Horizons logo

The thought leadership division of Huthwaite International

Your destination for latest thinking on sales, negotiation and communication insights
Brought to you by Huthwaite's global thought leaders and industry experts

Filter Content
  • All content types

    Content Type

    Click search or add more filters

  • All topics

    Topic

    Click search or add more filters

  • All industries

    Industry

    Click search or add more filters

  • Back to Horizons Home

Smart intermediate players are set to strengthen the Logistics supply chain

As the ever-changing logistics industry continues to transform, one of the major changes emerging is the scope for intermediate players.  Increasingly large companies’ ‘one size fits all’ approach struggles with local presence.  Anna Home, Client Director at Huthwaite International, considers how the impact of a rise of local logistics will benefit the sector, enabling local and niche markets to be reached. 

Large and small

“Big logistics companies often have issues with local presence, their one-size-fits-all approach sometimes can’t make use of local optimisations or contacts that would be known to local players. Consequently, they often use resellers to reach local or niche markets. During sales and negotiation discussions with each other, large companies can sell their access to global services and well- established household brands, while smaller companies can leverage their local presence. When executed well, it’s a two-sided, mutually beneficial discussion.

End-to-end service

“Due to the rise of micro-enterprises we may see the emergence of intermediate logistics companies, these intermediates can deal equally well with individuals who supply products or local distribution, as they can with the larger companies who want access to the micro-enterprises themselves. By leveraging intermediates of this type, large logistics companies can offer a true end-to-end service. There’s much to gain commercially, and competitively if the deal is right.”

Being set to strengthen the logistics supply chain

“When it comes to selling and negotiating, a prominent concern for intermediate logistics businesses will be in preventing companies from bypassing them by dealing direct with the micro-enterprises in question. Although their role will be valuable, care will be needed to create deals that work for all parties without greed or force. Each party will be aware of their own value, unique offerings, strengths and weaknesses, but only those with sharp sales and negotiation skills will leverage them fully and strengthen the logistics supply chain. Large companies will also want the ability offered by intermediates to enter local markets, and can offer access to global services in reciprocation. But underpinning all of this is a mismatch of cultures - geographic, industrial and corporate. The business potential is huge but this will be no landscape for average performers. Those trained in multicultural selling and negotiating will win out over those who aren’t.

“New deals, new terms - many large companies have terms and conditions that aren’t applicable to a smaller client or supplier. The smaller players skilled in selling and negotiating will have the confidence to leave familiar ground by refusing standard terms and negotiating deals instead based on scope of project.”

If you want to hear more about how Huthwaite International can help your sales team increase business revenue, contact enquiries@huthwaite.co.uk

Related download
Improve your Corporate Negotiation Performance 

Download our benchmark study of some of the world’s largest organisations. Discover their top ten factors for negotiation success. This report is important reading for anyone evaluating their company's negotiation capability and / or considering a skills improvement programme.

Download
Further reading

 E-Commerce – compelling opportunities for smaller logistics companies
By Tony Hughes | November 13, 2017

How to position IT security software as part of your client’s positive overall digital strategy
By David Freedman | June 29, 2016

How great commercial skills can help logistics players ride environmental levies
By Tony Hughes | November 22, 2017