DEALER OPERATING STANDARD. Global FOR INTERNAL USE ONLY

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1 DEALER OPERATING STANDARD Global FOR INTERNAL USE ONLY

2 SDLG Dealer Operating Standard Contents Contents Foreword 04 2 Brand Management 14 3 Machine Sales 18 Introduction 05 & Marketing Communications >> 3.1 PDI and New Machine Delivery 19 How to use the DOS 06 >> 2.1 Signage 15 >> 3.2 Machine Stock Yard 20 1 General Management 07 >> 2.2 Advertising, Promotion 16 and Tracking >> 3.3 Market Share Tracking 21 >> 1.1 Organisation 08 >> 2.3 Sales Literature and >> 3.4 Conversion Rate 21 >> 1.2 Business Plan 09 Dealer Promotional Material 17 >> 3.5 Territory Management Plan 22 >> 1.3 Human Resources Management 10 >> 1.4 Customer Relationship 11 Management (CRM) >> 1.5 Customer Satisfaction 12 >> 1.6 Facility 12 >> 1.7 Dealership Opening Hours 13 >> 3.6 Key Customer Management 22 2

3 SDLG Dealer Operating Standard Contents 4 Parts Logistics 23 5 Service and Aftermarket 26 6 Competence Development 33 >> 4.1 Dealer Parts Warehouse 24 >> 4.2 Inventory Management 24 >> 4.3 Parts Availability 25 >> 4.4 Stock Order Ratio 25 >> 5.1 Workshop Organisation 27 >> 5.2 General Equipment Set-up 27 >> 5.3 Special Tools 28 >> 5.4 Service Vehicles 28 >> 5.5 Service Technicians 29 >> 5.6 Warranty 29 >> 5.7 Product Updates 30 >> 5.8 Arrival Inspections 30 >> 5.9 Stock Machine Maintenance 31 >> 5.10 Product & Parts Communication 31 >> 5.11 Feedback on Product Safety 32 and Quality Issues >> 6.1 Brand Knowledge 34 >> 6.2 Dealer Technical 35 Competence and Training >> 6.3 Dealer Sales Training 36 >> 6.4 Training Facility 36 3

4 SDLG Dealer Operating Standard Foreword Foreword Dear Distributors, The SDLG Dealer Operating Standard (DOS) forms part of the dealer development strategy, and is deemed necessary in particular, due to the speed of development in terms of SDLG s export markets. The primary aim of the DOS is to consistently deliver a high SDLG standard globally, and to increase the competitiveness of SDLG dealers in the marketplace. DOS will help to improve customer satisfaction. SDLG cares about customers, and specifically their needs and expectations of SDLG as a business partner. DOS allows dealers to consistently deliver the true SDLG culture, values and service. This means that wherever our customers are in the world, as soon as they enter an SDLG dealership, they will truly experience reliability in action. Kind regards, Yu Mengsheng Deputy CEO 4

5 Introduction SDLG Dealer Operating Standard Introduction The Dealer Operating Standard (DOS) is a set of master guidelines describing the requirements necessary to set up an SDLG dealership. The DOS will ensure a dealer s processes meet the requirements as a minimum. These guidelines cover all activities related to General Management, Brand Management and Marketing Communications, Machine Sales, Parts Logistics, Service and Aftermarket, and Competence Development. The objective of the DOS is to enhance the customer experience through a consistent delivery of SDLG products and services across the global dealer network. The DOS also assures the alignment of Dealer Development activities across all SDLG dealers. The requirements defined in the DOS are applicable to all dealers. Where any requirement of the DOS cannot be applied due to the nature or structure of a dealer operation or a local requirement, this can be considered for exclusion. The decision to accept any exclusion will be taken by Lingong. Once implemented by the dealer, the DOS requirements shall be reviewed and assessed by Lingong according to targets as previously agreed with the dealer. The dealer shall ensure that any necessary improvements and corrective actions highlighted during the DOS assessment will be taken within the time frame as agreed with Lingong. To meet and exceed our dealers and customers expectation, we will continue to improve the edition in the future. 5

