dhl

DHL & its E- Business

DHL | September 2008 Page

Outline

1. DHL Company Overview

2. Logistics Environment

• Characteristics

• Trends

• Future Shape

3. e-Business Standards at DHL

• Our expectations

• Relationships with Standards Organizations

• e-Business with our Customers

• Internal e-Business

• Conclusion


DHL Overview

Largest Courier and Express provider in Europe, Asia Pacific and Middle East /Africa

Top 3 worldwide

8 million customers 36 Hubs and 4,700 bases 350 aircraft, 72,000 vehicles

World’s No.1 in Warehousing, Distribution & Contract Logistics

59 countries and territories 2,500 logistics centers, warehouses,

terminals 23million m2 storage capacity

World’s No.1 in Air and Ocean Freight 150 countries and territories 813 terminals & warehouses 4.4million t Air; 2.8miliion TEU Ocean

Europe’s No. 2 in Road Freight 30 countries and territories 160 terminals 2million full truck load movements

Largest worldwide network for Mail Distribution Cross-border solutions for business

mail, publication distribution, direct marketing and merchandise

DHL’s parent company Deutsche Post World Net is the world’s leading logistics group. With revenues of more than €63 billion and 500,000 employees in more than 220 countries and territories it is one of the biggest employers worldwide.


CharacteristicsSo what is Logistics?

The Art or Science of getting:-

• The right thing and the right person

• In the right quantity

• In the right place

• At the right time

• At the right quality

• Every time

• At the optimal cost

• Doing least harm to the world

and its not:-

• The next best thing

• To the nearest economic delivery quantity

• To the storage point, not the usage point

• A week earlier, to be sure

• Requiring inbound inspection

• 95% of the time

• At a cost we can get away with

• Paying lip service to the environment


• Strategic multi-functional partnerships• Global, door-to-door coverage• Bring integrated IT solutions ready to use• Continuous innovation (cost & service)• Risk/Gain share• Reduced need for capital

CharacteristicsEvolving Business Models in Logistics Outsourcing

Strategy

Traditional Typical Leading Visionary

BusinessStrategy

Core Logistics Competence

Customer

CustomerCo

re

SupplyChain

Orchestrator Supply Chain

Manager

Customer

• Single function transactional relationship• Local / regional reach• Physical asset heavy, process execution• Cost plus management fee• Fixed upfront cost to change

BusinessProcesses

Warehousing

FreightTransport

ValueAddedServices

Sourcing

Production

Coordi-nation

Execution

LLP 4PL

Integrated LogisticsProvider

Freight Trans-

port

Ware-hou sing

Value Added Svcs.

Ware-hou sing

Value Added Svcs.

Freight Trans-

port

Ware-hou sing

Freight Trans-port

3PL 3PL 3PL

Lo

gis

tic

s

Exp ress

CourierCour

ier

Engineering

Distribution

Planning Customer

Co

mp

ete

nce

Functional ProcessesCourier


Future Shape of the Logistics Environment Embracing the possibilities of information and technology

Sophisticated customer solutions

• Deeper integration with other enterprises means more and more information exchange

• Increasingly diverse and complex processes mean e-Business capabilities are becoming more sophisticated and expanding to meet needs across multiple industriesand disciplines

Capitalizing upon innovation

Smart Sensors

Remote vehicle intelligence

Solar Powered Warehouses

Parcel Robots

E-Paper

Electric Vehicles


e-Business Standards at DHL

Operate a profitable global business• Use e-Business to help standardize business processes and encourage re-use• Reduce operational overheads through process simplification and standardization• Enable advanced business models that provide global coverage and consistency

Ability to deliver consistent, effective and innovative solutions• Use e-Business to create a competitive edge• Establish global standards-based services leading to robust, replicable customer

solutions• Reduce implementation & running costs; increase margins and benefits to the

customer.

