Professional Documents
Culture Documents
reputation
is ours
DHL
Worldwide
Express
Corporate
Report 2000
ture and move informa-
Evolving an e-business:
every day in more than
ket, 64,000 employees
competitive advantage
customers can’t afford
years. To date, it owns
With 39% of the inter-
focused companies.
18,576 vehicles and
telecoms networks
Logistics Solutions.
as one of the most
linking DHL’s 3,002
Integrated Express
Outpacing change:
for 14 consecutive
million customers
Chairman of DHL
global customer-
Social Impact:
1983
tinations.The
gramme of
1983
Contents
Page 14
Page 16
Page 22
Page 26
Page 28
Hungary
Page 2
Page 7
1984
ences.
years.
Czech Republic
Sweden
1990
1978
in
Austria
Poland
1980
1997
Italy Georgia
Albania 1984
1978
Dominican 1992
Cyprus India Guam
Bahamas Republic Tunisia
1981 1980 1970
1980 1980 1999 The Russian
Ukraine
Switzerland Federation
Turks & Caicos 1991
1978 1984
Islands
Lithuania Israel
1982
Liechtenstein 1991 1997 Sri Lanka
Maldives
Aruba 1987
Greenland Latvia Lebanon 1983 1980
1982 Azerbaijan
1992 Denmark
Curaçao 1991 1979 1984 Pakistan
1979
1980 Yugoslavia Jordan 1982 Korea
Norway Nepal
Iran China 1977
Bonaire 1983 1980 Kuwait 1981
1977 1975 1986 Malaysia
1982 Finland 1980
Virgin Islands St Kitts Monaco Kazakhstan 1973 Solomon
1982 Philippines
UK1981 1982 1982 Saudi Arabia 1991 Thailand Islands
Greece 1971
USA1982 1976 1973 1984
Puerto Algeria Bahrain Indonesia Japan
1978
Rico 1994 1981 1973 1972
Macedonia Yemen
1980 Bangladesh Republic of
Jamaica Germany 1982
Bermuda 1990 Qatar 1980 Singapore Nauru
1981 1977
1980 Estonia Armenia 1984 1972 1985
The Netherlands 1991 Bhutan
Montserrat 1984
Cuba 1975
1982 Bulgaria United Arab 1990 Vietnam
1990
Luxembourg Emirates 1977
1985 1988
1981
packages quickly and efficiently.
delivering and able to track your
Anguilla Antigua
Iceland Belgium Romania Cambodia
1982 1982 Turkmenistan
1982 1978 1991 1990
1984
Guadeloupe Andorra
Turkey Tuvalu
Wherever you are so is DHL –
1982 1979
1981 Uzbekistan Fiji 1991 Kiribati
1984 Hong Kong
France 1973 1987
Dominica 1972
1975
1982 Oman
Mongolia Tonga
United 1979
Martinique 1991 1982
Haiti Kingdom Rwanda
Cayman 1982
1981 1974 1987
Islands Moldova
USA Cook
Guernsey 1995
1969 1980 Burundi Islands
Barbados & Jersey Brunei
1985 1986
1981 Faroe 1974 1983
Islands
Hawaii Spain Taiwan
1992
1969 Canada 1979 1973
1977 Ireland
1974
Portugal
1981
Canary
Islands
1979
Slovenia Slovakia
Belarus
1983 1993
1993
Ivory
Cape Verde
Coast
1982
Guatemala 1980
1982
Burkina
El Salvador Guinea-Bissau Fasso
1985 Somalia
1982 1983
1985
The Gambia
Belize Ghana Djibouti
1986
1983 1984 1985
Senegal
1982 Togo Eritrea
Seychelles
Honduras 1983 1986
Guinea Republic 1983
1983 Benin Tanzania
Peru 1984 1984
Nicaragua 1989
1982 1981 Mali
Sierra Leone Mozambique
Colombia 1987 1986 1985
1978 Niger Swaziland
Morocco
1987 1990 1985
Costa Rica
Ethiopia
1983 Liberia Nigeria
1986
1983 1979
Kenya Madagascar
American Brazil Säo Tomé & Príncipe
Ecuador Mauritania 1980 Mauritius Myanmar
1990 1986
Samoa 1978 1995
1982 1982 1982
1990 Chad Malawi
Panama 1984
St Vincent French 1987 Island of Reunion
Mexico 1981
Equatorial Guinea Uganda
1976 1982 Guiana 1986
1990 1986
1983
Zimbabwe
St Lucia Cameroon
Suriname 1980
1988 1981 Macao
1983 Egypt
Trinidad Gabon 1984
1980 Comoros
& Tobago 1981 Papua New
Sudan 1987
1980 Guinea 1973
Guyana Congo 1986 Australia
1981 New Caledonia
Grenada 1982 Lesotho 1972 Niue
Bolivia 1981 Western
1983 1982 Angola 1986 Samoa 1991
Argentina 1984 Zambia Vanuatu 1990
Uruguay New Zealand Tahiti
1979 Namibia 1986 1984
1980 1973 1986
1988 Botswana
Venezuela Paraguay
Chile South Africa 1983
1978 1981 Map courtesy of Origin Publishing
1980 1978
Central African Republic
1983
ture and move informa-
Evolving an e-business:
every day in more than
ket, 64,000 employees
competitive advantage
customers can’t afford
years. To date, it owns
With 39% of the inter-
focused companies.
