SUCCESS STORY TRANSPORT AND LOGISTICS SECTOR

SUCCESS STORY TRANSPORT AND LOGISTICS SECTOR GEODIS

IGNITING THE PASSION FOR SUCCESS EFQM is a network of remarkable and like-minded organisations who share a common vision of Excellence, as a continuous Journey together. Through each Success Booklet, EFQM brings to you inspiring stories of people and companies who have successfully deployed the Model and experienced its many benefits. Here we take a closer look at how they did it... EFQM ENABLES YOU TO CONNECT, LEARN, ACT, ACHIEVE, SUCCEED The EFQM Excellence Model provides organisations with a platform and common language to share their experiences and learn from others. The desire to share, learn and innovate is what drives our economies forward. A derived observation is the fact that what was considered "best practice" yesterday rapidly enters the mainstream and becomes common practice today. To stay ahead, organisations need to adapt faster than ever. Introducing a proven practice from one sector to another is one way to achieve this... 2

THE JOURNEY TOWARDS EXCELLENCE......there is a continual improvement loop, feeding back the learning from the results achieved and using creativity and innovation to drive increased value for all the stakeholders.

TRANSPORT AND LOGISTICS SECTOR THE STORY OF GEODIS September 2015 in Levallois, France: Régis Lesieux presenting the 2015 Group Customer Survey results in a townhall meeting PLEASE PROVIDE A BRIEF SUMMARY OF YOUR BUSINESS GEODIS is a Supply Chain Operator ranking among the top companies in the field in Europe and the World. GEODIS is ranked as the number four logistics provider in Europe and number seven at a worldwide level. GEODIS is also listed as a Leader in Gartner s 2016 Magic Quadrant of Worldwide 3PLs. GEODIS reach includes a direct presence in 67 countries and a global network spanning over 120 countries. With its five Lines of Business (Supply Chain Optimization, Freight Forwarding, Contract Logistics, Distribution & Express, and Road Transport), GEODIS manages its customers Supply Chain by providing end to end solutions enabled by over 39,500 employees, its infrastructure, its processes and systems. In 2016, GEODIS recorded 8 billion in sales. WHEN DID YOU START USING THE MODEL? GEODIS elected to resort to the framework of the EFQM Business Excellence Model as an organisational tool, as the current testimony will show. However, at this stage, no formal EFQM assessment process has been undertaken due to the sheer size of GEODIS' operations worldwide. The next steps will be to select the best candidates among our Lines of Business to undergo a formal assessment according to the EFQM model. Nonetheless, the story hereby will clearly show that we are now ready for such a local assessment. GEODIS started using the EFQM Excellence model as a framework for continuous improvement in 2012 when Marie-Christine Lombard joined the Group as CEO. GEODIS leaned on the EFQM Excellence model and month after month, it progressively deployed the key components of this model. The ultimate goal was to reach its Ambition 2018 business objectives. To do so, GEODIS needed to abide by the Business Excellence principles and standards, as defined by EFQM: "Excellent organizations achieve and sustain superior levels of performance that meet or exceed the expectations of all their stakeholders." Practically this meant: Having a clear understanding of who GEODIS stakeholders were and what they expected; Developing strategies to achieve or exceed their expectations; Achieving excellent results today; Demonstrating that GEODIS could sustain this performance in the future by showing the causes of these results were understood and effectively managed.

To achieve the above, GEODIS needed to have the following: Shared Mission, Vision and Values Clear and relevant strategies for its five Lines of Business and Global Accounts A clear focus on the total satisfaction of its stakeholders labelled STS. The consistency and exhaustiveness of the Excellence Model were the convincing factors on top of its holistic and unifying nature. When implemented at worldwide level (nearly 40,000 employees), it became a common language for all its Lines of Business. HOW DID YOU GET STARTED? GEODIS started in January 2013 with the deployment of its Mission, Vision and Values. These Mission, Vision and Values reflect who GEODIS is as an organization. Its Mission is to help its clients succeed by overcoming their logistical constraints. Its Vision is to be the growth partner for its clients. GEODIS is an expert in transport and logistics solutions, united by five strong values: Commitment, Solidarity, Trust, Innovation and Passion. In July 2013, GEODIS launched its STS programme to meet its objectives: aiming for Stakeholders Total Satisfaction (STS) namely its customers, its employees, its shareholder and society at large. Régis Lesieux was then appointed as VP Business Excellence to manage this programme throughout GEODIS worldwide. 5

