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Transcript of Www.go2UTi.com >> Supply Chain Solutions that Deliver WAR ROOM PROCESS.
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>>Supply Chain Solutions that Deliver
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WAR ROOM PROCESS
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Exxon MobilDaimlerChrysler
SasolFord
Atlas CopcoDow
AgroSciencesNampak
VolvoCummins
Rover
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Prospects at the Start
Prospect Status Remarks
DaimlerChrysler HymieExxon Mobil KiallAECI Coatings DaveCummins Diesel CliveAtlas Copco GrantSasol Gerald/Wendy/CliveFord WendyVolvo AndrewDow AgroSciences KiallKromberg & Schubert JennyRover HymieFiat HymieBabcock CliveSandvic Tamroc ShaunRectron Shaun
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Why Implement the War Room Process?
• Major Accounts Success depends on– Total focus– Clear Strategy– Commitment
• Solution Selling requires – All levels of management– Multi-disciplinary input
• Continuity of effort is required
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Why Start a War Room Process Now?
Prospect Status Remarks
DaimlerChrysler ClosedExxon Mobil ClosedAECI Coatings ClosedCummins Diesel ClosedAtlas Copco RunningSasol Decision pending/bid pendingFord ClosedVolvo ClosedDow AgroSciences Started againKromberg & Schubert ClosedRover ClosedFiat Close to decisionBabcock ClosedSandvic Tamroc Wounded but still runningRectron Still running
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How does the War Room work?
• War Rooms– Process– Regional and National levels
• In depth prospect assessment– Opportunity Strategy– Only scores of more than 4
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Opportunity Strategy
Describe Prospect What is the probability of success? Understand the prospect. How much effort will be involved and how will we
price? What people are we dealing with? Identify the UTi game plan What are the risks? Action Items:
Agreed sequence of events with Prospect; UTi’s action plan.
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Describe Prospect
Who is involved? How big is the potential? Profile the prospect:
Description Close Date Customer Approved Buying Steps Closing probability Qualification Score Buying influences Decision making process
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What is probability of success?
1. Customer Business Relationship
2. Executive Sponsorship
3. UTi Solution Area
4. Ideal Customer Profile
5. Ease of Implementation
6. Customer Buying Process
7. Customer decision making Process
8. Potential Value to UTi
Score each category and take the average. Progress those where average is higher than 4.
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Understand the Prospect
Why do something? Why now? and Why UTi?
Strategic, Tactical & Operational pain points and needs?
What is our Competitive Advantage?
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How much effort is involved and how will we price?
1. Process Map
2. Current environment, supply chain approach and objectives
3. How educated is the prospect in SCM?
4. What competing services are under consideration?
5. Describe solution being offered
6. What is the pricing strategy?
7. Channel Partners: Do we need one? If so who? What value do they add?
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Process Map
PlanningMeeting
Packhouse DeparturePort
DistributionCenter/FinalDestination
ReceiveCO
Truck arriveat Port
UTiExports
UTiImports
ArrivalPort
PackhouseOperations
U-TracRV
U-TracTA
DispatchPallets
Create CO
Deliver
Ship departfrom Port
Ship arriveat Port
Pack Containers
Move toCold Storage
Deliver to Port
ReceiveFreight
MarketDemand
U-TracBO
Truck DepartsPackhouse
PackingInstruction
OrderContainers
ReceiveContainers
ExportDocumentation
U-TracDP
U-TracSA
U-TracAR
ImportDocumentation
U-TracDC
Co-ordinateTransport
BuildPallets
ColdStore
U-TracTS
Co-ordinateTransport
T
T
T
T
T
T
Order
T Touch points for temperature scanning
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• Do we need one?• If so who?• What value do they add?
Channel Partners
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What people are we dealing with?
Relational Power Base Analysis
RoleName/Title
Level of Relationship
Degree of Influence
on Decision
Sense of Urgency
Support UTi vs
Competitors
Business Pain &
Personal Agendas
Legend: 5 Significant4 Above Average3 Some2 Little1 None
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UTi Game Plan – Strengths & Weaknesses
Customer’s Buying Criteria UTi
CompetitorNo 1
CompetitorNo 2
1
2
3
4
Strengths
Weaknesses
Strategy
Note: Rank 1-3 for each criteria with 1 being the strongest
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What are the Risks?
