Case Study: Executive Search for a Logistics Service Provider

The logistics industry is suffering from a shortage of skilled workers. Often, vacancies cannot be filled. This raises the question of whether all possibilities are being exhausted to find candidates. One of these options is to engage a headhunter. They typically know good candidates, especially when it comes to industry specialists, here in logistics. Christoph Szakowski demonstrates in a case study how collaboration with headhunters in logistics can be successfully structured.

By: Christoph Szakowski

Initial Situation

An Asian company, which is one of the largest and most complex logistics providers worldwide, recognized a few years ago that its market share in the CEE region was somewhat underdeveloped and did not meet the ambitions of the parent company. There was a lack of know-how and personnel in countries like Poland, Slovakia, or the Czech Republic to tackle the local market with full force, develop its own customers independently, and make the country organizations a serious player.
The global logistics provider decided to change these circumstances in the long term and to find corresponding leaders, logistics managers, and other employees for its ambitions. The headhunter was known as a specialist for executive search in the region, and after some discussions, a decision was made to collaborate.

Tasks

After joint discussions and considerations involving the management of the logistics provider and the headhunter, it became clear that the list of vacant positions encompassed a variety of different requirements, with the understanding – which is almost taken for granted in the industry – that only managers with logistics backgrounds would be considered as candidates.The following positions were to be filled:

• Branch Manager with budget responsibility, seeking a manager all-rounder (knowledge of all modes of transport) and particularly focusing on corresponding leadership qualities: strong communication skills, hands-on approach, strategic customer orientation
• Sales Manager, who should efficiently navigate the market and the global structures of the group to draw the attention of global accounts to the Central and Eastern European region, and who should also be of the hunter type, building and maintaining contact with new customers consistently and confidently to generate business potential in the medium to long term.
• Inside Sales Support Specialists to assist with customer and tender work and relieve the sales managers of administrative tasks, but also tasked with conducting market research in the countries regarding serious business opportunities.
• Regional Key Account Manager for customer development and efficient business coordination across the region. The head of the regional KAM should also take on the task of coaching younger colleagues and structurally organizing the sales, which previously relied more on the individual performances of some employees, to be as close as possible to the customer and market demands.

Challenges and Solutions

How did one bridge the weakness that, despite the company being among the top 15 logistics companies worldwide, it was not sufficiently known as an employer in the CEE region?
A tailored and individualized letter for the respective candidate groups was prepared and served as a guideline during the initial discussions with the headhunters. A growth mission was presented at a company that will, in the long term, also be one of the most important market participants locally, once people with foresight, patience, a strong customer orientation, and a hands-on approach are hired.

Ensuring Successful Recruitment

Together, based on the client’s needs, several recruitment KPIs were established, which were based on the expectations of the logistics provider, particularly in the two most important areas: quality of the presented candidates and the overall duration of the project until hiring. All stakeholders on the company’s side were briefed accordingly.

How did one ensure that the interview process was successful, i.e., providing the employer with the opportunity to evaluate and compare the corresponding candidates while also being interesting for the candidates?
In the briefings, the headhunters pointed out the key points of a successful recruitment and openly discussed various pitfalls and mistakes that could occur and how to avoid them. This included the techniques to be used in the interviews, the types of questions that are important for managers who are not actively seeking, how to discover the candidates’ “pain points,” and how to maintain the sales-evaluative character of the conversation, which is crucial for the success of the process.
As a result, the company representatives were well-prepared for the respective interviews. If questions or uncertainties arose between the various stages of recruitment, the consultants served as sparring partners and were available with advice and assistance. Additionally, contact with the candidates was maintained throughout the process, which provided complete feedback and addressed any questions or concerns from candidates that were not adequately articulated during the interviews.

The Successful Outcome of the Candidate Search

At the end of the assignment, the following results were established:

1. Of the 10 mandated roles, 9 projects were successfully completed within the planned timeframe, meaning candidates were found and hired (one position in sales support was filled internally by the logistics provider)
2. As a result, the logistics provider was able to achieve significantly shorter time-to-fill (from originally 6 months to an average of 2 months per position)
3. 90% of the candidates proposed by the headhunter were interviewed. This resulted in an 85% lower rejection rate of applicants (compared to other previous recruitment methods)
4. Time to interview – a very important criterion, especially during times of the often-cited shortage of skilled workers in the logistics industry, was reduced from three months to two to three weeks
5. High quality of the hired managers and specialists was achieved. Eight out of nine hired candidates remained with the company even four years after starting
6. Additionally, discretion and safeguarding of client interests were achieved, as the search was conducted in an anonymous format to ensure confidentiality in the highly competitive logistics market

Conclusion
Collaboration with a headhunter who is a specialist in the logistics industry can secure long-term competitive advantages for logistics providers and freight forwarders.

Christoph Szakowski is Managing Partner of LogCon East, an executive search and consulting company specialized in the logistics industry, which has been helping clients of various sizes and orientations find management and specialists for 15 years. Christoph operates from Warsaw, both in Central and Eastern Europe and in the German-speaking region.
The graduate in business administration (University of Hamburg) has 24 years of industry experience and has been a manager at companies such as LKW WALTER, Logwin AG, and DB Schenker. He speaks German, English, Polish, and Russian and sees himself as an internationally operating “bridge builder” between companies and candidates. www.logconeast.com/
 

Photos: © Loginfo24