Module 4 managing your supply chain
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The document summarizes findings from UPS's Industrial Buying Dynamics Study regarding factors that manufacturers should focus on to appeal to international customers. The study identified five key areas: e-commerce, personal touchpoints, post-sales support, quality and reputation, and 3D printing. It provides data showing, for example, the importance of online capabilities for buyers while also the importance of in-person relationships, and expectations from buyers regarding post-sales support like returns and on-site maintenance. The document aims to provide implications for manufacturers on focusing on these areas to differentiate themselves and capture more market share.
Module 4 managing your supply chain
- 1. Sahil Jaggi, Director of Marketing, Products and Industry Segments Raising the Bar for Manufacturers
- 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 and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. Asian economies are playing a key role in global trade August 2, 2018 2 8% Asia was the top contributor to trade growth in volume terms in 2017, growing by 8% 13% China was the biggest merchandise exporter in 2017, accounting for 13% of the world total 64% By 2030, Asia will become home to 64% of the global middle class and will account for over 40% of global middle class consumption Source: WTO Source: WTO
- 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 and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. The UPS Industrial Buying Dynamics (IBD) Study focuses on buyer behaviors, preferences and perceptions of industrial buyers August 2, 2018 3 3 Supplier Types Based on an online survey of 2,500 industrial buyers in China, Europe and the United States Global Distributors Source for products from manufacturers and partner them to sell the products to end-buyers E-marketplaces Distributors, manufacturers or firms of all sizes that sell products via online B2B e-commerce (such as Amazon Business and software providers such as Miva Merchant) Manufacturers Produce and sell products directly to end-buyers
- 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 and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. Five key areas for manufacturers to appeal to international customers August 2, 2018 4 E-commerce Personal Touchpoint Post Sales Quality & Reputation 3D Printing
- 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 and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. Developing strong online capabilities leads to capturing bigger market share August 2, 2018 6 Mobile PurchasingE-commerce Sources: eMarketer.com, UPS Industrial Buying Dynamics study Buyers who are extremely likely to increase purchase from E-marketplaces and Online Methods to purchase Industrial supplies/products
- 7. Personal touch points UPS Industrial Buying Dynamics Study™
- 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 and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. Online methods of research are important, but have not made in-person touch points irrelevant August 2, 2018 8 Source: 2017 UPS Industrial Buying Dynamics Study Top 3 sources used to research suppliers
- 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 and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. Majority of buyers are interested in establishing a relationship in person before an online purchase August 2, 2018 9 Source: 2017 UPS Industrial Buying Dynamics Study Reasons for purchase via in-person methodPurchases made through the following methods
- 10. Post-sales UPS Industrial Buying Dynamics Study™
- 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 and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. August 2, 2018 11 Source: 2017 UPS Industrial Buying Dynamics Study Buyers that expect suppliers to provide on-site post-sales service CHINA EUROPE U.S. 33% 19% 21% Post-sales service is crucial for manufacturers looking to expand globally Likelihood of switching suppliers with post-sales support CHINA EUROPE U.S.
- 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 and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. August 2, 2018 12 On-site maintenance ReturnsReturns Source: 2017 UPS Industrial Buying Dynamics Study CHINA EUROPE U.S. Ensuring easy returns and on-site maintenance will go far in enabling Asian manufacturers to stand out from the competition Top post-sales expectations
- 13. Quality and reputation UPS Industrial Buying Dynamics Study™
- 14. 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 and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. Buyers prioritize product quality when selecting a supplier across all regions August 2, 2018 14 Supplier selection factors Share of products sourced domestically Source: 2017 UPS Industrial Buying Dynamics Study
- 15. 3D printing UPS Industrial Buying Dynamics Study™
- 16. 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 and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. There is desire among buyers to shift their purchases to suppliers that offer 3D Printing due to the perception of high quality and customization August 2, 2018 16 Extremely likely to switch to supplier with 3D printing Benefits of 3D printing Source: 2017 UPS Industrial Buying Dynamics Study
- 17. 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 and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. Implications for your businesses August 2, 2018 17 E-commerce Personal Touchpoints Post Sales Quality & Reputation 3D Printing Develop strong online capabilities and improve buyers experience Face-to-face touchpoints are still important to buyers These services can be a point of differentiation for manufacturers Buyers look for product quality and reputation when selecting suppliers Leverage 3D printing as a key differentiator in the marketplace
- 18. 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 and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. UPS can help navigate the evolving retail landscape with an array of solutions August 2, 2018UPS Template 18
- 19. Barleta Precision Manufacturing Inc. Challenge: Maintain a 98% rating for deliveries and a 99% rating for product quality Sustain their preferred supplier program benefits
- 20. 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 and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. Solutions to turn your supply chain into a growth engine • UPS Express Saver® expedites import deliveries of raw materials from the U.S., and enables BPMI to receive supplies and send finished products to their customers at a guaranteed time. • UPS WorldShip® automates the shipping process for easy shipping and reduces costly paperwork errors. • UPS Quantum View® Notify improves customer service and coordination with cross-functional teams, increasing efficiency within the company. August 2, 2018UPS Template 20
- 21. 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 and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. The right partnership, the right results August 2, 2018UPS Template 21 Reduced hours spent on administration and order processing Generate cost savings through use of thermal printer Reduced potential delays and penalties
- 22. Animes Pro: Building a new business model with UPS
- 23. 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 and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. Leveraging supply chain expertise for global expansion August 2, 2018 23 Challenge Solution Result • Multiple shipping vendors • Complex customs regulations UPS Worldship® E-Billing Services • Cut man hours spent on shipping preparation & documentation • Single closed-looped process for easy tracking and cost management • High seasonal demands • Pressure to deliver on launch day UPS Express Saver® • Customers receive their orders on the same day as a product launch in Japan with reliable and efficient delivery • Lack of shipment visibility • Extensive man hours spent on shipment tracking Quantum View® UPS Paperless® Invoice • Reduced man hours spent retrieving updates • Ability to see when package is scheduled to arrive, saving time and cost • Minimize errors that could lead to delivery delays • Product damage UPS Packaging Services • Strong corrugated cardboard packaging protected integrity of high-value goods
- 24. 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 and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. Speak to our solutions experts today August 2, 2018 24 Get closer to your industrial buyers Introductory meeting – today! Supply chain mapping workshop Quantified value proposition Solution design Detailed plan Implement
- 25. Thank you 25 Find out more at ups.com/sg