18,576 vehicles and
telecoms networks
Logistics Solutions.
as one of the most
linking DHL’s 3,002
Integrated Express
Outpacing change:
for 14 consecutive
million customers
Chairman of DHL
global customer-
Social Impact:
1983
tinations.The
gramme of
1983
Contents
Page 14
Page 16
Page 22
Page 26
Page 28
Hungary
Page 2
Page 7
1984
ences.
years.
Czech Republic
Sweden
1990
1978
in
Austria
Poland
1980
1997
Italy Georgia
Albania 1984
1978
Dominican 1992
Cyprus India Guam
Bahamas Republic Tunisia
1981 1980 1970
1980 1980 1999 The Russian
Ukraine
Switzerland Federation
Turks & Caicos 1991
1978 1984
Islands
Lithuania Israel
1982
Liechtenstein 1991 1997 Sri Lanka
Maldives
Aruba 1987
Greenland Latvia Lebanon 1983 1980
1982 Azerbaijan
1992 Denmark
Curaçao 1991 1979 1984 Pakistan
1979
1980 Yugoslavia Jordan 1982 Korea
Norway Nepal
Iran China 1977
Bonaire 1983 1980 Kuwait 1981
1977 1975 1986 Malaysia
1982 Finland 1980
Virgin Islands St Kitts Monaco Kazakhstan 1973 Solomon
1982 Philippines
UK1981 1982 1982 Saudi Arabia 1991 Thailand Islands
Greece 1971
USA1982 1976 1973 1984
Puerto Algeria Bahrain Indonesia Japan
1978
Rico 1994 1981 1973 1972
Macedonia Yemen
1980 Bangladesh Republic of
Jamaica Germany 1982
Bermuda 1990 Qatar 1980 Singapore Nauru
1981 1977
1980 Estonia Armenia 1984 1972 1985
The Netherlands 1991 Bhutan
Montserrat 1984
Cuba 1975
1982 Bulgaria United Arab 1990 Vietnam
1990
Luxembourg Emirates 1977
1985 1988
1981
packages quickly and efficiently.
delivering and able to track your
Anguilla Antigua
Iceland Belgium Romania Cambodia
1982 1982 Turkmenistan
1982 1978 1991 1990
1984
Guadeloupe Andorra
Turkey Tuvalu
Wherever you are so is DHL –
1982 1979
1981 Uzbekistan Fiji 1991 Kiribati
1984 Hong Kong
France 1973 1987
Dominica 1972
1975
1982 Oman
Mongolia Tonga
United 1979
Martinique 1991 1982
Haiti Kingdom Rwanda
Cayman 1982
1981 1974 1987
Islands Moldova
USA Cook
Guernsey 1995
1969 1980 Burundi Islands
Barbados & Jersey Brunei
1985 1986
1981 Faroe 1974 1983
Islands
Hawaii Spain Taiwan
1992
1969 Canada 1979 1973
1977 Ireland
1974
Portugal
1981
Canary
Islands
1979
Slovenia Slovakia
Belarus
1983 1993
1993
Ivory
Cape Verde
Coast
1982
Guatemala 1980
1982
Burkina
El Salvador Guinea-Bissau Fasso
1985 Somalia
1982 1983
1985
The Gambia
Belize Ghana Djibouti
1986
1983 1984 1985
Senegal
1982 Togo Eritrea
Seychelles
Honduras 1983 1986
Guinea Republic 1983
1983 Benin Tanzania
Peru 1984 1984
Nicaragua 1989
1982 1981 Mali
Sierra Leone Mozambique
Colombia 1987 1986 1985
1978 Niger Swaziland
Morocco
1987 1990 1985
Costa Rica
Ethiopia
1983 Liberia Nigeria
1986
1983 1979
Kenya Madagascar
American Brazil Säo Tomé & Príncipe
Ecuador Mauritania 1980 Mauritius Myanmar
1990 1986
Samoa 1978 1995
1982 1982 1982
1990 Chad Malawi
Panama 1984
St Vincent French 1987 Island of Reunion
Mexico 1981
Equatorial Guinea Uganda
1976 1982 Guiana 1986
1990 1986
1983
Zimbabwe
St Lucia Cameroon
Suriname 1980
1988 1981 Macao
1983 Egypt
Trinidad Gabon 1984
1980 Comoros
& Tobago 1981 Papua New
Sudan 1987
1980 Guinea 1973
Guyana Congo 1986 Australia
1981 New Caledonia
Grenada 1982 Lesotho 1972 Niue
Bolivia 1981 Western
1983 1982 Angola 1986 Samoa 1991
Argentina 1984 Zambia Vanuatu 1990
Uruguay New Zealand Tahiti
1979 Namibia 1986 1984
1980 1973 1986
1988 Botswana
Venezuela Paraguay
Chile South Africa 1983
1978 1981 Map courtesy of Origin Publishing
1980 1978
Central African Republic
1983
applying next generation technology
“The Web brings consumers, suppliers and manufacturers
closer together than ever before, yet goods still have to
be delivered to the end-user. DHL is naturally of great interest
to all ‘dot-com‘ companies.” Patrick Lupo, Executive Chairman
Commerce, written by
USA Postal Monopoly
Hillblom, is published
is between the West
delivery company to
DHL is founded and
Australia is initiated.