6 SDLG Dealer Operating Standard How to the use DOS How to use the DOS The DOS specifies requirements for the operation of an SDLG dealership. DOS requirements are defined according to the following structure: Standard name A description of the standard and the processes related to it. The reason the standard is required and the value that s added for the dealer business. The location from where the standard is normally checked. Description of the measurement criteria applied during assessment. Please note a standard can have more than one measurement criteria. Reference documents Reference documents: Examples, templates to be used, processes to follow etc. may be available for download. In some instances, you can download the relevant reference documents directly from a password secured environment via a link. This symbol: Download means there is a link. Simply click on this to activate the download. (You will need a password to access.) Contents links The contents page of each section uses links that will take you to the appropriate standard. This symbol: >> means there is a link. Simply click on this to be taken to the required information. At the foot of every page there is also a link that will take you back to the main DOS Contents page. This acts in the same manner as the home tab on a website. Link to Assessment Template.xlsx Download 6

7 SDLG Dealer Operating Standard General Management 1. General Management >> 1.1 Organisation 08 >> 1.2 Business Plan 09 >> 1.3 Human Resources Management 10 >> 1.4 Customer Relationship 11 Management (CRM) >> 1.5 Customer Satisfaction 12 >> 1.6 Facility 12 >> 1.7 Dealership Opening Hours 13 7

8 SDLG Dealer Operating Standard General Management 1.1 Organisation The dealer s organisational structure should reflect co-ordination, responsibilities and supervision of activities, all of which are directed towards achieving the dealer s aims. An appropriate organisational structure should: Ensure the same values and objectives are shared by dealers and Lingong. Allow critical decisions to be made without delay, which is especially important for customer related issues. Ensure that communication channels are formally established between dealership and Lingong. The dealer shall: 1 Establish an organisational structure as agreed with Lingong during the Business Plan discussions. Within this structure, roles need to be defined clearly including whether roles are full-time or part-time. 2 The Sales team must comprise full-time employees, but for aftermarket and other functions it is not necessary that all team members are full-time employees. There also needs to be someone responsible for (not necessarily full-time roles): Public relations, including planning press activities and events and supplying editorial copy and information. Customer Service Representatives, including parts sales and field maintenance support. 3 Ensure there is a high level expertise across every function in the organisation to provide training. 4 Inform Lingong of any new key appointments or any personnel changes. This information should include an updated organisational chart. Reference documents 1.1_SDLG_DOS_Organisation_chart.pdf Download 1.1_SDLG_DOS_Job_Description_Template.pdf Download 8

9 SDLG Dealer Operating Standard General Management 1.2 Business Plan Having a business plan helps the dealer to project future growth potential and provides a platform from which actual sales can be regularly followed and logged. It consists of: Mutual objectives between Lingong and the dealership Strategy Operational plan (communication, promotions, distribution development, and investment) Measurement Reference documents 1.2_SDLG_DOS_Business_Plan_template-EMEA.docx Download The dealer shall ensure that: 1 The business plan covers all management and operational areas of the dealership. 2 The business plan shall be documented and submitted for approval by Lingong. 3 The Business Plan shall include volume planning, market share planning, conversion ratio and a territory management plan. 9

10 SDLG Dealer Operating Standard General Management 1.3 Human Resources Management At the heart of every successful organisation sit talented and competent employees. Key to success is the active recruitment of talented individuals whose skills are then developed, recognised and rewarded. Only through this approach can an organisation hope to retain the skills necessary to grow and to succeed. Manpower Retention Manpower retention helps improve team management efficiency and team cohesion. It also prevents increased and unnecessary costs. Remunerations The reward system helps ascertain any individual employees value and provides a transparent method to show appreciation. The dealer shall ensure that: 1 Targets are set in relation to staff turnover rate including: Management staff Machine sales staff Service staff 2 A performance management process between managers and their team members is in place. 3 There needs to be a remuneration plan for each salesperson, which needs to be communicated to the sales person and documented. 4 Service technician remunerations are dependent on their technical competence level. 10

