JOH-TRX035-20080416-AG-P1
DRAFT
CONFIDENTIAL
Development of integrated key account
plans – Account plan template
8 May 2008
JOH-TRX035-20080416-AG-P1
AGENDA
Working Draft - Last Modified 08.05.2008 07:55:17
• Executive summary and dashboard
• Stock take
• Volume validation
• Where to grow
Printed 05.05.2008 11:25:49
• How to grow
• Action prioritisation
• Organisational dependencies
• Roadmap and milestones
1
JOH-TRX035-20080416-AG-P1
EXECUTIVE SUMMARY SHOULD GIVE
A CONCISE OVERVIEW OF KEY ACCOUNT
Working Draft - Last Modified 08.05.2008 07:55:17
• Strategic goals specifying how to grow volume with customer
• Industry and customer situation (impact of current economic developments)
• Burning account issues (short-term and longer-term)
• Expected volume development (e.g., growth rate within next 5 yrs)
Printed 05.05.2008 11:25:49
• Growth areas (identification of relevant flows and appropriate actions)
• Action prioritisation (description of key levers)
• Key risks and contingency plans
• Next milestones (concrete next steps, e.g., alignment with corridors etc.)
Each bullet should be
described briefly
Source: Team analysis
2
JOH-TRX035-20080416-AG-P1
STRATEGIC ACCOUNT GOALS FUNCTION AS A
GUIDING FRAMEWORK ON HOW TO GROW
VOLUME AT ACCOUNT
FOR DISCUSSION
• Setting strategic perspective
for account
• Industry leading value creation
for shareholders (e.g., positive
economic value add over
product x price cycles)
• Prioritising key initiatives for
account across all ODs
• Redefine touchpoints with
customers
• Improve operating capabilities
Printed 05.05.2008 11:25:49
Examples
Working Draft - Last Modified 08.05.2008 07:55:17
Strategic account
objectives
Key aspects
• Defining key performance
• Total volume transported for
indicators for account across
customer
all ODs
Source: Team analysis
Based on company
and industry
background
3
JOH-TRX035-20080416-AG-P1
CUSTOMER XYZ PERFORMANCE DASHBOARD
FOR 2007/08-2012/13
Current performance
TEMPLATE
Plans (full year)
Actual YTD Budget YTD 2008/09
2011/12
Financial
KPIs
Working Draft - Last Modified 08.05.2008 07:55:17
Volumes
TFR
• Iron ore
• Coal
• Other
Printed 05.05.2008 11:25:49
TPT
• Iron ore
• Coal
• Other
Revenues
...
Project
Project
KPIs
Status
Responsible
•A
...
•B
...
•C
...
Source: Team analysis
4
JOH-TRX035-20080416-AG-P1
KEY NEXT STEPS/ACTIONS
Timeline
Enabler
1• Align on joint investment
opportunities
• Key Account
Manager
• Group Finance
• May-June ‘08
• Meeting with
customer
• Joint
business plan
2• ….
