Nippon Express

- A Japanese way to look at Sales & Marketing

November 2010

日本通運

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Contents

• General Profile

• Group Corporate Strategy 2012

• Does Size of your Sales Force

Matter?

• Never give up the Account

Relation!

• 3PL business case

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16.8 billion USD revenues globally

(840 million in EMEA)

> 65,000 employees worldwide 2.7 milion sqm

warehouse space

>1,400 locations

403 million. USD

operating income

Asset-based

Shareholding company

www.nipponexpress.com

Nippon Express General: Profile

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Group Corporate Strategy 2012

A.Develop Business in Global Markets

B.Promote One Stop Sales

C.Strengthen Logistics Sales

D.Develop New Business Areas

E. Develop Small Lot Cargo Business

F. Strengthen Regional Sales and

Specialized Businesses

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Does Size of your Sales Force Matter?

• Compared to most European Forwarders and LSP

we have a very small Sales Force, but we have

been able to maintain our size as a 16 billion USD

company.

• In stead of creating a large Sales Force, we have

traditionally built on a Quality Image among

Japanese Customers, mainly focusing on

Operations, Customer Service and Account

Management.

• In the past 15 years, also non-Japanese Accounts

have found their way to Nippon Express, but this

can not be contributed to the size of our Sales

Force!

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Never give up the Account Relation!

• In 3PL business nothing is for sure and nothing

can be taken for granted…….

• If your customer wants to change their Logistics

Set Up, it may happen that they terminate a 3PL

contract.

• Usually Account Managers focus on existing or

promising prospects, and forget the ones that just

said goodbye!

• From experience we learned never to turn your

back to an Ex-Customer.

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3PL business case

• A large printer manufacturer terminated the

German 3PL contract with us in 2008, because they

wanted to relocate their central DC to the

Netherlands.

• Business is just like Sports: sometimes you win,

sometimes you loose.

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3PL business case

• However, we kept contact with the customer on

both local and global level, so when they decided

they wanted to change their Set-Up again (one year

later), we were one of the first to hear about it!

• The first thing we had to do, was to make sure we

understood the Customer’s Key Requirements:

– Very Short Time Frame for implementation

– Location based on Center of Gravity Study showed Ruhr Area

– Availability of Container Terminal nearby

– Proven IT infrastructure, which could be set up in short time

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3PL business case

• Business Scale:

– 40,000 – 50,000 m2

– 100 – 250 FTE

– Temporary Storage of up to 500 containers in nearby

Container Terminal

• Conditions:

– 3 year contract based on:

• 1st Year: Stabilization, Improvements

• 2nd Year: Benefit from the effects of the

Improvements

• 3rd Year: More improvements and benefit from

the Accumulated Effects

– Level of Liability was made depending on our Quality Level

– Increase Efficiency and Handling Speed in the DC by

involvement in Forwarding Activities as well

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3PL business case

• An open approach in Tariff Setting:

– Show what our costs are and what kind of profit margin we

want to achieve

– Show that Efficiency Improvement actually lead to lower Total

Costs

– Reasonable Charges for Value Added Services (manpower

etc)

– Establish a minimum charge which covers most of our Fixed

Costs

– Open Attitude concerning start up costs

• A strong but practical Quality Approach

– Only 2 daily KPI reports:

• Dock to Stock & Dispatch Accuracy

– Other KPI reports are monthly 10

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3PL business case

• Create a detailed Master Plan which

covers:

– General time frame

– Analysis Order Data

– IT interface set up

– Warehouse Infrastructure set up

– Stock Transfer Method

• Create a Project Organization which

matches the Customer’s Organization

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3PL business case

• Our Core Values which we

appealed to in the sales process:

–Customer Satisfaction

–Quality

–Trust

–Effectiveness

–Responsiveness

–Project Management

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Arigato Gozaimashita!