What could cause UTi to lose this opportunity?
1. ………………………
2. ………………………
3. ………………………
4. ………………………
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Action items
• Agreed Sequence of Events with Customer– Description– Date
• UTi’s action plan– Objective– Action– Who– When
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Learning Points
• Total Focus at all levels• Work as a team• Detailed assessment• Action/Game Plan• Continuous effort• Discipline
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Opportunity Evaluation
Agreed to Sequence of events with the Customer/Prospect
A. Account Opportunity EvaluationName: Manager:Date of Last RevisionCustomer NameCustomer Solution ManagerSCM’s ManagerChannel PartnersFinancial Estimate of Opportunity Current Fiscal Year Long Term
Revenue (R) Margin (R) p.a.
A. Current / Existing Revenue Base1. Prospect Profile
Clive Griffiths / Joanne Verburg Shaun Clayden
Atlas Copco / InterocClive GriffithsGrant SpencerSun Couriers / CMH
4,200,000
The company has been identified at a “mining initiative prospect”. Although they operate 4 distinctive divisions, with each having a logistics manager, up until now the choice of service provider has been left up to the logistics manager. A decision has been taken to appoint a single service provider having a global presence.
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2. Projected close date:
3. Has the customer approved YES NO
4. Buying process step that has been completed – has the customer:
Recognised the need
Identified requirements
Evaluated options
Resolved concerns
Negotiated / approved
5. Closing probability:
6. Qualification Score
7. Identified all buying influences YES NO
8. Explain customer decision process – people / timing / events:
XMid / End September 2001
XXXXX
X
85%4.875
Our timing has been about correct. They have been making user of service provider Danzas/AEI for pat 2 years. In process they have lacked operational efficiency insofar as: communications, system integration, transit times, customised solutions, etc. This has been 1st task. Thereafter, consideration outsource warehousing and distribution
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Customer Business Relationshipa. Current strong relationship with recognised UTi value 6b. Some business relationship 3c. No relationship today 0
Executive Sponsorshipa. Strong relationship with C level sponsor 6b. Executive sponsor identified – no relationship 3c. No identified executive sponsor 0
UTi Solution Areaa. Ideal match for UTi solution capabilities 6b. Matches some UTi solution capabilities 3c. Does not match UTi solution capabilities 0
Ideal Customer Profilea. Meets all aspects of UTi ICP 6b. Meets some aspects of UTi ICP 3c. Does not meet UTi ICP 0
Ease of Implementationa. Very easy 6b. Average difficulty 3c. Very difficult 0
Customer Buying Processa. Early in the buying process 6b. Some influence on customer requirements 3c. Late in process / RFP received 0
Customer Decision Making Processa. Simple / one decision maker 6b. Medium complexity 3c. Very complex / multiple global decision makers 0
Potential Value to UTia. Greater than * R200 / R500K 6b. Greater than R100 / R200K 3c. Less than R110 R200K 0
TOTAL
Qualification Score (÷8)
5
4
6
6
5
4
3
6
39
4.875
* Regional (R200K value) National (R500K value)
B. Opportunity Evaluation Scorecard
Probability of Success
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C. Business Value ArgumentWhy do something?
1. Strategic:
2. Tactical:
3. Operational:
As a result of globalisation and developments within the mining industry, there is a need to focus on company eCommerce initiatives and management of inventory levelsNeed for greater IT interface/information flow and management of direct costs, transit times and inventoryGreater efficiency and communications
Why Now?
1. Strategic Rationale:
2. Tactical /Financial Rationale:
3. Operational Rationale”
It is a quest to become “world class”
Market and industry drivers are dictating product availability at competitive prices. Refer book “Lean Thinking” that company subscribes to – we have a copy available.Due to competitive business in which they operate, need to improve service to customers
Understand the Prospect
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Why UTi?
