Spare parts: turning your supply chain into a competitive advantage

April 5, 2017Making your supply chain a key asset for field service efficiency

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

Agenda

Poland specifics

Reality Check

How can you make the journey of a technician more efficient?

How can you make parts management more efficient?

How can a more efficient supply chain work in your benefit?



Polish market & European perspectives:

Importance of e-Commerce & Post sales

*Source NBP

GDP will reach

3.3% in 2018

Polish

exports is

expected to

grow to as

much as

9.6% in 2018

Polish e-commerce

market B2B can

reach in 2020

more than 344

billion PLN

52% of

purchases is

made online on

producers

websites

Manufacturers are

generating up

to 50% of their profits

from after-sales

sources

European PerspectivesPolish Market

Source: Industrial Buying Dynamics 2015Source: NBP, Raport Aleo I Deloitte Jan 2017



Reality Check: The Field Services Market

4

% of your customers

expecting on-site after-sales

services

% of companies that have

after-sales services as a top

differentiator

78%12%

Market Demand Market Offer

“Shortage of mechanical and

electrical engineers all over Europe”

“Technicians are the 6rd hardest position

for Polish employers to recruit”

“73.1% of engineers believe the

complexity of machinery is increasing”

Source: Engineering UK March 2015, ManPower Talent Survey, Industrial Machinery

Manufacturing: Trends, Insights and OpportunitiesSource: Industrial Buying Dynamics 2015


© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 5

How can you make the journey of a technician

more efficient?

5

The challenge:

How to optimize 19 warehouses and over 500 field engineers providing after-sales support?

How to reduce time in transit when retrieving spare parts from one of 19 warehouses?

b

1

2

3

a

Warehouse/ DC

Service location

Before:

A technician’s

complicated

journey High inventory levels

Heightened competition

Excessive time on the road



The Solution:

Warehouse consolidation.

Express shipping services.

Use of alternative delivery locations.

Time savings of 30 minutes per service

order, achieved with the UPS Access

PointTM network.

Reduced operating costs due to

consolidation of 19 warehouses into a

single, centralised distribution center.1

2

3

aAfter:

A technicians

simplified

journey.

The Result:

How can you make the journey of a technician

more efficient?

Warehouse/ DC

Service location

Access Points




Losing time waiting

for parts to arrive

Missing revenue by not having the

parts and the people in front of

customers

Wasting fuel dropping

off parts to be shipped

Unable to efficiently

manage inventory

The challenge:

More than 400 franchisees managing and sharing their inventory all over Europe.

Deliveries to home locations and driving to local post offices' led to increased ‘down time’ and

productivity loss.



The Solution:

Leveraging alternative delivery locations.

Visibility/tracking technology to reduce parts management complexity.

Delivery management tool for increased flexibility.

Time and fuel savings - saved 18

minutes per franchisee when sending

parts and 8 minutes when collecting parts.

More visibility and ability to redirect

packages through UPS My ChoiceTM

Ease of use - UPS App to ship

packages, track packages and find

Access Point locations


The Result:



How can a more efficient supply chain work in your benefit?

A reduction of driving time

Less waiting time

Quicker return of goods

Improved inventory management

Improved warehouse management

Receive deliveries when and where convenient

Lower fuel consumption and carbon footprint reduction



UPS: From figuring it out to getting it done, we’re here to help.

Come and see us at booth …

Norbert Kręcicki

Marketing Manager

Jean-François Mathieu

Industrial Manufacturing Segment

Manager

Maciej Ziarko

Bussiness Development Manager

Anna Stefanowicz Iżycka

Segment Marketing Supervisor

Thank you

Spare parts: turning your supply chain into a competitive advantage

Business

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