having a monopoly
covering electronic
customs clearance
introduce on-board
word processor to
US Postal Service
Coast of America
couriers making
DHL introduces
DHL is the first
and Hawaii.
commerce.
quicker.
1969
1970
1972
1976
1978
Since DHL created the Today, international trade is moving at a pace never anticipated when we
international express first started this business. The express distribution industry has been able
industry 30 years ago, to meet the corresponding growth in customer demand because of a
it has changed unique combination of factors.
considerably. What have
Firstly, a huge transport infrastructure now exists to move goods
been the main drivers?
speedily.
Secondly, there has been a tremendous liberalisation of the barriers
to trade, encouraged by economic groupings around the world.
Finally, the explosion in new technology has helped bring each
component of the supply chain together – from order entry, to
manufacturing, assembly and distribution.
DHL has played a We set our mission to build an expedited distribution network around
major role in facilitating the world, using the best people and technology available. And that we
international trade. How have achieved with more than 64,000 colleagues working in more than
has it done this? 200 countries.
We were the first in our industry to enter virtually every emerging
market – for example, having been in Russia and China from the early
1980s. Our international reach remains unrivalled, and today we do
business in 228 countries. We have a leading 39% share of a market
which is growing in shipment terms at 10% a year. We have built an
integrated global infrastructure of aircraft, vehicles, data systems, and
more than 64,000 people working around the clock in DHL hubs, service
centres, and warehouses.
Our physical infrastructure interfaces completely with our private
telecommunications network.
Our pioneering technology has revolutionised logistics. Look, for
example, at the time saved by using data interchange with customs to
allow goods to clear customs electronically while still in the air or to track
a package on its journey to virtually anywhere in the world.
Where does DHL now While we’ve seen double-digit growth globally, we’re continuing to invest
expect to see highest in markets where we expect even higher levels of expansion – in emerging
levels of growth? markets such as China, OECD countries where economic growth is strong
and in certain parts of Latin America.
Also, Asia looks strong, as investors took advantage of the economic
downturn by investing in new plant capacity. So today, new sources of
express distribution business are blossoming there.
Chinese government to
allowing it to ship time-
monopoly on letters
IBM System 36
DHL introduces
and delays.
abolished.
Sinotrans.
1979
1983
1984
1985
1986
1987
How do customers Fast, efficient supply chain management is the key to our service. Many
benefit from using customers are multinational manufacturers of computer, electronic,
DHL, and how are automotive or pharmaceutical products, operating in highly competitive
you responding to global markets. They need to serve their own customers quickly and
their future needs?
efficiently and control the cost of inventory.
So, our offer of wide-scale distribution with express delivery for their
orders is essential to them.
Our use of leading-edge technology has always added value – we were
one of the earliest companies to use the Internet for data file transfer, for
example. Today we are pioneering the use of Wireless Application Protocol
technology to give our customers more flexibility in monitoring the
progress of their shipments.
Such electronic tools allow us to seamlessly integrate our infrastructure
into customers’ supply chains, to ensure expedited delivery of their goods.
