Logistics SAM really does deliver results Maurice Daw

Logistics SAM really does deliver results! Maurice Daw Unipart Technology Logistics

Agenda z. Who are UTL? z. Unipart z. Vodafone z. Market characteristics z. SAM principles that work for us z. Results

Unipart

Unipart Group z MBO from British Leyland in 1987 z Top 20 private company in UK by turnover z 10, 000 employees z 600 locations globally z £ 1. 1 bn turnover z UGC z Unipart Automotive z Unipart Rail z Unipart Logistics z Unipart Technology Logistics

Unipart Technology Logistics Key Clients

UTL locations Magna Park 206 k sq. ft. Rugby 120 k sq. ft. Weedon 125 k sq. ft. 10 miles Baginton 80 k sq. ft. Oxford HQ 1 m sq. ft.

UTL Strategy Long term partnerships with strategic clients

Vodafone UK

Vodafone plc z One of Britain’s largest companies by stock market value z Fully operational in 27 countries z 15 licensed partnerships z 175 m customers z 66, 000 employees

Vodafone global footprint

The Partnership z Initial contract with Vodafone UK won in July 1999 z Grown by acquisition – fragmented logistics z PAYT launch z Scope was z Traditional 3 rd party logistics contract z Handsets and accessory z Store, pick, pack, ship z Delivery to retail, home, business, ISP, multiple retailer

The services have expanded dramatically… Corporate Call Centre Vodafone Technology Operations DC & Field Proposition development Northern Ireland Inbound Data Management Rework, Customisation & Postponement Handsets & Accessories Internet Ordering Customer Key = original contract = subsequent additions Handset Returns, Repairs & Installs Pre-Sales Pagers and Paknet After Sales service

Service range z In summary UTL provide for Vodafone UK z. All pre sales logistics z. Order delivery to all channels z. All post sales activity z. Return, refurb, repair, asset management z. Install and service car kit z 2 nd line support, help desk z. Logistics parts support for the network z. Proposition development

The Partnership z Contract extension signed Oct 05 z. December 2015 z. Unique in sector z Sponsored at all levels z Fully integrated teams z. No contract managers z. UTL team based at Newbury

Partnership vision To deliver a world-class customer experience for Vodafone customers and to generate mutual growth in sales and profitability through best in class logistics, and continuous improvement of quality, productivity, and cost effectiveness Our aim is to achieve this by sustaining our truly unique business partnership, which is consistently advocated at the highest levels throughout both companies.

Market characteristics

Market characteristics z Saturated market z Differentiation difficult z Similar network coverage z Similar handset range z Similar products and services z Compete on price? z 3, T Mobile z Need to compete on z Brand z Customer experience

Impact on logistics z Was a hygiene factor but now seen as a competitive advantage z New product introduction needs to be exclusive and fast z Logistics has highest number of customer touchpoints outside Stores and Call Centres (8 million per annum) z Need for competitive advantage through differentiation of customer experience

SAM principles

SAM principles z Customer intimacy z Operational excellence z Measurement z Process z Customer experience z Competition z Relationships z Managing account growth z Account structure z Marketing BP

Customer intimacy z Most important element z Deep understanding z Across the business z At all levels z Really show a passionate interest z Speak their language z Integrated into their business z 2006 Management Conference

Operational excellence z A ‘given’ z Foundation for everything z The Unipart Way

The Unipart Way It is a philosophy of working underpinned by a set of tools and techniques that: v Reduce wasteful activities. v Ensure customer demand is met. v Improves quality and productivity. v Develops employees.

Measurement

Measuring the process z Processes are complex z. Many handoffs z. Poor systems integration z End to end process mapping z 6 sigma z Measurement end to end z. Clear reporting

Measuring the customer experience

Measurement 1. Quantitative 2. Qualititative 3. Competition

Measurement z Quantitative z. Vodafone Cdi monthly survey z. UTL logistics quarterly survey z 300 customers z. Who have experienced a service z. By channel/segment z. Telephone questionnaire

Measurement z Qualitative measurement z Mystery data collection z Call centre taping z Video of physical interactions z Delivery z Car kit install z Retail store return z Learn z Process z People skills z Training tool

Measurement z Competitor analysis z. Monthly trawl z. Quarterly detail z. Proposition z. And reality

Relationships z Sponsored at all levels z CEO z Warehouse floor z No barriers z Managed closely z Vodafone restructure very often! z Mix work and social z Telecoms sector z Relationship management team z Escalations z Problem solvers z Listen

Managing account growth z Customer intimacy identifies opportunities z Operational excellence gives credibility z Opportunities to grow capability safely z Opportunities to grow margin

Account structure z No ‘man marking’ z No Contract Managers z Clear ownership and accountability z not by process z By account z Account Directors z Spoc z Creation of Account Managers

Marketing BP z Introduction followed by 3 phased event z Formal Account Plan z Structure and formality z Really demonstrated what little we know!

Results

Improved customer experience New products

Quickphone

Fonecare

Courtesy phones Robust Branded Packaging New live! Phone Simple Quick-start-guide to ensure continued ARPU from the user

Results z 10 year contract to 2015 z. Rare in logistics z. Unheard of in telecoms z New Centre of Excellence z Industry leaders in our sector