BUILDING THE CASE FOR ACTIONABLE CUSTOMER EXPERIENCE PERSPECTIVES FROM A B2B ENVIRONMENT

Mark Parsons – CCO DHL Supply Chain

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DHL – who are we?

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DHL Supply Chain in the UK & Ireland

#1 Largest

contract logistics

provider

42,000 employees

Distribute 7 million tyres

400 locations

Deliver1 in 3 pints Consumed in pubs

1.9million m²

of warehouse space

19.4% Market Share

Fulfil 100 million items for online

orders

7,000 Vehicles

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With over 450

brand name

clients in the

UK&I, building

and maintaining

relationships is

vital

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Trends

Four major driving trends shape commerce globally and threaten to disrupt

supply chains

What happens in one sector

shows up in an entirely

different sector

Continually escalating

expectations for service,

price and performance

Competition can come from

anywhere at anytime

Consumerism and

boundary bleed

Engines of demand with

growing middle class and

urbanization

Rising consumer

expectations

Lack of transportation

infrastructure, adequate

warehousing space and

even supply chain expertise

in some markets

Emerging

markets

Increased speed of business

Increased

interconnectedness

Highly complex, intertwined

and fast market place which

creates enormous risks and

volatility

Fast, lean

and risky

Trade flows are shifting

away from long-distance and

east-west orientation

Regionalized supply chains

in which goods are produced

and sold/ consumed in the

same geographic region

The rise of

regionalism

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Future Supply Chain Challenges

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The same but different - B2C vs B2B

Level of customer

knowledge

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The market

The supply chain industry continues to

see considerable revenue growth

UK is a mature market – we are at the

front edge of outsourced logistics

Commoditisation is putting pressure on

margins

This drives an emphasis on customer

experience to differentiate and help

define future products

Sources: UK Logistics Confidence Index H2 2016, Consultancy.UK, Boston Consulting Group

“Business is robust for 3PLs, but as cost-cutting becomes the priority for manufacturers and retailers, more businesses continue to look around for services at a lower price—driving down satisfaction, renewal rates, and contract length”

Supply Chain Management Review

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Customers are our most valuable asset

The CLV of each customer is high – and

so is the financial impact of the loss

The pool to fish in is small

It remains easier to win with those who

already know us

Long-term customer relationships make

our business more stable

Losing a customer disrupts the business in

a number of ways

Why building long term relationships matters (to DHL)

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Key challenges

Multiple Stakeholders

Complex buying behaviours

More people to influence

Great and consistent experience

for all

VoC – users and decision makers

Competition

Commoditisation

Harder to differentiate

Need to offer more for less

Need to continually innovate and

bring new ideas

Business Knowledge

Deep and intimate understanding of

their business

Know the ‘why’ as well as the ‘what’

Business and personal drivers

Every solution is bespoke

Customer Management

Who owns

Top down, bottom up

Nothing is transactional – so

deeper relationships

No such thing as ‘too much info’

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Our experience What we do and what customers want

Do Want

Strong local operational

relationships vs Enterprise to

Enterprise relationships

Do Want

Operations vs Strategy

Do Want

Operational Excellence

vs Innovation & Thought

Leadership

Relationship Conversation Value Add

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There’s an expectation gap

Multi-sector expertise

Bring me insights and best

practice from all of its sectors

Global brand

Size and scale to innovate,

take risk and break new

ground

Multi- disciplinary capability

Harness all of its divisions to

help me

The Customer

expectation of

DHL

Cautious, in-year operational focus

Single sector knowledge

Stove-piped relations

The Reality

GAP

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MEETING THE CHALLENGE

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Nothing changes if nothing changes

Mindset: from ops-centric to customer-centric

Knowledge: the innovation that customers want

Care: it’s about the customer, not just the contract

Connect: link the customer to our wider business

Tools: to hear what our customers think

Technology: to support agility and knowledge sharing

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Customer 4 Life

Listening first

Understanding the whole

business, not just the Supply

Chain

Linking projects to higher business

goals

Working jointly as a habit

Honesty and shared goals

Accepting solutions are co-created

Sharing responsibility for success

Bringing the full team

Showing investment in the

relationship – multi-sector and

functional engagement

Creating new relationships

Placing connections above control

Talking strategy

Stop looking backwards only

Thinking longer term

Being prepared to invest

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Customer Club

Exec, top2top engagement

VoC

Shared experiences – cross industry

…

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Customer Experience Management

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Sharing thought leadership content

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Marketing targeting & segmentation

Industry events

Sales engagement

Interactive, self-service tools

Webinars &

virtual events

Social media

engagement Local events

Multiple content offers

Digital channels

Digital channels Videos DHL.com

Media coverage

BUILDING THE CASE FOR ACTIONABLE CUSTOMER EXPERIENCE PERSPECTIVES FROM A B2B ENVIRONMENT

Mark Parsons – CCO DHL Supply Chain