HOW TO LEVERAGE VALUE OF DVRS? Jose Hernandez CONTENT What is a DVR? Why is important that MD generate DVRs? Top Tips for a success DVR How a good DVR looks like? Examples of Local DVRs generated from MDs DVR Process and Tools WHAT IS A DEMONSTRATED VALUE RECORD (DVR)? The best way to convince customers that you can deliver value to their businesses through Shell products and services is to have independent evidence from existing customers. DVR leaflets are excellent sales tools demonstrating the value delivered to the customers by using Shell products and services. A DVR leaflet is a marketing document which serves as a formal testimonial and genuine proof from a customer who, by using Shell Lubricants, has made tangible business savings. DVR leaflets give specific details of that customer’s lubricant usage and the products used to demonstrate the actual amount of money saved over a specific period of time. WHY IS IMPORTANT THAT MD GENERATE AND USE DVRS? DVRs play a valuable role in value-selling, giving you ‘evidence’ that can be used to demonstrate customers that Shell products and services deliver value Experience shows us that DVRs are most effective when they feature cases relevant to the customer (similar size, same country/region, same industry) Shell Brand Value for money Evidence of - product quality - operational savings More DVRs = better value-selling = more sales = more $$ BE PART OF THE TECHNOLOGY LEADERSHIP OF SHELL! Feedback from Distributors and Indirect Lubricant Technical Coaches: “…DVRs are great to change sales behavior from price leading to value selling…” “.. Very useful tool to use and showcase Shell’s value proposition to the customers…” Distributor “…want to see more local DVRs to be generated because their customers will be more confident and convinced as the local working conditions are similar…” Distributor “.. The possibility to integrate technical data with real benefit savings…” Distributors ILTC “… they asked for cases which were generated locally, to make them more relevant….” ILTC “…Customers want to see any cases from well known local companies…” Distributor “…DVR carries significantly more weight if it has been generated in the country in which it is being used…” ILTC “…DVR help to understand the value of Shell Products and give the opportunity to have some kind of references…” ILTC MD DVR GENERATION PROCESS AND TOOLS ILTC shares DVR generation process, templates and guidelines ILTC discusses potential DVR opportunities with D-FLTS, tracks in pipeline D-FLTS documents DVR on offline form, calculating value and getting customer sign-off ILTC reviews DVR content with D-FLTS, coaching where appropriate ILTC inputs and submits DVR into workflow process DVR goes through Review/ Gatekeeper star rating and clearance process Completed DVR inputted to DVR database DVR leaflet generated, legal clearance and customer approval Feedback/ coaching Feedback/ coaching TOP TIPS - HOW TO TARGET POTENTIAL CUSTOMERS Identify customers who may be agreeable and suitable for DVR generation. There are certain possible criteria for selection: (Either / Or option) Local priority sectors growth in synthetic products Up-Sell/X-Sell Converting from a competitor products to Shell Lubricants Service and product saving should come from areas such as Reduce down time Reduce repair costs Reduce laboour costs TOP TIPS The customer must be excited and commit with the project!! The technical challenge must be clear and related with customer activities. Implementation should be as easy as possible. Services must be fully aligned with customer needs. The product must be Premium. Technical data must be very strong. Clear value selling focus and skills of DFLTS and SALES. DVR´s documents must be signed. (Cannot be shared if it is not signed). Customer potential benefits should be as big as possible Local DVR from Costa Rica LOCAL DVR FROM PERU LOCAL DVR FROM PERU LOCAL DVR FROM ARUBA OTHER LOCAL DVRS GENERATED FROM MDS StarRating Country Sector Segment Shell Product Shell Services Value(USD) ODI Interval Extension with Shell Mysella LA 40 Title 5 Bolivia Power Gas Engine Shell Mysella LA 40 LubeAnalyst 7700 WARTSILA ODI Interval Extension Beats XOM Mobil MX 15W40 5 Chile Fleet Long Haul Truck Fleet Shell Rimula R5 LE 10W-30 (CJ-4/E9) LubeAnalyst 30318 Mercedes Benz / Kaufmann in Chile Fleet Long Haul Truck Fleet null LubeEquipment 19285 Fleet Short Haul Truck Fleet Shell Rimula R4 L 15W-40 (CJ-4) null 10519 Power Diesel Engine Shell Argina XL 40 (2005) null 168750 Construction