This previous summer I worked for a 3PL (3rd Party Logistics) company doing carrier (trucks/ trucking) sales. I along with all the other interns were assigned to specific regions of the country to focus our efforts on for the summer. The regions were split up into groups that resemble the power-5 conferences in college football- Big 10 East and West (midwestern states), PAC 12 (west coast), Big 12 North and South (Southwestern and middle America states up to the Dakotas), Big East (Northeast), ACC (coastal states and other non-midwest states like West Virginia etc), and the SEC (Southeast). I was assigned to the SEC and focusing on the southeastern states as well as 5 other interns.
We all are assigned mentors to shadow for the summer and to learn from as we go and learn the nature of sales and cold calling. We each receive a list of potential carriers that have worked with our company (meaning they used us as a broker to receive and transport one of our customers loads) but haven't been assigned to a specific rep within the company. Getting quality carriers assigned into your name is one of the main goals in the way we do our brokering and sales. This is because once the carrier is in your name no other reps in the company are allowed to contact them and try to sell them any freight. The way you get a carrier assigned into your name is to find one that is not assigned and run atleast x5 loads with them in a week and then atleast x3/ week after they have been assigned to keep them in your name. This system allows for 'hungrier' reps to poach potential carriers from each other in a 'co-opetition' (competitive cooperation) manner if one rep isn't giving enough attention to that specific carrier- they become un-assigned again.
When myself and the other interns in the SEC started we were given a list of recently un-assigned carriers in our region to start our search for our own carriers. A few days before we started a rep with a large book of carriers had quit making all of his previous ones un-assigned and they left them open specifically for us (interns) to call upon. The largest one of all of these was called Red Classic Transit, a huge carrier company in the southeast with hundreds of trucks and drivers moving per day. All the full time employees joked with us whoever got Red Classic into their name would most definitely win the intern sales challenge (a friendly competition between all interns to see who can sell the most) and that is exactly what the 6 of us started trying to do.
The thing about this carrier Red Classic is that they had been working with the same rep for the past few years now and were very used to his style of operations and brokering to them- so they were almost rudely hesitant to want to start listening to a bunch of interns telling them what to do. Also, a lot of the employees at the company had been there for years and were very understandably 'stuck in their own way' of doing things, making it somewhat difficult to try and give them a hard sell with minimal sales experience. However we all started calling on them daily asking them what they were working on, where they had trucks located and where they were trying to go, etc -- but to no avail. We (interns and I) each would sell them one or two loads max per week for the first few weeks but no one could sell enough to get them into their name.
Eventually people stopped trying to deal with them seeing the opportunity of working with these 'grouchy' dispatchers as a waste of their time and they moved on to other leads. This worked straight into my hands luckily. I did not go above and beyond or anything for this carrier, I just gave them a call each morning inquiring on potential business. Finally midway through the summer by some divine work Red Classic cracked and actually brokered 6 loads through me in one day- making them assigned to my name for the time being. A huge moral victory for myself just from staying persistent and not getting down on myself from being rejected on the phone for weeks straight. I worked with them for the rest of summer and ended up in the top 5 of 60 interns in sales for the summer- mainly due to my 2nd half of summer deals I made with Red Classic.
The missed opportunity here was on the other 5 interns in my region and I believe 'good things come to those who wait' explains this scenario pretty well. The rest of the interns got tired of dealing with their dispatchers and calling them everyday to only be rejected, and reasonably decided to focus their efforts on carriers who actually wanted to work with them. I happened to just be the most patient and caught them at a perfect time where another broker bailed on them on multiple loads with no warning- and no other interns calling on them that day. I speculate that the other interns just decided during their brief summer period at the company they wanted to hone their sales skills more and get the satisfaction of getting smaller, much easier carriers into their name. Also, I believe that they just ran out of patience and decided, "oh, there are thousands of other carriers I can be working with I am wasting my time here...." or good things come to people who wait.
