Supply Chain Sales

Proud Members of

Tenure Matters

This is the world of the big warehouses that offer multi-year contracts to their customers to manage some or all aspects of their supply chain, from storage to movement, to providing labor, inventory control, customer fulfillment, reverse logistics (returns) and pretty much everything in between. The contracts are long (typically 3-5 years) and can be worth millions of dollars. There is a traditional outside sales force that is paid quite handsomely (usually well into the six figures) and tends to be comprised of long-tenured industry veterans. 

COMPLEX COMPENSATION

There is often considerable bickering among design team members about whether the proper metric is revenue, margin or net income, or EBITDA as the determinate of sales commissions (if it can be measured by account). These are complex incentive plans because it can be months from the time a contract is sold until the time the revenue starts flowing, and then even more time before the account is profitable because of start-up costs. Paying sales reps in this world can be quite convoluted and it doesn’t help that you are dealing with large amounts of money. This part of the Transportation & Logistics world is like nothing else out there. The pay levels are higher than trucking sales, closer to freight forwarder sales, but not transaction based. Most often there is some kind of up-front component for getting the deal signed and then a 2-3 year commission based on actualized results. Then there is the whole “renewal” debate. And the answer depends on what the right compensation method is. 

We Can Help

In addition to hundreds of small players, Prosperio has worked with four of the five top players in this space to help them sort out the answers to these thorny questions. We have helped them through mergers and acquisitions, as well as helping them align disparate plans to get the sales forces to cooperate. We have even worked with companies that have sales reps in both the US and Europe.  We can bring this expertise to your supply chain sales problems. Additionally, we have worked with many of these companies to develop incentive plans for ALL of the exempt staff to ensure the entire company is aligned with strategic and profit objectives. Thus, not only do we understand the selling roles, but we also have experience with MANY of the operational roles in these types of organizations.

FREQUENTLY DESIGNED SUPPLY CHAIN COMPENSATION PLANS

EXPRESS PROJECT 

When your needs span several roles, but you have only a few people, our Express Project is your best bet. We’ll spend time with you and your senior leaders understanding your business and working alongside you to develop the plans as quickly as possible. We’ve successfully executed hundreds engagements for small to medium-sized organizations just like yours (typically 5 to 50 employees). 

An Express Incentive Project includes: 
• Strategy and structure assessment  
• Compensation design for up to 5 roles 
• Includes salary bands and incentives 
• Market benchmarking of pay levels for those roles 
• Plan documentation 
• Pro-forma economic modeling (minimal historical testing) 
• Roll-out guidance 
• Development of an incentive calculator via Excel
• Additional automation possible
• 3 months of post-project support 
• Project turnaround is approximately 4-6 weeks 

1P1P PROJECT: ONE PERSON, ONE PLAN 

A 1P1P Project is great for start-ups and small companies! It is our smallest project size, but this makes it ideal for those who need a single plan immediately.  

The 1P1P Project includes: 
• All plan design details 
• Basic market pricing 
• Economic testing 
• Incentive plan documentation 
• Outlining of goals and expectations 
• Assessment of business goals and… 
• Assessment of impact of this role on those goals 
• Role clarification 
• Development of an incentive calculator via Excel
• Additional automation possible
• 3 months of post-project support 
• Project turnaround is approximately 2-3 weeks 

FULL-SERVICE COMPENSATION PROJECT 

When you need to clarify your business objectives, streamline your organization structure, improve employee accountabilities, AND want to develop plans for several interconnected roles, a Full-Service Compensation Project does it all! This project features multiple virtual meetings with our developers and your design team and is often selected by medium-sized to larger companies, as well as small companies undergoing major transformations. 

A Full Service Compensation Project includes: 
• Business goal clarification 
• Incentive compensation plan design for all roles in scope
• Salary bands suitable for job postings 
• Development of career levels for highly populated roles 
• Employee change management 
• Extensive pro-forma and historical economic modeling 
• Goal-setting sharpening 
• Market benchmarking of pay levels for all roles in scope 
• Roll-out support and guidance 
• Organization redesign and role change/definition 
• 12 months post-project support  
• Detailed and automated Excel calculator
• Additional automation possible
• Possible introduction to one of our EIM vendor partners 
• With integration assistance into their platform 
• Turnaround time is at least 90 days 
• May vary depending on size and magnitude of change