•…
•…
•…
•…
Key next steps/actions
Working Draft - Last Modified 08.05.2008 07:55:17
Responsible
Desired
outcome
Printed 05.05.2008 11:25:49
5
JOH-TRX035-20080416-AG-P1
AGENDA
Working Draft - Last Modified 08.05.2008 07:55:17
• Executive summary and dashboard
• Stock take
• Volume validation
• Where to grow
Printed 05.05.2008 11:25:49
• How to grow
• Action prioritisation
• Organisational dependencies
• Roadmap and milestones
6
JOH-TRX035-20080416-AG-P1
STOCKTAKE – SYNTHESIS OF STRATEGIC
CONTEXT
Account situation
• Corporate history and strategy
• Volume and price developments
• Ownership and organisation structure
• Share of total logistics market
• Capital expenditure plans
• Executed volumes vs total demand
• Recent account challenges/events
affecting outputs
• Relationship matrix
• Production capacity/sites and size of
total logistics market
• Codified issues related to account
(customer and client)
• Supply chain analysis
NOT EXHAUSTIVE
Key account data
to collect
Current plans/likely developments
• 5yr volume file
• Supply demand balance (including
historical and forecast)
• Key events affecting current/future
volume (e.g., development/shut-down of
production sites)
• Rolling stock design
capacity (flow level)
Printed 05.05.2008 11:25:49
• Client cost and
profitability file
Industry background
• Key drivers influencing demand supply
balance (including global)
Working Draft - Last Modified 08.05.2008 07:55:17
Company background
• On-going collaboration projects
• Relative position of company within
market
• Sources of company’s competitive
advantage
Examples in
backup
Source: Team analysis
7
JOH-TRX035-20080416-AG-P1
COMPANY BACKGROUND - CUSTOMER XYZ
OVERVIEW
Working Draft - Last Modified 08.05.2008 07:55:17
• Key historical events (e.g., M&A, strikes, accidents)
• Key indicators (Turnover, profit, employees – global and SA)
• Main product lines (global and SA)
Printed 05.05.2008 11:25:49
• Organisational and decision structure (global and SA)
• Management team
• Ownership structure
8
JOH-TRX035-20080416-AG-P1
EXAMPLE
CUSTOMER XYZ STRATEGIC GOALS
Strategic goals of customer
•…
Vision
• Industry-leading value
creation for shareholders
– Positive EVA* over Product A
price cycle
• Improve operating
capabilities
– Increase throughput
– reduction in input
Printed 05.05.2008 11:25:49
•…
Working Draft - Last Modified 08.05.2008 07:55:17
Customer
XYZ
Mission
•…
•…
•…
Strategy
* Economic value add
Source: Customer XYZ 2006 annual reports
9
JOH-TRX035-20080416-AG-P1
EXAMPLE - CUSTOMER’s STRATEGIC
OBJECTIVES AND RESULTING INITIATIVES
Objective
Competitiveness
Shareholder
value release
EXAMPLE
• Reduce cost of
capital (currently
15%)
• 21.9% for the year
• Exceed EVA by improving earnings
through
– Cost reductions
– Value added products
– Higher throughput
• Remain in lowest
quartile of global
cost curve
• Most recent cost
curves confirm
lowest quartile
ranking
• To maintain lowest quartile ranking
at all plants despite Rand strength
through cost leadership
•…
•…
•…
•…
•…
Printed 05.05.2008 11:25:49
Cash generation
Future initiative
Working Draft - Last Modified 08.05.2008 07:55:17
Return on equity
Achievement to
date
… updated continuously
To •be
Source: Team analysis
10
JOH-TRX035-20080416-AG-P1
EXAMPLE – ORGANIZATIONAL STRUCTURE
OF CUSTOMER WITH FOCUS ON CONTACT
PERSONS
Contact persons
Board
• xxx
Corporate
Secretary
Political
Affairs F
• xxx
• xxx
• xxx
• xxx
Purchasing
Political
Affairs G
• xxx
• xxx
Communications
Political
Affairs Sp
• xxx
• xxx
Legal Affairs
• xxx
European
Work
Council –
EWC
• xxx
Corporate Core HR
Supply Chain
Coordination
Strategic
Coordination
Finance
Marketing
• xxx
• xxx
• xxx
• xxx
Management
Development
HR – France
Strategy &
Planning
M&A
Controlling
Finance &
Treasury
• xxx
• xxx
• xxx
• xxx
• xxx
• xxx
Compensations and
Benefits
HR –
Germany
Brussels
Office
Special
Advisor
Investor
Relations
Accounting
and Tax
• xxx
• xxx
• xxx
• xxx
• xxx
• xxx
HR
Planning &
Policy
• xxx
Corp. Business
Academy –
CBA
• xxx
HR – Spain
IRTQ
IT
• xxx
• xxx
• xxx
Printed 05.05.2008 11:25:49
Logistics
Human
Resources
Working Draft - Last Modified 08.05.2008 07:55:17
Other
functions
Operations
National &
HQ-HR
Source: Team analysis
11
JOH-TRX035-20080416-AG-P1
EXAMPLE - CUSTOMER XYZ PROFILE –
PRODUCTION CAPACITY, PRODUCTS
AND TOTAL FLOWS
2006 annual flows (million tons)
Mine 3
13 ore X
Mine 4
DISGUISED CLIENT EXAMPLE
5 ore X
Mine
Plant 6
15 ore Y
Plant 2
Production cap.