11 1.4 Customer Relationship Management (CRM) SDLG Dealer Operating Standard General Management CRM is the model for pro-actively managing a dealer s interactions with customers, clients and sales prospects. The ultimate goal for CRM is to retain customers and utilise sales prospects, to maintain a good reputation of SDLG and to reduce the costs of obtaining new customers. Customers conduct business with companies they like: fostering long-term relationships with customers builds loyalty. If a dealer pro-actively engages with and builds customer relationships, the customers will see the dealer as a real business partner. Customer retention helps to develop and maintain consistent sales growth. As the customer base grows, so will the reputation of the dealership. The dealer shall: 1 Map main processes associated with interactions and communications with customers. CRM can be as simple as pro-actively maintaining customer relationships through phone calls or visits with information recorded in a database system, or simply via a spreadsheet record. 2 Create a customer database for existing customers. The sales department needs to maintain a documented enquiry handling process, as well as a process to collect and record details of existing customers and sales prospects. The aftermarket department needs to maintain a well-documented service enquiry process. This is the first step to registering customer concerns and then systematically following them up. 3 Create a follow-up procedure centred on regular interaction with customers. 4 Establish a customer relationship co-ordinator to intentionally manage these opportunities (recommended). 5 Set targets for customer retention. 6 Track and monitor customer retention rate on a monthly basis and document it. 7 Develop action plans to capture lost opportunities based on monthly tracking statistics. 11

12 SDLG Dealer Operating Standard General Management 1.5 Customer Satisfaction Ensuring a high level of customer satisfaction and ultimately loyalty will drive profitability and long-term viability. The customer satisfaction survey will be used to understand the current level of customer satisfaction. The results will be used to show the areas that need maintaining, and highlight where additional focus is required to improve performance. The dealer shall determine and implement: 1 Methods for obtaining and managing customer satisfaction data. 2 Documentation of effective management processes in respect of customer feedback a continuous improvement process internally to increase customer satisfaction. 1.6 Facility It shall be absolutely clear to anybody either visiting or passing an SDLG dealership that it is an SDLG dealership. Therefore premises shall be designed and maintained in accordance with SDLG requirements. Any dealer should plan for a long-term partnership with SDLG and the facility should reflect this. Facility planning plays an important part in future business expansion. The dealer shall meet the following criteria: 1 Acquisition of property Ensure that the site is located in a zone with the necessary authority approvals for all normal dealership activities. Copies of registration and certifications shall be stored at the dealer s facility. 2 Location It is recommended that dealership premises are located on the outskirts away from city centres and residential areas. Consideration should always be given to access and good road connections. 3 Accessibility from road network to site The dimensions of the roads shall be adequate to allow for free movements of all possible vehicle combinations - length and weight - as determined by regional or national authorities. 4 In terms of location and space every dealership facility must cater for future business plans. The dealer shall present documentation (e.g. Existing floor plan, supporting documents and calculations of sales and aftermarket potential) that supports the current defined dealership facility plans. 12

13 SDLG Dealer Operating Standard General Management 1.7 Dealership Opening Hours Dealership opening hours must meet or exceed customer expectation and be clearly communicated and displayed. The dealer shall: 1 Operate for a minimum number of hours that are aligned with the market s normal retail hours and take into consideration local competition. 2 Clearly inform opening hours and contact number to the market through alternative multi-channel communications (alternative multi-channel communications include advertisements / websites / service trucks, service invoices, dealership brochures, etc.) 13

14 SDLG Dealer Operating Standard Brand Management & Marketing Communications 2. Brand Management & Marketing Communications >> 2.1 Signage 15 >> 2.2 Advertising, Promotion 16 and Tracking >> 2.3 Sales Literature and Dealer Promotional Material 17 14

15 2.1 Signage SDLG Dealer Operating Standard Brand Management & Marketing Communications An SDLG dealership should be easily recognised and distinguished by customers. The use of SDLG pylons, banners and machines gives a very clear business representation of the dealership facility. Customers visiting the dealership facility should be guided clearly to the key functional areas such as Parts Sales, Machine Sales, Service Reception and Information Desk. It is essential that the signage and front of house are consistent with SDLG guidelines to create the correct, quality, professional public image for the dealership. Dealership back office / on-site. The dealer shall ensure that: 1 Signage adheres to requirements stated in SDLG Corporate Identity. 2 Signage is well maintained. No part of any sign should be faded, off-colour, damaged or modified. Reference documents Brand Guidelines Region EMEA 2014.pdf Download SDLG image store.pdf Download 15