Understand & Manage the Business Better• More in depth visibility of the information supply chain, better control of the

process, improved business performance, and reduced organizational cost• Making change a part of the process – agility is key to a successful business• Allow operational teams more control of the supply chain, allowing in-flight

changes and decisions to be made easily, reducing the risk of failure


DHL’s Customer Integration Platform(s)RosettaNet EDIFACT IDOCs OAGi GS1 Custom

Still unnecessarily

complex

DH

Le-Business Standards at DHL DHL’s customers use many different standards

Cus

tom

ers

/ P

art

ners

• In connecting with thousands of e-Business customers, they use many different standards.

• Standards provide:

– Familiar “target” for involved parties – common dictionary, syntax and process

– Greater re-use and hence reduced risk for the customers

– Faster deployment of solutions

Over one billion e-Business transactions annually

Approximately 8,000 customers, suppliers, customs authorities, etc.


• A common data model will make standards really work for DHL

• Standards provide:

– Good direction for internal e-Business transactions

– Supporting knowledge for business transactions and data models inside the enterprise

e-Business Standards at DHL Standardizing e-Business transactions between internal systems

Cus

tom

ers

/ P

art

ners

DH

L

DHL’s Customer Integration Platform(s)RosettaNet EDIFACT IDOCs OAGi GS1 Custom

Common Data Model

DHL Enterprise Internal Integration Platform(s)

Common Data Model

This is DHL’s biggest current e-Business initiative


e-Business Standards at DHL Case Studies - Implementing Standards for internal e-Business

Large Healthcare Customer

• Selected RosettaNet as internal e-Business standard

• Not all internal requirements were met by the selected standard

• Made structural and semantic changes to Standard

• Forked from standard version

Large Consumer Customer

• Selected GS1 as internal e-Business standard

• Not all internal requirements were met by the selected standard

• Made structural and semantic changes to Standard

• Proposed Changes to GS1 governing body

• Project was delayed considerably

• Created complexity for External Parties

• Risk of forking from standard version

Implementing external standards for internal e-Business is challenging


Conclusion

DHL uses e-Business standards with customers

•Standards provide the best way of providing an open, re-usable way of inter-operating

with our customers

•Using e-Business standards when working with our customers benefits DHL’s internal

operations

Implementing standards within organization is challenging

•Selective when implementing standards internally

•e-Business standards do not represent all internal business interactions

•Our strategic software vendors need to participate with us in implementing standards

•Standards compliance and version alignment is difficult – especially where the fit is not ideal

– If not managed well, standards limit the agility of the internal solutions

•Many other organizations regard internal e-Business as a key differentiator / asset

– Not all are willing to share and help develop standards for this purpose


Conclusione-Business is much more than data exchange

• Information quality and its associated benefits all require standards to be in

place

• e-Business for DHL is about business process interactions across multiple

enterprises

– Standardizing business processes is the real challenge


InternetDart

Track on-line the status update of your shipments sent over the last 45 days.

You may track by a range of dates, origin, destination, delivered or undelivered

shipments or service used, on-line. You may generate a series of reports, at a

pre-determined frequency, and sort the results on-line.

For on-line queries and reports: on providing the input of range of pickup dates,

origin, destination and services used, you can check any of the following, on-

line:

Waybill details and status of all shipments sent during a given period

Details of all delivered shipments

Status of all undelivered shipments

Details of all RTO (Return to Origin) shipments

Details of all Re-directed shipments


ShopTrack

ShopTrackTM is an API (Applications Program Interface) designed specifically

to support and enhance the services provided by a portal or any e-business.

Research indicated that, while etailers provided an entire gamut of product

services and information, eshoppers invariably had to leave the website or use

manual means to track their purchases. The result - less eyeball time on their

pages. Portals that sought to resolve this dilemma were faced with the

unattractive alternative of database maintenance and call centres.

1.Effortless, customised solution

2.Customers no longer have to leave the Portal site to track their purchases.

They just need to enter the order-number of their purchase and the shipping

and delivery details are displayed on the same page.


Thank You!

dhl

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