X inflows
Y inflows
Liquid product
By-product
Product type
:
:
:
:
:
:
X inflows
By-product
20
18
19
19
3
A
Mine 5
6 ore X
: 1.5
: 1
Plant 5
X inflows
Y inflows
Production
: 0.5
: 1
: 0.7
Printed 05.05.2008 11:25:49
35 ore Y
Durban
Mine 1
Plant 4
Plant 1
Production cap.
X inflows
Y inflows
Liquid product
Product type
Working Draft - Last Modified 08.05.2008 07:55:17
Mine 2
Plant
:
:
:
:
:
55
35
55
60
A
Plant 3
Production cap.
Liquid product
Product type
: 10
: 10
: B
Production cap.
X inflows
Y inflows
Liquid product
By-product
Product type
:
:
:
:
:
:
9
9
14
8.5
1
B
Cape Town
Source: Team analysis
12
JOH-TRX035-20080416-AG-P1
EXAMPLE - CUSTOMER‘s ALLOCATED CAPITAL
INVESTMENTS DURING YEAR 2007/2008
EXAMPLE
Joint project
with Transnet
By production facility
Rm
1 400
Reverse
Plant A
45
osmosis plant
110
Plant B
Galvanizing line
220
Water
treatment plant
Plant C
Replace- 56
ment
7
Environmental
Various
495
Coke battery
530
Not specified
Printed 05.05.2008 11:25:49
New
37 value-add
Working Draft - Last Modified 08.05.2008 07:55:17
Category
Percent, 100% = R1.4b
Source: Team analysis
13
JOH-TRX035-20080416-AG-P1
…AND INVESTMENT PLANS IN THE MEDIUM
RUN
EXAMPLE
Joint project
with Transnet
Category 2
1.2
Category 3
1.3
Category 4
1.5
Category 5
Planned projects
Plant A
•…
Plant B
•…
Plant C
•…
Other
•…
1.8
Printed 05.05.2008 11:25:49
Category 1
6.4
0.6
Working Draft - Last Modified 08.05.2008 07:55:17
Medium-term Capex category
Rb
2008-12
* Started Feb 2007
Source: Annual report
Top priority is …
14
JOH-TRX035-20080416-AG-P1
EXAMPLE - SUPPLY CHAIN ANALYSIS
CUSTOMER XYZ, COMMIDITY ABC
Transport 95.79
Printed 05.05.2008 11:25:49
Weighing 4.74
Working Draft - Last Modified 08.05.2008 07:55:17
Loading 11.49
EXAMPLE
Receiving 7.20
Stockpiling 8.69
Production
Total Supply Chain Cost 127.91
Source: Team analysis
15
JOH-TRX035-20080416-AG-P1
RECENT CHALLENGES/EVENTS AFFECTING
OUTPUT DURING YEAR 2007/2008
Challenges
Impact on
volume
‘000 tonnes Planned projects
7.1
0.4
• …
• …
• …
Plant B
1.3
1.2
• …
• …
• …
Plant C
1.8
1.8
• …
• …
• …
Plant D
3.8
3.7
• …
• …
• …
2005
2006
Issues to be
resolved
• …
• …
Printed 05.05.2008 11:25:49
Plant A
7.3
0.4
Working Draft - Last Modified 08.05.2008 07:55:17
Production
Mt
EXAMPLE
Source: Team analysis
16
JOH-TRX035-20080416-AG-P1
COMPETITIVE SITUATION IN DIFFERENT
PRODUCT LINES
Company
Competitors
Internal
IT, TC budget, 2002
EUR thousands
Product line 1
Product line 2
Product line 3
Product line 4
Total: 300
Total: 50
Total: 100
Total: 50
0 1
Total: 500 (100%)
Internal
71
Company
180
0
1
2
118
19
30
50
Working Draft - Last Modified 08.05.2008 07:55:17
Share-of-wallet and competitors per product line
50
49
120
• ...
