industry challenge 24 x 7 visibility of high value cargo

Industry Challenge

24 x 7 Visibility Of High Value Cargo

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DHLE One of the world’s leading express parcel

providers

World's largestairfreight forwarder

Global Market Leader

DHL Overview

Annual revenues: € 38 billion (2010– excludes Mail) More than 500,000 employees globally According to IATA – we are the largest cargo customer

DGF world's largestocean freight

forwarder (in both FCL & LCL1)

DHL Aviation has ~250 total dedicated

air fleet

Exel World’s largest contract logistics service provider

M2M: To INNOVATE where we CAN’T SEE

When Tomorrow is Too Late

Specialized transportation solutions to satisfy customers´ transportation needs focused on the fastest transit time, the greatest care, and maximum security.

DHL SAMEDAY solutions ensure:

On-demand servicesOff-network capabilitiesDedicated resources Constant shipment monitoringConstant condition monitoring

Global Network

Visibility Gaps Do ExistClosing Visibility Gaps

Vendor Innovation Award

Technology Innovation is Important

DHL Innovation Center

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World-wide Communications: GSM

Full Sensor Suite: Fully built-in to the device• Temperature• Pressure• Light / Dark • Motion • Speed• Vibration • Shock • Orientation • High-Accuracy GPS

Visibility Gaps Do ExistDHL Real-Time Innovation Tracking Device for Air Freight

Unique Requirements for Global Distribution of Tracking Devices via Air Freight

Deployment Example: Wireless Devices in Air Freight

Visibility Gaps Do ExistDeployment Requirements

• Certain kind of goods transported by Air Freight need to be monitored to ensure that they are delivered

– on time– securely– in desired condition

– Examples:– valuable and unique products– perishable and sensitive goods– dangerous goods

• Customers are very attentive and want to be informed about shipment status of their goods at any time

Visibility Gaps Do ExistOptimizing Services for High Value Critical Shipments

Comprehensive Feature Sets for Complex Distribution

Wireless GPS Temp. Humidity Pressure Shock Light

Global Arrival TimeDwell Status

Condition Condition Condition Condition Intrusion Detection

AOG Parts x x x xLife Science x x x x x xMedical Devices x x x x xElectronics x x x xTechnology x x x xEntertainment x x x xPerishables x x x x x

Key product categories that have unique condition requirements and flow through all modes of travel in a global transit system but must be monitored by the same M2M solution. . .

Requirements for Deployment in Multi-Modal Global Distribution

• Regulatory & Compliance• FDA Rules for Perishables • FAA Rules for Air Transportation of Electronic Devices• IATA Regulations for International Air Transport• Customs

• Operations • Training: Employees in Nations all Over the World• Customer Requirements: Not all Products are Shipped The Same

• Process • 24x7 Visibility Requires:

• New monitoring center process and personnel• New operation procedures defined and accepted by clients• New response protocols

There’s more to it than tracking a device on world wide network

Today’s View: Proactive Response and Risk Mitigation

Air Freight Tracker Peace of Mind & Assurance

24 x 7 Global Network

Risk Management

Matt GroppeDirector of Global Business DevelopmentDHL Same Day

matt.groppe@dhl.com 703-433-2806

Wally DevereauxSouthwest Airlines

Director of Cargo Sales and MarketingSeptember 13, 2011

Business Case:

Cellular Based Tracking of Cargo on Commercial Passenger

Aircraft

Quality Control

Engineering Standards

Engineering Avionics

Engineering Systems

Flight Operations Safety

Safety and Security Dept

Hazardous Materials Acceptance Team

Ground Operations Leadership

Central Publications

Southwest Airlines Pilots Union

NO

Fine!

Southwest Airlines:

• One of the world’s largest and most successful passenger airlines

•Carried 130M Passengers in 2010

•692 Aircraft

•$12.1B in 2010 gross revenue

•Profitable 38 consecutive years

•Ranked fourth on Fortune's World's Most Admired

Company list

•87.6 Million Bags of Peanuts Served

Renown Air Cargo Service Provider:

• Express Delivery and Logistics Association’s Carrier of the Year

Award

•Airforwarders Association’s Carrier of the Year Award

•Air Cargo World Magazine’s Air Cargo Excellence Award (highest

rated carrier worldwide)

•Logistics Management’s Quest for Quality Award (highest rated

carrier worldwide)

The Business Case:

•Customer Demand

•Competitively Essential

•Revenue Implications

Thanks for your time!

Questions?