Integration Vs Franchising
- 1. GeoPost Intercontinental Integration versusFranchising Integrating a non-integrated network Triangle Conference May 2009 – Munich
- 2. An integrated network– what it is Integrated Global Express Parcel Distribution International Pickup Export Import Final Delivery Linehaul Destination Depot Export Customs Import Customs Origin Depot Clearance Clearance Origin Destination IT Management (IT) IT IT IT IT A global express parcel network is made up of a number of smaller components which all play a role in transporting goods from their origin to their final destination An integrated network is one in which all components work together to provide a seamless and standardised service for customers GeoPost Intercontinental – Integration vs Franchising May 2009 -1-
- 3. Two models ofintegrated networks An integrated network can be created using various models, with centralised or decentralised control, and varying ownership of assets… Primarily Owned Network Ownership and central control are the key integrating factors Ensures the highest consistency of customer experience Franchise / Collaborative Network The common business concept and collaborative approach are the key integrating factors Allows a decentralised approach with high local adaptability within a global framework …however integrating the various components will always be a key aim GeoPost Intercontinental – Integration vs Franchising May 2009 -2-
- 4. Comparing the models Primarily Owned Franchise / Collaborative Different entities, common Customer One company, one brand branding Experience Single point of contact Single point of contact Highly standardised offering, on Global standards ensure coherent Products an international and local level international offering Local adaptations where needed Wholly owned facilities with high Strategic partnerships International quality, efficiency Selective investments Networks Owned aircraft provide high flexibility High quality plus flexibility Centralised systems with high Global, centrally developed options IT capabilities Central coordination of often locally adapted interfaced systems Management Strong central control results in high Local autonomy and accountability level of compliance and consistency Entrepreneurial through various Concept Procedure driven organisations co-ownerships GeoPost Intercontinental – Integration vs Franchising May 2009 -3-
- 5. A supply chaineco-system The flexible global framework and expertise in collaborative relationships facilitate a model based on the combined capabilities of multiple partners, at the network and the local level Collaborative Framework, IT and Branding Forwarders Local Major Logisticians Airlines Customs Agents Regional Logisticians Parcel Businesses Trucking Regional Companies Airlines Postal Local Network Operators Champions Providers GeoPost Intercontinental – Integration vs Franchising May 2009 -4-
- 6. Integrating factors The Franchise/ Collaborative Network ensures a coherent customer experience, without the need to own assets, through the use of several integrating factors Franchise contracts and network SLAs supporting the collaborative framework Selective investments in key strategic network components Global IT architecture with high interfacing capability Common brand: Stand-alone or co-branded with local partner Shared principles of collaboration GeoPost Intercontinental – Integration vs Franchising May 2009 -5-
- 7. Key Principles ofCollaboration Critical for the sustainability of the model is the sharing of key principles Alignment of ambitions and values between partners Shared priority of creating benefits and value for all partners Promoting involvement and constant dialogue across partner teams Facilitating knowledge sharing (through technology) Developing a collaborative mindset and intercultural skills GeoPost Intercontinental – Integration vs Franchising May 2009 -6-
- 8. On a globalscale A model covering and expanding throughout the world GeoPost Intercontinental – Integration vs Franchising May 2009 -7-
- 9. Benefits to Customersand Partners The model is attractive for customers and partners Customer Benefits Customer Benefits Partner Benefits Partner Benefits A proven business model A proven business model Smooth relations based on Smooth relations based on shared principles shared principles Local understanding with Local understanding with global reach global reach Extended capabilities Extended capabilities High flexibility combined with High flexibility combined with Partnering benefits, e.g. Partnering benefits, e.g. a global standard a global standard flexibility to rapidly adjust flexibility to rapidly adjust Consistent and locally Consistent and locally Enlarged profile and Enlarged profile and adapted offering adapted offering attraction of talent attraction of talent GeoPost Intercontinental – Integration vs Franchising May 2009 -8-
- 10. Conclusions Adopting the Franchise/ Collaborative Model has been a key driver of success The model allows the partners to concentrate on core competencies Efforts are not focused on the ownership and management of assets Focus is placed on the key aspects of express parcel delivery: customer relations and alignment of partners along the chain The collaborative model is very well suited to the current environment Limited financing is required to expand Flexibility allows easy adaptation to volatile business conditions The model leverages the knowledge and capabilities of a global business community and is highly adaptable to local conditions, which is essential as new markets come to prominence GeoPost Intercontinental – Integration vs Franchising May 2009 -9-
- 11. Thank You. GeoPostIntercontinental – Integration vs Franchising May 2009 - 10 -