By storing their spare parts in regional DHL distribution centres, customers
can achieve a close-of-business order with a next morning delivery,
anywhere in the world! That’s an awesome promise, which adds value
to our customers’ brands.
Customers can save on working capital by regionalising inventory, using
our technology to precisely manage stock. But business needs are changing
fast. Customers now want more information about shipments, the complete
end-to-end supply chain and easy paperless billing. They want different
services, from time-definite overnight express to day-certain ground
distribution. In response to these needs, we continue to develop all the
elements of our service: technology, infrastructure, transport and people.
How is DHL using the The Web is bringing consumers, suppliers and manufacturers closer
Internet to better service together than ever before. Yet goods still have to be delivered, so logistics
its customers? is really the centrepiece of twenty-first century e-commerce. DHL is
leveraging the Internet in various ways.
Existing customers with their own order processing and shipment
management systems can be linked to DHL via the many e-commerce
applications we offer, such as EDI or Easyship.
Meanwhile, the new Internet-based trading companies are creating
a whole new sector in our client base. Our logistics services are naturally
of great attraction to the new ‘dot-com’ companies. We do a lot of work
with these businesses, such as Amazon.com, to develop what we call
‘click and ship’ programs using our own application interfaces and
telecoms network, DHLNet.
And of course, we’re constantly developing our own new e-commerce
tools such as DHL Connect, Easyship 2000 and Webship.
Then we have our own private Intranet network, DHL WorldNet, which
helps us work together within DHL to facilitate shipment movements
more efficiently.
of inventory anywhere
DHLNet, a high-speed
opportunity to provide
next morning delivery
Centres (ELCs) giving
establishing strategic
DHL establishes a
Heathrow Airport
network used for
Express Logistic
by up to 50%. It
DHL extends its
customers the
is established.
in the world.
1988
1990
1990
1991
And as one of the earliest innovators of e-commerce applications using
Internet-standard TCP/IP protocols, we’ve had an e-commerce strategy
for several years. A recent survey we did shows that many businesses
still do not, so in this report we’ve decided to share our experience of
e-commerce. We’re also going to help customers by launching a new DHL
website (www.dhlmasterclass.com) which will help them develop their
own e-commerce strategy.
How is DHL developing Our next big step will be the completion of a global electronic Hub by the
its technology? end of 2000.
This e-Hub is in response to our customers’ need for more information.
What the e-Hub does is carry packets of data about individual shipments,
which customers can access at any time, so allowing them to accurately
track their shipments.
We’re also linking DHL electronically with more and more of our
suppliers and customers to create a constant exchange of data between us.
We’re investing in a lot more bandwidth, so the Web-based interfaces
with customers will be even faster. And so, by converging our physical
supply chain with electronics, we will further improve our customers’
supply chain management processes while reducing their costs.
What about We’re investing in new centres to consolidate existing markets, as well
infrastructure? as open new ones. For example, we have a new express Hub opening
in April 2000 at East Midlands airport in the UK. As one of the largest
‘sub-hubs’ in Europe, it will complement our other distribution centres in
Bergamo, Brussels, Cologne, Copenhagen and Vitoria.
We’re spending over 1 billion on 44 new Boeing 757 aircraft to
add to our fleet in Europe. We’ll have around 94 dedicated aircraft in
total – giving us a European fleet some six times larger than our
nearest competitor.
We’ve invested in Asia, with new Hubs and distribution centres. We
opened a new Gateway in Malaysia recently, and we are also expanding
our Hub in Hong Kong with our recently announced partnership with
Cathay Pacific. We’re about to open new facilities in Indonesia and
Singapore too and are also expanding in China, having just opened
new facilities in Beijing and Shanghai. We are investing over 125 million
in Japan in new service and distribution centres, vehicles, machinery and
IT equipment.
a shareholder in DHL.
operations at the US
to receive ISO 9002
corporate website
formed European
An investment of
DHL launches its
A state-of-the-art
Single Market.
www.dhl.com
Brussels Hub.
in the world.
1991
1993
1995
1996
1996
1998
1999
How does DHL’s strategic They have some remarkable strengths, and we look for them to provide
partnerships with its complementary services to help us offer customers a unique one-stop shop.
shareholders Deutsche The airlines provide world-class logistics services. If customers want
Post, Lufthansa and ground distribution throughout Europe, that’s where our friends at
Japan Airlines help build
Deutsche Post come in. They have been busy building a pan-European
customer value?
ground distribution service, which will be completed shortly.