I believe that the three separate explanations for opportunistic behavior (or lack thereof) are different. The 'good citizen' reason is more of a personal, moral reason for not taking an opportunity. Some scenarios can be objective to different people and they may think they are acting almost altruistically by being a good citizen and not taking the opportunity- but some others may not think that line of moral thinking applies there. Also, the unethical reason one can more be described as putting self-interest ahead of other interests when the opportunity presents itself. Being a rational, self-interested individual are some of the basic assumptions of economics. The good things come to people who wait in this case worked in my favor, but that is because I saw the scenario differently than the other interns. Where they were thinking, "this company is hard to deal with, I'm done- good things will come to me in the form of other carriers if I just wait" where in this scenario the exact opposite happened for them.
The part of this I'm not getting is where do you see opportunistic behavior happening. Was that with your fellow interns who gave up too early?
ReplyDeleteAnother part of this that I didn't understand is whether you are coached to give the potential customer the hard sell. Or might you have some leeway as to how to communicate when in contact with them? And was any of the communication by email or text messaging? Or was it all phone?
To understand what you did a little better, do the carriers themselves have a brokering function internal to them? You described that the Red Classic people who were contacted disregarded the calls from the other interns. What then did they do about finding cargoes in the interim? Do you have any idea about this?
I have to say that the story you told, which I'm sure it is true, seemed strange to me. What would have made more sense is that immediately after that rep with the large book quit, some higher up in your company would contact his book to assure the people there that there would be some continuity. It sounded like that didn't happen. If you know why, it would be good to comment on that.
It would also be good to entertain the counterfactual in this story. Red Classic need brokerage services, right? But your company had competitors in this business, correct? If that is right and if Red Classic ultimately went with a different brokerage company, your waiting strategy would not have paid off. Would you have ever figured out what happened in that case? If so, how?
Prof Arvan,
DeleteI potentially did not explain the scenario well enough since this ended up being a very large post but Red Classic is a huge company with company files in our database. ex: Red Classic Pacific, Red Classic Intra-Texas, Red Classic Midwest, etc. The entity I was calling on was one of these subsidiary divisions- Red Classic SE/FL (southeast & FLorida).
What happened when the rep quit was that the one smaller Red Classic SE/FL went unassigned, there were still reps in the company booking under the specialized subsidiary files. Also, Red Classic and all other carrier companies use many freight brokerages at once because some companies depending on who their customers are have more freight in certain areas/ have specific lanes that the carriers like to run. So in the interim they most likely booked more freight in the SE/FL area with different companies while keeping business steady for the other parts of the country.
Also, the company I work for offers jobs to 95% of the interns they hire so they really want to train you as well as possible to come back and jump right back into work when you graduate. This is the reason that Red Classic SE/FL (along with many other companies, some from the quitting rep and some that just became unassigned) were given to myself in the interns in hopes that we try and hone our sales skills on legitimate carrier companies. In many cases interns who get carriers assigned to them and come back after a many months absence will get co-assigned back to the file even if another rep has it (at the time) and they can then compete to get it singularly in their name. This is the reason why they try and give these companies to the interns. Also it is not as if since he quit we completely use their business, Red Classic knows our company and still 100% planned on reworking with us on the SE/FL region- its from an internal standpoint who is going to get this business (and commission) in their name now since it is open.
I apologize if the post was slightly confusing I got caught up in typing too much I did not elaborate the intricacies of my post.
I enjoyed reading your story of success with your logistics internship this summer. I see how your main success story is a product of "good coming to those who wait." However, I agree with Professor Arvan that I am not sure this is an example of opportunism, but it is a great story of success none the less.
ReplyDeleteI can relate to your post very much because I have also had a job for 2 summers with a logistics company. I was confused at first where opportunism came into play but after reading your reply to professor Arvan I now understand. You took advantage of every opportunity that the company presented you and because they have such a high rate of job offers to interns you have set yourself up to have success after graduation.
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