>> Supply Chain Solutions that Deliver. How to operate PLP Relationships with 20 Strategic Customers

2 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.

3 Partner – We cherish intimate, long-term relationships that drive mutual benefit. 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. Primary – We aim to be the customer’s first choice and largest source of logistics services in a direct relationship. Primary Logistics Provider

4 Products - Movement - Order Management - Brokerage - Warehousing - Consulting Vertical Markets - Chemical - Health & Beauty (Pharma) - Fashion - Automotive - High Tech I.T. support & products - Use of “u” Products - Reporting - Integration—EDI & / or XML Quantifying Value Solutions Customer Relationship 1. UTi management sponsors the account 2. Contact frequency at least monthly 3. Multiple contacts above traffic manager 4. 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 Account Benefit of using UTi - Cost savings (Pricing discounts) - Service Reliability - Time savings - Scope of products we provide Internal benefit to UTi handling the business -Account profitability: Gross vs. Net Revenue -Monthly review Customer Profitability PLP (Primary Logistics Partner) How to Operate as a PLP?

5 1.Identify top 30 accounts at your level Global Regional Country Branch 2.Identify other potential accounts Other existing UTi major accounts but not using UTi in your area New target accounts 3. Use selection criteria to select top 20 accounts 4.Appoint a management sponsor for each account 5.Appoint a day-to-day UTi account manager for each account Sales Prep 1.Identify pain points Or opportunities for creating value 2.Prepare an opportunity plan of what you will do for each account Set actions Responsibilities Due dates I.D. “C” suite contacts Use other UTi experts to help develop the plan o Ops o Brokerage o Warehousing o I.T. o etc. 3.Quantify the value your plan will bring the customer 4.Get customer agree- ment to the value 5.Close the account 1. Assign resources Ops (SOPs) & adherence Billing I.T. I.D. skill sets required Reporting line measurement agreed KPIs with the account Set plan o action o time o responsibility 2. Reporting & measurement Set audit & reviews o Frequency o Date o Responsibilities o Content Measurement setup o I.T. involvement? o Standard reports? o Schedule for UTi sponsor to review data 1. UTi sponsor Acct. penetration o additional value add o Do what we promise Resources Service - transit time - quality - cost to customer Ongoing value Quantification Audit & reviews SellingImplementationOn-going 4 Step PLP Process

6 Top 30 “existing” accounts at global, regional, country, or branch levels 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 Sales PrepSelling Implementation On-going Top 20 PLP Account Roadmap

7 20 Global Selected PLPs 20 Global PLPs 20 Regional Selected PLPs Some of 20 global PLPs Regional PLPs 20 Country Selected PLPs Some of 20 global PLPs Some of Regional PLPs Country PLPs 20 Branch Selected PLPs Some of 20 global PLPs Some of Regional PLPs Some of Country PLPs Branch PLPs Executive Sponsors Global Sr. Mgt. & their direct Reports Regional Sr. Mgt. & their direct Reports Country MD & their direct Reports Branch Mgr. & their direct Reports A total of 20 PLP Accounts Selected per LevelLevel of Accounts Selecting the Top 20 PLP Accounts

8 B Customer Business Relationship Support from an Executive within the account Customer Decision Making Process UTi Solution Area Ease of Implementation Potential Value to UTi Customer Buying Process Customer Philosophy Strong relationship with C-level sponsor Very complex/multiple global decision makers Simple/one decision maker Does not match UTi solution capabilities Ideal match for UTi solution capabilities Difficult Low ValueHigh Value No identified customer executive sponsor Late in process/RFP received Early in buying process Customer wants to treat UTi as a commodity Open to partnership concept No relationship today Current strong relationship with recognized UTi value Less Desirable More Desirable Easy Selection Criteria for the Top 20 PLP Accounts

9 Top 30 “existing” accounts at global, regional, country, or branch levels Use “Selection Criteria” to identify top 20 accounts Appoint UTi management Account Sponsor & day-to-day contact Create an “Opportunity Plan” Identify account pain points and/or areas of value creation Quantify value for the account Close the account on new opportunities Sales PrepSelling Implementation On-going Top 20 PLP Account Roadmap Potential Other accounts Including PLPs From other parts of the world

10 Value Add Products For “Client Name”__________________ Currently Providing Actions / commentsTarget Date Responsibility Transportation o Airfreight export o Airfreight import o Ocean export o Ocean import o Sea Air No international imports Test shipments complete9/1/01John Smith Brokerage o Clearance o Bonds o Drawback o Compliance consulting Waiting for decision6 /1/01Bill Jones Warehousing o Quality assurance o Pick & Pack o Cross dock o Assembly & Distribution Making a proposal7/1/01John Smith 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 GuideFinal carrier approval8/1/01John Smith Other Solution Identified No Action or Progress Implementing SolutionComplete Under Investigation Example of Value Add Matrix

11 Opportunity Plan 1.What are the customer’s supply chain objectives? 2.Why should the PLP do something? 3.Why now? 4.Why UTi? 5.Describe the solution being proposed 6.What is the pricing? 7.Who is the competition? 8.What is the decision making process? 9.Who are the decision makers and influencers to the decision? 10.What is the customer’s decision criteria? 11.Do we need the help of an alliance partner? Who, for what? 12.What could cause us to lose this opportunity? 13.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? 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. Answer the following questions for each PLP account

12 PLP’s Situation with UTi’s Solution Current Cost Cost utilizing UTi’s Solution Current Revenue Revenue improvement Based on UTi’s solution Current time to complete the customer process (i.e. transit time, cycle time) Time differential with UTi’s solution Current quality level New quality improvement as a result of UTi’s solution Dollars Time Quality Quantifying Value PLP’s Current Situation

13 Top 30 “existing” accounts at global, regional, country, or branch levels Use “Selection Criteria” to identify top 20 accounts Appoint UTi management Account Sponsor & day-to-day contact Create an “Opportunity Plan” Identify account pain points and/or areas of value creation Quantify value for the account Close the account on new opportunities Measure progress & conduct audit & review Implement agreed upon actions Sales PrepSelling Implementation On-going Top 20 PLP Account Roadmap Potential Other accounts Including PLPs From other parts of the world

14 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 Implementation Checklist

15 Top 30 “existing” accounts at global, regional, country, or branch levels Use “Selection Criteria” to identify top 20 accounts Appoint UTi management Account Sponsor & day-to-day contact Create an “Opportunity Plan” Identify account pain points and/or areas of value creation Quantify value for the account Close the account on new opportunities Measure progress & conduct audit & review Implement agreed upon actions Ongoing account management “Expand the relationship” Sales PrepSelling Implementation On-going Top 20 PLP Account Roadmap Potential Other accounts Including PLPs From other parts of the world

16 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 Audit & Review

17 Responsibilities 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 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 PLP Relationship Management

18 Time QualityCost Relationships Quantified Value Solutions ePortals Forwarding Other Services Information Finance Plan/Optimization Tools Warehousing Order Mgt. Brokerage Customer PLP—”Circle the Customer, Circle the Globe”