We’re also building relationships with a dozen of the world’s post
offices. For the first time, they will be able to offer co-branded express
document delivery by using DHL. So, DHL de facto becomes the world’s
express mail service.
DHL continuously wins Even with the advances of technology, the power of DHL will always
customer performance be the quality of our people and our service culture. We have more than
awards, how do DHL’s 64,000 employees around the world, all with a clear mission statement
employees make such to fulfil our customers’ requirements. They’re technically skilled in resolving
a difference to your
complicated logistics problems for customers, globally.
customers?
We also place an emphasis on training, on everything from IT skills
to customer relations, to ensure the consistent quality of our service.
How well is DHL placed As we continue to build our infrastructure and provide an increasingly
for the future as the sophisticated service, I am confident that we will continue to be the world
world’s leading air leader – and innovator – in fulfilling the express delivery needs of our
express business? customers.
The infrastructure is all in place. And there is no doubt that we’re also
a ‘next generation’ technology business. The really exciting thing is that
e-commerce is helping us bring everything together a lot more effectively
than ever before.
Global investment
programme
DHL currently has
a global capital
commitment
programme of over
3.3 billion including:
Aircraft
A capital commitment
of over 1 billion to
acquire 44 B-757
replacement aircraft
for the European fleet.
Hubs/sorting centres
Over 450 million
being spent on
expanding or developing
new hubs at East
Midlands airport in the
UK, at Frankfurt/Main
and Cologne/Bonn
airports in Germany,
at Singapore’s Changi
airport, Hong Kong’s
Chek Lap Kok airport,
at Cincinnati in the
United States and in
Buenos Aires, Argentina
to service the Mercosur
region of Latin America.
Japan
125 million for a
major infrastructural
investment programme
in DHL Japan, including
new service and
distribution centres,
vehicles, machinery
and IT equipment.
Partnerships developing
alliances and partnerships to
provide a complete service
Deutsche Post
Europe’s largest postal
company and DHL’s
strategic partner proving
success through
co-branding of services.
Lufthansa
An award-winning
partnership that
continues to offer
customers innovative
shipping solutions.
Japan Airlines
DHL and JAL work
together to provide
combined express and
general freight services
to Japanese companies
around the world.
Vietnam Vietnam Jordan Nepal Fiji Nepal
Kuala Lumpur
Lebanon Egypt France Ireland Czech Russia Island of Gabon Slovenia Angola Algeria Ukraine Cameroon Ivory Coast
Republic Reunion
Pakistan Papua New Malaysia New Zealand Germany Switzerland Luxembourg Congo
Americas
Guinea
Bangladesh Brunei Myanmar Yemen Syria Mexico Canada Yugoslavia Guinea Malawi
US Macedonia Madagascar
Internet
Egypt Zambia
Saudi Arabia
Kuala San Francisco, London,
Lumpur, California, UK
Malaysia USA
United Arab Bahrain
Emirates
DHLNet
DHL manages one of the largest
Bahrain private telecoms networks in Finland Norway Ghana Turkey Ivory Coast Zimbabwe Zaire Nigeria
Asia-Pacific
Colombia
Singapore Florida, Brussels, London
USA Belgium
Venezuela Venezuela
Thailand Sri Lanka Belgium Belgium Denmark
Honduras El Salvador
China Singapore Network Austria South Africa Germany Italy
Korea Japan
most precious
Saving today’s
Estonia Malta
Croatia Greece
Morocco Benin
Kuala Lumpur
Lebanon Egypt France Ireland Czech Russia Island of Gabon Slovenia Angola Algeria Ukraine Cameroon Ivory Coast
Republic Reunion
Pakistan Papua New Malaysia New Zealand Germany Switzerland Luxembourg Congo
Americas
Guinea
Bangladesh Brunei Myanmar Yemen Syria Mexico Canada Yugoslavia Guinea Malawi
US Macedonia Madagascar
Internet
Egypt Zambia
Saudi Arabia
Kuala San Francisco, London,
Lumpur, California, UK
Malaysia USA
United Arab Bahrain
Emirates
DHLNet
DHL manages one of the largest
Bahrain private telecoms networks in Finland Norway Ghana Turkey Ivory Coast Zimbabwe Zaire Nigeria
Asia-Pacific
Colombia
Singapore Florida, Brussels, London
USA Belgium
Venezuela Venezuela
Thailand Sri Lanka Belgium Belgium Denmark
Honduras El Salvador
China Singapore Network Austria South Africa Germany Italy
Korea Japan
most precious
Saving today’s
Estonia Malta
Croatia Greece
Morocco Benin
advantages of integrated
The new agenda:
express logistics
be blueberry, tomorrow
allows consumers to be
colour everywhere, GE
A year of collaboration
a minimum quantity
it may be raspberry.
to keep up with the
demand, efficiently.
whereas previously
for computers may
For example, while
Plastics (GEP), one
had to be ordered,
Pacific. The model
Express Logistics
of pigments, was
manufacturers of
DHL’s Singapore
and consumer
to launch this
their world.
