Currently, in the relocation industry, there are several traditional models that Relocation Management Companies (RMC) utilize to administer household goods moving services; the direct model, blended model and bundled model.
Direct Service Model: The client chooses the household goods moving provider.
Blended Service Model: The client chooses between multiple household goods providers.
Bundled Service Model: The RMC handles the household goods moving provider relationship exclusively.
Each of these models has one or more downfalls for the client and their relocating employees. Potential disadvantages:
- Increases need for cost control
- Client has to manage supplier and contracting
- Reduces exception requests
- Decreased satisfaction with moving and storage providers
- Decrease in capacity
- Household goods moving provider’s need for price improvement
VERSA Relocation prefers to operate using an Integrated Service Model when providing household goods moving services to its clients. The Integrated Service Model is an all-encompassing solution where the RMC and the household goods moving provider share common ownership. In this model, the RMC and the household goods moving company bundle their services as one, unified package to meet the client’s requirements. The Integrated Service Model assists in providing solutions to the challenges that relocation programs face today. Here are some of the ways that partnering with an RMC that utilizes an Integrated Service Model can prove advantageous to a client:
Streamlined Communication – Because the companies in the Integrated Service Model share ownership, their internal processes are synonymous. Similarly, there is direct interaction between providers and this creates expedited and seamless communication to the client and their employees. This prompt correspondence is instrumental in executing “quick-breaking” moves and escalating problems.
Preferred Capacity – Many carriers in the household goods moving industry suffer from van operator shortage and shrinking capacity. Peak-season relocations are becoming increasingly challenging to service. An RMC operating in the Integrated Service Model offers relocation services and necessary van capacity to fulfill client’s needs using their own resources. This results in clients having preferred capacity in the peak season.
Decreased Administrative Costs – Relocation companies that operate in the Integrated Service Model can offer direct managerial services for all relocation policies. Implementing these services could greatly reduce client administrative burden and cost.
Controlled Service Mechanism – RMCs operating in the Integrated Service Model are in a controlled services environment where the accountability and responsibility lies directly within the organization. This means that RMC responsiveness and quality control are implemented with a single-point-of-contact for the client and their relocating employees, leading to increased satisfaction.
Choosing to partner with a Relocation Management Company that operates in an Integrated Service Model could mean streamlined communication, preferred capacity, decreased administrative costs and a controlled service mechanism. All of these advantages may be worth considering when choosing a relocation services provider.