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Logistics and supply chain

ICP for logistics software: volume is the qualifying number

The short answer

Most B2B software qualifies on company size: headcount, revenue, funding stage. Logistics software should qualify on throughput, because that is what the value scales with. Shipments a month, parcels a day, containers a year, units per site. Below a certain volume the arithmetic never works no matter how good the product or the pitch, because the saving per shipment is real but the number of shipments is too small to pay for the software. That threshold is the single most useful line an ICP can contain, it is findable from your own closed-won data, and almost nobody writes it down.

Shobhit Gupta, founder of GrowthStack Advisory

By Shobhit Gupta

Founder, GrowthStack Advisory. Built GTM inside Locus, GoComet and Landmark’s Logistiq division, and delivered for Easyship.

· 7 min read

Why company size is the wrong variable here

The default ICP in B2B software is built on company attributes: employee count, revenue band, funding stage, sometimes technology used. It works reasonably well when the product is priced per seat, because seats correlate with headcount.

Logistics software is not priced or valued that way. Its benefit arrives per shipment, per parcel, per container, per route. A two hundred person manufacturer shipping twice a week is a worse fit than a thirty person eCommerce brand shipping four hundred parcels a day, and every company-size filter gets that backwards.

So the qualifying variable should be the thing the value scales with. In this sector that is almost always throughput, and the unit depends on what you do: parcels, shipments, containers, dispatches, stops, units installed per site.

The volume floor

Once you accept that value scales with throughput, something useful follows. There is a volume below which your product cannot pay for itself, and it is a hard floor rather than a soft preference.

The arithmetic is simple and worth doing explicitly. If the product saves a genuine amount per shipment, and the software costs a fixed amount per month, then the break-even is the monthly cost divided by the per-shipment saving. A prospect below that number is not a slow deal or a nurture candidate. They are a company for whom the maths does not work, and no amount of sequence optimisation changes that.

This is why volume-based qualification is so much more decisive than the usual firmographics. Company size tells you whether someone can afford you. Throughput tells you whether buying you would be rational.

Two versions of the same number

Two named engagements show the same principle in different units.

Easyship, a multi-carrier shipping platform selling to eCommerce brands across the United States and the United Kingdom, has a clear threshold: the businesses worth a conversation are typically shipping a thousand parcels a month or more. Below that, a brand can manage carriers manually and the platform is solving a problem they do not yet feel. That single number does more qualifying work than any firmographic filter, and it is expressed in the buyer’s own unit.

WorkStore, the exclusive India partner for the Dyson Airblade series, sells a physical product rather than software, and the same logic produced a different unit. Its four qualification criteria were budget, genuine need, timeline and the number of units required. Unit count is the throughput equivalent for hardware: it decides whether an enquiry is an opportunity or a sample request. It was the criterion that most often separated the two, and no published qualification framework would have supplied it.

The pattern generalises. Find the unit your value is delivered in, then find the level of that unit at which buying you makes sense.

How to find your number

From your own data, not from a market report. Take the last twenty or thirty closed-won accounts and record the throughput figure for each at the time they bought. Then do the same for closed-lost, and for the accounts that churned inside a year.

Three things usually appear:

If the throughput figure is not recorded on your CRM records, that is the first fix, and it is a data hygiene problem rather than a sales one. The reporting side is covered in GTM analytics and reporting.

What else belongs in the ICP, and in what order

Volume is the primary filter, not the only one. Three secondary criteria matter in this sector specifically.

Written in that order, an ICP in this sector reads as a short list of checks rather than a persona document, which is the point. The general method is in the B2B ICP framework.

How the number gets misused

Two failure modes, both common.

The first is using volume as the whole ICP. Throughput tells you the deal can work, not that this particular company wants it now. A high volume shipper perfectly happy with its current setup is still a hard sale, and the trigger question, why now, is separate from the fit question.

The second is quietly lowering the floor to hit a quarter. It is the most understandable decision in sales and the most expensive in this category, because sub-threshold accounts consume an operational onboarding, generate support load, and leave. A floor that moves under pressure is not a floor, and the churn shows up two quarters later attached to nobody’s name.

Part of a five guide series on selling logistics and supply chain software. See also why the sales cycle runs long, the three buyers, the buying committee, and opening South East Asia.

The vertical argument and named results are on GTM for logistics and supply chain software. For turning the threshold into criteria reps apply consistently, see choosing a sales qualification framework.