In any market-driven economy, supplying customers with what
they want, when they want it, is the bare minimum required of
any serious business. But as product development, diversity and
accessibility has accelerated beyond all predictions, and as the
business world has become increasingly competitive, delivering
that promise has taken on a more challenging reality.
In today’s global market, competitive advantage is gained by offering
customers flexibility: supplying products and services 24 hours a
day, 365 days a year; cutting production lead times and call response
times to a minimum; offering customised solutions; securing global
standards of consistency. Yet profitability has to be bolstered by cost
management: minimising capital held in warehouses; eliminating
wastage through obsolete stock; maximising economies of scale
through global sourcing and supply.
For the world’s highest performing and successful companies,
managing the supply chain has become a critical success factor.
The innovative, the pioneers of new industries, as well as
established market leaders are all focusing on this factor in their
path to success. It is a management challenge that has come out
of the back room and into the boardroom: how to achieve increased
flexibility on the one hand, and to maintain and build on profitability
on the other.
Many of these high achievers have found that this challenge can
be met in partnership with another industry pioneer, another market
leader; in partnership with a company that understands innovation
Above DHL’s Network of Strategic and has the will to beat the competition. Many have established
Parts and Express Logistics Centres
around the world enables us to help Integrated Express Logistics solutions with DHL Worldwide Express.
our customers meet their service
commitments. Proactive logistics strategy
Below DHL Call Centres form The international air express industry is reported to be one of the
an integral part of many of our major beneficiaries and enablers of today’s global economy. But as
Integrated Express Logistics market leader DHL has proven it’s more than just global reach that
solutions.
counts. Over the past decade, DHL has developed an entire
Integrated Express Logistics Strategy, to sustain its customers’
competitive edge through smart supply chain management.
Seeking to sustain its own market leadership, DHL has set itself a
challenging task; its aim is to set the worldwide standard on what
third- and fourth-party logistics partners can achieve.
Since the early 1990s, DHL has invested in building an extensive
network of Express Logistics Centres (ELCs), Strategic Parts Centres
(SPCs) and Call Response Centres (CRCs). It stretches across Europe,
Africa, the Middle East, the Americas, and Asia-Pacific, keeping
a global supply chain in continuous motion. Our facilities provide
off-site warehousing, product customisation and configuration,
distribution and after-sales services, including product repair.
Underpinning the physical infrastructure is the invisible network
of data management systems, which connects suppliers to the
marketplace, right through their production and distribution chain.
Distribution Centre in
GM’s Regional Parts
(GM) launched what
and General Motors
improved customer
that provides direct
helped GM provide
delivery of urgently
service in a highly
Asian automotive
region. Improved
General Motors:
competitive
market.
Inventory management software and Internet-based
communication mean that customers can connect to these so-
called ‘virtual warehouses’ at any time to check their stock position
and place orders.
Having recognised these capabilities DHL customers have set us
new challenges, to eliminate stock wastage and to achieve global
consistency on logistics performance. Across the globe, we have
risen to the challenge. DHL express logistics solutions are now
synchronised into customers’ production locations and schedules.
Once a vision, now a reality, DHL customers gain time without
increasing costs.
From precision instruments to trucks, from diagnostic medical
equipment to telecommunications, from retail fashion to banking,
DHL is the invisible factor, delivering integrated express logistics
solutions. For companies such as American Express, Boston
Scientific, Ericsson, Honeywell, Lucent, Nokia, Philips, Siemens,
Sony, Sun Microsystems, Visa and Volvo, DHL provides the
infrastructure, technology and resource to enable them to meet
their service commitment, be it for samples, spare parts or important
documents. Working with DHL can optimise stock levels and
delivery, regardless of origin or destination. A rapidly increasing
number of customers from DHL’s Global Account Programme and
other major international customers are already exploiting DHL’s
proven expertise in supply chain management.
In Brussels ELC alone, DHL handles the upgrading, repair and final
configuration of Stratus and Fujitsu computers, InFocus projectors
and Johnson & Johnson medical equipment. Spare parts and product
replacement contracts have been in place for some years with
EMC 2 and HP. In Singapore, DHL offers emergency replacement
visa cards for Asia-market clients. And across the USA, DHL has
developed seamless information and communication interfaces
with American Express, which expedites card production and
secure delivery to clients.
