UFI Operations Focus Meeting - Paris 2010 - Rowena Arzt

1

Cost Efficient Operations – Results of a questionnaire

among UFI membersDr. Rowena Arzt, UFI

2

Presentation Overview

1. General data on the questionnaire2. Cost structure and savings3. Optimization process4. Impact on the service level5. Challenges6. Role of customers and partners7. Current cost saving topics

3

Presentation Overview

1. General data on the questionnaire2. Cost structure and savings3. Optimization process4. Impact on the service level5. Challenges6. Role of customers and partners7. Current cost saving topics

4

1. General data on the questionnaire

Answers•67 answers from UFI member companies

Types

• exhibition organizers: 9• venue owners / managers: 58

Origin

• The Americas: 3• Asia / Pacific: 13• Europe: 42• Middle East Africa: 9

5

Presentation Overview

1. General data on the questionnaire2. Cost structure and savings3. Optimization process4. Impact on the service level5. Challenges6. Role of customers and partners7. Current cost saving topics

6

2. Cost structure and savings

91%

9%

Have you undertaken mea-sures to improve cost

structure in the field of op-erations?

YesNo

7

2. Cost structure and savings

targeted cost reduction corridor0%

20%

40%

60%

80%

100%

20%

38%

22% 20%

1-5%6-10%11-15%>15%

To which extent did you aim to decrease costs?

8

2. Cost structure and savings

 Operations Area

Total

Energy 76%Cleaning 75%Maintenance 72%Registration / Ticketing 72%Waste management 71%Technical equipment, stand construction for special shows, carpeting, etc. 70%Security 70%Logistics 70%Signage 67%Communications & IT 66%Cashier and information personnel 58%Local transport 45%

In which areas have you achieved cost savings?

9

2. Cost structure and savings

 Operations Area

1-5 % 6-10% 11-15% >15%

Energy 38% 26% 5% 7%Cleaning 33% 22% 10% 10%Registration / Ticketing 40% 22% 5% 5%Waste management 33% 24% 9% 5%Maintenance 33% 21% 9% 9%Technical equipment, stand construc-tion for special shows, carpeting, etc. 24% 21% 22% 3%Security 36% 17% 7% 10%Logistics 34% 22% 7% 7%Signage 34% 14% 12% 7%Communications & IT 33% 19% 9% 5%Cashier and information personnel 29% 21% 5% 3%Local transport 26% 10% 7% 2%

Highest ranking in the category

Second highest ranking in the category

10

2. Cost structure and savings

1-5% 6-10% 11-15% >15%0%

20%

40%

60%

80%

100%

20%

38%

22%20%

48%

29%

13% 9%

solid: targeted cost corridor

transparent: achieved cost reduction

Comparison of aim and achievement…

11

Presentation Overview

1. General data on the questionnaire2. Cost structure and savings3. Optimization process4. Impact on the service level5. Challenges6. Role of customers and partners7. Current cost saving topics

12

3. Optimization process

6%

94%

How did you handle the cost opti-mization process?

external consultantinternal man-agement

13

3. Optimization process

Benchmarking with other industries

Zero-based budgeting

Benchmarking within the exhibition industry

Cost-benefit analysis

Personal experience

Internal analysis

0% 5% 10% 15% 20% 25% 30%

6%

6%

11%

21%

26%

30%

Frequency named

Which methods or tools did you use?

14

Presentation Overview

1. General data on the questionnaire2. Cost structure and savings3. Optimization process4. Impact on the service level5. Challenges6. Role of customers and partners7. Current cost saving topics

15

4. Impact on the Service Level

41%

59%

Did you adjust your service levels in order to optimize costs?

YesNo

16

4. Impact on the Service Level

Cashier and information personnel

Local Transport

Signage

Logistics

Registration / Ticketing

Energy

Communication & IT

Waste management

Maintenance

Security

Technical Equipment, stand construction for special shows, carpeting etc.

Cleaning

22%22%

33%

33%37%

37%37%

41%

48%

48%

56%

56%

Areas of adjustment related to "yes"

areas of adjustment related to "yes"

17

4. Impact on the Service Level

Operations Area1-5 % 6-10% 11-15% >15% Service

LevelEnergy 38% 26% 5% 7% 37%Cleaning 33% 22% 10% 10% 56%Registration / Ticketing 40% 22% 5% 5% 37%Waste management 33% 24% 9% 5% 41%Maintenance 33% 21% 9% 9% 48%Technical equipment, stand construction for special shows, carpeting, etc. 24% 21% 22% 3% 56%Security 36% 17% 7% 10% 48%Logistics 34% 22% 7% 7% 33%Signage 34% 14% 12% 7% 33%Communications & IT 33% 19% 9% 5% 37%Cashier and information personnel 29% 21% 5% 3% 22%Local transport 26% 10% 7% 2% 22%

Highest ranking in the category

Second highest ranking in the category

Highest ranking in the category

Second highest ranking in the category

18

Presentation Overview

1. General data on the questionnaire2. Cost structure and savings3. Optimization process4. Impact on the service level5. Challenges6. Role of customers and partners7. Current cost saving topics

19

5. Challenges

The following challenges have been most frequently reported in the questionnaire:

1. Get the staff involved and convinced2. Maintain the service level / quality3. Measuring the effects of the efforts4. Negotiations / relationship with suppliers5. Identifying the threshold below which the service

level suffers

20

Presentation Overview

1. General data on the questionnaire2. Cost structure and savings3. Optimization process4. Impact on the service level5. Challenges6. Role of customers and partners7. Current cost saving topics

21

6. Role of customers and suppliers

The following measures have been undertaken to integrate customers in the optimization process

1. More online activity of the customers required (registration, booking, etc.)

2. Strong communication towards customers on changes and initiatives (round-tables, questionnaires, etc.)

But…. Many surveyed companies did not involve their

customers in this process.

22

6. Role of customers and suppliers

Not to change bookings onsite

Communicate early on logistic challenges

Faster build up and tear down

Book everything at least 3 months in advance

Book everything via the internet

0% 10% 20% 30% 40% 50% 60%

18%

45%

50%

53%

55%

Frequency named

If you could change the behavior of your customers what would you like them to do in order to increase cost efficiency?

23

6. Role of customers and suppliers

The following measures have been undertaken to integrate suppliers in the optimization process

1. Joint workshops and negotiations to create win/win situations

2. Assessment and categorization of suppliers3. Adjustment of price levels4. Involvement into process redesign5. New contracts

24

Presentation Overview

1. General data on the questionnaire2. Cost structure and savings3. Optimization process4. Impact on the service level5. Challenges6. Role of customers and suppliers7. Current cost saving topics

25

7. Current cost saving topics

The following topics have been listed as being of major importance

1. Change fix into variable costs2. Online integration of the customer3. Sustainable development / sustainability4. Assessment of service levels and their relevance

26

QUESTIONS & ANSWERS

?

?

?

?

? ??

?

??

!!

!!

!

!

!

!

!

27

Page 27

Contact details for further questions:

Dr. Rowena Arzt

Director of Business Development

UFI – The Global Association of the Exhbition Industry

35bis rue Jouffroy d´ Abbans

75017 Paris

phone: +33 142 67 99 12

e-mail: rowena@ufi.org