• ...
• ...
• ...
• ...
• ...
• ...
• ...
Printed 05.05.2008 11:25:49
309
Main
competitor
s
Major lost and won deals (last year)
Competitors
• Accenture
Deal
Won
Lost
- VMS
platform
Volume
EUR millions
20
Competitor
-…
Next "trigger
points"
-…
-…
Source: Team analysis
17
JOH-TRX035-20080416-AG-P1
EXAMPLE
MARKET AND INDUSTRY BACKGROUND
800
EU avg
Brazil
700
600
South Korea
US safeguards
established in 2002
resulted in a run up in
US steel prices
RSA**
Czech Rep
Russia
500
400
Many markets
have been slow to react
to the recent price
increases
200
100
Printed 05.05.2008 11:25:49
300
Working Draft - Last Modified 08.05.2008 07:55:17
Price
$/t
USA
Japan
Correlation
coefficient = 0.70.8*
Devaluation/volatility
of Brazil Real
0
Yr
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
* Average correlation to US prices 0.70; to EU prices 0.81; to Japan prices 0.76
** Customer XYZ export price
Source:MEPS; Lafis; Ispat Iscor data
18
JOH-TRX035-20080416-AG-P1
FORECAST – DEVELOPMENT OF GLOBAL
DEMAND FOR STEEL
EXAMPLE
1 600
Working Draft - Last Modified 08.05.2008 07:55:17
CAGR +3.2%
1 400
1 200
CAGR +5.9%
1 000
800
Printed 05.05.2008 11:25:49
600
400
200
0
2000
2005
2010
2015
(CAGR) Compounded Annual Growth Rate
Source: McKinsey steel demand model Q3 2006
19
JOH-TRX035-20080416-AG-P1
HISTORICAL ACCOUNT PERFORMANCE
Working Draft - Last Modified 08.05.2008 07:55:17
• Historical volume performance
• Historical price development
Printed 05.05.2008 11:25:49
• Share of total logistics market
• Executed volumes vs total demand
Facts and key
takeaways required
20
JOH-TRX035-20080416-AG-P1
ACCOUNT RELATIONSHIP MATRIX
Transnet
Board, VP-level
Director
Manager
TNPA
T Pipeline
B
TPT
A
TFR
Position
C
D
E
F
D.K.
VP, CFO Corporation
T.A.
VP, HR, Corporation
J.B.
CFO
1
S.C.
VP
1
J.D.
CFO, CIO
1
L.E.
CIO
1
P.F.
CIO
1
A.G.
General Manager
R.H.
Assist. Controller Corp.
T.I.
Manager HR
X.X.
Manager Info
Management,
Source: Team analysis
G
H
I
1
1
1
1
1
3
3
2
1
3
J
Key contact
Implications going forward
• Need to establish/
extend high-level
contact to boardmembers
• Need to increase
frequency of contacts
• Need to diversify
contact network
(too extensive focus
on CIO)
Printed 05.05.2008 11:25:49
Corporate Account XYZ
Name
Project leaders
1 Number of annual
meetings
Daily to weekly
meetings
Working Draft - Last Modified 08.05.2008 07:55:17
Corporate
in account
execution
Account
management
1
1
Rationale
• Document access to decision
makers
• Identify potential gap and
assess quality of relationships
21
JOH-TRX035-20080416-AG-P1
CURRENT ACCOUNT CHALLENGES AND PAIN
POINTS
burning issues
To be tracked
Issues
S/L* Potential solution
...