SGI Main The success of the Pan European contract has inspired SGI to
SGI Repair
Depot USA further extend the scope of the programme to Central and Latin
America, Asia-Pacific and the Middle East.
Repaired Defective
items items
Call Response
Pan-regional markets raise logistics stakes
ELC
Centre/ELC Pick-Pack Globalisation has also been a major contributor to the growing trend
& delivery
request
Overnight
replenishments
Overnight
deliveries
of outsourcing supply chain management, as global fulfilment is
Order Order
and
returns
now considered a task too complex to be handled in-house. In the
Confirmation Transmission entertainment industry, global companies are recognising the
SPC
opportunities afforded by express logistics companies to deliver
Same day deliveries goods quickly and cost-effectively on a pan-regional scale.
Market leader Sony Music supplies entertainment in the form of
SGI
End-user request
Customers (Engineers) CDs and cassettes to meet the ever-changing tastes of music
lovers. Since1993, Sony has realised considerable service
enhancement and cost benefits in its Central America region, by
Above Many leading companies rely contracting the logistics of international distribution to DHL. DHL
on DHL to deliver their time-critical now handles all shipments between Sony’s regional office in Costa
shipments.
Rica and subsidiary companies in Panama, Nicaragua, El Salvador,
Below Diagram showing how DHL Honduras and Guatemala.
manages SGI’s shipment and data
flows. Sony Music focuses 90% of its resources on attracting top artists to
its labels and then launching them. The company requires a logistics
partner that can operate to specific arrival times so that goods meet
customer demand in different markets simultaneously in order to
maximise that pan-regional marketing investment. At the same
time, DHL can offer expertise in customs processes, solid security
performance of goods in transit, and a package of inventory controls
that caters for fast turnaround of product.
as a contributing factor
in Miami to be the hub
consolidation of orders
Logistics Centre (ELC)
of market penetration.
materials into and out
Sun-DHL relationship
of Latin America and
and documentation,
Sun Microsystems
Sun Microsystems
to the companies’
configuration. The
testing, repair and
impressive record
the Caribbean.
Establishing the benchmarks for the future
The rapid development of computing, telecommunications, and
audio-visual technologies has stimulated tremendous growth in
the semi-conductor industry. Already valued at over 200 billion,
and projecting 15% annual sales growth, it is an industry that best
demonstrates in practice the major trends in global logistics.
Companies are increasingly global – in terms of sourcing,
purchasing and sales achievements. Their supply chain generally
relies on independent providers, which have been chosen on their
ability to provide totally customised and integrated solutions.
Information technology has emerged in every process and practice,
controlling and tracking supply and demand, reporting and
projecting performance and trends. The manufacturing cycle for
semi-conductors is complex, with several processes of production
and assembly taking place in different locations. Once made,
semi-conductor components are required to fit into specific
production chains for countless hi-tech customers. Thus, on-time
delivery influences complete manufacturing processes at both
ends of the supply chain. Suppliers need to know where every
component of every product is, every hour of the day.
There are economic advantages to be gained from global sourcing
and supply, but they can only be realised if there is a tried and
tested distribution and logistics system in place. High-quality
product performance is not enough – it has to be matched with
utterly reliable supply chain management.
Above DHL works through the night Lucent Technologies Microelectronics Group supplies high-
to ensure that shipments are sorted
and processed ready for next-day specification semiconductor components to top electronic and
delivery. communications manufacturers around the world. Lucent believes
that logistics and service are the competitive differentiators of the
Below DHL can supply an on-site
courier to manage the despatch of next decade and it seeks to eliminate inventory entirely from the
time-critical shipments for logistics pipeline. When Lucent appointed DHL in 1996 to handle
customers. global logistics, it embarked on a collaboration in which DHL acts as
an extension of Lucent’s own logistics organisation. As a global
supplier, DHL has replaced the 40 separate logistics processes and
51 independent suppliers of the past. In the four years since, the
collaboration has produced a solution whereby Lucent components
can be delivered anywhere in the world within 48 hours.
For a company such as Lucent, collaboration with DHL maximises
the benefits that air express can offer to solve global logistics
including computers,
service running from
confident in telling
the West Coast to
moving in a timely
parcel shipments,
DHL consistently
Thirty years later,
correspondence,
need overnight.
Building a
issues. Yet realising the vision, demands exceptional transparency
between the two teams. Shipments are tracked by integrating
DHL’s global track and trace service with Lucent’s own logistics
information system.