GEODIS then deployed a continuous improvement program built on common guiding principles called the 7 Golden Rules: 1. Make it easy for the client to do business with us. 2. Win, retain and develop profitable clients. 3. Always deliver a perfect service. 4. Get paid for what we do. 5. Recruit, develop and retain quality people. 6. Ensure the safety of our people everywhere and at anytime. 7. Be a good citizen. In October 2013, GEODIS carried out its first Group Customer survey. Followed in 2014 by its first Group Employee survey. GEODIS has been organizing an award process called GEODIS Golden Globes since 2014. Since 2015, Innovation has been included in this internal recognition system. Each year, an awards ceremony is organized with the Top 180 managers and a number of GEODIS Golden Globes are awarded on Performance and on Innovation. The GEODIS Golden Globes Awards on Performance are intended to foster engagement by all the entities of the Group to reach outstanding performance on STS. January 2017 in Deauville, France: Régis Lesieux as the Master of Ceremony for the GEODIS Golden Globes Awards Ceremony

As part of the GEODIS Business Excellence/STS approach, the Group has established or is establishing for each of its Corporate Support Departments, a reference document designed to present how they work, their contribution to the Group and how they interact with the Lines of Business. These documents are being referred to as Corporate Blueprints. More specifically, the Corporate Blueprints specify what is expected from the Headquarters and the Lines of Business in terms of Human Resources, Finance & Procurement, Marketing, Communications, STS/Business Excellence & CSR, General Counsel, Sales and IT. The Corporate Blueprints contain the mission, organisation, processes, policies, charters and STS Guidelines under the scope of a given Corporate Support Department. The Lines of Business keep all the latitude to meet and abide by what is stipulated in these documents, which were established thanks to the inputs from the related Support Departments at HQ and in the Lines of Business levels. In 2017, GEODIS launched its 7 Leadership Principles. To be chosen by the clients to be their growth partner, GEODIS now needs to be positioned as an Industry Leader. To achieve this in a sustainable manner requires a special community of Leaders that will guide GEODIS to the highest industry ranking. These 7 Leadership Principles detail what the Group expects from Leaders. 1. Be a Strategy Ambassador 2. Debate. Decide. Align 3. Drive Results 4. Duty to Communicate 5. Engage and Empower People 6. Own the All 7. Walk the Talk HOW DID YOUR JOURNEY CONTINUE? GEODIS Comex members are the first ambassadors of its excellence model. To ensure the successful implementation of the EFQM Business Excellence Framework, GEODIS put in place training and developed communication campaigns (from road shows to seminars, from brochures to internal magazines ). Corporate policies were also deployed. GEODIS Top Management in the Lines of Business or at CHQ made sure that IIP (Investors In People) principles became a reality among staff and management ( I promote STS and ensure that the approach is at the heart of our daily life, STS is at the heart of my daily life ).

