Category: Latest News

Two Ears, One Mouth & Ever-Changing Expectations

Is it just us, or does technology make it easier to work out what we want, and yet seemingly harder to get it? Okay, it’s easy to order, but if we could just talk to someone… From the suppliers’ point of view, is technology giving a little dangerous knowledge to more and more confused buyers?

Salespeople across the world are seeing increased involvement from different generations getting involved in purchasing decisions for businesses.

As different departments and levels of seniority get involved in purchasing decisions, it’s fair to say that so too do a wider range of purchasing motivators.

A recent global survey conducted by TACK International, covering over 630 respondents in 31 countries, concluded that 91% of customers looked for new suppliers of one form or another in the last 12 months.

This may speak volumes on the opportunities that exist for hungry new sales teams, but it should also reinforce the importance of continuing to provide the service our present clients expect in order to retain their business.

One reason customers are looking for new suppliers is for fresh ideas and solutions, and although it may not be entirely due to this, the rise in people that fall into the Generation Y bracket (born between 1981 and mid 1990s) may have influenced a drive in innovation.

Why Generation Y?

With 18% of the survey respondents being in the 21-33 age bracket, it’s clear that Generation Y is having an increased amount of influence on purchasing decisions, which brings a need for salespeople to develop new ways of working to allow for a wider variation of buying behaviours.

You might expect that preferred methods of communication would shift to more social channels, however the death knell of email has been rung before, yet half of customers still prefer to be contacted that way. The majority of the other half favour phone calls.

Although customers might not want to be contacted through social media channels, salespeople should be utilising the platforms as a source of information. Channels such as LinkedIn and Twitter can provide extensive information on a company, and sales teams should be taking advantage of this free information during their research on potential purchasers before making contact.

When asked how good salespeople are at questioning to assess needs, 63% of respondents answered fair or poor.

Even more revealing, over half of customers think they aren’t getting what they need, surely increasing the chance of them looking for a new supplier again.

Not a great surprise then that business customers feel they aren’t being listened to, and salespeople tend to talk about their own services rather than ask about the purchasing company’s needs.

If sales teams were to adopt a two ears, one mouth approach, prioritising the needs of the customer and making recommendations based on those requirements, both sides of the fence are likely to see an advantage.

“Anyway, enough about you, here’s more great things about me/our products. They’re great, you’ll love them, sorry, what was it you wanted again?”

Retaining brand reputation

This approach shouldn’t be reserved just for potential new customers though, keeping long term customers happy is vital for maintaining and improving brand reputation.

Suppliers that do not truly understand customer needs run the risk of damaging their reputation by not delivering solutions that match the requirement.

If word gets out that a client feels under-serviced, it increases the chances of potential new clients choosing a different supplier with a more polished reputation. And lo and behold, that’s where social media users excel, telling the world about poor service experiences!

Sales teams that succeed develop their questioning and listening skills to correspond with a new generation of buyers, as well as check they are still meeting the requirements of their existing client-base.

With social and digital media so readily available on most companies, salespeople have the resources to adjust their approach in order to provide a more bespoke service, keeping customers new and old happy.

VIP Computers, based in Warrington, is one of Britain’s largest independent distributors of computer hardware.

An award-winning authorised distributor for some of the biggest names in electronics, the company began in 1990 when husband and wife team, Jatti and Avneet Sahni, moved to the area from Kuwait.

Building the company from the ground up, the Sahnis now oversee a group with over £225m in sales, supplying PC components and peripherals in the UK and beyond.

Consistent growth and strategic acquisitions and mergers helped it to expand considerably, with businesses in the US, Europe, plus the Far and Middle East; its own ‘Zoostorm’ brand and a strong reputation in education and the public sector. In addition to its distribution ties with Microsoft, Asus, AMD and Nvidia, the company also owns system builders CMS and Ergo.

The Warrington site is the group head office and 72,000 sq ft distribution and picking centre. With numerous local and national business awards, recognition in the Sunday Times Top Track 250 list and a strong, stable workforce, the reputation as a leading employer is clearly deserved.

Mike Taylor, VIP group finance director is responsible for all logistics and fulfilment activities. “The strategic decisions we take and ongoing investments are focused to achieve growth plans for the long term,” says Mike. Another mainstay of the business is Rob Buchan, operations manager and the man charged with keeping the distribution side ticking over.
Maximising the Cube

“My aim is twofold,” says Rob, “maximise the pallet storage and save money for the company.” Responsiveness is clearly important too. As Rob explains, most work is completed on a 24hr cycle. “When we start at 6am, our order book is empty. We receive orders within the day and those are typically picked and dispatched by the same evening. We have some longer-term orders, where PCs are being built to order, but generally we are starting from scratch each day.”

Computer components also come in all shapes and sizes, which makes a variety of storage options a necessity. “Monitors are getting larger, but thinner, but PCs are getting much smaller. The latest are not much bigger than a mobile phone. We have areas where we need full pallet storage, but also where fast moving small items are picked. We need the flexibility to rotate products quickly, as anything over 90 days is considered aged stock.”

