welcome dhl customer forum 2015 security &...
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WELCOME CUSTOMER CENTRIC INNOVATION:
Customer Centric Innovation: Linking MRO & Engineering Output to Customer Satisfaction
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MRO ASIA, Singapore 31st October 2017
Linking MRO & Engineering Output to Customer Satisfaction
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Challenge: The MRO functions need to become far more customer centric to fully support customer retention, satisfaction and financial success.
Managing the barriers and enablers to customer centricity will dictate the success rates.
DHL Conference @ MRO ASIA | October 31 2017
Linking MRO to customer satisfaction Creating the challenge…
How we respond to known MRO based issues to try to maintain customer loyality
How we communicate and involve the customer in MRO based activities to make them feel valued
How MRO performance is measured and success is acknowledged
Linking the MRO function output to the customer’s customer needs Common Goal
Engagement
Alignment
Responsiveness
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II
III
IV
MRO ASIA, Singapore 31st October 2017
WELCOME CUSTOMER CENTRIC INNOVATION: Linking MRO & Engineering Output to Customer Satisfaction
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Safety information & housekeeping
No fire alarm planned today locate Emergency Exits
Please put your phones on mute
Please no private videos. Although feel free to POST
DHL Conference @ MRO ASIA | October 31 2017
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DHL Conference @ MRO ASIA | October 31 2017
Creating joint opportunities
Listen
Learn
Engage
Exchange
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We live in the age of the “Experience Economy”
Customer-Centricity is key to deliver experience… for EVERY FUNCTION!
Undifferentiated
Differentiated
COMPETITIVE POSITION
Source: Harvard Business Review
Extract Commodities
Make Goods
Deliver Services
Stage Experiences
Premium Market PRICING
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Some inspiration for today`s discussion
You‘ve got to start with the customer experience and work backwards to the technology. “
”
You‘ve got to start with the customer experience and work backwards to the technology.
“ ”
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Agenda & speakers
DHL Conference @ MRO ASIA | October 31 2017
Agenda
10:00 Welcome & Opening
10:15 Speaker positioning & perspective
11:00 Panel forum with Q&A
11:45 Consolidation and Close
Speakers & Panel Members
Ross Wyeth Vice President APAC Line Haul Capacity DHL Aviation
David Bruce Vice President MRO DHL Supply Chain
Dr Bicky Bhangu Regional Director – South East Asia, Pacific & South Korea, Rolls-Royce
Gary Ong Senior Manager Engineering Singapore Airlines Cargo
11 David Bruce, Vice President MRO
LINKING MRO & ENGINEERING OUTPUT TO CUSTOMER SATISFACTION
David Bruce, Vice President MRO
Defining the Business Need
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Making the MRO function and output “Customer Centric” is not a new concept….. BUT… it is becoming far more important to the success of the MRO Value Chain.
DHL Conference @ MRO ASIA | October 31 2017
Linking MRO to customer satisfaction The rationale….
Safety…. Security…. Compliance & Operational delivery
Turning the MRO function even more into a competitive advantage capability.
THE PRIME FOCUS
MRO activity to agreed SLA • Cost • Turn around time • Information & Updates • Reverse parts flows Planned & Line support
THE CRITICAL RESPONSE
MRO activity to agreed SLA • Cost • Turn around time • Information & Updates • Reverse parts flows Unplanned & Line support
THE CUSTOMER EXPERIENCE
• Aligning MRO to the customer experience? • MRO directly linked to paying customer? • Digitalisation, Technology, MRO and the
Customer experience? • Switching costs & revenue protection? • Measure MRO experience?
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The typical airline customer experience is focused on the cabin product – and the touch points that passengers/customers all experience.
How does the engineering and MRO solution input and support the overall customer experience is the question?...
DHL Conference @ MRO ASIA | October 31 2017
Linking MRO to customer satisfaction Addressing the hidden realities?...
M R O
PRE FLIGHT
Lounge
Check In
Security
ON BOARD
Cabin Drinks
Food Seating
BENEFITS
Chauffeur
Flyer Rewards
Challenges
Seating
IFE
Interior
Washroom
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Paying customers are increasingly better connected and more vocal in their opinions …
DHL Conference @ MRO ASIA | October 31 2017
Linking MRO to customer satisfaction Meeting the demanding customer needs….
