1. UPS Project Briefing Deck 30 August 2016

2. PROBLEM TOP CUSTOMER PAIN POINTS IN THE UK ARE:
DELIVERY DATE / TIME NOT MET
UNACCOMMODATING ASSOCIATES
AIR CARGO PICK-UP FEE IS TOO EXPENSIVE
“Tatlong beses akong tumawag bago napickup yung box na nagpaschedule.”
“It’s very very late yung pickup. Naghintay pa kami buong araw. Wala naman sinabi na gabi na 9PM.”
“Hindi maayos ang pick-up nya kasi yung time matagal, walang specific time. Two weeks pa ang inabot bago napick-up, nakaka-frustrate.”
“Masasabi ko lang na yung nagpipick-up na si Chris ang tagal nyang pick-upin. 3 weeks ako naghintay kasi nasira daw ang sasakyan.”
Source: LBC Customer Satisfaction Survey (Jan-June 2016); Facebook Inquiries June 2016

3. Increased Customer Convenience
SOLUTION
LBC-UPS Partnership that provides an EFFICIENT RETURNS PROCESS, where UPS delivers and picks up customer boxes for LBC. This helps increase customer convenience which can lead to increased sales and gives improved control of the returns costs.
How we did in 2015
2016 Strategy and How were doing?
Service Culture
Increased Control
Increased Customer Convenience
Increased Sales
Reduced Costs

4. LBC Balikbayan Box at Customer House Box Delivery or Pickup Request
SOLUTION
LBC-UPS Returns Solutions
LBC Office
LBC Balikbayan Box at Customer House
Box Delivery or Pickup Request
The next business day:
DELIVERY: UPS gets box and delivers
PICKUP: UPS picks up box from customer
The UPS Partnership will help us grow the business by improving over-all customer experience through convenient returns solutions that differentiates us from competition. The UPS Returns Solutions will give our customers more control of how, where and when returns transactions will take place, reducing the cost of inbound operations (customers calling us for follow-ups) thereby improving efficiency of our logistic processes.
Our customers rely on us to have an efficient and convenient returns strategy at hand when things do not turn out as expected.
The UPS Partnership will provide customers a balanced approach to speed and convenience in delivering services to our customers.

5. LBC-UPS RETURNS SOLUTIONS
Process Flow & Customer Experience
CUSTOMER CALLS TO BOOK DELIVERY OF AN EMPTY BOX
On the next business day, UPS picks up EMPTY BOX with the LBC Packing List, UPS Shipment Label from LBC Warehouse
UPS delivers to the Customer House:
Customer to receive /SMS notification regarding scheduled delivery
Giving customers control to manage their time while anticipating the delivery
In case of MISSED DELIVERY, UPS to do 1-3 attempt/s before it is sent back to LBC for rebooking with Customer.
Customer also has the option to choose the nearest UPS Access Point for deliveries.
Sample Pre-Print Return Label

6. LBC-UPS RETURNS SOLUTIONS
Process Flow & Customer Experience
CUSTOMER CALLS TO BOOK PICK-UP OF A FILLED UP BOX
On the next business day, UPS picks up the filled up BALIKBAYAN BOX with the completed LBC Packing List and attached UPS Return Label from LBC
UPS arrives at the Customer House:
Customer to receive /SMS notification regarding scheduled delivery
Giving customers control to manage their time while anticipating the pick-up
In case of MISSED PICK-UP, UPS to do 1-3 attempt/s before it is reported back to LBC for rebooking with Customer.
UPS Returns Solutions allows LBC to initiate the collection (upon request of customers), putting you in control of when the return process begins.
As the collection is initiated by LBC, the service becomes more convenient for the customer vs previous setup with Contractors:
The driver will show up at the customer’s address with the returns shipping label to collect the box. No admin work required from the customer.

7. LBC-UPS RETURNS SOLUTIONS
Process Flow & Customer Experience
FOR AIR CARGO, CUSTOMER HAS AN OPTION TO DROP OFF THE BOX AT A NEARBY UPS ACCESS POINT
ACCESS POINT is a selected shop, supermarket or petrol station which is open 7 days a week from early morning till late allowing customers to drop off or collect parcels directly at their leisure
3,000 UPS Access Points in the UK as of August 2014 and expected to be 11,000 by YE 2016
Saves customers time waiting in all day for an order as they can drop it off at their leisure from 6am to 11pm at most Access Points 7 days a week
Real time tracking of each Shipment as it moves overnight through the UPS network with notifications to keep customers informed
Saves us returns cost of rescheduled bookings
UPS Returns Solutions allows LBC to initiate the collection (upon request of customers), putting you in control of when the return process begins.
As the collection is initiated by LBC, the service becomes more convenient for the customer vs previous setup with Contractors:
The driver will show up at the customer’s address with the returns shipping label to collect the box. No admin work required from the customer.