...
TPT
...
...
TNPA
...
...
T Pipeline
...
...
Urgency
Printed 05.05.2008 11:25:49
TFR
Solution
agreed
Working Draft - Last Modified 08.05.2008 07:55:17
To be fixed
* (S)hort-term vs. (L)onger-term issue
Source: Team analysis
22
JOH-TRX035-20080416-AG-P1
CURRENT PLANS - CUSTOMER PLANT
DEVELOPMENT AND SHUT-DOWN PLANS
Mine 3
13 ore X
EXAMPLE
Mine 4
5 ore X
Mine
Plant
Working Draft - Last Modified 08.05.2008 07:55:17
Mine 2
15 ore Y
New Plant
• New plant with production
capacity of 20mt planned
• Ramp-up expected to be
completed by June 09
• Project currently on time
Mine 5
6 ore X
Printed 05.05.2008 11:25:49
35 ore Y
Durban
Mine 1
Plant 4
Plant to be shut down
• Plant with production
capacity of 10mt planned
to be shut down end of
2009
Cape Town
Source: Team analysis
23
JOH-TRX035-20080416-AG-P1
AGENDA
Working Draft - Last Modified 08.05.2008 07:55:17
• Executive summary and dashboard
• Stock take
• Volume validation
• Where to grow
Printed 05.05.2008 11:25:49
• How to grow
• Action prioritisation
• Organisational dependencies
• Roadmap and milestones
24
JOH-TRX035-20080416-AG-P1
SCENARIOS UNDERPINNING VOLUME
PLANNING AND KEY BELIEFs
Scenario 1:
• TFR
__Mt
• TPT
__Mt
• TNPA
__Mt
• Tpipeline __Mt
•...
Scenario 2:
• TFR
__Mt
• TPT
__Mt
• TNPA
__Mt
• Tpipeline __Mt
•...
Scenario 3:
• TFR
__Mt
• TPT
__Mt
• TNPA
__Mt
• Tpipeline __Mt
•...
* Most likely scenario
Source: Team analysis
Printed 05.05.2008 11:25:49
Final volumes*
• TFR
__Mt
• TPT
__Mt
• TNPA
__Mt
• Tpipeline __Mt
Key factors/events assumed
Working Draft - Last Modified 08.05.2008 07:55:17
To be reported
per commodity
Scenario
TEMPLATE
Scenarios to be derived
jointly by ODs
25
JOH-TRX035-20080416-AG-P1
VOLUME ESTIMATION PER COMMODITY
OVER NEXT FIVE YEARS
TNPA
TPipeline
MOST LIKELY SCENARIO
Working Draft - Last Modified 08.05.2008 07:55:17
TPT
TRF
Key assumptions
Coal volumes
mt
Printed 05.05.2008 11:25:49
2006/07
07/08
08/09
09/10
10/11
2011/12
To be reported per
commodity
Source: Team analysis
26
JOH-TRX035-20080416-AG-P1
RECONCILIATION OF SCENARIOS WITH
CUSTOMERS FORECASTS
Mismatches
Scenario 1:
• TFR
__Mt
• TPT
__Mt
• TNPA
__Mt
• Tpipeline __Mt
•...
•...
Scenario 2:
• TFR
__Mt
• TPT
__Mt
• TNPA
__Mt
• Tpipeline __Mt
•...
•...
Scenario 3:
• TFR
__Mt
• TPT
__Mt
• TNPA
__Mt
• Tpipeline __Mt
•...
•...
Printed 05.05.2008 11:25:49
Final volumes
• TFR
__Mt
• TPT
__Mt
• TNPA
__Mt
• Tpipeline __Mt
Matches
Working Draft - Last Modified 08.05.2008 07:55:17
To be reported
per commodity
Scenario
Source: Team analysis
27
JOH-TRX035-20080416-AG-P1
IDENTIFICATION OF UNDERLYING RISKS
ASSOCIATED WITH PLANNED VOLUMES
TEMPLATE
Risk
Theme 1
• Xxx
• xxx
•. . .
