1. www.go2UTi.com Importance and Management of “Transit Times” including >> Supply Chain Solutions that Deliver

2. www.go2UTi.com Why Focus on Transit Time? Delivery Fulfillment Profitability Global Competition Customer Expectations Client Retention Transit Time

3. www.go2UTi.com Roger says … Our purpose as a company has been reaffirmed ? “We deliver competitive advantage to our customer’s global supply chain”. We have also validated the following guiding strategies: Global Growth, Predictable Performance, Hustle, Intelligent Information, and Supply Chain Solutions Roger MacFarlane, Sept 2001

4. www.go2UTi.com ………. And one more thing! “We are especially pleased with our performance in this tough economic environment” Roger MacFarlane: 5 September, 2001

5. www.go2UTi.com Set Standards Commit to Standards Measure Report Improve Performance Management What we Tell our Clients

6. www.go2UTi.com Goal To differentiate UTi by meeting and exceeding customer expectations on transit times and predictability.

7. www.go2UTi.com Global Top 10 The ABC of Transit Time Management Dow Corning DaimlerChrysler Ashanti Estee Lauder GM/Delta Bayer BASF BMS Johnsons Controls Sara Lee DE – US DE – ZA HK – US US – ZA US – HK US – DE US – GB GB – ZA AU – NZ DE – JP A.Focus on major routes Plus all of us EVERYONE B.Focus on major customers C.Create performance culture A B C

8. www.go2UTi.com A. Major Routes Shipment Count A

9. www.go2UTi.com l QC focus groups n Global and local n Cross Functional l View process as a whole l Set Standards l Set up cross functional teams l Measure and review n Sample when volumes are too high n Action issues with the most impact (pareto analysis) l Action How do We Manage Performance? Springboks n Think of Rugby, think of the u Each person to willingly accept and pass the ball u The more passes the more tries!

10. www.go2UTi.com Courier Docs Contact Supplier Arrange Pickup Print HBL Pre Alert Queries Issue Release Receive/check process docs Register UTRAC prealert Issue SOBS Docs to depot Docs to line Invoice charges To inv clerk Print & Sort Messenger for Delivery File from releases Split & Photocopy Invoice Costing Quality Check To Imports From Customs Rec from Imports Allocate Capture To Customs Quality Check Batching O/Seas OfficeInvoicingEntriesDegroup ClientShipping LineCustomsImport Channel Congestion Issue OBL Weather Late Sailing Late documents Original BIL Late instructions Permits Release Rejections Delays Stops /Detains Exams Contact client for instructions Original BIL Receive and register documents Fax client Split for entries From customs To releases From invoicing POD RV

11. www.go2UTi.com Ocean Routes No of Days Transit Days (RV to DC) Ocean Shipments

12. www.go2UTi.com Average OK, but predictability not

13. www.go2UTi.com Air Routes No of Days Transit Days (RV to DC) Airfreight

14. www.go2UTi.com US to ZA (Av = 6 days, PI = 10.5)

15. www.go2UTi.com USA to SA Gateway Alliance l 11 Carriers down to 1 DTD - BA 90% l Transit time 10-20 days down to 6 days l 35 Offices down to 5 Gateways l Costs $4.50/kg down to $1.70/kg l Net Savings in one Year $2.6 million l Grow the Business from 80 tons – 200 tons per month

16. www.go2UTi.com What Next on US to ZA? How do we show continuous improvement? Move the goal posts – get a new transit target of 6 days and consistently achieve shipments below this target

17. www.go2UTi.com Airfreight Shipments: Germany - USA No of Days Transit Days (RV to DC) Airfreight

18. www.go2UTi.com DE to US (11.9 days, PI = 96)

19. www.go2UTi.com DE to US

20. www.go2UTi.com DE to US

21. www.go2UTi.com DE to US (5.9 days, PI = 10.8)

22. www.go2UTi.com Learning Points : Major Routes l Focus on data quality l Make someone responsible for editing obvious data capture errors l Institute QC focus groups to manage performance

23. www.go2UTi.com B. Major Clients l Dow Corning l DaimlerChrysler l Ashanti l Estee Lauder l GM/Delta Motors l Eveready l BAYER l BASF l Bristol Myers Squibb l Johnson Controls l Sarah Lee l Dimension Data B

24. www.go2UTi.com What does Performance Management Say to our Customers? l It says we care about their business l We are committed to improve our business l It is also about improving our customer’s business l It is a service over and above daily operational tasks l It builds partnerships and relationships l It is a proof statement about our performance

25. www.go2UTi.com How do We do it with Clients? l The same process as for major routes except that we n include both UTi and client people in the cross functional performance management team n Include small routes as well as big ones l The SOP drives the commitments l We identify KPIs with the client’s guidance l The Account Relationship Manager (ARM) should drive the process

26. www.go2UTi.com Tetrapak l Tetrapak a major client on the Sweden to SA route wanted to: n Reduce the number of flash shipments (lower cost) n Ensure that flash shipment moved with 3 day transit time n Establish a predictable transit target for consol shipments A cross functional performance management team was set up with the client

27. www.go2UTi.com The Targets for Flash Shipments were Achieved by the Team

28. www.go2UTi.com We Met our Customers Expectations No of Days

29. www.go2UTi.com Learning Points: Major Customers l Start with SOP and ARM l Create QC focus groups including the client and leverage off major route performance teams l Include small routes l Develop KPI’s with client

30. www.go2UTi.com C. Performance Culture l Everyone should be familiar with and use the exception management tools that we have l These allow us to pro-actively manage the quality of our service on a daily basis l Every office and every manager, no matter how small the office is, should be doing this C

31. www.go2UTi.com What are these tools? l HB’s at AR status (or invalid POD status) but not yet POD’d l ROS dates against vessels ETA (actual Shipment details)! l Forward Planning Report – selects PO’s with ERD date for two weeks ahead And more …… generates exceptions reports that focus on transit performance. For example:

32. www.go2UTi.com Excel Spreadsheets (Expected Orders) Attachment to e-Mail

33. www.go2UTi.com Reports (Outstanding POD’s)

34. www.go2UTi.com Fig 1.1 Fig 1.2 EXCEPTION REPORT Email and SMS (ROS vs ETA)

35. www.go2UTi.com Learning Points: Performance Culture l Everyone must be included l Use uTrac exception reports l Take pro-active action

36. www.go2UTi.com Get This Right Win every time …

37. www.go2UTi.com Win Every Time Become World Champions