Constructors/Major Contractors Shell Gadus S3 V460D 2 null 14734 Fleet Short Haul Truck Fleet Shell Rimula R6 LM 10W-40 (E7/228.51) LubeAnalyst 31427 LubeExpress Increase Availability ODI EXTENSION WITH RIMULA R4 L 5 5 Shell Argina XL 40 improved availability and reliability of Wartsila 46 engines 4 Prevention of bearing failures thanks to use of Gadus S3 V460D 2 5 Chile Peru El Salvador ODI Extension in Actros MB Trucks in Peru 5 Improved Equipment Availability Thanks to Successful use of Shell Tellus S3 M 46 4 Fleet Bus & Coach Fleet Shell Rimula R4 15W-40 (CI-4 Plus) null 330382 General Manufacturing Plastic/Rubber Processing Shell Tellus S3 M 46 LubeAnalyst 366972 Marcopolo bus coaches Mexico 5 Husky Injection Molding machines Fleet Long Haul Truck Fleet Shell Rimula R6 LM 10W-40 (E7/228.51) LubeAnalyst 59243 Mining Open Cast Mining null LubeVideoCheck 17548 Construction Constructors/Major Contractors Shell Tellus Oil 37 (2002) null 30217 Fleet Short Haul Truck Fleet Shell Rimula R3 X 15W-40 (CI-4/228.3) null 20836 Fleet Bus & Coach Fleet Shell Rimula R3 X 15W-40 (CI-4/228.3) null 4997 Chile Videocheck Service 5 Use of Shell Tellus leads to improved system efficiency and savings of US$30,000 5 Chile The manufacturers are VOLVO and Mack Trucks Aruba 5 ODI Extension with Shell Rimula R3 X 15W-40 (CI-4) 5 Costa Rica Engine ODI extension with Shell Rimula R3 X 15W-40 (CI-4) in mining operation 4 ODI extension in open pit mine with Rimula R6LM (Iluminating power gen stations 4 Mining Open Cast Mining Shell Rimula R3 X 15W-40 (CI-4/228.3) null 313414 Mining Open Cast Mining Shell Rimula R6 LM 10W-40 (E7/228.51) null 23753 Chile 5 Ecuador 5 ODI extension in fleet in Uruguay with Rimula R3x Mining Technologies International (MTI), Sandvik, Atlas-Copco Wagner ST Iluminating power station brand Wacker Neuson LTN 6 Fleet Bus & Coach Fleet Shell Rimula R3 X 15W-40 (CI-4/228.3) null 18640 Fleet Short Haul Truck Fleet Shell Rimula R4 15W-40 (CI-4) null 33480 Fleet Long Haul Truck Fleet Shell Rimula R3 X 15W-40 (CI-4/228.3) null 10214 Paraguay 5 Mixed fleet that mostly have Hyundai trucks and a few Isuzu, Mitsubishi, Mack, Volvo and Scania Bus coaches of various brands, mixed fleet Mexico ODI extension with Rimula R3x Locomotive GM/ GR-12 tYPE 567 c 1300 HP Enerpac Hydraulic Power Unit Panama ODI Extension with Shell Rimula R3 X 15W-40 (CI-4) ODI with Rimula R4 in Ecuador Divemotor is Mercedes Benz dealer in PERU Guatemala Oil Drain Extension with Shell Rimula R6 LM INTERNATIONAL 9800I ENGINE(CUMMINS ISM 6 CYL LINE, 380HP) NBR Pillow block / single row ball bearing Peru ODI & Engine Life Extension with Shell Rimula R4 15W-40 (CI-4 Plus) VOLVO &MACK trucks Wartsila Costa Rica 5 Equipment type SCANIA 124 Uruguay Kinglong//Mercedes Benz/ Volkswagen VW 1732, VW 16220, VW 24220 Oil drain interval extension with Mysella S5 N 40 (Prev XL 40) 4 Bolivia Power Gas Engine Shell Mysella S5 N 40 null 10000 Waukesha Bolivia Construction Rimula R4 4 Bolivia Construction Constructors/Major Contractors Shell Rimula R4 15W-40 (CI-4 Plus) null 119868 Mack Trucks SAG Mill Plant - Implementation of Omala S4 Wheel 4 Chile Mining Open Cast Mining Shell Omala S4 Wheel 220 null 1254 Container Terminals Industrial Logistics Equipment Shell Tactic EMV Gadus S3 V220C 2 null 20229 Fleet Trucks Shell Rimula R4 L 15W-40 (CJ-4) null 16595 5 TAC TIC implementation in Port Hoists bearings. ODI extension with RIMULA R4L in port rig stackers Chile 5 Peru FL SMITH LE 150 LS Port hoist brand ZPMC TEREX 13 DVR PROCESS & TOOLS The Indirect Lubricant Technical Coach will give guidance and support: Activity Tool for D-FLTS Documents DVR generation 1) DVR guidelines (pdf) 2) DVR Generation Plan D-FLTS / ILTC Data Entry DVR offline excel Form D-FLTS DVR Value calculator 1) “Customer Cost of Lubricants calculator” For D-FLTS use only, not D-FLTS to share with Shell D-FLTS to share with ILTC 2) “DVR Value calculator” Owner Customer value sign off Template for customer value sign off letter in (multi languages) word documents D-FLTS + ILTC ensure template is used in local languages and distributor signages External Use sign off External use sign off template letter (multi languages) D-FLTS Documentation Photos and attachments Communication DVR leaflet – Shell Individual Leaflet D-FLTS ILTC and Shell B&C manager WHAT ELSE CAN WE DO TO GET MORE VALUE OF DVRS? Example: Find attached a summary of technical data that can be used by sales, marketing and Technical to leverage our skills when we have face to face meetings with our customers.