Product Academy Services & Competition

7/30/2019 Product Academy Services & Competition

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Product Academy

July 2008

Express Services and Express Competition


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TNT Express portfolio overview

New PortfolioEurope

Intl

Europe

Domestic

ROW

Intl

ROW

Domestic

9:00 Express

10:00 Express

12:00 Express

Express

12:00 Economy Express1)

( )2)

Economy Express

1) Available only in certain domestic markets where geographically an equivalent speed to Express can be achieved

2) Development of these capabilities or transition to these products depends on country in question


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TNT Express versus CompetitionSome variations exist by country

Next Flight

1day Freight

Priority Overnight2 day

Sameday

Express 9:00

Express 10:30Express 12:00

Express 18:00

Europlus

Express Plus 8:30

Express Plus 9:00


Express Saver 12:00

Express Saver EOBD*

Expedited

Standard

Sameday

Dedicated/Special Express

8:00 Express9:00 Express

10:00 Express

12:00 Express

Express

12:00 Economy

Economy

International First

International Priority

International Economy

International Express

10kg and 25kg Box

Europe First

Next-day CourierInternational Next Flight

International Premium

EuroOne

Sameday

Express 9:00

Express 10:30

Express 12:00

Express W orldwide

Import Express

EuroplusEconomy Select

Europack

Express Plus 8:30

Express Plus 9:00

Express 10:30

Express 12:00

Express Saver

Expedited

Standard

Sameday


8:00 Express

9:00 Express

10:00 Express

12:00 Express

Express12:00 Economy

Economy

Next Flight

1day Freight

Priority Overnight2 day

Sameday

Express 9:00


Express 18:00

Europlus

Express Plus 8:30

Express Plus 9:00


Express Saver 12:00

Express Saver EOBD*

Expedited

Standard

Sameday


8:00 Express9:00 Express

10:00 Express

12:00 Express

Express

12:00 Economy

Economy

International First

International Priority

International Economy

International Express

10kg and 25kg Box

Europe First

Next-day CourierInternational Next Flight

International Premium

EuroOne

Sameday

Express 9:00

Express 10:30

Express 12:00

Express W orldwide

Import Express

EuroplusEconomy Select

Europack

Express Plus 8:30

Express Plus 9:00

Express 10:30

Express 12:00

Express Saver

Expedited

Standard

Sameday


8:00 Express

9:00 Express

10:00 Express

12:00 Express

Express12:00 Economy

Economy

* End of business day

International

Domestic


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TNT Express versus Competition

Total Revenue (2007, million) 6,551 34,268 13,874 19,327

Revenue growth 2006-07 13.8% 4.4% 3.1% 8.5%

Countries (& territories) served 200 >200 >220 >220

Number of vehicles 26,760 93,637 72,000 44,300

Number of aircraft 47 579 350 677


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TNT Common Features International

Features Current provision

All products Door-to-door transportation Yes

Collection on demand, within business

hours Yes

Specified transit time / delivery day Yes

Customs clearance (where applicable) Yes

Two delivery attempts Yes

Available as export and import / receiver

paysYes

Optional services to cater for customers

needs

Yes

Online booking tools (PC and web-

based)Yes

Online Track & Trace visibility of

consignment statusYes

Free of charge packaging materials Yes

24/7 customer support, worldwide Yes

Pro-active notification in case of delivery

issuesCS proposition to offer as standard feature

Proof of deliveryPOD with receiver signature (within 24 hrs)

being developed

PremiumMoney back guarantee Yes

Free Insurance Sell as an option


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TNT product & option codes

Global Link

International Domestic

Product 9:00 Express G09D/N D09 or 09D/N

10:00 Express G10D/N D10 or 10D/N

12:00 Express G12D/N D12 or12D/N

Express G15D/N D15 or15D/N

12:00 Economy

ExpressG412 D412 1)

Economy Express G48N D48N 1)

OptionInsurance IN IN

1) As and where required

2) Codes to be used once we migrate to Common Systems


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Weights & dimensions


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9:00 Express

Guaranteed delivery before 9 am on the next (or earliest possible)

business day

Specifications Current

Collection Within business hours

Transit speed Next (or earliest possible) business day

Delivery time Guaranteed by 9 am

AvailabilityFrom 180+ countries to major cities in 47 countries

worldwide

Money back guarantee Yes, price difference to Express service level received

Type of cons accepted Documents, parcels and freight

Weights & dimensions As per table

Dangerous goods Not accepted

Dry ice Not available

Options:

- Insurance Optional, at additional cost

- Notification of delivery Sold as an option


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9:00 Express continued

Benefits

Time guaranteed for urgent shipments that need to be delivered

before 9:00 am

Wide global coverage to major cities in 47+ countries worldwide

Can be invoiced to receiver, i.e. the receiver pays for the

transportation charges, duties and taxes

Defined rate card for both import and export, allow customers tobetter control and manage their costs

Full visibility on Track and Trace from pick up to delivery, allowing

customers better planning

Round the clock customer services

Wide range of packaging


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10:00 Express

10:00 Express

Value proposition

Positioned as start-of-day service, similar to 9:00

Express, but where customers find 10 am is early

enough

Target customer

Companies or offices who require urgent delivery of

shipment at start of business day, but who open

after 9:00 am

Zoning

New 10:00 Express (Y) zone to be created, with

wider coverage than 9:00 Express (X) and less than

12:00 Express (A)

OperationsSame routing and PUD delivery as 9:00 Express

Rates As per pricing guidelines

NCS charges Same as 9:00 Express


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Guaranteed delivery before 10 am on the next (or earliest possible)

business daySpecifications 10:00 Express



Delivery time Guaranteed by 10 am

Availability From 180+ countries to major cities in 50+ countriesworldwide

Money back

guaranteeYes, price difference to Express service level received

Type of cons

acceptedDocuments, parcels and freight

Weights &dimensions

Same as 9:00 Express

Dangerous goods Same as 9:00 Express : Not accepted

Dry ice Same as 9:00 Express : Not available

Options:

Insurance

Arrival notification (being developed and to be rolledout)


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Benefits

Time guaranteed for urgent shipments that need to be deliveredbefore 10:00 am



transportation charges, duties and taxes Defined rate card for both import and export, allow customers to

better control and manage their costs






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12:00 Express

Guaranteed delivery before 12 noon on the next (or earliest possible)

business daySpecifications Current



Delivery time Guaranteed by 12 noon

Availability From 180+ countries to major cities in 66 countries worldwide

Money back guarantee Yes, price difference to Express service



Dangerous goods Not accepted

Dry ice YesOptions:

- Insurance Optional, at additional cost

- Notification of delivery Sold as an option


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Benefits

Time guaranteed for urgent shipments that need to be deliveredbefore 12:00 pm




Defined rate card for both import and export, allow customers to

better control and manage their costs






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Express

Delivery before close of business on the next (or earliest possible)

business daySpecifications Current

Product name Express



Delivery time Delivery within business hours

Availability 220+ countries worldwide

Money back guarantee No



Dangerous goods Yes

Dry ice Yes

Options: Insurance

Arrival Notification

All other options will continue as today


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Express continued

Benefits

Specific door to door transit time / delivery day

Widest coverage to anywhere in the world (more than 220 countries)



Defined rate card for both import and export, allowing customers

better planning




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12:00 Economy Express

12:00 Economy Express

Value

proposition

Positioned as Economy service, but addressing those recipients

who require a guaranteed morning delivery.

RoutingsShipped on Economy Express routes (intra Europe) and delivered

on 12:00 Express PUD rounds

ZoningCoverage equal to X, Y and A-zones where road linehaul arrivals

support the proposition

Operations Weights and dimensions are identical to 12:00 Express

Rates As per Pricing Guidelines

NCS charge Same as Economy Express


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12:00 Economy Express continued

Economical express delivery before 12 noon on a scheduled

business daySpecifications 12:00 Economy Express


Transit speed Typically 1-3 days longer than Express

Delivery time Guaranteed by 12 noon

Availability Initial phase in ERN only (Intra Europe)

Money back

guaranteeYes, price difference to Economy Express service

Type of cons

acceptedParcels and freight

Weights &

dimensionsSame as 12:00 Express

Dangerous goods No

Dry ice No

Options:Insurance

Arrival notification


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12:00 Economy Express continued

