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Vacu-Lug Tyres is Europe's largest independent
re-treader of commercial and industrial vehicle tyres
and has been in the business for over fifty years.
Increasingly, Vacu-Lug has found itself operating in a
consolidated market. There are fewer re-treading
companies than there were 15 years ago but demand is at
the same level or increasing. Due to the rising cost of
raw materials the price differential between a new tyre
and a re-tread has increased by as much as 30% - and
fleet operators have taken notice.
Vacu-Lug has nine sales people who are responsible
for 800 accounts in total. "Our customers run large
fleets of commercial vehicles. We have, for example,
just won the contract to supply Biffa, the waste
treatment company," says Vacu-Lug Commercial Manager,
Ashley Tasker. "Biffa and companies like them pay a
fixed cost each month for Vacu-Lug to manage everything
to do with their vehicles' tyres. They have complete
peace of mind."
To increase its competitive edge, Vacu-Lug invested
in VECTA, a fully integrated set of 'best-in-class'
Sales Intelligence tools. VECTA software makes sales
professionals more successful by giving them instant
access to vital information about customer buying
patterns and account status helping them sell more
effectively.
"Before VECTA, our sales culture was too reactive. We
were reacting to business conditions and circumstances
like accounts being lost but we were finding out too
late," says Tasker. "One of the major reasons for
investing in VECTA was to help us get over this reactive
culture and this has been a major success for us."
Vacu-Lug's business is a two-way street and the sales
force needs to know more than just what and how many
tyres they are selling, as Tasker explains: "Before
VECTA, of course we knew we were selling tyres but
precisely to whom and in what mix was difficult to
assess. Also, we needed to know a lot more about where
our tyre casings were coming from."
Today, it is difficult or impossible for distributors
to dispose of tyres at landfill sites and before
Vacu-Lug deployed VECTA, it was too easy for some tyre
distributors to send back considerably more casings than
they were buying. "We could be selling a customer ten
tyres and they could be sending us 300 worn-out casings
back, leaving us with the problem of expensive
disposal," says Tasker. "Using VECTA we've been able to
set up KPIs so we know how many casings are coming back
to our plant against how many re-treaded or new tyres we
are supplying to the same customer. By being able to set
these KPIs using activity reports which give us figures
relating to sales to a particular customer versus
casings received, we are able to manage all of our
accounts much better and much more profitably."
Some members of the sales team at Vacu-Lug have only
ever used traditional methods to service their accounts
but VECTA has been met with all-round approval because
of its ease-of-use and functionality.
"One salesman increased his personal turnover by 30%
in just one week simply by using the Sales Intelligence
the software provides," says Tasker. "Quite often our
sales executives know more about the customer's stock
profile than the customer which is a very real
advantage."
Within VECTA, each salesperson has his own portfolio
of customers set up and the resulting intelligence tells
them exactly what activity has happened in each area.
Vacu-Lug is now actually selling fewer tyres at more
profit. "Part of that is down to VECTA. We are now able
to identify what we are selling and to whom," explains
Tasker.
Vacu-Lug has been using VECTA software for about 18
months and the company has seen such successes that it
will be expanding the system and integrating it with its
bespoke financial software for even more business
intelligence. "We are delighted with the software. Our
sales people now have a valid reason behind every sales
call made. VECTA has given us a management information
system that turns sales data and customer histories into
useable Sales Intelligence," concludes Tasker. "The
sales team is now acting on factual information rather
than simply reacting to problems and as a result our
sales culture has become more proactive and our business
more profitable."
"One salesman has increased his personal turnover by
30% in just one week simply by using the Sales
Intelligence the software provides. Our sales executives
often know more about the customer's stock profile than
the customer which is a very real advantage."
Ashley Tasker
Commercial Manager
Vacu-Lug Tyres
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