DHL - Supply chain and

Logistics
Nivesh aa
 Agenda

• About the company

 Touches about 5% of Euros in 2009
global trade volume Revenue of 46 billion
through extensive
network & infrastructure
in numbers
DHL strengths
world wide Operations 220 countries
300000 employees & territories
 Business divisions

DHL

Global
Supply
Express Global Mail Forwarding
Chain
and Freight
 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
Store
Plan Source Make &Customiz Deliver Return
e

Industrial Transportation
Supply chain projects & Distribution
Procurement transportation
Analysis &
services
Design
Finished goods Reverse
warehousing logistics
Service parts
logistics
Inbound to
manufacturing

Lead Logistics Raw material

provider warehousing & Home delivery
services transportation

In-plant
logistics
E-fulfillment
Assembly & Environmental
Co-packing Compliance
Environmental International
compliance SCM Contract
manufacturing In-store
logistics
 A typical Supply chain at DHL
Individual Customers Corporate Customers
drop

DHL Office pickup drop

DHL Pack
Central Location Office

Region sorting and bulk packing

Local or National / local

Distribution
International

truck

Regional Hub Distribution if local

A
 A

Airport

courier cargo
Air India or Cargo or Courier
Blue Dart
Kingfisher Flights
Passenger

Destination / Hub

truck Reverse logistics

to sender
Destination Warehouse

truck

no DHL Office at
Destination found? Destination

yes

Destination
Life sciences
• Good business opportunity
• Existing supply chain is
immature
• Pressure to reduce cost is
high
• Mainly procurement and
distribution services
• Automotive
Sectors served
Technology Consumer & retail
• Inbound-to-manufacturing • Highest revenue sector
• Warehousing & distribution • Priority growth area
approximately EUR1 billion over 10 years
• Integrated packaging • Manage source of supply
that aims to generate savings for the NHS of
• Returns management to retail shelves
for the British National Health Service (NHS)
• Technical service solutions
DHL developed successful supply chain model
 Sectors served

DHL operate one of projects

the world's largest
In 2009, DHL won a
major energy
fourth-party manufacturers
and run phases of new contract with
logistics services in
for both the build British Airways to
• Aircraft
Oman, transporting
provide catering and
• Airport operators
cargo and water logistics solutions
logistics for short-haul
and coordinating • Integrated • Airlines
flights from Heathrow
the movement of
Automotive Energy Airport Airline
about 40 land-
based oil rigs a
month.
 Lead logistics Services

Instigating and managing change across

your entire supply chain

cost
Reduced Operating Lower working capital

Added Value
service
Lower fixed capital Enhanced customer
 Global Logistic Contracts
Staples

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

Jaguar and Land Rover

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

Wal-Mart-Chile

DHL provides supply chain services, including warehousing, distribution

management and reverse logistics, to Ekono’s 110 stores nationwide.
 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

DHL Control
Integrated Tower
Supplier Base
TRUST &
Ex- Order well Orders Hospitals
•Food pricing Purchasing
•Bed Supplier
Benefits
•Cleaning management
More time and
products Payment
resources to
•Surgical
Approved POD Delivery patient care
equipment supply Order matching
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
• Comprehensive list of commodity classifications
(for example, dutiable vs. non-dutiable)
• Can integrate with personal information
management (PIM) systems such as MS Outlook
•

Benefits
Alerts if delivered to the wrong address.
• Any person can initiate and monitor shipments from
their desktop 
• Establishing air-bill identification numbers
• Checking addresses to confirm deliverability
Functions
• Tracking the shipment
DHL Connect
 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

Services
• Customization
• Postponement
• Kitting
• Sequencing
• Pre-retail activities

• Reduced costs
• Reduced inventories

Benefits
• Better demand-supply match
 Warehousing

Ambient

Temperature
Automated
controlled

Types of
warehouses
at DHL

Finished
Bonded
goods

Raw
Materials
 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
Physical
VMI
Supply Information
chain flows

Financial

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.