Strong seasonal demands meant VIP needed external 3PL support from October to January each year. With 2,500 pallet locations in the main building, the decision was taken to expand (‘next door’ as Rob puts it), with a brand new £1.6 million warehouse adding another 5,000 locations. The new extension allowed Rob to also extend the ethos of mixed storage and picking, adding 10m high racking, enough to stack five high pallet loads, served by four Magaziner Kombi very narrow aisle turret trucks, otherwise known as man-up order pickers. Carrylift’s Geoff Pearson believes the equipment provides the best option, as well as a high degree of reliability.

Says Geoff: “The Magaziners are a very well-engineered piece of kit. Since the operator rides up with the load to the storage location, he gets a great view of the load and its rack destination. The operators are safe within the machine and the height allows the bottom section of the aisles to have live storage or part-pallets for faster item picking.”

“It is a technical type of kit,” adds Rob. “It’s been upgraded but our operators are familiar with it, and the equipment we’ve had from Carrylift has always been up to the job. We get a great service and the occasional pastry from Geoff, and the technical support from Steve Topping is excellent.”

Delivered on time and on budget, the bespoke equipment is now busily replenishing those ground level mixed picking areas.

Two TCM four-wheel electric counterbalance and seven powered pallet trucks, all in company colours, make up the rest of the fleet, which in turn is complemented by an unusual piece of equipment to add fast flexibility.

“We purchased a batch of shopping trolleys,” says Rob. “We are not afraid to spend thousands on the big equipment if it does the job, but these also do a great job for us!”

Amazon Partners
A special storage section contains higher value items whilst a wider aisle provides a flow lane and is used by resident pickers from Amazon.

We are a flagship partner with Amazon, and work very closely with them. They have staff here which pick directly from our shelves, and have their own packing and dispatch area,” adds Rob. “It changed our landscape overnight. It’s a great collaboration as it cuts down massively on double handling and the result is a faster and more efficient service for the customer.” As the only Amazon Flex distributor with the facility on-site, VIP benefit from a cut in lead time by about ten days, whilst Amazon only take the stock when they need it, rather than hold it for two weeks or longer.

“Our business with Amazon is growing,” commented Mike Taylor, “not just because of this, but a big part of this is the relationship.”

In addition to the online giant, VIP also count Argos, Tesco, John Lewis and of course direct buyers, amongst their customers.

Keeping control of the operation, from containers arriving from Asia, through to storing and sorting, with replenishment, picking and finally dispatching, gives Rob a close connection with all aspects of the business.

Despite the need for flexibility, the pressures to get product out the door and the variety of work taking place under one roof, he manages to maintain an air of calm. “We see positives everywhere. The pace of change is fast, and you would not recognise it here just five years ago, which is a sign of our fantastic progress. It is great to be part of a successful team, and to have support from Carrylift that can be always relied upon.”

A new local business has received factory seal of approval for the provision of new Mitsubishi forklift trucks.

Endeavour forklifts, based in Aldwarke, Rotherham is a provider of service, parts, sales and hire for the region’s forklift users. Founded by Rotherham-born, Jason Reynolds, the business was created specifically for exclusive distribution rights to Mitsubishi forklifts in South and West Yorkshire.

A former director of a national forklift supplier, Jason has previously worked with some of the country’s largest forklift users and says the Yorkshire area has missed out on one of the world’s leading materials handling equipment brands over the last decade following the acquisition of previous family-owned dealerships.

Said Jason: “We’re already re-establishing the Mitsubishi brand in the area, particularly as we have significant backers that have helped us to invest in premises and a brand new short term hire fleet. Between us, we have over 100 years’ experience, working for some of the largest forklift companies in the business. We know what works, and what doesn’t.

“We have hand-picked a team of highly skilled engineering and sales staff to ensure we provide our customers the very best support. The 10-strong team already have their eye on future expansion, with a plans to recruit up to 10 new staff members over the next five years.”

Much like the auto industry, the forklift sector is dominated by Japanese and German manufacturers. Unlike the car business, however, service and support plays a crucial factor for most users that rely on their equipment to keep their businesses moving.

“We have the experience and local knowledge to know what Yorkshire businesses need. We also have the ambition and backing to ensure we’re building a long term successful business,” he adds.

Founded in the 1930s in Japan, Mitsubishi forklifts sales took off following a joint venture with Caterpillar Inc. in the 1990s. Today it is part of the Mitsubishi Nichiyu Forklift Co., Ltd. competing for over 300,000 annual forklift trucks sales globally.

In 2011, Mitsubishi created the first forklift with a radiation-shielded cabin. The vehicle was developed to help clean contaminated debris at the Japanese Fukushima Daiichi Nuclear Power Station.

Over 30 new Mitsubishi units have already been delivered to Endeavour for immediate short term hire. For further information visit www.endeavour-forklifts.co.uk