8. LBC Large Balikbayan Box
£10 deposit (deductible during collection)
£10
Once Access Point is selected, a map is shown prompting the customer to enter their POST CODE; an interactive map is provided by UPS IT to add to the LBC website
CUSTOMER IS UPDATED EVERY STEP OF THE WAY:
Customer will receive an once the package has been collected from the Access Point
Customer will also receive a “ready to collect” within 15minutes of empty box being delivered to their selected Access Point (with AP address and opening times)
Customer can use links on the we will send to them to go directly to the website and track live progress of shipment
Customer needs to collect the empty box within 10 calendar days from the Access Point by showing a photo id (driving licence or any other ID) and the box is then scanned. The Access Point agent takes a signature from the customer which is uploaded to the systems as proof of delivery within 24hours.
Customer also to receive an reminder once it has passed 5 calendar days and they haven’t collected their box from the Access Point, and also an on the 10th calendar day. After 10 days UPS to return the box back to LBC.
API can be integrated to our system to enable online bookings. At checkout, customers will be given two options for shipping – Home Delivery or Collection Delivery via Access Point

9. LBC-UPS RETURNS SOLUTIONS
What are the Benefits of this Partnership?
Addresses our Top 2 Customer Pain Points in the UK: Unaccommodating Associates and Delivery Date/Time not Met; and expensive pick-up fees for Air Cargo
IMPROVES OVER-ALL CUSTOMER EXPERIENCE
ALIGNED TO OUR CORPORATE STRATEGIES TO INNOVATE AND DRIVE VALUE TO THE ORGANIZATION
First of its kind in LBC and the industry, and can be easily rolled out to our Europe / Global Operations
NEEDED TO IMPROVE OUR OPERATIONAL EFFICIENCIES
Helps us achieve our Delivery / Pick-up Efficiency targets especially for the Countryside
LOWERS OUR COSTS & HAS REVENUE IMPACT
Has attributable cost savings and revenue impact (please refer to next slide for details)

10. LBC-UPS RETURNS SOLUTIONS
Proposed Timelines
Phase 1: From Aug 2016
Air Cargo via UPS (UK-wide)
Sea Cargo Medium Bundle via UPS (London only)
Phase 2: From Jan 2017
Enhanced Air Cargo via UPS (UK-wide)
Sea Cargo via UPS using Medium Bundle (UK wide)

11. LBC-UPS RETURNS SOLUTIONS
Sea & Air Cargo Offer Details
DETAILS
CURRENT
PROPOSED
Cost / Savings
SEA CARGO: £ rates for Medium Boxes via Sea Cargo
AIR CARGO: £45 for the 1st 5kgs and £7 per kg for 6kgs and above; BB15 rates at £115 (Metro Manila, £120 (Luzon), £125 (Visayas and Mindanao)
SEA CARGO
£70 for 2 Medium Boxes to anywhere in the Philippines with maximum weight of 30kgs per box; Customer can add another bundle of 2 Medium boxes if needed
Potential incremental volume via push of more affordable/faster TAT Medium boxes in the Countryside
AIR CARGO
£50 for 1st 5kgs and £8 per kg for 6kgs and above
BB15 tiered pricing for 22kgs and above being finalized with GP
Speed / Time of Delivery
Weekly but fixed schedule depending on customer post code (For London)
1-2 weeks with high incidence of “reschedules” especially when volume is too low (For Countryside)
Air Cargo not pushed thru Contractors due to the very prohibiting cost of Commission Fees and inability to pick-up faster (crucial for Air Cargo)
Faster TAT with next business day delivery / collection (No need to schedule based on post code)
Limitations
Delivery/Pick-up schedules dependent on volume or demand (For Countryside)
Unable to collect Large boxes due to weight; need to set weight limit at 30kgs for a Medium box
Impact to Service
Unable to aggressively push Air Cargo especially in the Countryside
Customers unhappy with too many rescheduling of Contractors
Promos not launched in Countryside due to high cost of commission fees
Ability to aggressively push Air Cargo UK wide because of the huge cost savings
Volume push for Sea Cargo using Medium boxes
Faster TAT for Countryside customers

12. END OF PRESENTATION