scm dhl final
TRANSCRIPT
DHL - Supply chain and Logistics
Nivesh aa
Agenda
• About the company
Operations 220
countries &
territories
300000 employees world wide
Revenue of 46 billion Euros in 2009
Touches about 5% of global
trade volume through
extensive network
& infrastruc
tureDHL strengths
in numbers
Business divisions
DHL
Express Global MailGlobal
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
Supply chain Analysis &
Design
Lead Logistics provider services
Environmental compliance
Source
Procurement services
Raw material warehousing & transportation
International SCM
Make
Industrial projects
transportation
Inbound to manufacturing
In-plant logistics
Contract manufacturing
Store &Customize
Finished goods warehousing
Assembly & Co-packing
Deliver
Transportation & Distribution
Service parts logistics
Home delivery
E-fulfillment
In-store logistics
Return
Reverse logistics
Environmental Compliance
Individual Customers Corporate Customers
DHL Office
Central Location Office
drop
DHL Pack
pickup drop
Local or National / International
Distributionlocal
Region sorting and bulk packing
Regional Hub Distribution if local
truck
A
A typical Supply chain at DHL
Cargo or Courier
Airport
Destination / Hub
cargocourier
Blue Dart Flights
Air India or Kingfisher Passenger
Destination Warehouse
Destination
truck
truck
Destination found?
yes
DHL Office at Destination
no
Reverse logistics to sender
A
Sectors served
Consumer & retail•Highest revenue sector•Priority growth area•Manage source of supply to retail shelves
Technology•Inbound-to-manufacturing•Warehousing & distribution•Integrated packaging•Returns management•Technical service solutions
Life sciences•Good business opportunity•Existing supply chain is immature•Pressure to reduce cost is high•Mainly procurement and distribution services•AutomotiveDHL developed successful supply chain model
for the British National Health Service (NHS) that aims to generate savings for the NHS of
approximately EUR1 billion over 10 years
Sectors served
Automotive Energy•Integrated logistics solutions
for both the build and run phases of major energy projects
Airline•Airlines•Airport operators•Aircraft manufacturers
DHL operate one of the world's largest fourth-party logistics services in Oman, transporting cargo and water and coordinating the movement of about 40 land-based oil rigs a month.
In 2009, DHL won a new contract with British Airways to
provide catering and logistics for short-haul flights from Heathrow
Airport
Lead logistics Services
Instigating and managing change across your entire supply chain
Reduced
Operating cost
Lower working capital
Lower fixed capital
Enhanced
customer
serviceAdded Value
Global Logistic Contracts
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
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
DHL provides supply chain services, including warehousing, distribution management and reverse logistics, to Ekono’s 110 stores nationwide.
Staples
Jaguar and Land Rover
Wal-Mart-Chile
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
Integrated Supplier Base •Food•Bed•Cleaning products•Surgical equipment
DHL Control Tower
Order wellPurchasingSupplier managementPaymentPODOrder matching
TRUST & Hospitals
BenefitsMore time and resources to patient care
Ex-pricing
Orders
DeliveryApproved supply
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
•Establishing air-bill identification numbers
•Checking addresses to confirm deliverability
•Tracking the shipment
Functions
•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
Benefits
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
• Reduced costs• Reduced inventories• Better demand-supply match
Benefits
Warehousing
Types of warehouses at
DHL
Ambient
Temperature controlled
Bonded
Raw Materials
Finished goods
Automated
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
DHL’s Supply Chain Innovation
Supply chain flows
Physical
Information
Financial
VMI
DHL’s 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 seller’s shipment point to buyer’s 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.