Benefits

Unique proposition Economical alternative for sending shipments that are less urgent,

but require to be delivered in the morning

Intra Europe coverage of 40 destinations

Cost advantage at slower speed with the benefit of a guaranteed

delivery before 12 noon



Defined rate card for both import and export, allowing customers

better planning




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Economy Express

Economical express delivery for less urgent shipments before end

of local business hours on a scheduled business day

Specifications Economy Express


Transit speed Typically 1-3 days longer than Express

Delivery time Delivery within business hours

Availability Worldwide coverage depending on origin location

Money back

guaranteeNo

Weights &

dimensionsAs per table

Type of cons

accepted Parcels and freightDangerous goods Yes

Dry ice Yes

Options:Insurance

Arrival notification


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Economy Express continued

Benefits

Economical alternative for sending shipments that are less urgent All shipments delivered on a specified scheduled day

Worldwide coverage from Europe to more than 220 countries,

otherwise refer to regional coverage

Can be invoiced to receiver, i.e. the receiver pays for the transportatio

charges, duties and taxes

Defined rate card for both import and export, allowing customers bette

planning




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Insurance (specifications)

o Simple service specifications

o One comprehensive service

o Efficient internal process

o Competitor advantage

o Create insurance specifications that are

easy to understand, both for customersand Customer Service staff, thereby

increase service awareness

o Customer can chose one complete

insurance service

o Optimized and short internal process to

enable sales to grow

o UPS and FedEx only offer Declared

value (liability only)


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Insurance (new specifications)Insurance Enhanced Liability

Offered by Countries that can sell insurance Countries restricted from selling insurance

(There are geographical limitations for high risk countries. Refer to Group Insurance Manual.)

Service

definitionCustomers may purchase Insurance fromTNT for the full value of their shipment (doc

and non-doc) to cover against all risks of

loss and damage during carriage, even inthe event when TNT is not responsiblefor the loss or damage.

Customers may purchase Enhanced Liabilityfrom TNT to cover their shipments to a higher

level than defined by the industry standards,

against risks ofloss and damage mainlycaused by TNT during carriage (but in mostcases larger coverage than defined in T&C).

Maximum

insured value

Non-document shipments can be insured up to the value of25000

Document shipments can be insured up to the value of500

For all shipments with a higher value than the maximum limit, customers should contact TNT

Customer Service, which then liaises with the local insurance manager for an agreement.

Exceptions Some exceptional events are not covered by insurance as for example loss or damage causedby insufficient packaging, loss or damage caused by delay as well as consequential loss or

damage.

Shipments &

compensation

Type of consignments insured:

Goods > Compensation is the cost of repair or cost of replacementDocuments > Compensation is the reconstruction cost and/or loss of bank interest

Charge The Insurance/Enhanced Liability charge should be calculated as a % of the goods/docs valuewith a minimum amount (draft statement, to be confirmed by pricing guidelines)

Availability As option with all products

Option code IN


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Insurance (new specifications)

Old Insurance New Insurance

MaximumInsured value

Depending on the country

25000 standard maximum for non-

documents500 standard maximum for documents

Higher insurance possible on agreement

Shipments Non-documents only Documents and Non-Documents

Compensation

Cost of repair or cost of replacement Cost of repair or cost of replacement

+ Loss of bank interest

Availability Included in Premiums

Option on Express and Economy

Express

Option on all products

Option code IN or ID IN


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Summary of Insurance changes

Insurance coverage is extended to documents

The liability is limited to 500 for documents and

25000 for non-documents

Countries restricted from selling Insurance will offerEnhanced Liability instead

Insurance will be available as option with allproducts

To avoid confusion and cannibalisation, ITLL asoption has been discontinued


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Insurance & connote InsuranceFor documents and non-documents

subject to condition 16 on reverse

Please provide

insurance detailsCurrency

Insured amount for non-documents

X

InsuranceFor documents and non-documents

subject to condition 16 on reverse

Please provide

insurance detailsCurrency

Insured amount fornon-documents only

X


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Premium Feature - Money Back Guarantee

Rephrased Terms & Conditions : Money Back Guarantee, in case of latedelivery :

Reimburse price difference with actual comparable service(Express or Economy)

Reactive i.e. only if claimed by customer

Money Back Guarantee

Premium servicebooked

(1)

Actual delivery timeActual service received

(2)

Calculation of

compensation

Price difference

between(2) and (1)

9:00 Express

Between 9 am and 10 am 10:00 Express

Between 10 am and 12

noon12:00 Express

After 12 noon or later date Express

10:00 ExpressBetween 10 am and 12noon

12:00 Express

After 12 noon or later date Express

12:00 Express After 12 noon Express

12:00 Economy

ExpressAfter 12 noon Economy Express

Product Academy Services & Competition

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