A new approach to selling boxes: a changing business environment requires a new sales strategy to match current marketplace needs

Paperboard Packaging, April, 2004 by George A. Moretti

Five years ago was a pretty good time to be in the corrugated box business. Shipments were up and the economy was moving. Most box plants were busy and making money.

Then came the year 2000. The bubble burst and along with it, the huge decline in manufacturing as well. In addition, it seemed like someone opened the new big door to China. Many jobs were beginning to move from Mexico, Japan and the United States to China.

Those of us who have been in the box business for awhile have been through this before. It is just a different country. Although it is not good news for the manufacturing base in this country, it nevertheless seems to have forced the strong to get stronger and become more creative. In order to survive, the smarter companies are developing ways to get more efficient as well as offer more value-added products to their customers by putting more arrows in their quivers.

Allow me to share some thoughts on what is different today in our sales approach from five years ago. Let me start with some thoughts from discussions with 17 sales managers who attended the Association of Independent Corrugated Converters (AICC) Sales Managers Forum in mid-February.

E-Mail

Five years ago

Some sales reps had e-mail addresses and communicated through e-mail when they had to. Some companies allowed people who visited their Web site to send an e-mail to the company if they wanted more information. Some of us used e-mail internally to enhance the communication within our companies.

Today

Today most sales people realize they cannot survive without e-mail. Consider the fact that customers communicate their needs such as orders, confirmations, dieline drawings, renderings of artwork, appointments, quotes, bids, and much more via e-mail. Business people today do not have time or staffing to get the job done in a normal workday. Many choose to handle business communication before the start of the day or way after 5 p.m. when the phones are not ringing and it is quiet. This also comes into play for the professional sales person who needs to stay abreast of information regarding their client's orders, quotes, and requests as quickly as they are available.

This need for information now is one of the most important changes today versus five years ago. I strongly suggest that you use this tool to help speed up your sales process. Your competition is.

E-Commerce

Five years ago

Few companies offered an e-commerce site that really worked as it was intended to. It was reserved for those special customers who forced you to do something to enhance the business relationship electronically. Many of the e-commerce sites did not tie in easily into the existing enterprise system.

Some companies had Web sites that had the history of the company along with "brochures" of the products. Many customers had no interest in ordering electronically let alone submitting a quotation to a company on the Web because no one knew how to do it and they had to change the way they were doing business. Many sales reps felt that by using e-commerce to facilitate the business process they were being pushed to the wayside and soon the customer would not need them.

Today

Most companies and sales reps not only know the strength that e-commerce provides in their current customer relationships, but also use it as a niche to break into the competitor's accounts because they don't offer it. Some of the information available to the customer includes:

* Inventory--Real-time information of all items and orders along with stocking quantities (minimum/maximum) by item. This automatic, agreed upon replenishment system makes the reordering process much easier.

* Quote history--A listing of prices for all of the items that the customer has ordered in the past or items that are in the design stage along with drawings and specifications.

* Contract information--Part numbers associated with an agreement between companies as well as the price breaks relating to quantity ordered and committed to.

* Item history--Customers could look up order history on specific part numbers and any other information that is needed by both parties.

* Graphic files--Die lines, artwork, renderings, and related files can be stored online and available to both parties 24-7.

* Real-time manufacturing data--Some customers want access to your production schedule to see where their orders are in the manufacturing process.

The more advanced converters have taken e-commerce an extra step, and closed the loop with EFT (Electronic Funds Transfer). This allows the client and vendor to do business faster and with much greater accuracy. A key advantage for the suppliers--you know when you are getting your money. For both parties there are less credits.

No More Good Old Boy Network

Five years ago

The AICC sales managers included newer managers who indicated that many sales people who have several years of experience were used to "shooting from the hip" on a sales call and according to them did very well in the past. Many of the more experienced reps were hoping the Good Old Boy System would stay around a little longer.