a budget,” Olson said. “But it is also important to recognize that customers aren't just looking for the cheapest option. What we're really looking for is value, service quality that justifies the price we're paying.”
Indeed, pricing that’s too low makes her “a little skeptical” and can often lead to underperformance and “hidden costs down the road,” she added.
And pricing needs to be transparent; partners need to articulate the value they bring to the table.
“If your rates are high because you offer superior on-time performance or specialized customer support, make that clear,” Olson said. “Explain why it's worth paying a little extra for peace of mind that comes with reliable, high-quality service—but explain the way that it pertains to the customer's business. Don't merely give them the marketing line that's on the slide deck.”
Carriers shouldn’t be shy about asking customers how they feel about the pricing levels being discussed because it’s another opportunity to ensure the needs and services align.
“Be direct. Be opinionated. Get the dialog moving,” she added. “Here's a key takeaway: Customers do look beyond the price tags. They evaluate the total cost of ownership; that's including service reliability, potential savings from efficiencies, and overall impact on their supply chain.
“Help them do the math. Generic ROIs are nice but usually are not accurate. Collaborate with the customer to understand the impact on their side. Obtain real data if you can, not just assumptions.”
Sometimes, however, the pricing simply won’t work with the customer’s budget.
“My biggest advice here is know when to walk away—but don't walk away for good,” Olson said. “You truly have a service that fits. You know there's value to this customer in your offering. Keep in touch. Walk away with a smile and kindness and agree when you should check in next. Things change all the time.”
Make sure technology is appropriate
Technology has become crucial in today's organizational landscape and is no longer a “nice to have” addition, as Olson explained her third leg of the stool.
“As a customer, I need to see what's happening with my shipments in real-time. I need correct billing. I need data analytics and systems that integrate seamlessly with our operations,” she said. “But, oftentimes, there are bells and whistles that are not needed. Recognize that and don't push something the customer doesn't care about. I can't tell you how many times I've had someone present a technology enhancement, and it doesn't really apply to my business—yet they continue to talk about it because that's what they were there to sell today. Don't do that. It's a great way to show your customer that you're not listening.”
However, if the carrier representative was paying attention and understands the customer’s needs, he or she should “push back” and explain why the technology is important.
The “biggest and most frustrating” aspect of technology is being told the new tool is plug-and-play, but the integration is much more complicated than advertised.
"Stop saying that. Never, ever in my career have I had a fast integration between systems,” Olson said. “Be reasonable with your promises. You can talk about the easier integration, but the one thing that slows down for such projects for any company is their own internal IT teams. The customer's project is their priority; it is not their IT team priority, and most of the time is not a business priority.
“The project list for it is never-ending, and the dollars are always scarce. Offer to talk to your customer’s IT teams. Come up with a fair and realistic integration plan; offer value for integration.”
Olson also noted that the LTL industry is “notorious” for billing errors—and taking forever to correct them.
“I understand there are uneducated shippers that don't know how to fill out a basic bill of lading or understand the difference between prepaid collect or third party billing, and why it is important on the BOL to have that right,” Olson said. “But tell me why, once that information is sorted out, does it take months and months to reverse the charge to someone else? Not to mention the calls and the letters you get threatening your firstborn if you don't pay them.”
Additionally, Olson doesn’t understand why—given the capabilities of modern telematics and tracking technologies—some carriers still can’t provide real-time updates on a shipment.
Finally, tying technology to pricing, Olson suggested that reporting is one area where she finds hidden costs in the sales cycle.
“Customers need to know what is included and what needs to be paid for regarding reporting and visibility,” she said. “I personally have been burned on this, partially because I wrote my own rule, and I did not ask clarifying questions—but it became an issue down the road and ended a 3PL relationship.”
Technology is not just about “bells and whistles,” Olson emphasized. Rather, it’s about providing “basic visibility, control, and efficiency.”
“It's about providing a connection from the customer to the carriers and from the customer to their customer,” she said. “It can be basic, it can be complicated—all based on the specific customer. Carriers that use technology effectively can offer a superior service that does differentiate them from a crowded field.”
Lasting relationships are win/wins
Wrapping up, Olson explained that shippers work too hard to bring a carrier on board for short-term propositions—and carriers shouldn’t even suggest a trial run.
“Building long-lasting relationships requires patience, integrity, and a commitment to mutual success,” she said. “It's not just about closing the sale; it's about forging partnerships that stand the test of time. It's about building relationships grounded in trust, responsiveness, and a shared commitment to success.
“Surprisingly, that has not changed in 30 years.”