•. . .
Risk
Theme 2
• Xxx
• xxx
•. . .
•. . .
• Xxx
• xxx
•. . .
•. . .
• Xxx
• xxx
•. . .
•. . .
Risk
Theme 3
Risk
Theme 4
Printed 05.05.2008 11:25:49
Effects
Working Draft - Last Modified 08.05.2008 07:55:17
Risks
Source: Team analysis
28
JOH-TRX035-20080416-AG-P1
AGENDA
Working Draft - Last Modified 08.05.2008 07:55:17
• Executive summary and dashboard
• Stock take
• Volume validation
• Where to grow
Printed 05.05.2008 11:25:49
• How to grow
• Action prioritisation
• Organisational dependencies
• Roadmap and milestones
29
JOH-TRX035-20080416-AG-P1
ANALYSIS OF TRANSPORT-FLOWS ACROSS
ODs HELPS TO IDENTIFY ADDITIONAL
REVENUE OPPORTUNITIES
CORRIDOR DATA EXAMPLE
Working Draft - Last Modified 08.05.2008 07:55:17
Container volume reconciliation
Actual April 2006-March 2007 TEU (‘000)
2 339
347
Corporate account plan
should develop actions to
capture additional volume
1 992
428
Printed 05.05.2008 11:25:49
455
846
263
TNPA
Unrecon- TPT
ciled
difference
TransShort-haul Long-haul TFR
shipment trucking trucking reported
Uncaptured revenue
potential* of around
Rm 2.500.000
* Assuming average revenues of R3000 per container transported by TFR
Source: Team analysis
30
JOH-TRX035-20080416-AG-P1
COMMODITY PROFITABILITY AND VOLUME
MAPPING – 2007/08
TEMPLATE
Forecasted growth
+20% growth
Volumes
Ton, ‘000s
2 500
Working Draft - Last Modified 08.05.2008 07:55:17
3 000
+5% growth
0% growth
‘Increase
efficiencies’
‘Service quality and
volume capture’
-5% growth
2 000
1 000
Printed 05.05.2008 11:25:49
Commodity 2
1 500
Commodity 3
Commodity 5
‘Urgent issues’
500
‘Increase demand’
Commodity 1
Commodity 4
0
60
80
100
120
140
160
180
RCR
%
Source: Team analysis
31
JOH-TRX035-20080416-AG-P1
ACCOUNT COMMODITY PROFITABILITY AND
VOLUME MAPPING PER OD – 2007/08
700
600
‘Increase
efficiencies’
‘Service quality and
volume capture’
500
100
0
TPT
commodity 2
Printed 05.05.2008 11:25:49
200
TPR
commodity 2
Tpipeline
commodity 4
400
300
Working Draft - Last Modified 08.05.2008 07:55:17
Volumes
Ton, ‘000s
TFR
commodity 1
TPT
TNPA
commodity 3
commodity 1
TFR
TPT
TNPA
commodity 3 commodity 4 TPT
commodity 4
commodity 1
‘Grow and protect’
‘Urgent issues’
40
60
80
100
120
140
160
180
RCR
%
Source: Team analysis
32
JOH-TRX035-20080416-AG-P1
COMMODITY FLOW POTENTIAL VOLUME
CAPTURED – 2007/08
Prioritised actions
3 000
‘Protect and grow’
‘Service quality and
volume capture’
2 500
Commodity
Flow D
2 000
Commodity
Flow B
‘Increase demand’
‘Increase
efficiencies’
1 000
500
Printed 05.05.2008 11:25:49
1 500
Working Draft - Last Modified 08.05.2008 07:55:17
Potential volumes
Ton '000s
Commodity
Flow A
Commodity
Flow C
0
0
Source: Team analysis
10
20
30
40
50
60
70
80
90
100
Volume captured
in %
33
JOH-TRX035-20080416-AG-P1
FINDINGS FROM COMMODITY MAPPING
PROCESS
Analysis
•...
