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Kevin Zwolinski
LOGISTICS CONSULTANTS FORUMIMHX
17 November 2010
Summary
• The Current Marketplace
• Opportunities & Threats
• Growth?
• The Future
The Current Market Place (1)
• Our Industry has been under pressure for some time, and is likely to continue for some time, just like the national economy
• The need for external service providers remains– Public sector is a good example– But……….
• No money available• Budgets have been cut• Precedents have been set to stop or minimise spend• Consultancy is seen as discretionary spend• Veto on the use of Consultants
We can safely conclude that this isn’t a great market at the momentand it is appropriate to look a bit deeper into this
The Current Market Place(2)
So what’s the good news?• The International situation contains both good news and not so
goods news– US influences our economy and waves there generally appear
here one phase after– Asia Pacific is a strong and growing economy, but a slower impact
on UK markets
– Europe contains a mix of fortunes and is less stable than we would like
• Not too much out there worse than UK in relevant markets, so we should put this in context
• Remember, Logistics Consultants are mostly niche players and niche can be a great place to be, or not so great…..
The UK “double dip” may well become reality and it’s probably what we should plan for but there is so much that we simply cannot influence
Supplier Profile – Logistics Consultants UK
There are vast numbers of OMB’s / individuals in the UKand many players from Europe and farther afield in this market
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Size of Organisation
Number of Organisations
1 - 2
3 - 5
<20
100+
OMB’s, Contractors & Interims
Small Co
Medium Players
Large Players
Global Consulting Firms
Trend Interpretation
An economic trend line will provide valuable information at a Macro level, but how should we interpret these?
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Trend Detail
The same data can record extreme highs and lows at the same time thatthe overall trend (and the Media pivot) shows quite different results
The niche players experience exactly these high & lows
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Trend Detail – Where are you?
The Logistics Consultant experiences exactly these high & lows“In the Black” = The Opportunity
Or “In the Red” = The Threat
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How to Break Out?
In addition to looking outside at data, trends and lots of other things thatyou cannot influence, take a look at what you can influence
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• Planning in this business is extremely difficult
• “Feast or Famine”
• There aren’t many reliable sources of data so you have make the best of what you have, and what you know
• Are there links between Marketing spend & Revenue?
• What can you do to secure your position in this Market
Key attributes of Value in a Consulting Business
1. Sales & Profit Growth – consistent growth recorded?
2. Sales & Marketing Process – Planning / Forecast Ability?
3. Market Positioning – Wow factor? / Uniqueness?
4. Management Quality – Leadership & ability to develop
5. Client Relationships – low attrition? CRM?
6. Quality of Fee Income – Long term contracts / bad debts?
7. Intellectual Property – is it safeguarded?
8. Loyalty of Team – who’s going to walk?
Source: Equiteq Growth Accelerator
The key Question is “How do these Attributes & their measuresapply to my Business?” or perhaps “Do they apply?”
Value Added vs Sustainability of your Business
Source: Equiteq Growth Accelerator
Arguably there is a direct correlation between Value Added of services delivered to clients and the Sustainability of your Business
ValueAdded
Sustainability of your Business
Unique skills in “Hot demand”
Organised to “Look around the next corner”
$ $ $
Where are you on the Matrix?
Customer Demand
Level of Current Skills
1. Recognise where you are on the Matrix2. Figure out where you want to be3. Plan what you need to do to get there
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Where are you on the Matrix?
Customer Demand
Deemed a commodity• price sensitive• competitive bids• costly sales process• interim role?
Level of Current Skills
“They like me but they don’t need my skills any more”• stayed too long• new systems &Processes• New Organisation
• Too far ahead of the Market?• Too much of a niche• Nobody knows you are “Out There”
When you are at the top there’s only one directionyou can move, so:• Keep training up to date• Work “On” your Business• Work at it
1. Recognise where you are on the Matrix2. Figure out where you want to be3. Plan what you need to do to get there
When you are at the top there’s only one directionyou can move, so:• Keep training up to date• Work “On” your Business• Work at it
Where are you on the Matrix?
Customer Demand
Deemed a commodity• price sensitive• competitive bids• costly sales process• interim role?
Level of Current Skills
“They like me but they don’t need my skills any more”• stayed too long• new systems &Processes• New Organisation
• Too far ahead of the Market?•Too much of a niche• Nobody knows you are “Out There”
Client Businesses do not stand still, neither should yours.Work out what you need to do to get into that Top Right segment
Talk to Customers &Prospects, find out what they need:• Research those areas• Offer solutions
•Marketing to raiseAwareness•Try things and move on, then trysomething else!
• Training, The “Right” projects, awareness• Deepen knowledge & manage it• Get the right people around you• COLLABORATE !
Growth Opportunities & Scale
How we spend our time will determine where we are on the MatrixBut it will also be influenced by how we are organised
DeliveryInvest in Training / Research
Adminetc
SelfMktg &
NetworksCa 20+
Delivery, as much as possible“One Man Band”
Delivery3 – 5 TeamInvest in Training / Research
Adminetc
SelfMktg &
Networks
A larger “team” can achieve a better balance of Time utilisation that provides an improved chance of achieving that Top Right Hand segment
100%
90%
70 / 80%
60%
In Summary
• The Market is tough, and may well remain so for some time
• There is always a place for a niche player, sometimes a great place, sometimes not
• Know what the key Value Attributes are of your offer– Don’t let them stagnate
– Work on your Value Proposition
• Where are you on the matrix– Are you where you want to be?– Honestly?– Decide what you can do about it
• Formally or informally, how are you organised? • Collaboration isn’t a bad place to start…..
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Questions??
Kevin ZwolinskiClick On Logistics Ltd (Banbury)
01295 81765407968 027939
