Today’s business world requires frequent strategizing to keep up with the competition, including diversifying your client base. For England Logistics’ agents, this is particularly important.
Absolute reliance on one group of clients can quickly expose your book of business to vulnerability. Profit will likely fluctuate if your single client group suddenly withdraws. Similarly, a change in the market may impact your margin, pricing, and bottom line.
For these reasons, agents need to have a strong client diversification strategy.
Client diversification entails planning and implementing a client growth strategy, including expanding your clientele.
Client Base Diversification Strategies
Agents are agents because they are good at what they do. They are good at finding clients and growing their businesses. However, agents can target a specific product type and put all their industry eggs in one proverbial basket.
For example, if an agent finds success shipping potatoes, they may focus almost entirely on that product. Success is not a bad thing. However, much like investment portfolios, diversification is needed.
Agents should take the time to examine their book of business to find diversification to plan for market fluctuations.
For example, if the potato segment has issues, the agent who has zeroed in on that industry will find their entire business in a volatile situation. Perhaps the potato shipment clients slow down and become dormant. There must be a plan to keep bringing in revenue.
Agents should find diverse product segments to add to their book of business so that they don’t rely on the stability of a single industry. Research into product trends helps agents grow their businesses with a diverse and always active book of business. As agents diversify their client base, they must know the difference between seasonal (i.e., Christmas trees) and more ongoing industry diversification.
A crucial part of finding new and diverse clients is to conduct a mode assessment. A mode assessment is determining the best mode for shipment for that client. Examples of modes include full truckload (FTL), less-than-truckload (LTL), and parcel.
FTL will likely be the best option for clients needing to ship a large amount of product that could fill at least an entire truck. For shipping a pallet or less product, the agent will need to determine if it makes more sense for the new client to use LTL or parcel.
It’s also important to note that mode diversification matters. Agents need to consider using multiple modes of moving freight in case one of them is facing delays.
For example, agents should look into FTL or parcel if there is an issue finding freight capacity using LTL shipping. When agents diversify their freight transportation modes, they prevent the challenges associated with relying on one mode.
The supply chain in the United States is facing severe disruptions. The significant delays created by this situation should be an essential part of the business study for England Logistics’ agents.
Staying informed about the state of the supply chain in the United States will help agents as they seek to maintain, grow and diversify their book of business. Keeping tabs on market information and blogs coming from England Logistics can be a good place to start. Build out a base of reliable sources of industry information. Then, establish a daily or weekly routine to stay updated on major trends or potential disruptions that may impact your current and future clientele.
The England Logistics Freight Agent Program provides companies with information and tools to expand and allow them to manage their business. Backed by the England Logistics brand, participating agents enjoy increased market visibility and established business connections. Our dedicated team also delivers consistent support for day-to-day operations. This allows freight agents to expand their portfolio while being reinforced by a reliable team.