The Global Framework of the Commercial Function...

Brief Activity Description...

The commercial function as such is even more difficult to apprehend because it's split between different levels of responsibilities in a same transport company, in particular in larger transport companies (see scheme.3). Furthermore, as we have seen before drivers and traffic planners might deal partly with commercial activities. This framework is supposed to encompass the whole commercial process, from the political and strategic aspects to their implementation at each operational level. Scheme9 : Possible repartition of the commercial process.

The main purpose of the commercial function is to come up with " transport solutions " adapted to the requirements of firms in a more or less segmented market in relation with a specific " transport " regulatory context, and to boost the sales of these products. The function is based on a set of techniques and tools specific to trading at large assigned to support the upstream activities (policies, conception) and downstream activities (distribution, communication) of the commercial process. It also requires to construct an overall knowledge of the transportation activity (legal, social, technical and technological constraints), of the transport market (existing offers of products and/or services, pricing policies used, methods of distributing offers, corporate transport requirements, etc.). Finally, it calls for the development of systems and/or devices designed to help in driving and expanding the commercial activity.

Fields of activity related to the commercial function

Six interdependant fields of activity have been identified to consider the activities linked to the commercial function in a good transport company. traffic planning function. They can be classified into 2 main categories :

• Fields of activity related to the commercial function in itself, in other words to the commercial process :
  • Commercial UPSTREAM
  • Commercial DOWNSTREAM
• Fields of activity supporting (organising, managing, assessing) the commercial process :
  • Financial Management
  • Management / Organisation
  • Information / Communication
  • Regulations and laws

COMMERCIAL "UPSTREAM"

This field recovers all the activities performed within the framework of the development of commercial policies, structures and services :

• Studying the characteristics and modes of sector segmentation
• Analysing competitive forces and the strategy of competitors
• Studying the characteristics of the company (products, services, human and technical means)
• Analysing the behaviour of potential clients and their strategy (their requirements)
• Studying the various regulations concerning transport activity
• Developing scenarios for the evolution of the competitor / customer / legislation system
• Developing a commercial policy and an action plan
• Preparing a suitable product / service offer (services and prices)
• Elaborating tariffs
• Communicating about strategy, action plan and offer within the company

COMMERCIAL "DOWNSTREAM"

This field recovers all the activities performed within the framework of the implementation of the commercial offer developed in the the "upstream" phase of the commercial process :

• Understanding / Assimilating the information produced by "upstream" activities (products, prices, deadlines, procedures to carry out within the framework of sales activities)
• Identifying potential clients and contact them· Understanding their requirements
• Presenting the products offered as well as the price range
• Advising clients on choices and modes of implementation
• Offering solutions adapted to requirements (determine a sales price based on the cost price, market conditions, road traffic...)
• Developing selling points adapted to each client (convince, create a trust relationship)
• Evaluating the costs of the service offered
• Negotiating and elaborating commercial contracts
• Placing orders with the actors in charge of traffic planning
• Following up customers (verifying that all commitments are kept on both ends)
• Managing the invoicing system and possible collection of payment
• Managing the "customer portfolio"
• Forwarding the information required for the management of the "upstream" commercial activity

MANAGEMENT & ORGANISATION

All the activities linked to organising, managing, and conducting commercial activities as a whole, as well as the actors taking part in the development thereof :

• Designing / organising activities (sales structure, managing activities, restitution modes, sales procedures)
• Implementing decision aid tools and commercial follow-up tools
• Realising the commercial follow-up and evaluating the discrepancies
• Elaborating commercial procedures related to the customer follow-up and reminder
• Co-ordinating the commercial and the traffic planning activities
• Hiring / managing the commercial actors of the company
• Developing communication mechanisms
• Managing the network of actors taking part in the development of commercial activity (sales force, operators, drivers...)
• Organising a strategic monitoring process to take into consideration developments in all spheres of the sector (customers, competition, regulations...)
• Checking the regularity of the commercial operations
• Capitalising the commercial experiments (best practices and lessons to be learnt).

INFORMATION PROCESSING / COMMUNICATION

All the activities linked to finding, processing and distributing information likely to support / enhance the development of the commercial activity :

• Finding the information required for the organisation of commercial activity
• Collecting information to realise a state of the art on the departments' organisation, on the commercial experiments.
• Processing / interpreting the information· Implementing a general communication activity
• Writing reports aiming at the presentation of sales activities
• Lobbying on a commercial strategy

REGULATIONS

All the activities aiming at taking into account the various regulatory constraints likely to affect the organisation and development of the commercial activity :

• Taking into consideration and making good use of the various regulatory aspects linked to the transport activity and to the goods.
• Collecting legal documents linked to the company's activity
• Informing colleagues on changes in regulation
• Seeing to the implementation of the regulations

FINANCING

All the activities linked to the organisation and to the management of financial circuits generated within the framework of the commercial activity :

• Preparing and managing an operating budget with respect to the financial strategy of the company
• Elaborating previsions (spreadsheet, balance…)
• Developing / using devices and tools for budget follow-up
• Implementing the legal dispositions and the practices related to the payment means
• Evaluating the profitability and the productivity of an offer