DHL continues to be
ranked by independent
assessors as one
of the world’s most
customer-focused
companies. In 1998
DHL was awarded
the Téléperformance
‘Telephone of the
Decade’ special prize,
awarded to the most
perennial companies
in terms of quality
call treatment. In
1999 we went on to
earn first place in the
‘Téléperformance
Grand Prix for Customer
Service’ in Australia,
Austria, Belgium,
Finland, Singapore
and Sweden.
awards.
region proudly display their
DHL’s Asia-Pacific Middle East
1999 Employees of the Year in
Environment Meeting
strict international noise
parameters is just one of our
corporate responsibilities
greater interoperability.
Growth in IT reliability
Microprocessors will
twenty-first century
E-commerce worth
logistics services.
huge demand for
in service quality.
Ten things to
The Internet has accelerated the
ability of businesses to service existing
and emerging markets more effectively
and more responsively. DHL shares
its experiences in addressing
these challenges.
Evolving from traditional to e-commerce to an
e-business organisation
DHL has close to two million customers globally and 250,000 hits
per week on its corporate website. The business opportunities
of the Internet are being adopted at different speeds by different
customers and regions worldwide. Establishing a balanced
approach to the transition from a traditional (non-Internet ) business
to being an e-business is more than an issue of what is the best
type of website to offer to the customer. DHL believes that the
solution is the education and managed transition of all functions
of a business to integrate new technology and processes in
a manner appropriate to the business’s strategic objectives.
www.dhlmasterclass.com
www.dhlmasterclass.com/?evolution.html
E-commerce Accessible
critical market
ss
ne
usi
b
ng
vi E-businesses
ol
E-commerce Ev
emerging
importance
PrE-businesses
E-commerce
no-importance
Traditional
Proprietary Proprietary Internet technologies –
technologies technologies + full back office integration
Internet – low back
office integration
communication barriers.
an acceleration of cross
Transport, both ground-
be more regulation
become faster and
miniaturisation will
and services.
distances.
remain.
quieter.
Selling chain management
Where businesses can effectively manage the relationship with their
customers in a changing business environment, the role of the sales
force, sales efficiency and management becomes a key competitive
differentiator. This is especially true when your competitors are only
a mouse click away. In this section suggestions are provided, from
DHL experience, as to how sales chain management can be efficiently
and effectively developed in support of your e-business strategy.
www.dhlmasterclass.com/?sales.html
Logistics and fulfilment
Once the sale is made, the fulfilment is the next challenge for a
business. Customer satisfaction with the fulfilment of their e-orders
has proven to be a constant source of e-business concern. In this
section DHL suggests a programme of planning and implementation
that allows an existing or emerging e-business to plan for flexible,
consistent fulfilment of their customer orders.
www.dhlmasterclass.com/?logistics.html
Supply chain management
Any business is dependent on the reliability of its suppliers for the
provision of goods and services to its customer base. These suppliers
provide the product that is represented and sold to the customer.
Ensuring that supply matches demand at all times in a cost- effective
manner, is essential to e-businesses. In this section we look at the
effective management of the supply chain in support of e-businesses.
www.dhlmasterclass.com/?supply.html
Translating e-strategy to e-business
Most companies are in some way preparing or operating an
e-strategy in support of their drive to exploit the opportunities of the
online market. This section looks at the challenges in implementing
an e-strategy in a manner that results in the evolution of a business
to an e-business in a business-driven and managed way.
www.dhlmasterclass.com/?strategy.html
Major reasons for failure
In this section we look at failure. The successful transition from
a traditional to an e-business is not guaranteed. Here we illustrate
some examples and provide guidance as to positioning your
e-strategy to successfully develop an e-business.
www.dhlmasterclass.com/?failure.html
Walter Tjantelé
MSF Photos by
Roger Job p22
DHL Investor
Photography
Published by
March 2000
Design
‘DHL Worldwide Express’
(abbreviated in this report to DHL)
is composed of (1) DHL International
Limited (also referred to in this
report as ‘the Company’), its principal
operating subsidiary DHL Worldwide
Express BV and other DHL
International Limited group
subsidiaries, affiliates and agents
which serve only locations outside the
United States of America, its
territories and possessions; and
(2) DHL Worldwide Express, Inc.
(abbreviated in this report to DHLD),
its principal operating subsidiary
DHL Airways, Inc. and other DHL
Worldwide Express, Inc. group
subsidiaries, affiliates and agents
which serve all locations within the
United States of America and its
territories and possessions.