Most people who think that exclusivity is the best way to design a network usually fall into a trap thinking that if they joined such a group that the business from all other members in the network will fall automatically into their lap. I can tell you though that isn’t true in the least. There is a reason why the most successful networks are non-exclusive and that is that non-exclusive groups allow their members the greatest opportunities to find like-minded partners. And exclusive networks would actually serve as hollow promises. Why would I say that? I’ll give you some examples:
What if you have a price sensitive quote and the exclusive network partner can’t meet your price points? Do you throw up your hands and turn down the business? I dare say that in most cases you’d look outside the network.
You can see why smart money says that exclusive arrangements aren’t rational to the way the logistics industry actually conducts business at the end of the day. And these points alone aim at the inefficiency of the exclusive groups. What about the efficiency that is created by non-exclusive groups?
So you can easily see why non-exclusivity is the way to go.
Are you still not sure?
Then can I ask you this...?
Do you really work with only one option per country as it is now? Or are their locations you are working with more than one option? And even in those places where you have agents already, do you turn down business from people in that same market? Of the two scenarios I painted above which situation would you rather find yourself in?