city logistics china

DHL Solutions & Innovations

UrbanTec, October 2011

City Logistics - Concepts and Solutions

DHL Solutions & Innovations | City Logistics General Concept and Solutions | Cologne | October 2011

Agenda

City Logistics Introduction

Concept

Technologies and Enhancements

Benefits


City Logistics around the World

Mexico

UK

China

Malaysia

Mexico City

Kuala Lumpur

Istanbul

London

Turkey

Singapore

Singapore

Shanghai


DHL City Logistics

Roll Out:

improving the efficiency of last mile deliveries

lower emissions, noise and congestion within the city

higher quality, stock availability and value added services

Customer benefits:

Pilots in Mexico City and Kuala Lumpur;

Projects set up in Singapore, Istanbul and China

Optimization of logistics flows in mega-cities

Improving freight distribution, solving traffic and

environmental issues of metropolises

It’s about


Key Challenges addressed by City Logistics

• … is the optimization of

flows of goods / freight

within and into urban

conglomerates

• … leverages the

existing public

infrastructure2)

• …aims to reduce the

total cost3) of urban

goods movement

DHL’s City Logistics concept is a new innovative approach to manage urban

logistic flows to overcome challenges of municipalities & businesses

Source: City Logistics Team; 1) Particulate Matter, 2) incl. roads, railways, etc., 3) including economic, environmental and distribution costs

Business' Challenges

• Low service levels incl. flexibility and supply chain

reliability in central city areas

• High on-site storage requirements (suboptimal utilization of

space & capital)

• Higher city complexity ( increasing supply chain and

logistics costs)

• Adequate infrastructure for future economic

development

• Increasing congestion levels

• Pollution levels, i.e. CO2, NOx, PM101), SO2

• Ensure high quality of life for city inhabitants

Municipalities’ Challenges

Concept Overview City Logistics…

5


Agenda


Concept


Benefits


City Logistics Concept – Traditional Model of City Logistics

The flow of goods and services in and out of urbanized areas has a huge impact on the

City, how it operates and the general quality of life


Inefficient transportation of goods and services contributes to congestion and greater

emission levels, problems common across megacities

City Logistics Concept – Issues with the Traditional Model


Increasing transportation efficiency and decreasing freight traffic has a demonstrable

impact on pollution, on ease of doing business and on the general quality of life

City Logistics Concept – City Logistics Consolidation Platform


Impact of City Logistics Platform on Urban Areas

Consolidating different sectors freight flows outside the City Center offers a number of

benefits to numerous stakeholders


Agenda


Concept


Benefits



Transport Logistic Platform

Integrated software solution for

Consolidation Center and Last

Mile Processes

SmartTruck

Intelligent pick-up and delivery

for optimized tour planning

Based on additional GPS

systems

Allows additional services for

customers

Real-time Solutions

Real time monitoring of

conditions, position and

security along the supply

chain for the customer

Innovative Warehouse Tech.

Bulk Unloading

Singulation

State-of-the-Art Warehouse

Solutions

Auto ID Systems

Innovative ID-Systems

RFID and Fingerprinting

Internet of Things

Smart City

Network Planning

Systematic planning of a

delivery network

Increased transportation

efficiency and decreased

emissions

Integration of Systems through the City Logistics Platform


Agenda


Concept


Benefits


Megacity

Environment

Green Agenda

Local Air Pollution

CO2 NOx Noise

Quality of Live

City Image

Complexity of Last Mile

Low Truck Utilization

Logistic Costs

Supply Chain Agility / Reliability

Transparency

Logistics

Urbanization

Growing City Population

Security

Consumer goods

Urban Diseases

Competition

Economy

Investment

Structural Change

Service Sector

Employment

Growth

Inflation

Traffic

Number of Vehicles

Congestion

Trucks Transporting Goods

Traffic Time Index

Challenges facing Megacities


Benefits of City Logistics

efficient supply chain

improved infrastructure

reduced logistic costs

improve life quality

noise reduction

air quality improvement

growth in service

sector attract

investment

new jobs

less trucks

lower congestion

intelligent routing

higher truck utilization

Efficient and reliable

supply

sustainability

Environment Logistics

Urbanization

Economy Traffic

City Logistics


Value Proposition

• Higher supply chain agility

• Optimized timing of deliveries (off-peak hours)

