Shipping and freight forwarding is a flourishing business: the market is growing at more than 4 per cent with a rise to 6 per cent predicted over the coming five years.
Malcolm Rees, CEO of World Options, says “The real strength of the market is that, while it is not totally recession proof, everyone has to ship things around no matter what’s happening in the economy.”
World Options seeks to make international logistics and freight forwarding simple and hassle-free for customers. The business partners with major global shipping companies to bulk buy transport solutions which clients can access through an easy to use shipping comparison online-platform.
Ecommerce plays a significant role in this sector.
Ecommerce helps power World Options’ business
“During Covid a lot of people turned to purchasing online. Those customers who were sceptical about credit card security over the internet, shifted their perspective. Now more and more consumers are happy to shop online.”
Servicing online retail brings in about 30 per cent of World Options’ business; B2B transactions deliver the balance.
The diversity of small and medium sized enterprises operating in Australia is reflected in World Options’ broad customer base.
Manufacturing and distribution clients are a popular source of revenue, says Malcolm. Franchisees could be organising the shipping of auto accessories, aluminium fabrication, or bathroom fittings.
“The benefit of a wide-ranging customer base is that when some sectors face tough times, others will flourish.”
Of course savvy franchisees who find a rich seam of potential clients in one sector will mine this to their advantage.
A flexible work model
World Options’ franchisees operate free from any territory restrictions which gives them flexibility to build a strong client base from anywhere in the country. Astute franchisees are smart about leveraging their networks to optimise the business potential.
World Option’s particular focus on face-to-face selling marks it out as a welcome change from a market full of online-only services.
So while the processes are highly-evolved, high-tech programs, it is the personal touch that small business customers appreciate.
“Small business owners want the best deal for their logistics requirements,” Malcolm points out.
“Face to face conversations help get over some of the hurdles because franchisees are able to solve queries on the spot.”
The back-up provided by World Options also elevates the offer.
“Our support system incorporates the use of our carriers priority desks so we can swiftly provide solutions for customers. It takes the angst out of the relationship,” he says.
This personalised approach has helped World Options ramp up its sales by an impressive 25 per cent.
“We’re quite pleased with our growth rate against a backdrop of a constrained economy,” says Malcolm.
It is franchisees’ continual drive to bring in new business that ensures these gains.
World Options franchisees power ahead
“Franchisees need to be ambitious and driven. We always say, “Don’t be disappointed by the results you get from the work you didn’t do”.
“Sales is a numbers game, and World Options is a sales platform. Diligent sales people know that it is activity that makes the day.”
Franchisees require one day a week for admin, so typically they operate through Monday to Thursday with a clear strategy.
Mornings are devoted to phone work – cold calling or identifying new customers. The afternoons are focused on servicing existing customers and new face-to-face calls.
As the former global head of sales for DHL, Malcolm understands that building trust with customers leads to sales, and that brings success.
World Options’ training ensures franchisees are highly-skilled in sales, and experts in the shipping platform and carrier partners.
“All the training relates to the practicality of activity. Successful sales start with engaging a customer and understanding what the customer is trying to do. Our role is to see how we can counter the dissatisfaction clients have with their current supply chain constraints.”
Growth requires drive
The logistics and shipping market is competitive, so it pays to have the benefits of World Options’ sophisticated sales platform and operations system at your fingertips.
And World Options is in the process of enhancing its business tools to further advance franchisees’ businesses.
“We’re developing more sophisticated business analysis that will demonstrate best practice across a number of KPIs,” reveals Malcolm.
The business helps franchisees analyse their current volume of customers, revenue and profit margins, and fix targets for growth.
World Options is on a growth trajectory and plans to bring on another 12 franchises within 12 months.
“We’re looking for sales, and ambition. Perseverance is a key word for us because sales is tough. Before you succeed there will be rejections, and you need to persevere,” says Malcolm.
“My ideal franchisee is a sales person with experience in logistics. Our latest franchisee is moving from senior sales with a major logistics company. You can make good money in this business so it’s a good switch for corporates.”
However this experience, while valuable, is not essential. World Options franchisees bring diverse cultural and career backgrounds to their businesses.
There’s plenty of opportunity to scale up and reap the rewards of a growing market, Malcolm says.
“A huge number of SMEs operate in Australia, more than a million businesses. The market is just there for the taking. With the right drive and energy, it will deliver the results.”