16 SDLG Dealer Operating Standard Brand Management & Marketing Communications 2.2 Advertising, Promotion and Tracking Marketing is important in building customer relationships as well as creating product awareness. A good marketing strategy helps a dealer to keep and even win new customers which equates to more revenue and growth. An effective marketing plan manages the marketing budget and monitors the progress of marketing activities for the retail business. Tracking the campaign results helps to identify which customers are responding to sales overtures and which ones are not thus helping to target opportunities and focus resources more carefully. Dealership back office / On-site. The dealer shall: 1 Plan marketing activities annually for the year ahead and include proposed activities as part of the Business Plan to Lingong for approval according to a predefined deadline. The dealer should secure the appropriate budget for the proposed SDLG marketing activities every year. 2 Execute marketing activities as communicated in the annual marketing plan. 3 Develop marketing communication processes, activities and material in accordance with the SDLG Communication Platform. 4 Develop marketing programmes and promotions for new machine sales and product and service offers according to the Business Plan. 5 Track campaign results and produce a report after the closing date of any promotion. 6 When new products are launched, they shall be advertised in the customer waiting area. Product brochures shall be visibly present in customer contact areas. Reference documents SDLG Communication Platform.pdf Download Brand Guidelines Region EMEA 2014.pdf Download 16

17 2.3 Sales Literature and Promotional Material SDLG Dealer Operating Standard Brand Management & Marketing Communications Salespersons may not always be available in the dealership to speak to walk-in customers, or waiting customers. Having sales literature present can help create sales opportunities. The materials provided by a SDLG authorised dealer to the customers shall be consistent and in-line with SDLG marketing materials. Assessment Check-point Dealership back office / On-site The dealer shall: 1 Use only Lingong approved sales and product brochures. 2 Ensure these brochure displays are maintained and available within the sales department and all customer contact areas. 3 Maintain a reasonable quantity of SDLG product sales literature and have a proper display arrangement for the same in the office reception. 4 All marketing materials pertaining to SDLG products and services shall be produced according to SDLG Brand Identity Guidelines. 5 All marketing materials must be up-to-date. Reference documents SDLG Communication Platform.pdf Download Brand Guidelines Region EMEA 2014.pdf Download 17

18 SDLG Dealer Operating Standard Machine Sales 3. Machine Sales >> 3.1 PDI and New Machine Delivery 19 >> 3.2 Machine Stock Yard 20 >> 3.3 Market Share Tracking 21 >> 3.4 Conversion Rate 21 >> 3.5 Territory Management Plan 22 >> 3.6 Key Customer Management 22 18

19 SDLG Dealer Operating Standard Machine Sales 3.1 PDI and New Machine Delivery To ensure machines are prepared for a problem-free delivery when required. The dealer shall ensure that: 1 A documented PDI process is in place. Typically: Pre-delivery request Installation options (e.g. attachments) Initiation of pre-delivery inspection Undertaking of pre-delivery inspection Identification of any problems 2 Feedback and communication with Product Support in relation to the following documents: Delivery sheet, training record and warranty card. 3 A full register of delivered machines shall be available in the warranty system. Reference documents 3.1_SDLG_DOS_PDI_Machine_Delivery_ Inspection.pdf Download 19

20 SDLG Dealer Operating Standard Machine Sales 3.2 Machine Stock Yard A dealer s stock yard should have sufficient capacity to store enough of each machine type to ensure machines are always available for customers. Shipment times for equipment from factory to dealership can be unpredictable. The dealership shall therefore stock sufficient machines to meet market demands customers may look elsewhere if dealers cannot offer acceptable lead times on equipment. Dealers should commit to keep the agreed monthly amount of stock in the yard in order not to miss the potential market opportunity. Units in stock. The dealer shall ensure that: 1 Sufficient yard space is available within the grounds of the dealership site to stock at least one month of machine inventory. 2 The ground surface is capable of withstanding the heaviest and/or the largest SDLG machines. 3 The designated stockyard space can store other non-competing products but the shared space needs to be defined and organised separately from SDLG stock. 4 It follows factory recommendations in relation to stocking times. Reference documents 3.2_SDLG_DOS_Machine_Stock.JPG Download 20

