BDGL / Insights / Sector

Selling to logistics companies means selling against variance

Selling to logistics companies means selling against variance

The average transit time is the number in the brochure. The number that decides the contract is how far the worst week sits from the average.

Sell anything into a freight forwarder, a 3PL or a fulfilment operation for long enough and you notice the same thing. The buyer nods politely at your speed claim and then asks a question about your worst month. That is not scepticism about your product. It is the shape of their own business showing through.

The World Bank's Logistics Performance Index 2023, which covers 139 countries, puts a number on it. Across all potential trade routes, 44 days elapse on average from the moment a container enters the port of the exporting country until it leaves the destination port, with a standard deviation of 10.5 days. Sit with that second figure for a moment. The spread is roughly a quarter of the whole journey. A logistics operator is not running a 44 day business. They are running a business where the honest answer to "when will it arrive" is a range almost a fortnight wide.

Everything about how they buy follows from that.

Why the standard pitch fails here

The standard B2B pitch is built on averages. Faster, cheaper, better on the mean. It works in software and it works in professional services because the buyer's own pain is roughly average shaped.

A logistics buyer's pain is not. Their customers do not call about the shipments that arrived on schedule. Their margin does not evaporate on the median week. Both happen in the tail. So a claim about your average performance answers a question they were not asking, and the meeting drifts.

The reframe is simple to describe and uncomfortable to do. Lead with the distribution, not the mean. What is your worst case, how often does it happen, what triggers it, and what do you do when it does. Vendors hate this because it means volunteering bad numbers early. It also happens to be the fastest route to credibility with a buyer whose entire job is managing exceptions.

What this covers
What this covers

What a logistics buyer actually checks

1. Whether you have ever run at their peak

Not your peak. Theirs. Seasonal volume in this sector does not rise politely by 20 percent. Ask what their heaviest fortnight of last year looked like against their average fortnight, then answer for that number specifically. If you have never handled it, say so and say what would have to be true for you to handle it.

2. What happens at the handover points

The LPI finding that matters most for anyone selling into this sector is where delay concentrates. The biggest delays occur at seaports, airports and multimodal facilities, which is to say at the joins rather than along the legs. That is true of your product too. Whatever you sell, the failure will happen where your system hands off to theirs, so that is the part of the demo to spend time on.

3. Whether the integration is real or a roadmap

Logistics operations run on an unglamorous stack of customs platforms, carrier portals, warehouse systems and a surprising amount of spreadsheet. A buyer will ask what you integrate with, and they are not collecting logos. They are working out how many manual re-keys your product adds. If the honest answer is "we would build that", say it. A roadmap presented as a feature is the single fastest way to lose this buyer permanently.

4. Who carries the cost when it goes wrong

This sector lives with liability in a way most B2B buyers do not. Expect the commercial conversation to arrive earlier than you are used to and to be more specific. Have a position before the call rather than inventing one during it.

The digitalisation argument, and its honest limit

There is a genuine tailwind here. The same World Bank release notes that end to end supply chain digitalisation, particularly in emerging economies, is allowing countries to shorten port delays by up to 70 percent compared with those in developed countries. That is a real and large effect, and it is why budget exists for this category at all.

It is also routinely misused in pitches. That figure describes what coordinated, country level digitalisation achieved. It is not a promise your product can make to one operator. Quoting it as though it were your own expected result is the kind of claim a serious buyer will check, and losing on credibility is worse than losing on price. Use it to explain why the category matters, then be specific and modest about what you personally can move.

At a glance
At a glance

Where the deals actually die

In our experience the losses in this sector cluster in two places, and neither is the pitch.

The first is the pilot that nobody defined. A logistics buyer will happily agree to a trial because trials are how they de-risk everything. If you do not fix in advance what the trial is measuring, over which lanes, against what baseline, it ends with everyone reasonably concluding it was fine and nothing happening. This is the same failure we describe in why B2B deals stall, arriving in sector specific dress.

The second is single threading into operations. Operations wants your product. Finance wants the liability answer, IT wants the integration answer, and neither has met you. A pipeline that only records the operations contact is a pipeline that will forecast this deal for two quarters, which is why a pipeline you can actually forecast depends on stage definitions that require evidence from more than one person.

Pricing, briefly

Per shipment and per container pricing is intuitive here and it is usually a trap for the seller, because your cost does not vary with their volume in the same shape. Their volume swings hard, as the variance above implies, and a per unit model hands them all of that upside and you all of the downside. If you want a structure that survives a peak season, the reasoning in how to price a B2B service transfers directly.

A note on the regional picture

Gulf and Egyptian logistics buyers are not one market and should not get one pitch. Port infrastructure, customs process and the maturity of the local carrier ecosystem differ enough that the same product carries a different argument in each. If you are selling across the region rather than into one country, the groundwork in entering the Saudi market and in expanding into the UAE is worth doing before the first meeting, not after the first loss.

The uncomfortable part

Some of what logistics operators want is not a sales problem at all. A meaningful share of the pain a prospect describes in a first call is internal tooling that never got built, and no vendor can sell around it. When the constraint is that stock, orders or job status live in a spreadsheet that three people edit, the honest answer is that a better spreadsheet is not the fix and neither is your product. Our colleagues at rivl.dev wrote a clear read on when a stock spreadsheet starts costing more than it saves, and pointing a prospect at it costs you nothing and buys you the position of the person who told them the truth.

What to do differently on Monday

  • Rewrite your one line claim so it describes variance rather than an average.
  • Find the last three deals you lost in this sector and check whether finance and IT ever appeared in the record. If not, that is your pattern.
  • Prepare the worst case answer before you need it. Write the number down. Buyers can tell the difference between a rehearsed number and an improvised one.

None of this makes the sector easy. It does make you legible to a buyer whose default assumption is that every supplier is quoting their best week.

Selling into logistics and stalling after the pilot?

We build the qualification, run the outreach and own the weekly number. Thirty minutes is usually enough to tell whether it fits.

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