Social Media power Consumer Protection MRO Impact/Opportunity
• The MRO supply chain solution – is it optimal? – Design, performance, agility & response
• Customer engagement by MRO function: – Channel of communication – Process to engage – How to make individual feel valued?
• Technology adoption – to support the MRO operations?
• How do we measure “success”?...
….For continued competitive advantage and profit potential, the MRO function needs to consistently accommodate these trends in business requirement
EU Regulation 261/2004
• Plus travel/accommodation costs
• Plus operational costs
» $ $$ $$$
Distance Delay Compensation
<1,500km 3 hours €250/person
1,500 to3,500 km 3 hours €400 / person
>3,500km 4 hours €600 / person
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Measuring performance and gaining customer insight can become an industry that does not actually drive the right outcomes….
DHL Conference @ MRO ASIA | October 31 2017
Linking MRO to customer satisfaction Measuring success…
Traditional Approach
Achieved SLA contractual targets Over delivery to target – performance benefit Airline function meeting internal SLA targets
BUT… × 24,000 fare paying passengers probably
will not receive the experience they are expecting
× Compound Impact - via social media × Customer satisfaction survey process –
binary response
SLA Measure Target Actual
Deliver OTIF to 15 min window in quarter
99.5% 99.85%
Refined Approach Highlights
• It’s all about turning dissatisfied clients into promoters of a service – (increased loyalty)
• The evolution of the score counts
• A NPS® approach (‘NPA’) is only efficient if there is immediate follow-up
The basis: the recommendation question “How likely are you to recommend DHL Supply Chain to your colleagues, business partners or customers?”
1 Net Promoter® Score NPS
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© 2017 Rolls-Royce plc and/or its subsidiaries The information in this document is the property of Rolls-Royce plc and/or its subsidiaries and may not be copied or communicated to a third party, or used for any purpose other than that for which it is supplied without the express written consent of Rolls-Royce plc and/or its subsidiaries. This information is given in good faith based upon the latest information available to Rolls-Royce plc and/or its subsidiaries, no warranty or representation is given concerning such information, which must not be taken as establishing any contractual or other commitment binding upon Rolls-Royce plc and/or its subsidiaries.
Customer Centric Innovation Dr Bicky Bhangu
Regional Director, South East Asia, the Pacific & South Korea
© Rolls-Royce plc 2017
Data growth and complexity leading to
New game changing
business model and technology
Changing World
© Rolls-Royce plc 2017
Decades of experience turning data into insight
Close to
30 Years of experience
in Data Integration and Analytics
1,300
Aerospace Customers of our Data Services
13,000 Engines,
and
6000-8000 commercial flights monitored per day in
civil aerospace
Billions
of data points analysed on-board
per flight
EHM
© Rolls-Royce plc 2017
Our efficiency experts analyse
28% of airlines’ Global
Routes
3million Flight Sectors
per year
Underpinning
100,000 tons worth of
Fuel Savings
Decades of experience turning data into insight
Efficiency
© Rolls-Royce plc 2017
Maximum value Connecting the end data system & stakeholders
24│7│365 Aftermarket Services - Actionable insight
Operational, Contextual &
Third Party Data
Fleet Data
Design Development Test-bed
Pass-off Test-bed
Design Data
Multiple RR Assembly Lines
RR and Network MRO Shops
RR Factories and Supply Chain
Factories
100,000 Factory
Machines
Manufacturing Data
Key Sensors
© Rolls-Royce plc 2017
Capability Development
3rd Party Application Providers
Industry-specific
Specialist Services OEM
suppliers
Solution Developers and Systems Integrators
OEMs
Operators
MRO
Synergies between OEM and MRO through partnership collaborate rather than compete - creating more space to innovate
