DHL - Supply chain and

Logistics

About the Company

Operations 220 countries
& territories

300000 employees
world wide

DHL
strengths in
numbers
Touches about 5% of
Revenue of 54 billion
global trade volume
Euros in 2009
through extensive
network & infrastructure

Business divisions

DHL

Express

Global Mail

Global
Forwarding
and
Freight

Supply
Chain

GROUP OVERVIEW
Global Market Leader
World's largest
air freight forwarder

World's largest
ocean freight
forwarder (in both
FCL & LCL1)

11.9%

9.3%

Global Market
Share

Global Market
Share

One of Europe's
leading road freight
forwarders

Worlds largest
logistics service
provider

2.0%

6.4%

European Market
Share

Global Market
Share

Annual Revenues: 41.5 billion (2008 excludes Mail)

Customer base includes >50% of Forbes 500 companies
Logistics facilities in more than 4,500 locations, 220 countries and territories
More than 281,000 logistic employees

One of the worlds

leading express
parcel providers

~22%
Global International Express
Market Share2)

GLOBAL FORWARDING, FREIGHT

Air Freight &

Ocean Freight Services

Europe-wide
Transportation

Air Freight
Ocean Freight
Multimodal Transport
International Supply Chain
Industrial Projects
Customs Brokerage
Transport Control Towers
Niche (high value, fashion,
perishables & F1)

Flexible and customized

road and intermodal
transportation network
Groupage
Part Loads
Full Loads
Rail Transportation
Customs Services
Trade Fairs & Events

SUPPLY CHAIN

EXPRESS

Contract Logistics &

Industry Solutions

Export, Import &

Domestic Products

Supply Chain Management

Warehousing
Distribution
Managed Transport
Service
Value Added
Services
e.g. packaging,
technical services,
procurement
Customer Information
Solutions

Same Day Products

Time Definite
Export - DHL
EXPRESS 9, 10.30,
12.00,
WORLDWIDE,
ENVELOPE & EASY
Import - DHL IMPORT
EXPRESS 9, 10.30,
12.00, WORLDWIDE
& FLEX
Day Definite Products
Domestic Products

GROUP STRUCTURE 2009

Revenue: 54.5 bn*

MAIL

Revenue
- bn Employees
(approximates)

GLOBAL
FORWARDING, FREIGHT

SUPPLY CHAIN

EXPRESS

Delivers 72 million
mail items to 40
million
households in
Germany
DHL Global Mail
largest network
for mail
distribution
worldwide

Market leader in air and

ocean freight services
Specialist in industrial
projects and end-to-end
supply chain solutions
One of Europe's
leading road freight
forwarders
Strong customer base
(>50% of Forbes
500)

Contract logistics
22.8m square metres
of warehouse space
2,500 facilities
Leading provider
of Corporate Information
Solutions worldwide
Strong customer base
(50% of Forbes 500)

Cross-border express
service
Presence in more
than 220 countries
and territories
4,500 facilities
350 aircraft
36 hubs

14.4

14.2

13.7

13.6

186,000

41,000

140,000

100,000

Supply chain in terms of DHL

Management of flow of materials, information

and assets as they progress from suppliers
to installation through complete asset life
cycle

DHL supply chain solutions

Plan

Supply chain
Analysis &
Design

Source

Procurement
services

Make

Industrial
projects
transportation

Store
&Customize

Return

Transportation
& Distribution
Finished
goods
warehousing

Inbound to
manufacturing
Lead Logistics
provider
services

Deliver

Raw material
warehousing &
transportation

Reverse
Service parts
logistics

logistics

Home delivery
In-plant
logistics

Environmental
compliance

International
SCM

Contract
manufacturing

E-fulfillment
Assembly &
Copacking

Environmental
Compliance
In-store
logistics

Supply chain
Individual
Customers
DHL
Office
DHL
Pack

Corporate
Customers

drop
pickup

drop

Central Location
Office
Region sorting and bulk packing

Local or
National /
International

loc
al

Distributi
on

truck
Regional
Hub
A

Distribution if
local

Airpo
rt

Air India or
Kingfisher
Passenger

couri
er

cargo
Cargo or
Courier

Blue Dart
Flights

Destination /
Hub
truck

Reverse
logistics to
sender

Destination Warehouse
truck
no
Destination
found?
yes
Destination

DHL Office
at
Destinatio
n

Sectors served

DHworld's
pmeraot
the
A
uLtoolargest
fourth-party
services
in
elogistics
o
n
e
o
f
it v e
Oman,
transporting cargo
and water and
coordinating the
movement of
about 40 landbased oil rigs a
month.