• Less stock outs

Logistics

Improved efficiency

• Increased load factor from ~40% to >95% due to consolidation of deliveries

• Substantial reduction of trucks going into and leaving the city, by ~50%

• Reduction in congestion resulting in increased average speed of travel

Traffic

Improved streets situation

• Municipalities that implement City Logistics will become a role model for innovation and

sustainability

• Increased security level through full transparency

City

Improved image

• Reduction of emissions and noise related to freight traffic, by ~70%

• Utilizing hybrid or e-vehicles for additional pollution reduction

Environment

Reduction of pollution

• Citizens take advantage of reliable supply of goods

Urbanization

Improved quality of life

• Reduction in logistics costs

• Spill-over effects on other business sectors

Economy

Improved GDP & tax income

City Logistics: Values for a Sustainable Future


Find out more on

www.dhl-innovation.com

Implemented City Logistics Solution

UrbanTec, October 2011



Agenda

Hospital Logistics

Hotel Logistics

Airport Retail Logistics

Logistics for Retailers


KEY FACTS

Consolidated deliveries for hospitals in London

30 % reduction in stock levels

Substantial expenditure savings

Improved procurement for NHS in UK achieved 100 m GBP saving in first 3 years

Operated by DHL since 1998

Large Savings for the National Health System in London


NHS Supply Chain – Integration across the UK hospital supply chain

A wholesaler model

Procurement

Over 500,000 products

Sales and Marketing

450 NHS hospitals covering 120,000 active requisitioning

points

Supply Chain Efficiency

Drive significant savings both product related & back office

through supply chain re-engineering

Home Delivery

UK’s largest home delivery service provider to the NHS

Security Specialist

Direct from manufacturer is a key strategic focus

Logistics

8 locations and industry leading service levels

Hospital Services

DHL Stock replenishment and re-order teams/ off site

consolidation

Government Service Provider

Pandemic Plan Provider

NHS Supply Chain acts as single point of contact between the NHS and its

suppliers, for the purchase and sale of products, backup up by innovative and

resilient supply chain services and IT

NHS Supply Chain Service across the UK


Current DHL Activities

Space Design

- Specialised Racking

Goods In Management

Demand Capture

Optimisation

Replenishment to Ward

Ongoing Stock Manage

Mail/Postal Deliveries

Patient Record Logistics

Departmental Records

Specimen Collection

Linen Delivery

Online booking

Non emergency patient

- Stretcher, wheelchair

& walking

> 300 drivers

> 150 vehicles

Off Site Consolidation

Off-Site Consolidation

- DHL Logistics Centre

Receipt & Distribution

Vehicle Control’s

Enables Bulk Buy

Break Bulk (Fluids)

Short term storage

Materials Management On Site Services Patient Transport

Integration of Financial & Purchasing Systems, Overall Integration with Hospital Departments

Outsourced Services at Imperial College


Agenda

Hospital Logistics

Hotel Logistics




KEY FACTS

3300 hotel rooms, conference center, casino, event arenas, mall and restaurants

Consolidation and deliveries to all stores

In-bound dock management

Inventory management

Laundry transport

Operations went live in 2006

Logistics Management for the Venetian Resort in Macau (China)


KEY FACTS

Consolidation for three hotels in the city center

Reducing deliveries, and storage

Optimizing in-house replenishment and procurement

Achieving cost savings up to 13 %

Suppliers Hotels

order

placement

(notification)

during the

morning

during the

afternoon

Consolidation

Center/ Storage

Consolidation for three Hotels in Kuala Lumpur

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Agenda

Hospital Logistics

Hotel Logistics




KEY FACTS

323 retail stores

Problem with congestion and security

DHL reduced CO2 emissions by 70 %

Service levels increased to ~ 99 %

50 % less trucks around airport

Stores reduced costs and improved sales

Operated by DHL since March 2003

IT

Platform

Improved Logistics through the Heathrow Consolidation Centre at London


Agenda

Hospital Logistics

Hotel Logistics




KEY FACTS

100% on time delivery

No losses or damages

Over half of retailers achieve 20 minute saving per delivery

30% reduction in CO2, zero emissions in air quality & low noise impact

76% reduction in delivery trips for retailers

Operated by DHL since 2004

IT

Platform

94% of retailers

participating in Bristol

would recommend the

service to another

retailer

Bristol and Bath Councils Consolidation Centre



Find out more on

www.dhl-innovation.com

city logistics china

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