>> Supply Chain Solutions that Deliver. How to operate PLP Relationships with 20 Strategic Customers

>> Supply Chain Solutions that Deliver.

How to operate

PLP Relationship

s

with

20 Strategic Customers

2

Purpose of this Presentation

How to identify, select, sell, implement, support and manage 20 strategic customers in a Primary Logistic Partnership (PLP) relationship.

This presentation lays out the 4 step PLP process and account roadmap for use at the global, regional, country or branch level. The content should be modified to meet local conditions.

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Partner – We cherish intimate, long-term relationships that drive mutual benefit.

Logistics – While we deliver customized supply chain solutions, services and information through our worldwide network, our core transaction business remains freight forwarding, customs brokerage, order management, and value-added warehousing.

Primary – We aim to be the customer’s first choice and largest source of logistics services in a direct relationship.

Primary Logistics Provider

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Products- Movement- Order Management- Brokerage- Warehousing- Consulting

Vertical Markets- Chemical - Health & Beauty (Pharma)- Fashion- Automotive- High Tech

I.T. support & products- Use of “u” Products- Reporting- Integration—EDI & / or XML

QuantifyingValue

Solutions

Customer Relationship1. UTi management sponsors the account2. Contact frequency at least monthly3. Multiple contacts above traffic manager4. Agreed upon KPIs (Key Quarterly audit and reviews traffic / purchasing Performance Indicators)5. “Insider” customer status (First company called for information, advice, or specific project work

Account Benefit of using UTi- Cost savings (Pricing discounts)- Service Reliability- Time savings- Scope of products we provide

Internal benefit to UTi handling the business-Account profitability: Gross vs. Net Revenue-Monthly review

Customer Profitability

PLP(Primary Logistics

Partner)

How to Operate as a PLP?

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1. Identify top 30 accounts at your level

• Global• Regional• Country• Branch

2. Identify other potential accounts• Other existing

UTi major accounts

but not using UTi in

your area• New target

accounts3. Use selection criteria

to select top 20 accounts

4. Appoint a management sponsor for each account

5. Appoint a day-to-dayUTi account manager for each account

Sales Prep

1. Identify pain pointsOr opportunitiesfor creating value

2. Prepare an opportunity plan ofwhat you will dofor each account• Set actions• Responsibilities• Due dates• I.D. “C” suite

contacts• Use other UTi

experts to helpdevelop the plano Opso Brokerageo Warehousingo I.T.o etc.

3. Quantify the valueyour plan will bringthe customer

4. Get customer agree-ment to the value

5. Close the account

1. Assign resources• Ops (SOPs) & adherence• Billing• I.T.• I.D. skill sets required• Reporting line• measurement agreed KPIs with the account• Set plan o action o time o responsibility

2. Reporting & measurement

• Set audit & reviews o Frequency o Date o Responsibilities o Content• Measurement setup o I.T. involvement? o Standard reports? o Schedule for UTi sponsor to review data

1. UTi sponsor • Acct. penetration o additional value add o Do what we promise• Resources• Service - transit time - quality - cost to customer• Ongoing value Quantification• Audit & reviews

Selling Implementation On-going

4 Step PLP Process

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Top 30 “existing”accounts at

global, regional,country, or branch

levels

Potential Other accountsIncluding PLPs

From other parts ofthe world

Use “Selection Criteria”to identify top 20 accounts

Appoint UTi managementAccount Sponsor &day-to-day contact

Sales Prep Selling Implementation On-going

Top 20 PLP Account Roadmap

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20 GlobalSelected PLPs

20GlobalPLPs

20 RegionalSelected PLPs

Some of20

globalPLPs

RegionalPLPs

20 CountrySelected PLPs

Some of20

globalPLPs

Some ofRegional

PLPs

CountryPLPs

20 BranchSelected PLPs

Some of20

globalPLPs

Some ofRegional

PLPs

Some ofCountry

PLPs

BranchPLPs

Executive Sponsors

Global Sr. Mgt.& their direct Reports

Regional Sr. Mgt.& their direct Reports

Country MD& their direct Reports

Branch Mgr.& their direct Reports

A total of 20 PLP Accounts Selected per LevelLevel of Accounts

Selecting the Top 20 PLP Accounts

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B

Customer Business Relationship

Support from an Executive within the account

Customer Decision Making Process

UTi Solution Area

Ease of Implementation

Potential Value to UTi

Customer Buying Process

Customer Philosophy

Strong relationship withC-level sponsor

Very complex/multipleglobal decision makers

Simple/onedecision maker

Does not match UTi solution capabilities

Ideal match for UTi solution capabilities

Difficult

Low Value High Value

No identified customerexecutive sponsor

Late in process/RFPreceived

Early in buying process

Customer wants to treat

UTi as a commodity

Open to partnershipconcept

No relationship today

Current strong relationship with recognized UTi value

Less Desirable --------------------- More Desirable








Easy

Selection Criteria for the Top 20 PLP Accounts

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levels



Create an “Opportunity Plan”