The Lines of Business Managing Directors or the Corporate Support Function Directors at Corporate Headquarters ensured that: Business Excellence issues became an integral part of Lines of Business Board Meetings or of the Corporate Support Function Departments. This could be shown through Board level meetings dedicated to STS or through the systematic inclusion of an STS section in the Lines of Business Board Meeting agendas. All matters of Lines of Business or of Corporate Support Function Department business life became linked to STS, one way or another. This could be shown in the minutes of meetings, of seminars etc. where a clear link to each of the 7 Golden Rules was made. The yearly objectives of managers and employees then referred systematically to STS as a whole or to one or more of the 7 GEODIS Golden Rules. The model has been deployed constantly for four years; there is regularity over time. WHAT VALUE DID IMPLEMENTING THE MODEL BRING TO YOUR COMPANY? WHAT CHANGED? The Framework of the Business Excellence model has enabled GEODIS to: Look at its organisation and processes through the spectrum of enablers Position each of its key organisational tools and processes on each of the nine EFQM Business Excellence model criteria as exemplified below GEODIS' foundations are built around: Mission, Vision and Values, which represent the DNA of GEODIS 7 Golden Rules and a continuous improvement programme, which are the common business principles to be found and implemented all throughout GEODIS, be it in operational or support function entities 7 Leadership Principles, which lay out what is expected from each Leader The enablers of the Business Excellence framework help GEODIS to succeed in the following way: The strategy frames how the five Lines of Business and the Global Accounts department meet the needs of the customers, either separately or in a bundled approach The five Lines of Business lay out, offer and run their unique operational expertise which are "state-ofthe-art" An advanced HR programme is articulated around the IIP approach A unique brand makes the value proposition more visible and meaningful for customers Reengineering and lean programmes warrant "operational excellence" every step of the way for the greater benefit of customers IT systems are the backbone of the operations. IT programmes ensure that operations remain highly in tune with the demands from the Lines of Business Procurement is run so as to sustain the work of the operations in a cost-effective, sustaining high quality of service The innovation process aims at continuously giving the operations a head start through both incremental and breakthrough innovations Results are monitored in the following way: The measurement of customer delight via a yearly customer satisfaction survey The measurement of employee engagement via a yearly employee satisfaction survey The measurement of GEODIS' performance towards society via the yearly assessment carried out by EcoVadis The in-depth tracking of the financial performance through a set of meaningful KPIs WHICH ASPECTS OF IMPLEMENTING THE MODEL ARE YOU PARTICULARLY PROUD OF? WHAT ASPECTS OF THE IMPLEMENTATION WERE CHALLENGING? In its implementation of the EFQM framework, GEODIS is particularly proud of its CSR approach which is completely integrated in its excellence model.

Indeed, beyond the Golden Rule «Be a good citizen» which represents its CSR approach, GEODIS seeks to reconcile the economic, environmental and social priorities through the 7 Golden Rules of its STS continuous improvement program, according to the «People, Planet, Profit» principle described by EFQM. GEODIS therefore aims to implement one of the fundamental concepts of the EFQM s excellence model designed for companies, which is Contribute to a sustainable future. Thanks to this framework of excellence, the Line of Business (LoB) Managing Directors or the Corporate Support Function Director at GEODIS Headquarters are now in a position to demonstrate how the Business Excellence principles are instilled throughout their organization by showing: How the expectations of customers, employees, the shareholder and society at large are identified and taken into account; How the mission, vision and values of GEODIS are spread throughout their organization; How STS and especially the 7 Golden Rules are spread throughout their organization and used as the main framework to drive Business Excellence; How the 7 Leadership Principles are spread throughout their organization and used as the main framework to manage people towards excellence. CAN YOU PROVIDE SOME RESULTS OR TANGIBLE EVIDENCE OF THIS VALUE/CHANGE AFTER A FEW YEARS? Customer survey Since 2014, GEODIS has been carrying out a worldwide customer satisfaction survey at Group level. With this in mind, nearly 100,000 customer contacts are invited in June each year to complete the satisfaction survey, conducted in 18 languages by a market research institute. 84% of our customers indicated that they were globally satisfied in 2017 and they gave us an NPS score of 6. Employee survey GEODIS has been measuring employee satisfaction worldwide since 2013. Around 30,000 contacts are asked to respond to the survey each year in October. The survey is carried out in 30 languages by a market research institute. 87% of employees indicated that they were globally satisfied in 2016 (2017 results not yet available). EcoVadis, the first collaborative platform providing assessments of the sustainable development performance of businesses, assessed GEODIS to be in the top 2% of all suppliers evaluated in recognition of the excellence of its Corporate Social Responsibility policy. Since 2015, GEODIS has been rated at Advanced level and its CSR policy as Gold. In 2017, GEODIS scored 68/100, its best score ever.