•...
•...
•...
•...
•...
•...
Mapping per OD • . . .
per commodity
•...
profitability
•...
•...
•...
•...
•...
•...
•...
•...
•...
Mapping per
commodity
profitability
Flow mapping
per potential
flow volume
captured
Printed 05.05.2008 11:25:49
Implications for Transnet
Working Draft - Last Modified 08.05.2008 07:55:17
Findings
Source: Team analysis
34
JOH-TRX035-20080416-AG-P1
RESULTING CLASSIFICATION OF
COMMODITIES
2 Challenges to overcome
3 Urgent issues
• Commodity 2
• Commodity 4
• Commodity 1
• Commodity 3
• Commodity 5
•…
•…
•…
Working Draft - Last Modified 08.05.2008 07:55:17
Commodities
1 ‘Stars’
Printed 05.05.2008 11:25:49
Ratio- • . . .
nale
•...
•...
Based on profitability
mapping
Source: Team analysis
35
JOH-TRX035-20080416-AG-P1
AGENDA
Working Draft - Last Modified 08.05.2008 07:55:17
• Executive summary and dashboard
• Stock take
• Volume validation
• Where to grow
Printed 05.05.2008 11:25:49
• How to grow
• Action prioritisation
• Organisational dependencies
• Roadmap and milestones
36
JOH-TRX035-20080416-AG-P1
LEVERS TO INCREASE VOLUME
Key account
management
Promotion and
information
Increase
demand
Product
management
New products and
services
•
•
•
•
•
Response time to customer request
Expertise provided
After-sales service
Churn prevention
Increase knowledge about
customer requirements
• Increase customer knowledge
about products
Working Draft - Last Modified 08.05.2008 07:55:17
Customer relationship management
ILLUSTRATIVE
Value added services
Integrated service solutions
Increase efficiency
of usage
Increase
capacity
Create additional
capacity
Efficiency at interfaces between ODs
• Increase quality (time, reliability)
• ...
• ...
Efficiency at specific
ODs
• ...
• ...
Transfer capacity
from other flows
• ...
• ...
Expand network –
capital investments
• ...
• ...
Printed 05.05.2008 11:25:49
Existing products
Increase
volume
Source: Team analysis
37
JOH-TRX035-20080416-AG-P1
TEMPLATE – LEVERS AND ACTIONS
Impact
Revenue
Rm
Profit*
Rm
Actions
Due date
• ...
• ...
• ...
• ...
• ...
• ...
• ...
• ...
• ...
• ...
• ...
• ...
• ...
• ...
• ...
• ...
• ...
• ...
Operations
• ...
• ...
• ...
• ...
Capital investments
• ...
• ...
Customer relationship management
Demand
Printed 05.05.2008 11:25:49
Product
management
Working Draft - Last Modified 08.05.2008 07:55:17
Volume
'000
Increase
volume
Capacity
* Operating profit
Source: Team analysis
38
JOH-TRX035-20080416-AG-P1
AGENDA
Working Draft - Last Modified 08.05.2008 07:55:17
• Executive summary and dashboard
• Stock take
• Volume validation
• Where to grow
Printed 05.05.2008 11:25:49
• How to grow
• Action prioritisation
• Organisational dependencies
• Roadmap and milestones
39
JOH-TRX035-20080416-AG-P1
PRIORITISATION OF ACTIONS IS BASED
ON VOLUME IMPACT AND EASE OF
IMPLEMENTATION
Prioritised actions
Commodity flow
Actions
10
• A
•...
•...
•...
• B
•...
•...
•...
• C
•...
•...
•...
Working Draft - Last Modified 08.05.2008 07:55:17
Volume impact (mt)
Printed 05.05.2008 11:25:49
5
6
Low
High
Ease of implementation*
* Defined by number of ODs involved, capital investment required and expected timeline
Source: Team analysis
40
JOH-TRX035-20080416-AG-P1
PRIORITISED LIST OF ACTIONS
Actions
Type of initiative
Responsible
• ...
