DHL - Supply chain and Logistics

Nivesh aa

Agenda
About the company

Operations 220 countries & territories

300000 employees world wide

DHL strengths in numbers Touches about 5% of global trade volume through extensive network & infrastructure

Revenue of 46 billion Euros in 2009

Business divisions

DHL

Express

Global Mail

Global Forwarding and Freight

Supply Chain

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 Source Make
Store &Customize

Deliver

Return

Supply chain Analysis & Design

Procurement services

Industrial projects transportation Finished goods warehousing Inbound to manufacturing

Transportation & Distribution Reverse logistics

Service parts logistics

Lead Logistics provider services

Raw material warehousing & transportation In-plant logistics

Home delivery

E-fulfillment Assembly & Co-packing Environmental compliance International SCM Contract manufacturing In-store logistics Environmental Compliance

A typical Supply chain at DHL

Individual Customers drop DHL Office DHL Pack Central Location Office Region sorting and bulk packing pickup drop Corporate Customers

Local or National / International truck Regional Hub

local

Distribution

Distribution if local

Airport courier Air India or Kingfisher Passenger Cargo or Courier cargo

Blue Dart Flights

Destination / Hub truck Destination Warehouse truck no Destination found? yes Destination DHL Office at Destination Reverse logistics to sender

Sectors served

Consumer & retail

Technology

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

Highest revenue sector Inbound-tomanufacturing Priority growth area developed successful supply chain model Warehousing & DHL Manage source of distribution supply retail shelves for theto British National Health Service (NHS) Integrated packaging that aims to generate savings for the NHS of Returns management approximately EUR1 billion over 10 years Technical service solutions

Sectors served

DHL operate one of Automotive the world's largest fourth-party logistics services in 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

Airline
In 2009, DHL won a Airlines new contract with Airport British Airways to operators provide catering and logistics for short-haul Aircraft flights from Heathrow manufacturers Airport

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 DHL Control Tower Order well Expricing Purchasing Supplier management Payment Approved POD Order matching supply TRUST & Orders Hospitals Benefits More time and resources to Delivery patient care

Integrated Supplier Base Food Bed Cleaning products Surgical equipment

Contract ManufacturingServices
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
Establishing air-bill identification numbers Checking addresses to confirm deliverability Tracking the shipment

Benefits

Comprehensive list of commodity classifications (for example, dutiable vs. non-dutiable) 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
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.

Fashion & Apparel Industry

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

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

Services

Benefits

Reduced costs Reduced inventories Better demand-supply match

Warehousing
Ambient

Automated

Temperature controlled

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 used at DHL

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

DHLs 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 & increase inventory turnover

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.