GEODIS has responded to the CDP s Supply Chain Program since 2014. CDP assesses the reporting process and the actions carried out to reduce greenhouse gas emissions. GEODIS achieved a B score in 2016, which represented significant progress compared to the 76D achieved in 2015. It maintained this high-level B score in 2017. Since its inception, STS has been about setting targets and measuring performance, because as the old saying goes "what gets measured gets done". Three types of KPI s allow for GEODIS to track its progress towards STS: Monthly STS KPI s: at Lines of Business and global level on each of the 7 Golden Rules Yearly employee and customer surveys: each year, 2 group-wide satisfaction surveys are carried out, one with employees and one with customers External benchmarks such as IIP, ISO and the likes ISO norms: everywhere in the world, GEODIS Lines of Business comply with the relevant ISO norms used as benchmarks in terms of quality, safety and environment. ISO Norms are a sine qua non condition to even start pretending to aim at Business Excellence. Non-certification or de-certification is not compatible with Business Excellence. Investors In People: since the end of 2013, GEODIS has been relying on the IIP standard, the purpose of which is to benchmark its internal practices against this international people management standard. The IIP approach is in between a classic certification approach and a survey. EFQM Business Excellence Model: GEODIS aims at implementing throughout its various Lines of Business and Headquarters the underlying principles and tools behind the EFQM Business Excellence Model. The EFQM definition of Business Excellence can be found at the very beginning of each Corporate Blueprint as it is the holistic model that GEODIS uses to reach our Ambition 2018 objectives. AS A RESULT OF IMPLEMENTING THE MODEL, HAVE YOU BEEN ABLE TO IDENTIFY IMPROVEMENTS IN ANY OF THE FOLLOWING? GEODIS is now convinced that it witnessed numerous improvements in its organization as the highlights below exemplify: GEODIS has been following its Ambition 2018 business plan since 2013. It has set up a new vision, a mission and defined clear values. It has reasserted its five Lines of Business (Road Transport, Distribution & Express, Contract Logistics, Freight Forwarding, Supply Chain Optimisation), which are the pillars on which the Group can effectively sell its global offering to its customers and prospects. GEODIS built its common language, the 7 Golden Rules together with a continuous improvement program called STS. For this, it made sure that it surveyed its key stakeholders every year (customers and employees). It started to check on their satisfaction and their understanding of where The Group was going. It then re-established the momentum in the Group. Each Line of Business had its strategic plan to make sure that GEODIS was continuously improving on the results in each Line of Business. It also established a Global Accounts team, with a dedicated approach to the global accounts. It designed value propositions adapted by vertical markets. GEODIS moved from 40 to one brand. That was the one-brand strategy, which convinced most customers. GEODIS bought a company in the US called OHL and the integration went very well. The Group got very important outside recognition. Gartner surveys all logistics companies and ranks them, and GEODIS moved to what they call the magic quadrant in logistics. GEODIS made a progression. The numbers were getting better and GEODIS was securing new business with new and existing customers. On top of that, it was being recognized by the outside world. The world got complex in 2016, but all Lines of Business delivered. The results showed that, and the employee satisfaction survey also showed that this had gone extremely well. While GEODIS was doing this in this very challenging environment, it engaged with customers to get more profitable business with them. It needed to keep an eye on the future so, while doing that, it had also stepped up the innovation side of things. It accomplished the plan, but it also kept the engagement of its people high. 87% of employees were satisfied with GEODIS.

WHAT DO YOU THINK ARE THE KEY BENEFITS OF IMPLEMENTING THE EFQM PHILOSOPHY? The EFQM model has a humanist dimension that puts people at the heart of its approach. For GEODIS, a company that implements the EFQM philosophy does not lose time reinventing the wheel. The EFQM Excellence Model gave us the right guidance in setting up our very own GEODIS Business Excellence framework, with our Mission, Vision, Values, our 7 Golden Rules and our 7 Leadership principles as foundations. WANT TO KNOW MORE ABOUT GEODIS? Send your questions and enquiries to EFQM and we will make sure to get an answer for you. You can contact us at: info@efqm.org +32 2 775 3514 Régis Lesieux, Vice President Business Excellence & CSR GEODIS 11

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