Key Account Relationship Management Model In The Industry Of Logistics

With the opening of the logistics industry, private logistics enterprises are facing more and more incentive competition. How to survive and develop in the competition is an urgent issue which is placed in front of the group of companies FR. Customers are the lifeblood of the company, how to retain a large number of customers and stimulate their potential is an important strategy for FR to win the competition.Firstly, referring to the service marketing theory, account management and customer relationship management theory, and based on these theories, we analyze FR Group’s customer management situation. The main entry point for diagnosing is the Key Account Management Process Model generated by Peter Cheverton. Against the Model, we summarize FR’s key account management program, then we analyze each program to see if there are problems. Through comparative analysis, we believe that FR has some problems on two aspects of the program. For the first thing, the goal setting is not scientific. The key point is that the goal is not accord to the principle of key account management. Income and profit is the unique KPI for key account management. This leads to the rash advance which would hurt the relationship between FR and her key account. For the other thing, there is no stage management in key account management and the customer relationship management is not effective as well. Because of the importance of key account, FR should enhance the relationship between FR and his key accounts. FR should take different actions to different key account so that we can get more achievements from these valuable customers.Secondly, by analyzing the environment and internal resources of FR, with the method of Potter’s five forces model, we draw a conclusion that the transformation of large customer management is much important and urgent. The exterior elements include target customer industries, customers purchasing strategy, competitive environment and industry change trends that FR Group faces. The internal environment analysis is based on FR resources checking.Finally, based on the two aspects of the program, with the guild of three theories with FR Group Account Management experience and FR Group’s internal resources, we propose two solutions which would improve FR’s key account management. Firstly, FR has to re-set management objectives of key accounts from profit orient to relationship enhancement. In this way, we highlight the importance of the long-term effects of the key account management and reduce the risk of relationship broken because of key account manager’s risk-taking action promoted by profit. Secondly, FR should launch the stage management in key account management. Setting each stage personalized management standards and take actions to promote the development of customer relationships. Each major customer relationships would be enhanced obviously and effectively and no one key account would tear up the contract with FR.This paper will guide FR Group to improve its Account Management standards and enhance its performance with very specific actions. It will be a reference for other Chinese private logistics enterprises as well.