University Technology
Centres Analytics and Decision Science
© Rolls-Royce plc 2017
Digital culture Leadership & Culture
Management commitment, coaching, empowering
People Engagement training, skills
development, bring on the journey Role Evolution
Realise early, career development, greater analysis, reduction in
repetitive tasks
© Rolls-Royce plc 2017
Airlines Engine availability
Fuel efficiency Safety
Customer Benefits
Passengers On-time take off
Ticket cost Safe arrival
A Cargo Airline’s Perspective
Gary Ong Senior Manager Engineering
Singapore Airlines Cargo
MRO Asia Pacific 31st October 2017
Manages the bellyhold cargo capacity of partner airlines in the SIA Group
Corporate Overview
Operates a dedicated wide-body freighter fleet with nose
door loading capabilities
7 x B747-400F Total of more than 150 aircraft
Corporate Overview
Ranked 9th largest cargo carrier by IATA based on freight-tonne-kilometers flown in 2016 Based in world’s 14th busiest airport by cargo traffic 3 Million tons of annual handling capacity Over 100,000 sqm of warehouse and office capacity
Meeting Customers’ Expectations
Operational Excellence
Extensive Network Tailored Services
Service Excellence
Region Station Weekly Frequency
SW PAC AKL/SYD/MEL 5x
SE ASIA BKK 3x
EUROPE AMS/BRU/LHR 6x
N AME LAX/DFW 5x
Region Station Weekly Frequency
W ASIA & AFRICA JNB/NBO 1x
N ASIA HKG 6x
N ASIA PVG 6x (3x via BKK)
+ Additional chartered flights mounted upon request
SIA Cargo Freighter Service Network
Operational Excellence
Maintaining High Aircraft Reliability and utilisation 24 x 7 Real time monitoring of aircraft health Focus on critical systems, e.g. - Cargo doors - Cargo loading system - Aircraft Temperature Controls Close working relationship with MRO and OEMs
24 x 7 Cargo Service Center Dedicated team of cargo officers Prioritisation of high profile flights Measured above industry average for service quality and reliability Awarded Best Air Cargo Carrier - Asia by Asia Cargo News
Service Excellence
Continued Excellence
State-of-the-art cool-chain facility for pharmaceuticals and perishables 250,000 tons of annual handling capacity Certification for IATA-CEIV Pharma
Leveraging on technology for continuous improvement in:
- Aircraft maintenance and troubleshooting
- Data Analytics - Cargo temperature logging
LINKING MRO & ENGINEERING OUTPUT TO CUSTOMER SATISFACTION
Ross Wyeth, Vice President, DHL Aviation
The Operational Challenge
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Components
Line Spare parts
Heavy
Labour
Engine Modification
MAINTENANCE AFFECTS NOT ONLY DHL…
DHL Conference @ MRO ASIA | October 31 2017
“Maintenance delays affects thousands of
individual customers”
xx
More than 250 aircraft build up a virtual airline for our global network:
• Hub & spoke system with 3 global and 18 regional hubs
• More than 500 airport destinations worldwide
• 2,380 daily flights (including CAL) and more than 4,500 road movements in our global network
• Use of over 450 ground line haul operators
short-term capacity on other airlines
capacity of owned aircraft
long-term capacity with partner airlines
maximum flexibility and high efficiency
Mix of capacity for optimized network structure
DHL Conference @ MRO ASIA | October 31 2017
DHL NETWORK
Typical express process
DHL Conference @ MRO ASIA | October 31 2017
Pickup
Origin Service Center
Reweigh, Image and consolidate Truck to Gateway Sort and consolidate
Delivery Truck to Service Center Arrives With Courier
Origin Gateway
Aviation – Hub Connectivity
Destination Service Center Destination Gateway
Sort and consolidate
Trans-shipment
DHL Conference @ MRO ASIA | October 31 2017
TYPICAL EXPRESS PROCESS
SPEAKER PANEL CUSTOMER CENTRIC INNOVATION: LINKING MRO & ENGINEERING OUTPUT TO CUSTOMER SATISFACTION
Ross Wyeth Vice President Line Haul DHL Aviation
Gary Ong Senior Manager Engineering SIA Cargo
David Bruce Vice President MRO DHL Supply Chain
Dr Bicky Bhangu Regional Director, SE Asia, Pacific & S Korea Rolls Royce