One of the industry’s leading supplier executives, Tim Musgrave, subscribes to the practice of listening ever so closely to customers—both current and potential ones. He subscribes to the habit described by a former GM CEO: “We listened to what our customers wanted and acted on what they said. Good things happen when you pay attention.”
“Fleets expect more from a supplier,” Musgrave explained. “They want partnerships, not just vendor relationships, and they want suppliers to listen more closely to what they want, not what we suppliers want. The competition is fiercer and they must remain running—delivering loads and generating revenue.”
Musgrave leads the team of Pressure Systems International (P.S.I.), San Antonio, Texas. In 1993, automatic tire inflation was a new technology for commercial vehicles—developed when Marvin L. Berry, PSI’s founder, acquired a patent for an inflation system to solve a tire-wear problem for an aggregate hauling fleet of 250 plus trailers that he owned.
Today, Meritor Tire Inflation System (MTIS) by P.S.I. is popular in the U.S. with 70% of the top 200 fleets (for-hire and private) spec’ing it on their trailers.
In the U.S., 92% of fleets that use automatic tire inflation systems choose MTIS by P.S.I. with about 40% of all new trailers being equipped with the system. P.S.I. has also opened markets in 41 countries across the globe. In the past 20 years, PSI has manufactured and shipped close to three quarter of a million tire inflation systems for trailers. Musgrave’s management style lends itself automatically to examining and evaluating its perspectives on serving customers and responding to market trends.
“All of us—the supplier and the fleet customer—must listen and act as a team. It’s best to assemble the right people in the same room and to consider the innovation, the product, the service, but to listen closely to the wants, needs and the attributes.”
Demonstrating team-thinking and ‘what’s good for the industry’, Musgrave has played an important role representing P.S.I. and the industry relative to government affairs on regulations and legislation.
Two industry executives known for customer responsiveness underscored the importance of Musgrave’s attention to detail:
“Tim’s main trait in business discussions is to spend 90% of his time listening and developing solutions for his customers,” said Tim Kraus, president of HDMA. “He has always been known for his ability to ask one sentence questions that require two paragraph answers.”
“No one understands his customers better than Tim,” said Tom Gosnell, chief executive officer, Nelson Global Products. “Tim has one of the most agile intellects and keenest business minds, yet he spends far more time listening respectfully and asking questions than he ever spends just talking or stating opinion.”
So what are the key business and market trends that Musgrave recognizes in fleets’ operations and best practices others should consider?
• The importance of listening has increased. Musgrave says, “We, as suppliers, must be more willing to listen to the fleets’ real needs (voices of the customers) as they “run their numbers” on adding new technology—if it can save them money, they’ll ultimately adopt it.”
• Return on investment (ROI) is paramount to customers (preferably in 10-11 months) and many fleets bring their accounting executives into the meeting seeking payback in performance and/or fuel savings.
• More fleets are making group decisions, examining the attributes offered, as well as any shortcomings of the product or innovation. The warranty manager’s and shop foreman’s voices are carrying value and weight in the decision-making process.
• More customers are entering business meetings/presentations with open minds—to new breakthroughs, new innovations and proven reliability.
• All fleets are looking at improved efficiencies … innovation has not been at the forefront like it is today. “The Internet-knowledge-awareness has helped the fleets’ situation.”
• Younger, even non-family, leaders are impacting decisions at many fleets. Those operations are no longer making decisions based on “my dad always did it this way or that way,” and it opens up new opportunities to suppliers.
• More fleets of all sizes are exploring every opportunity for improved driver safety. “They’re forward thinking.”
• The CSA regulations are impacting fleet decisions to add technology that either benefits the drivers and/or reduces time spent in inspection. “Some fleets have told me that inspectors will often clear a trailer through an inspection line if they see ATIS. The likelihood of imposing a penalty is reduced, and it’s not worth the inspector’s time to inspect the trailer; other technologies have the same potential.”
“Sure, our industry—fleets and suppliers—has challenging times ahead of all of us, but we’re all savvy enough to identify what needs to be fixed or done to tackle those and to accomplish our goals,” emphasized Musgrave, noting the practical value of fleet fly-ins, a practice that PSI has carried out for many years.
Fleet managers are smart people, according to Musgrave. They learn from their successes and mistakes and they listen to their constituents—the shippers, the drivers, the technicians and they listen and observe what their competitors are doing, right or wrong.
“On a fleet fly-in, we want customers to see our operation—our people manufacturing with pride and honor, and to see our culture up close and personal,” he said. “Our employees differentiate our products and thankfully many fleet managers recognize that intrinsic value and commitment.”
Interpersonal relationships are vital in our business, affirmed Musgrave. “It’s the key to the whole thing. Nothing replaces the relationships we enjoy with our customers.”
In the future? P.S.I. is working on a “dream trailer” in its “back room.” Yet, like his mantra for his current products, until every single element of it works 100% of the time, not one customer is going to see it. “There is no room for failure” when it comes to serving customers with safety assured for all concerned.
Musgrave focuses intently on staying ahead of industry developments and incorporates them into his product portfolio. “I remind myself every morning; ‘Nothing I say this day will teach me anything.’ So if I’m going to learn, I must do it by listening.”