ON Time package delivery

Introduction
On time package delivery is a regional package delivery service based in New York, with sales of
just more than $50 million. The on time package delivery (OTPD) has carved out a niche by
focusing on express intra-city package delivery in large cities like New York, Boston and
Philadelphia. It was supposed to hit the overall sales goals for the year but Jacobson, senior vice
president of sales knew that OTPD was targeting only 4% sales growth, which was below
industry average growth of 8%
Qualitative Information

On time package delivery is a regional package delivery service based in New York.
OPTD has carved out a niche by focusing on express intra-city package delivery.
OTPD was projected to hit its overall sales goals for the year
Ron Young founded OTPD as the solution to a problem he had been encountering as an
attorneygetting important legal documents to clients quickly, reliably, and cost

effectively
Young and a group of investors developed a business model that included highly trained

"delivery specialists" (package pickup and delivery people)

Key to success was that OTPD was among the first intracity package delivery services to

maximize tech-nology in the package delivery business

The compensation and benefits package was above average for the industry
Each member of the sales force was given a laptop and cell phone with unlimited usage
Each salesperson was also given a car and enrolled in a retire-ment plan with the

company
Technology helped establish a loyal client following among professional business
services (law firms, consulting services)

Sales representatives primary job responsibilities:

(1) Generate new business and
(2) Maintain a good customer relationship
(3) Smaller established ac-counts
Key account manager responsibilities

(1) Increase in sales for each account

(2) Increase customer satisfaction scores collected twice a year
Organizational chart for on-time package delivery, December 2004

Justin Spencer
president, OTPD

Wayne Jacobson senior

VP of sales

New York
Neil Franks (DM)
3 KAMs
10 SRs

Lynn Attaway
(KAM)

Boston
Dan Gunther (DM)
3 KAMs
9 SRs

Judy Billings
(KAM)

Washington DC Emily
Cave (DM)
2 KAMs
8 SRs

Mike Wagner
(SR)

Philadelphia
Ben Gardner (DM)
2 KAMs
8 SRs

Carol Klein
(KAM)

Problems
Slow Growth
On Time Package Delivery was targeting only 4% sales growth, which was below industry
average growth of 8%

Internal Hiring
Company mostly prefer internal hiring, when position of key account manager was open so
policy of company was to promote sales representative of company
Sales stagnant
Sales of Boston was flat and stagnant and there was no growth was analyzed by Vice president of
Sales Jacobson
Clients Complains
Clients of the company were not happy with the service that company was offering to them and
their response towards company was decreased
Clients Resistance
Many of sales representative found their clients resistant to new product and services that
company was providing and after the initial training on the new service our sales people have not
had any follow up
Personal Issues
Due to some to the personal issues of sales representatives they were not meeting and achieving
their assigned target quota
Competition
It was one of the issue that company was facing, one of their competitor Golden package
delivery Services was offering similar package at lower rate
Late Delivery
Companys package delivery were not deliver to their client on promised time and client across
town wait more than five hours that was promised to deliver in two hours
Lack of motivation
Key account manager and sales representative were enthusiastic and passionate about doing their
jobs efficiently