Spare parts are key for after-sales, a key driver for profitability. Learn how 2 customers have optimized their supply chain for delivering spare parts to their technicians or franchisees with simple capabilities, and therefore improved their cash conversion cycle.

1. Spare Parts & Cash Conversion Cycle
A tale of 2 customers
Stockholm, February 14 2018

2. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.
Once upon a time
Everywhere in the world
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3. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.
Agenda
February 14, 2018 3
Reality Check
Efficiency improvements: 2 customers
simple go-to-market
Summary & actions

4. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.
Reality Check: The Field Services Market
A real and unseized opportunity
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12%
Of manufacturers focus
on post-sales as a true
differentiator
86%
of buyers
Expect post-sales
services
Shortage of technicians :
e.g. 3d hardest position for dutch employers to
recruit
Sources: industrial Buying Dynamics 2017, Engineering UK March 2015, ManPower Talent Survey, Industrial Machinery Manufacturing: Trends, Insights and Opportunities

5. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.
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6. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.
How can you make the journey of a technician more efficient?
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Challenges
1. How to optimize 19 warehouses and over 500 field
engineers providing after-sales support?
2. 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
(illustrative)
1. Excessive time on the road
2. Heightened competition
3. High Inventory levels

7. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Access Points (UAP) network coverage 2018
28,000 UAP’s in 23 countries – unique coverage!
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Canada
USA
Netherlands
United Kingdom
Belgium /
Luxembourg
Spain
France
Italy
Germany
Poland
Mexico
Norway
Sweden
Finland
Denmark
Austria
Switzerland
UPS Access Point network deployed

8. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.
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1. Time savings of 30 minutes
per service order, achieved with
the UPS Access PointTM network
2. Reduced operating costs due
to consolidation of 19 warehouses
into a single, centralised
distribution center
1
2
3
a
After: a technician’s simplified journey (illustrative)
Warehouse/ DC
Service location
Access Points
1. Use of alternative delivery location
2. Express Shipping Services
3. Warehouse consolidation
Solution
Using alternative delivery location
From 19 warehouses to one

9. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.
How can you make parts management more efficient?
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Challenges
1. More than 400 franchisees managing and sharing
their inventory all over Europe.
2. Deliveries to home locations and driving to local post
offices' led to increased ‘down time’ and productivity
loss.
Snap-On
1. Unable to efficiently manage inventory
2. Losing time waiting for parts to arrive
3. Wasting fuel dropping off parts to be
shipped
Challenges to maintain
profitability

10. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.
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1. Use of alternative delivery location
2. Visibility/tracking technology to reduce parts
management complexity.
3. Delivery management tool for increased flexibility.
Solution
Using alternative delivery location
For an improved franchisee experience
Snap-On
1. Time and fuel savings - saved 18 minutes per
franchisee when sending parts and 8 minutes
when collecting parts
2. More visibility and ability to redirect packages
through UPS MyChoiceTM
3. Ease of use - UPS App to ship packages, track
packages and find Access Point locations

11. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.
How can a more efficient supply chain work in your benefit?
Simply put: consistent & quickly implemented
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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

12. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS: From figuring it out to getting it done, we’re here to help
Come and see us at our booth
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Mathieu Jean-François
Industrial Manufacturing Segment Manager
www.linkedin.com/in/mathieujf

13. Tack
Merci
Gracias
Grazzie
Dänke
Thank You
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