21 3.3 Market Share Tracking SDLG Dealer Operating Standard Machine Sales 3.4 Conversion Rate Market share tracking is essential to secure SDLG market positions and helps to clearly define dealer s key objectives in their sales plans. It is a crucial measurement in terms of planning future work. The dealer shall ensure that: 1 Accurate information is available about total market size of the territory. 2 Market share is developed using a systematic action plan based upon analysis of market segments. 3 The business plan shall include market share planning and statistics for the tracking of market share. 4 Market share statistics shall be regularly provided and reviewed with Lingong. 5 The dealer shall provide a full explanation in the event that either of these situations occur: Market share grows. There is a shortfall in market share actuals versus forecast. Facilitates understanding of how successful a dealership is at converting leads. The value is seeing where prospects are being lost and to which competitors for what reasons. Conversion rate is determined taking market share and dividing it by quoted participation ratio. The dealer shall: 1 Set the target for Conversion Rate and make the action plan accordingly if it is below the defined target. 21

22 SDLG Dealer Operating Standard Machine Sales 3.5 Territory Management Plan The dealer manages the whole of the territory, setting up sales branches with adequate trained resources. De-centralising of the sales force provides better market coverage, placing the dealer closer to prospects and customers. The dealer shall have: 1 A territory management plan including: Geographical coverage Products Segments Customers (CRM) Sales force Reference documents 2 A territory management plan that indicates a considered territorial strategy and approach (recommended). Action shall be planned and monitored with a specified time table for execution. 3 The capacity to make commercially available all products in the SDLG portfolio that are authorised to be sold in the territory. 4 Adequately trained manpower to cover the potential market for new machine sales across the whole of the territory. Each sales branch shall have at least one salesperson. 5 The capacity to cover all segments and develop new applications with options and units. 6 A dedicated sales force: from co-ordinator to sales rep. 3.6 Key Customer Management A customer Manager is responsible for co-ordinating, leading and maximising the potential of all sales activity, both machine and aftermarket, in relation to local, regional and global customers within the dealer s territory. The customer manager shall be the main contact person between the dealer and SDLG Key Account Management. The dealer shall: 1 Have a customer manager role within the organisation. This role of Key Account Manager can either be a dedicated person or it can be a shared position with an existing role (e.g. sales manager). 1.2_SDLG_DOS_Business_Plan_template-EMEA.docx Download 22

23 4. Parts Logistics >> 4.1 Dealer Parts Warehouse 24 SDLG Dealer Operating Standard Parts Logistics >> 4.2 Inventory Management 24 >> 4.3 Parts Availability 25 >> 4.4 Stock Order Ratio 25 23

24 SDLG Dealer Operating Standard Parts Logistics 4.1 Dealer Parts Warehouse A well-equipped and orderly warehouse improves operational efficiency, thereby contributing positively to a dealer s profitability. A well-structured and organised warehouse complements the SDLG brand image of Reliability in Action. A warehouse with proper processes and control will minimise losses arising from spoilages and the stocking of obsolete inventory. A dealer should stock and sell only genuine SDLG parts to ensure the reliability of SDLG machines. The dealer shall ensure that: 1 Each dealer premises has a parts warehouse. 2 Each parts warehouse has SDLG branding following visual identity. 3 Dangerous goods are located and stored separately. 4 The warehouse does not contain any parts other than genuine SDLG parts except for those supplied by a Lingong approved Original Equipment Supplier (OES) or Original Equipment Manufacturer (OEM). 5 There is adequate storage space for SDLG genuine parts and these parts do not share space with competitor brands. 4.2 Inventory Management To increase part stock availability, decrease capital occupation, increase customer satisfaction and avoid wastage. The dealer shall ensure that: 1 There needs to be an internal management system/process for inventory. 2 The system/process needs to be well-documented so that it is easy for people to locate stock. Reference documents 4.1_SDLG_DOS_Dealer_parts_warehouse.pdf Download 4.1_SDLG_DOS_Genuine_parts_photos.pdf Download 4.1_SDLG_DOS_Workshop_layout.pdf Download 24