Energy
Integrated
logistics
solutions for
both the build
and run phases
of major
energy projects

In

Airline

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0 09contract
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B rit is h A irw ays to
a
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Airport
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Sectors served

Consumer & retail

Technology

Highest revenue sector

Priority growth area

Inbound-tomanufacturing
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fl
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Technical service
a n to
g e ment
aims
savin gnI set fogsolutions
rar ttheed
y eaagenerate
r s

NpaHcSkaogfngi

Life sciences
Good business
opportunity
Existing supply chain is
immature
Pressure to reduce
cost
is high
Mainly procurement
and distribution
services
Automotive

Lead logistics Services

Instigating and managing change
across
your entire supply chain
Reduced Operating
cost

Lower working capital

Added Value
Lower fixed capital

Enhanced customer
service

Global Logistic Contracts

Staples
DHL will provide a full range of third party logistics (3PL) services, including origin
pre-distribution, inventory management, consolidation, packaging and labeling, order
right sizing, generic ordering and call off to market
Jaguar

and Land Rover

Its biggest automotive sector deal - to manage in plant logistics and the collection of
UK and European sourced component parts for Jaguar and Land Rover vehicles

Wal-Mart-Chile
DHL provides supply chain services, including warehousing, distribution
management and reverse logistics, to Ekonos 110 stores nationwide.

Procurement Services
DHL's procurement specialists delivers substantial cost savings on a wide
range of non-core products
Over 500,000 in-scope products
450 NHS trusts and hospitals as well as other healthcare organizations
Deliver over 1bn savings to UK NHS

Integrated
Supplier Base
Food
Bed
Cleaning
products
Surgical
equipment

DHL Control
Tower
Order well
Expricing Purchasing
Supplier
management
Payment
Approved POD
Order
supply
matching

TRUST &
Orders Hospitals
Benefits
More time and
resources to
Delivery patient care

Contract Manufacturing
Services
Site selection and development

Facility and systems design

New facility start-up and operation

Packaging and raw materials sourcing, procurement and assembly

Batch/quality control tracking via digital, easy-to-trace coding

Full range of secondary packaging services.

Inbound Logistics Services

Provide complete end to end
management of inventory facilities and
labor associated with inbound flow of
material
Services include

Supplier management
Transport and freight management
Customs Brokerage
Suppliers park
Inventory optimization
In plant logistics
Vendor Managed Inventory

DHL
Connect
Functions

Benefits

Establishing air-bill identification numbers

Checking addresses to confirm deliverability
Tracking the shipment

Comprehensive list of commodity

classifications (for example, dutiable vs. nondutiable)
Can integrate with personal information
management (PIM) systems such as MS
Outlook
Alerts if delivered to the wrong address.
Any person can initiate and monitor shipments
from their desktop

Inbound Logistics partners

Jaguar Land Rover

Fashion & Apparel

Industry

Acts a 4PL to JLR

An expansive operation with
over 980 full and partial
load collections every week
Four weeks from project
approval to implementation
More than 10 %
improvement
in supply chain efficiency
Collection strategies - full truck
loads & milk round
collections.
Greater transparency and
supply chain visibility.

Carrier and logistics provider

to the $250-billion fashion and
apparel industry

The official express carrier and

logistics provider for IMG
Fashion's Mercedes-Benz Fashion
Week.

DHL operated shipping service

kiosks for guests
at the New
York, Los Angeles, and Miami
Fashion Week shows

Assembly & co-packing

Services
Benefits

Subassembly
Co-packing
Customization
Postponement
Kitting
Sequencing
Pre-retail activities

Reduced costs
Reduced inventories
Better demand-supply match

Warehousin
g
Ambient

Temperatur
e
controlled

Automated

Types of
warehouses
at DHL

Finished
goods

Bonded

Raw
Materials

Reverse Logistics
The key to a successful supply chain is not only planning how to
distribute your product
Managing returns effectively lets you recapture value, reduce write-offs
and
keep your customers happy
Example: Technology support company Regeneresis
Benefits:
Reduction in Cost of after sales
Increasing the speed of repair turn around times.
Broader customer base
Services Offered
Inventory sharing
Assembly and kitting
Screening and repair
Call centre services
Covering both avoidance of returns and retail support

Supply Chain Metrics

The Supply Chain Balanced Scorecard tracks a
limited number of key metrics.
The measurements usually cover 4 areas:
Financial - Example: The cost of manufacturing,
warehousing, transportation etc.
Customer - Example: Order Fill Rate,
Backorder
Levels, On Time Delivery
Internal Business - Example: Adherence-To-Plan,
Forecast Error
Training: Example: In house Training Hours

Supply Chain Innovation

Physical
VMI

Supply
chain flows

Information
Financial

DHLs Innovation
Partnership with a leading financial company
Access to low cost capital
Delay buyer purchases, free up cash tied in
inventories
Ownership of inventory from sellers shipment point to buyers JIT
point of purchase
Improve cash to cash cycles, reduce inventory balance sheet &

Client as-is Supply chain

Adding DHL and a Financial Services

Provider (FSP) into the Supply chain

Recent ventures
Entered into BPO procurement market
by delivering solutions to both public and
private sector companies
Tied up with BPCL for a retail alliance with
their In & Out convenience stores across
India.