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How to operate
PLP
Relationships
with
20 Strategic
Customers
Supply Chain Solutions that Deliver.
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.
2
Primary Logistics Provider
Primary – We aim to be the customer’s
first choice and largest source of logistics
services in a direct relationship.
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.
Partner – We cherish intimate, long-term
relationships that drive mutual benefit.
3
How to Operate as a PLP?
Account Benefit of using UTi
- Cost savings (Pricing discounts)
- Service Reliability
- Time savings
- Scope of products we provide
Products
- Movement
- Order Management
- Brokerage
- Warehousing
- Consulting
Quantifying
Value
Solutions
PLP
(Primary Logistics
Partner)
Vertical Markets
- Chemical
- Health & Beauty (Pharma)
- Fashion
- Automotive
- High Tech
I.T. support & products
- Use of “u” Products
- Reporting
- Integration—EDI & / or XML
Customer Relationship
1.
2.
3.
4.
UTi management sponsors the account
Contact frequency at least monthly
Multiple contacts above traffic manager
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
Customer Profitability
Internal benefit to UTi handling the business
-Account profitability: Gross vs. Net Revenue
-Monthly review
4
4 Step PLP Process
Sales Prep
1.
2.
3.
4.
5.
Selling
Identify top 30
1.
accounts at your level
•
Global
•
Regional
2.
•
Country
•
Branch
Identify other
potential accounts
•
Other existing
UTi major
accounts but not
using UTi in
your area
•
New target
accounts
Use selection criteria to
select top 20 accounts
Appoint a management
sponsor for each
account
Appoint a day-to-day
UTi account manager
3.
for each account
4.
5.
Implementation
On-going
Identify pain points
1. Assign resources
1. UTi sponsor
Or opportunities
• Ops (SOPs)
• Acct. penetration
for creating value
& adherence
o additional value
Prepare an
• Billing
add
opportunity plan of
• I.T.
o Do what we
what you will do
• I.D. skill sets
promise
for each account
required
• Resources
•
Set actions
• Reporting line
• Service
•
Responsibilities
• measurement
- transit time
•
Due dates
agreed KPIs
- quality
•
I.D. “C” suite
with the account
- cost to customer
contacts
• Set plan
• Ongoing
•
Use other UTi
o action
value Quantification
experts to help
o time
• Audit & reviews
develop the
o responsibility
plan
2. Reporting &
o Ops
measurement
o Brokerage
• Set audit & reviews
o Warehousing
o Frequency
o I.T.
o Date
o etc.
o Responsibilities
Quantify the value
o Content
your plan will bring
• Measurement setup
the customer
o I.T. involvement?
Get customer agreeo Standard reports?
ment to the value
o Schedule for UTi
5
Close the account
sponsor to review data
Top 20 PLP Account Roadmap
Sales Prep
Top 30 “existing”
accounts at
global, regional,
country, or branch
levels
Selling
Implementation
On-going
Potential
Other accounts
Including PLPs
From other parts of
the world
Use “Selection Criteria”
to identify top 20 accounts
Appoint UTi management
Account Sponsor &
day-to-day contact
6
Selecting the Top 20 PLP Accounts
Level of Accounts
A total of 20 PLP Accounts Selected per Level
20
Global
PLPs
20 Global
Selected PLPs
20 Regional
Selected PLPs
20 Country
Selected PLPs
20 Branch
Selected PLPs
Some of
20 global
PLPs
Some of
20 global
PLPs
Some of
20 global
PLPs
Global Sr. Mgt.
& their direct Reports
Regional
PLPs
Some of
Regional
PLPs
Some of
Regional
PLPs
Some of
Country
PLPs
Executive Sponsors
Country
PLPs
Branch
PLPs
Regional Sr. Mgt.
& their direct Reports
Country MD
& their direct Reports
Branch Mgr.