25 4.3 Parts Availability To increase customer satisfaction and stay in line with SDLG s brand values. The impact of a soft market in terms of machine sales can be minimised by maintaining high parts availability. This helps to increase dealer revenues and improve the customer satisfaction index. The dealer shall ensure that: 1 Ensure over-the-counter (OTC) parts availability meets or exceeds the annual target set by Lingong. 2 Maintain an accurate parts database at all times. 3 Record parts sales and unavailability information. 4 Each quarter, report parts availability and BOR (back order recovery). 4.4 Stock Order Ratio To encourage the stocking of parts by dealers in order to reduce operational cost, and to increase parts availability. A higher stock order ratio directly improves a dealer s parts profitability by increasing over-the-counter sales. This also improves customer satisfaction. A higher stock order ratio reduces reliance on emergency orders, thereby reducing overall transportation handling costs and supporting environmental-friendly initiatives. High stock order ratio reduces pressure on the warehouse operation and increases efficiency. SDLG Dealer Operating Standard Parts Logistics The dealer shall ensure that: 1 Targets for stock order ratio are defined and followed up during dealer business meetings. 2 Air and emergency orders must be controlled within targets set by Lingong. 3 Efficient, advance planning of parts is required for the introduction of new models using the initial stock list. 4 Co-ordination between the parts, commercial and service departments is required to effectively plan parts for scheduled repair and overhaul programs. 25

26 SDLG Dealer Operating Standard Service and Aftermarket 5. Service and Aftermarket >> 5.1 Workshop Organisation 27 >> 5.2 General Equipment Set-up 27 >> 5.3 Special Tools 28 >> 5.4 Service Vehicles 28 >> 5.5 Service Technicians 29 >> 5.6 Warranty 29 >> 5.7 Product Updates 30 >> 5.8 Arrival Inspections 30 >> 5.9 Stock Machine Maintenance 31 >> 5.10 Product & Parts Communication 31 >> 5.11 Feedback on Product Safety 32 and Quality Issues 26

27 5.1 Workshop Organisation 5.2 General Equipment Set-up SDLG Dealer Operating Standard Service and Aftermarket As an authorised SDLG dealer, it is mandatory to have a service workshop capable of carrying out major repairs. This facility should be staffed and equipped to such a level that repairs can be undertaken even in circumstances where a machine may have suffered extensive damage. Dealership back office / on-site. The dealer shall have: 1 A fully equipped workshop for maintenance and repair. 2 Workshop facilities capable of servicing even the largest and heaviest SDLG products. 3 An SDLG key components bay in the workshop that cannot be shared with competing brands. This component bay should also be available for the overhaul of SDLG components. 4 Special tools and inspection equipment. An SDLG authorised workshop shall be well equipped with general workshop equipment in order to ensure service readiness at all times. This will help to maximise workshop capacity and ensure customers maintain maximum up-time. The dealer shall have the following: 1 Oil and grease storage and distribution. 2 Safe storage and disposal facilities for waste oil, coolants, and any hazardous substances. 3 Adequate electrical power supply points. 4 Water supply system. 5 Lifting arrangements for service bays. 6 Mechanics workbenches and personal toolsets. 7 Fire protection points. 8 Personal protective equipment (PPE) and attire for every service technician. 27

28 SDLG Dealer Operating Standard Service and Aftermarket 5.3 Special Tools 5.4 Service Vehicles Naturally, SDLG machines feature design features and components that are patented. As a result special tools are sometimes needed to carry out repairs. Ensuring the correct tools are available in the workshop and service vehicles is of the utmost importance. Properly equipped service technicians help to optimise machine uptime and therefore customer satisfaction. The dealer shall: 1 Perform and document random checks on special tools, checking availability compared to the list of required tools. 2 Ensure tools remain in organised storage after use. 3 Replace broken and damaged tools immediately. Lingong authorised dealers are required to maintain an appropriate fleet of service vehicles to support all machine maintenance and repair requirements in the field. Sufficient and fully equipped vehicles mean shorter transport times, which in turn helps to reduce machine downtime while meeting customers expectations. This also increases dealer business. Reference documents The dealer shall ensure that: 1 There are sufficient service vehicles as agreed with Lingong to provide proper service considering the territory and machine population by machine class. 2 The number of service vehicles is reported to SDLG as part of the Business Plan. 3 Service vehicles are fully equipped. 4 Service vehicles shall be painted correctly according to SDLG VI and use of the SDLG Logo is a must. 5 Services vehicles are to be kept clean, tidy and in safe working order. 5.3_SDLG_DOS_Inspection_equipment_list.pdf Download 5.3_SDLG_DOS_Special_tool_list.pdf Download 28