Identify account pain points and/orareas of value creation

Quantifyvalue for

the account Close theaccount on newopportunities





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Value Add Products

For “Client Name”__________________

Currently

Providing

Actions / comments Target

Date

Responsibility

Transportation o Airfreight export

o Airfreight import

o Ocean export

o Ocean import

o Sea Air

No international imports

Test shipments complete 9/1/01 John Smith

Brokerage o Clearance

o Bonds

o Drawback

o Compliance consulting

Waiting for decision 6 /1/01 Bill Jones

Warehousing o Quality assurance

o Pick & Pack

o Cross dock

o Assembly & Distribution

Making a proposal 7/1/01 John Smith

Order Management & uOrder

Insurance

Special Documentation

PU&D o Scheduled PU

o Specialized equipment

o Weekend or after hour specials

I.T. o eMpower

Routing Guide Final carrier approval 8/1/01 John Smith

Other Solution IdentifiedNo Action or Progress Implementing Solution CompleteUnder Investigation

Example of Value Add Matrix

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Opportunity Plan

1. What are the customer’s supply chain objectives?2. Why should the PLP do something?3. Why now?4. Why UTi?5. Describe the solution being proposed6. What is the pricing?7. Who is the competition?8. What is the decision making process?9. Who are the decision makers and influencers to the decision?10. What is the customer’s decision criteria? 11. Do we need the help of an alliance partner? Who, for what?12. What could cause us to lose this opportunity?13. What has the customer agreed to? Appointment, UTi site visit,

reference visit, etc.?14. What steps does UTi need to take to close the account including

management support?

Note: The opportunity plan that the Directors of Customer Solutions (DCS) use is available if you choose to utilize that form. Please contact your nearest DCS for a copy.

Answer the following questions for each PLP account

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PLP’s Situation with UTi’s Solution

Current CostCost utilizing UTi’s

Solution

Current RevenueRevenue improvementBased on UTi’s solution

Current time to complete the

customer process(i.e. transit time,

cycle time)

Time differentialwith UTi’s solution

Current qualitylevel

New quality improvementas a result of UTi’s

solution

Dollars

Time

Quality

Quantifying Value

PLP’s Current Situation

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levels





Quantifyvalue for

the account Close theaccount on newopportunities Measure progress

& conduct audit& review

Implementagreed upon

actions





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1. Create a customer team utilizing sales, operations, and accounting. You may also needhelp from other groups including I.T. , brokerage, or marketing.

2. Prepare an implementation plan and timetable for implementation

3. Get customer to agree to KPIs (Key Performance Indicators) and a specific measurementmethod for each KPI.

4. Write SOPs (Standard Operating Procedures)

5. Get customer to approve the SOP

6. Distribute the SOPs to all relevant parties

7. Train all relevant people in the SOPs

8. Measure KPIs monthly

9. Review KPIs with the Executive Sponsor monthly

10. Conduct Audit and Reviews according to an agreed upon schedule with the customer

Implementation Checklist

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levels





Quantifyvalue for

the account Close theaccount on newopportunities Measure progress

& conduct audit& review

Implementagreed upon

actions

Ongoingaccount management

“Expand the relationship”





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1. Review our performance against the KPIs- Recommended action items to improve KPIs- Agreement to what has to be done

2. Review what was agreed to be completed from the implementation plan & the status of each

- Identify outstanding items- Team support requirements- Set revised times and responsibilities to complete tasks

3. Review “best practices” from other locations serving the PLP- What are other locations doing that could be used in all other locations- What “best practices” from other accounts could be introduced

4. Review new or existing pain points- Why are they pain points

- What is the process around the pain points- What could we do to improve the process

4. Develop a new action plan, assignment of responsibilities, and time frame

Audit & Review

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Responsibilities

UTi Executive Sponsor

• Develop C-Suite contacts• Ensure resources are available• Help develop the account strategy, especially new business• Ensure the service meets the PLP’s expectations• Ensure time tables are met• Review SOPs & Pricing• Assemble the right UTi members on the customer team• Assist with presentation development• Attend audit and reviews

UTi Day-to-Day Contact

• Sell the account bigger solutions• Support UTi’s customer service• Calls primarily on the PLP’s operating personnel• Proposals, audit & review preparation• Follow-up on all customer requirements

PLP

Relationship Management

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Time

Quality CostRelationships

Qua

ntifi

ed V

alue

Solutions

ePortals

Forwarding

Other

ServicesInformation

Fina

nce

Plan/O

ptimization

ToolsW

areh

ou

sin

g Order M

gt.

Brokerage

Customer

PLP—”Circle the Customer, Circle the Globe”

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>> Supply Chain Solutions that Deliver. How to operate PLP Relationships with 20 Strategic Customers