• ...
• ...
• ...
xxx
Impact
Rm
Start date
xxx
• ...
Working Draft - Last Modified 08.05.2008 07:55:17
Flow
Impact
Volume
OD ACTIONS
Printed 05.05.2008 11:25:49
GROUP COMMERCIAL ACTIONS
Source: Team analysis
41
JOH-TRX035-20080416-AG-P1
AGENDA
Working Draft - Last Modified 08.05.2008 07:55:17
• Executive summary and dashboard
• Stock take
• Volume validation
• Where to grow
Printed 05.05.2008 11:25:49
• How to grow
• Action prioritisation
• Organisational dependencies
• Roadmap and milestones
42
JOH-TRX035-20080416-AG-P1
IMPLEMENTATION PLAN HAS TO INCLUDE ALL
RELEVANT STAKEHOLDERS TO IMPLEMENT
ACTIONS
ILLUSTRATIVE
Responsible Start date Endorsed
Action
• ...
• ...
• ...
• ...
...
...
Start date Endorsed
...
...
Printed 05.05.2008 11:25:49
Accountspecific
action
plan
Capital
Source: Team analysis
Working Draft - Last Modified 08.05.2008 07:55:17
Action
Responsibl
e
Action
Responsible
Start date
Endorsed
...
...
...
...
Important to develop
endorsement plan for
non-commercial
functions
43
JOH-TRX035-20080416-AG-P1
SPECIFIC ACCOUNT DEPENDENCIES REQUIRE
A CLEARLY DEFINED INTERACTION PLAN
Participants
• Discuss current account performance
and issues
• Update account performance dashboard
• Decide about future initiatives
• Monthly
• Account managers
of ODs
• Corporate account
executives
• Quarterly
• Commercial GMs
• COO
Account reviews
• Strategic account review
• Discussion around strategic goals and
account objectives
• Monthly
CopCo meetings
• Decisions about operational actions
• Alignment on key priorities for accounts
with corridors
• Transnet projects
• OD members from
Commercial and
Operations
• Decisions about operational actions
• As required
• COOs
Account manager
meeting
Printed 05.05.2008 11:25:49
Frequency
Working Draft - Last Modified 08.05.2008 07:55:17
Objective
OpCo meetings
Source: Team analysis
44
JOH-TRX035-20080416-AG-P1
AGENDA
Working Draft - Last Modified 08.05.2008 07:55:17
• Executive summary and dashboard
• Stock take
• Volume validation
• Where to grow
Printed 05.05.2008 11:25:49
• How to grow
• Action prioritisation
• Organisational dependencies
• Roadmap and milestones
45
JOH-TRX035-20080416-AG-P1
KEY ACCOUNT ROADMAP WITH KEY
MILESTONES
2007
Activity
2008
EXAMPLE
2009
ODs involved
• Substitute wagons with DKZ
Joseph
AB
• Ringfence CFR
Joseph
C
• 50 wagon train
Danie
AC
• Substitute BA wagons with CFR
Joseph
C
• Increase handling capacity
Joseph
...
• Reprice due to new source
Joseph
...
• Reduce no. of trains/week
Joseph
...
• Extend weekend shift
Tbd
...
• 48hr off-loading
Joseph
...
• Create new empties slot
Joseph
...
• Investigate axle capacity restrictions
Joseph
...
• Develop business case for 1km loop
Joseph
...
• Capital programme
Joseph
...
• Corridor optimisation
Joseph
...
• Customer collaboration
Joseph
...
Working Draft - Last Modified 08.05.2008 07:55:17
Responsible
6 7 8 9 1011121 2 3 4 5 6 7 8 9 1011121 2 3 4 5 6 7 8 9 101112
Printed 05.05.2008 11:25:49
Source: Team analysis
46