29 5.5 Service Technicians Lingong authorised dealers are required to have sufficient, trained service personnel to support all machine maintenance and repairs in a timely manner. Providing this level of service also presents a unique opportunity to attract customers for aftersales related jobs. The dealer shall have: 1 The number of service technicians as indicated in the annual Business Plan. 2 Technician training planned and reported regularly. 5.6 Warranty The dealer shall perform warranty work according to the processes and terms & conditions stated in the Warranty Certificate. The dealer will ensure proper handling and storage of warranty parts. It is important that the proper documentation of warranty claims history is followed and maintained, and that warranty parts are stored in a secured place for further analysis or returning to SDLG when required Lingong can, at any time, conduct dealer reviews to secure dealer fulfilment in relation to the rules and processes stated in the Warranty Certificate. Dealership back office / on site. Reference documents 5.6_SDLG_DOS_Warranty_Terms_and Conditions.pdf Download SDLG Dealer Operating Standard Service and Aftermarket The dealer shall ensure that: 1 A documented warranty process is maintained and SDLG will be supplied with supporting material when requested. 2 All failed parts shall be properly tagged, according to the Warranty Certificate instructions, with at least the following information: Warranty claim number Failure date and repair date Model and serial number Component serial number Customer name 3 Warranty parts shall be stored in a secured room for further analysis and/or return to Lingong. 4 When authorised, scrapping and recycling should be carried out in accordance with the rules in the Warranty Certificate. 29

30 SDLG Dealer Operating Standard Service and Aftermarket 5.7 Product Updates Product updates are initiated by Lingong to improve the reliability of products in the field. There are two types of Product Updates recommended and mandatory and these are announced through the release of Service Bulletins It is the responsibility of the dealer to complete the work on all machines in the territory, which are included in the Product Update (including safety campaign), within the stipulated time frame. Failure to do so may lead to rejection of related claims. After completion, the covering warranty claims should be submitted to Lingong. The dealer shall: 1 Maintain a documented product update process. 2 Appoint an employee (may be a shared role) who is responsible for the product update process. 3 If the product update initiated by SDLG is safety related, it takes priority and must be implemented as a matter of urgency. 5.8 Arrival Inspections The dealer is required to inspect each machine on arrival to check whether it conforms to the terms of the purchase order. Any problem caused during transportation or any quality issues should be fed back to SDLG upon receipt of the machine. The dealer should also keep and maintain an inventory of machines and components through regular scheduled inspections and maintenance. The dealer shall: 1 Define and implement an agreed arrival inspections process. 2 Maintain a documented arrival inspection process. 30

31 5.9 Stock Machine Maintenance SDLG Dealer Operating Standard Service and Aftermarket 5.10 Product & Parts Communication The dealer should keep the inventory of machines maintained in good and workable condition by carrying out regular, scheduled inspections and maintenance. This will save time at shipment and also ensure that the high quality of the product is maintained. The dealer shall: 1 Define and implement a stock machine maintenance process. 2 Keep a documented stock machine maintenance record. The dealer should ensure that the current parts and service information on any product modification/update released by Lingong is readily available and all concerned at the dealership are informed. The dealer will ensure necessary follow-up actions are taken. It is essential that employees are aware of the latest modifications and updates as this demonstrates to customers that the dealership is professionally managed. The process is to encourage the proper control and use of all SDLG supplied parts and service publications. The dealer shall: 1 Assign a specific employee, who has a thorough understanding of publication documentation to manage the dissemination of product modification/updates. 2 Have a documented information dissemination process. Reference documents 5.9_SDLG_DOS_Stock_Maintenance_Record. pdf Download 31

32 SDLG Dealer Operating Standard Service and Aftermarket 5.11 Feedback on Product Safety and Quality Issues The dealer must provide accurate quality feedback and suggestions to SDLG in any failure report in order to enable a quick and quality secured solution to the problem. This will help to ensure that the quality, reliability and reputation of SDLG products are maintained. The dealer shall: 1 Maintain a documented safety and quality feedback process within TSI, including: Collection and analysis of quality related information Preparation and submission of respective reports Feedback from SDLG 2 Ensure immediate and open communication with SDLG when any safety incident or accident happens with SDLG machines in the field. Reference documents 5.11_SDLG_DOS_Product_Failure_and_Warranty Report_EMEA.docx Download 32