1. Strategic Link:
2. Tactical Link:
3. Operational Link:
We are viewed as industry leaders particularly with our “mining initiative” involvement We are already established in IT providing customised solutions with quantified valueUTi being a global company provide system integration – particularly uPerform and exception reports
Competitive Advantage
GlobalisationIT initiativesSingle point of contactEnd-to-end service provider / multi-modal
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D. Solution and Pricing Strategy1. Describe the solution being offered
2. Attach a process map3. Describe their current environment including supply chain approach and objectives
4. How educated is the prospect in this area?
5. What competing services are under consideration?
Single service provider on a group basis providing end-to-end solutions globally on a multi-modal basis
It is the objective of the management team to appoint a single service provider and streamline choice of service provider achieving economies of scale
Ian Dicks aware of benefits, others within group not so sure. Response to date has been very positive
Clover Cargo / Wilson ExpeditorsRTT ETC: National DistributionInternational Clearing and Forwarding
Effort & Price
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6. Describe the solution being proposed
7. What is the Value Pricing Strategy?
8. Channel Partner Strategy Do we need a channel partner?
If so, who is the channel partner and what role do they play?What value do they bring?
Single service provider on a group basis providing end-to-end solutions. Aided by empower suite of products, having a single point of contact.
Compressor Technique Division, door-to-door rate been in place and submitted accordingly
YES: CMH / Sun Couriers
In providing warehousing and distribution on a national scale. However, have doubts that Sun Couriers will be the right choice, might need to consider other options, ie. RTT/Value/DNA etc.
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E. Relational Power Base Analysis List all decision influences and required information Attach an organisation chart to your Account Opportunity Evaluation
Role Name/Title
Leve
l of
Rel
atio
nshi
p
Deg
ree
of
Influ
ence
on
Dec
isio
n
Sens
e of
U
rgen
cy
Supp
orts
UTi
vs
C
ompe
titor
s
Business Pain and Personal Agendas
End User
Approver
Decision Maker
Technical Buyer
Ian DicksJan du Preez Charmagne Newton Abies de Wet
4 4 4 4Service/Delivery Transit timesCommuicationCost
GM’s / Director 1 1 1 1 No contact to date
Victor Scott 4 4 4 4Service/Delivery /Transit times/Communication/ Cost
Legend: 5 = Significant 4 = Above Average 3 = Some2 = Little 1 = None
Who are We Dealing With?
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F. Competitive Strategy Rank 1-3 for each criteria with 1 being the strongest
Customer’s Buying Criteria
UTiCompetitor 2Competitor 1ExpeditorsDANZAS/AEI
Strengths
Weaknesses
StrategyHead-to-HeadFlankDivide and Conquer
XX
GlobalisationIT IntegrationPerformance ManagementEnd-to-end Solution
1111
1332
1223
*Fully Integrated IT*End-to-end Solution*Global
*Current provider in house at holding co.
*Global
*Global*IT products
*No Company dealings
*Airfreight focused*Current service limited responses
*Method of Dist
*Inbound*Airfreight focused
1.2.3.4.
Strengths & Weaknesses
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G. Risk Analysis – What could cause UTi to lose this opportunity?
1. Unknown within group2. Influcence of Charmagne – although response positive3. Influence of Holding company in Sweden
Risk of Failure?
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Game Plan
5. Agreed to Sequence of Events with the Customer / Prospect
Date Completed
Yes EndYes EndYes EndYes EndYes EndYes End
1. Presentation in Solution Centre19/07/01
2. Client Visits 25/7 – 7/8
3. Present Proposal Document 1/8 – 15/8
4. 5. 6.
XXX
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6. UTi’s Action Plan
Objective Action Who When
Complete Presentation proposal
Aies de Wet / Jan du Preez Clive 20/08/01
Management Meeting Ian Dicks Clive 07/09/01
Management Meeting Ian DicksBengt Clive 21/08/01
Management Meeting:Suppliers (Sweden Belgium and USA)
Senior Management Clive 21/08/01
Game Plan (continued)
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Learning Points
• Ensure that the War Room is a priority with senior executives
• Use structured analysis (Opportunity Strategy form) to:– Judge probability of success– Estimate value of proposition
• Run a disciplined meeting/process that focuses on getting the client
• Get commitments and team work and report back ….. Persevere.