David O. King, a senior advisor and specialist in supply chain revenue optimization, joins Propel Your Revenue host Judson Rollins to talk about how air and ocean cargo carriers maximize revenue, and untapped opportunities in the space. A 20+ year veteran of both air and ocean carriers, David brings a unique multimodal perspective as well as knowledge of how carriers are expanding their revenue streams beyond mere transportation.

David and Judson talk about lessons learned from the pandemic and resulting supply chain chaos, and where forward-thinking carriers are moving to stay ahead of a looming decline in shipping demand. David touches on how this will affect long-term agreements between carriers and customers, and how carriers can retain customer relationships by mitigating shipping reliability risks and providing better shipment visibility.

Throughout the episode, David highlights the importance of data & carrier-shipper data exchanges. In particular, how can carriers and their customers jointly utilize data to offer the right capacity, improve demand forecasts, and enhance shipment visibility?

He also explains the importance of deep cooperation between carriers and customers. You’ll learn why both sides need to understand each other’s short-term and long-term plans and needs in order to maximize service quality.

What You Will Learn in this Episode

• Why cargo and freight carriers need to innovate their approaches to revenue optimization
• The need for carrier-shipper cooperation to maximize revenue and customer satisfaction
• What cargo carriers and passenger airlines can learn from each other in revenue management principles, data, and technology
• The biggest data and technology gaps cargo carriers face
• How organizational structure affects revenue performance
• Why now is the time to invest in demand forecasting and revenue optimization
• How cargo carriers can nurture and grow customer relationships in a world of shrinking demand

Money Quotes

• Events like the pandemic bring to light the value that different aspects of the business can bring to the overall business. I feel that revenue optimization will no longer be segmented between the cargo side and the passenger side. [3:58-4:15]
• Most of the time, things don’t go as planned. So your ability to respond proactively makes a huge difference to the end customer. [13:50-13:58]
• Carriers that really want to get ahead need to invest in data and systems first and foremost. [15:26-15:38]
• I think there’s going to be much more momentum behind people’s willingness to change, and the adoption of these new technologies that enable driving this value for the customers. [18:07-18:18] 
• The relationship side of the business has been the anchor point and continues to play a significant role in how growth and development can be leveraged. [20:48-21:02]
• Removing assumptions is a key component. Understanding what a customer does and doesn’t understand about their data is the first step. [27:10-27:25]
• Understand the value proposition. Don’t discount just to discount; understand the need for a discount. [37:08-37:30]

Resources Mentioned

• Revenue Management: Hard-Core Tactics for Market Domination (book) [https://www.amazon.com/Revenue-Management-Hard-Core-Tactics-Domination/dp/0767900332]
• Engage Me: Strategies from the Sales Effectiveness Source (book) [https://www.amazon.com/Engage-Me-Strategies-Effectiveness-Source/dp/0992077109]
• Council on International Educational Exchange (non-profit organization) [https://www.ciee.org/]

Contact David O. King

• +1 (305) 927 1603
• davidking@dokingadvisory.com
• https://www.linkedin.com/in/davidoking/