33 6. Competence Development >> 6.1 Brand Knowledge 34 SDLG Dealer Operating Standard Competence Development >> 6.2 Dealer Technical 35 Competence and Training >> 6.3 Dealer Sales Training 36 >> 6.4 Training Facility 36 33

34 SDLG Dealer Operating Standard Competence Development 6.1 Brand Knowledge The dealer is a SDLG brand ambassador and the dealer principal will therefore ensure all staff are knowledgeable about SDLG brand values, positioning and history. All employees working for a Lingong authorised dealer, whether service technicians or customer contact employees, act as representatives of the SDLG brand to customers. A confident understanding of the SDLG brand and products will help give customers the correct perception of SDLG as a reliable partner for their business. The dealer shall ensure that: 1 Each employee working on SDLG machines and/or having contact with SDLG customers has completed training in the following within 3 months of joining the dealer: Brand and SDLG history Communication platform Reference documents 6.1_SDLG_DOS_Corporate_Presentation.pptx Download 34

35 SDLG Dealer Operating Standard Competence Development 6.2 Dealer Technical Competence and Training The dealer should have in-house training facilities and technical trainer(s). Proper competence is required to meet market requirements and as such Lingong expects dealers to have this capability to deliver courses. Dealers also save time and expenses sending service technicians out for training. This also helps to increase service technicians servicing availability. A good training plan shall be based on an annual training needs analysis taking into consideration the peak demands of the business. This will help to reduce disruption to routine work as training of service technicians can take place, when applicable, during those times of the year that are traditionally quieter in terms of workload. It is recommended that individual growth plans are shared with the service technicians involved, which helps with staff retention. The dealer shall: 1 Appoint any existing service technician that is able to deliver a minimum of 6 courses per year to be the trainer. He/she will train service technicians. 2 Send trainers to a Train the Trainer event hosted by Lingong if applicable. 3 Submit training plans/training requests to Lingong twice per year in accordance with the global/regional training planning process. 4 Provide service training in relation to new products launched in accordance with the Lingong product plan. A record should be maintained and signed by technicians. Reference documents 6.2_SDLG_DOS_Job_Description_Technical_Trainer.pdf Download 35

36 SDLG Dealer Operating Standard Competence Development 6.3 Dealer Sales Training 6.4 Training Facility The dealer plans and develops salespersons professional skills. Simply equipping sales people with product knowledge is not enough. The dealer s sales manager shall perform skills gap analysis with the sales team and arrange for professional development training to strengthen their sales closing capabilities. This can potentially increase the dealer s sales conversion ratio, resulting in greater machine sales business and profitability. The dealer shall ensure that: 1 All basic-level courses are completed within 6 months. Courses for SDLG sales people to include an understanding of the construction equipment industry, SDLG products, basic engine and component technology, basic segment knowledge, etc. 2 The sales manager evaluates the sales force for skills gaps and creates a training plan for each member of the sales team. The evaluation reports should be shared with Lingong. 3 Each sales person undertakes at least 20 hours of new product training annually. 4 For all training conducted by SDLG instructors, the training attendance register shall be signed by the salespersons. Reference documents 6.3_SDLG_DOS_Product_Manual_2015.pdf Download Having an aftermarket training facility is especially important to ensure that service technicians are given proper hands-on experience during the training sessions before they start to repair customer equipment. Dealership back office / on-site. The dealer shall ensure that: 1 An adequate training facility for the delivery of in-house training is maintained. A meeting room/conference room is available to conduct sales training. Training facilities shall be adequate for the number of service technicians/machines in the market. 2 Where applicable (e.g. dealers that offer operator training), according to market size and machine population, the service training facility shall be equipped with training aids in accordance with the requirements of Lingong. 36

37 SDLG Dealer Operating Standard Competence Development Reference documents 6.4_SDLG_DOS_Appendix_Training_Facility.pdf 6.4 SDLG DOS_Training Aids.pdf Download Download 37

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40 Ref No. SDLG-DOS 01 (EMEA) English SDLG