& their direct Reports
7
Selection Criteria for the Top 20 PLP Accounts
Customer Business Relationship
No relationship
today
Less Desirable --------------------- More Desirable
Current strong relationship
with recognized UTi value
Support from an Executive within the account
No identified customer
executive sponsor
Less Desirable --------------------- More Desirable
Strong relationship with
C-level sponsor
Customer Decision Making Process
Very complex/multiple
global decision makers
B
Less Desirable --------------------- More Desirable
Simple/one
decision maker
UTi Solution Area
Does not match UTi
solution capabilities
Less Desirable --------------------- More Desirable
Ideal match for UTi
solution capabilities
Ease of Implementation
Difficult
Less Desirable --------------------- More Desirable
Easy
Customer Buying Process
Late in process/RFP
received
Less Desirable --------------------- More Desirable
Early in buying process
Customer Philosophy
Customer wants to treat
UTi as a commodity
Less Desirable --------------------- More Desirable
Open to partnership
concept
Potential Value to UTi
Low Value
Less Desirable --------------------- More Desirable
High Value
8
Top 20 PLP Account Roadmap
Sales Prep
Selling
Top 30 “existing”
accounts at
global, regional,
country, or branch
levels
Implementation
On-going
Potential
Other accounts
Including PLPs
From other parts of
the world
Use “Selection Criteria”
to identify top 20 accounts
Appoint UTi management
Account Sponsor &
day-to-day contact
Identify account pain points and/or
areas of value creation
Create an
“Opportunity Plan”
Quantify
value for
the account
Close the
account on new
opportunities
9
Example of Value Add Matrix
Value Add Products
For “Client Name”__________________
Currently
Providing
Actions / comments
Target
Responsibility
Date
Transportation o Airfreight export
o Airfreight import
No international imports
o Ocean export
Test shipments complete
9/1/01
John Smith
Waiting for decision
6 /1/01
Bill Jones
Making a proposal
7/1/01
John Smith
Final carrier approval
8/1/01
John Smith
o Ocean import
o Sea Air
Brokerage
o Clearance
o Bonds
o Drawback
o Compliance consulting
Warehousing
o Quality assurance
o Pick & Pack
o Cross dock
o Assembly & Distribution
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
Other
No Action or Progress
Under Investigation
Solution Identified
Implementing Solution
Complete
10
Opportunity Plan
Answer the following questions for each PLP account
What are the customer’s supply chain objectives?
Why should the PLP do something?
Why now?
Why UTi?
Describe the solution being proposed
What is the pricing?
Who is the competition?
What is the decision making process?
Who are the decision makers and influencers to the decision?
What is the customer’s decision criteria?
Do we need the help of an alliance partner? Who, for what?
What could cause us to lose this opportunity?
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?
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
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.
11
Quantifying Value
PLP’s Current Situation
PLP’s Situation with UTi’s Solution
Current Revenue
Revenue improvement
Based on UTi’s solution
Dollars
Current Cost
Current time to
complete the
customer process
(i.e. transit time,
cycle time)
Current quality
level
Cost utilizing UTi’s
Solution
Time
Time differential
with UTi’s solution
Quality
New quality improvement
as a result of UTi’s
solution
12
Top 20 PLP Account Roadmap
Sales Prep
Selling
Top 30 “existing”
accounts at
global, regional,
country, or branch
levels
Implementation
On-going
Potential
Other accounts
Including PLPs
From other parts of
the world
Use “Selection Criteria”
to identify top 20 accounts
Appoint UTi management
Account Sponsor &
day-to-day contact
Identify account pain points and/or
areas of value creation
Create an
“Opportunity Plan”
Quantify
value for
the account
Close the
account on new
opportunities
Implement
agreed upon
actions
Measure progress
& conduct audit
& review
13
Implementation Checklist
1.
Create a customer team utilizing sales, operations, and accounting. You may also need
help 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 measurement
method 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
14
Top 20 PLP Account Roadmap
Sales Prep
Selling
Top 30 “existing”
accounts at
global, regional,
country, or branch
levels
Implementation
On-going
Potential
Other accounts
Including PLPs
From other parts of
the world
Use “Selection Criteria”
to identify top 20 accounts
Appoint UTi management
Account Sponsor &
day-to-day contact
Identify account pain points and/or
areas of value creation
Ongoing
account management
“Expand the relationship”
Create an
“Opportunity Plan”
Quantify
value for
the account
Close the
account on new
opportunities
Implement
agreed upon
actions
Measure progress
& conduct audit
& review
15
Audit & Review
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
16
Responsibilities
PLP
Relationship Management
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
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
17
PLP—”Circle the Customer, Circle the Globe”
Time
Customer
ePortals
Quality
Relationships
Cost 18