Freight management

1. Freight Management
DSV Solutions

2. 2 | DSV – June, 2016
Air & Sea
● Air Freight
● Ocean Freight (LCL / FCL)
● Inter-Modal (Short Sea / Rail)
Service Levels: Budget – Classic – Priority
Special Services
Temperature Controlled ●
/ Cold Chain (GDP Pharma / Fresh) 
Technical Distribution / White Glove 
(B2B)●
1- / 2-Man Delivery (B2C) ●
Service Part Logistics (SPL) / Innight ●
Secure Transportation (TAPA TSR) ●
Road (Ground)
Groupage ●
Part Loads (LTL) ●
Full Loads (FTL) ●
Additional Services: ADR (D/G)
Courier Express Parcel (CEP)
● Day Definite (Standard / Economy)
● Time Definite (Express)
● Courier (Premium)
Service Scope: B2B – B2C
Freight Management
Transportation Service Portfolio

3. 3 | DSV – June, 2016
Freight Management
Orchestrates the flows of goods and controls your logistics operations at the ‘right’ cost (minimal overall
supply chain costs) with real time interventions by using the latest technology, advanced concepts and
highly experienced & qualified logistics professionals.
Client
• Ultimate ownership and decision making on logistics strategy
• In-depth knowledge of the market served and business implications
DSV Control Tower
• In-depth knowledge of transport industry and different modes of transport
• People with hands-on experience in managing daily dynamics
• Systems designed to manage transportation and to support the required
business functions (e.g. FMS – Freight Management System)
Goal
• Provide a tailor-made transport (distribution) management solution with the
objective to effectively and efficiently manage the dynamic transport flows, by
making use of the role and expertise of each party
Control Tower

4. 4 | DSV – June, 2016
DSV Solutions Freight Management
Based on the customer’s requirements, shipment size, weight and destination, DSV selects the most
suitable distribution solution in terms of lead time, quality and cost by using advanced freight
management tools & systems (FMS / TMS).
We handle planning, execution and administration of all transport operations:
Transport Sourcing
Market intelligence & procurement
Order Management
Order receipt & consolidation
Shipment Planning
Carrier selection & scheduling
Freight Execution
Preferred subcontractor selection (all modes)
Financial Settlement
Freight bill audit & invoicing
Performance Reporting
Carrier management (KPI)
Exception Handling
Pro-active communication &
corrective actions
Shipment Monitoring:
Event management (track & trace)

5. 5 | DSV – June, 2016
Freight Management
Reporting
DSV’s Freight Management System (FMS) supports standard as well as tailor-made reporting via the
web (on-demand) in various formats for internal (DSV) and external (client) users.
• Flexible (Excel) downloads
• Graphical KPI reporting (e.g. dashboard)
• Scheduled reports
• Service level reporting: KPI performance reporting (SMART) by
desired category (filters):
- Period: day, week, month, year
- Carrier
- Transport mode: parcel, road, air, sea, courier
- Flow: inbound, outbound, returns, lane / country specific (point-to-
point)
- Failure reasons: event categories (root-causes) – controllable vs.
uncontrollable
• Operational reporting: delivery & collection performance (slots);
shipment statistics
• Financial reporting: cost reporting (historic freight spend); accruals
• Sustainability reporting: CO2 carbon footprint / emission reporting
(EN 16258:2012)
Reporting Categories

6. 6 | DSV – June, 2016
Performance Reporting
Key Performance Indicators (KPI)
• In case of foreseen deviations from the agreed lead-time schedule, the client and/or receiving location will be
informed pro-actively by DSV about the expected delay (risk of late arrival) & reason, and is provided with the
adjusted ETA or contingency plan (alternative solutions to minimize overall supply chain impact).
Event Management:
Negative Reporting
• DSV will report monthly the KPI’s for collection and arrival time performance (e.g. OTIF – On Time In Full).
• In case performance falls below the agreed KPI level, DSV will perform a root-cause analysis (RCA) and a
corrective action plan (CAP) will be issued to get the performance back on the agreed levels.
• The performance reporting will include both controllable (gross) and uncontrollable elements which are beyond
DSV’s control:
•Delays caused by the client (e.g. wrong address; not ordered)
•Delays caused by the end-customer (e.g. refused shipment; closed)
•Force majeure (e.g. adverse weather conditions; strikes)
Periodic Performance
Reporting:
Sub-Contractor
(Carrier) & Customer
Scorecards
• Carrier performance will be shared & discussed during periodic reviews (monthly /
• QBR) and a “3-Strike” non-performance escalation program (white / grey / black list) will be applicable.
Evaluation:
Escalation Procedure
Percentage of shipments which are on time in line with agreed deadlines (service level targets).

7. 7 | DSV – June, 2016
Independent voluntary program for ‘green’ road transport in Europe
Reporting and monitoring carbon emissions
o Unified European database
o Standardised information
o Transparency / measurability
A forum for collaboration between carriers and shippers
o Standardised criteria for procurement
o Best practice in all transport matters
Sustainability
Green Logistics & Carbon Emission Reduction
As one of the largest suppliers of transport and logistics services, DSV feels obliged to take on its part
of the responsibility to reduce the environmental impact of the transport industry.
Carbon Emission Reporting (CO2)
DSV reports yearly on its total carbon footprint and energy efficiency
• per transport activity (mode) in order to measure on DSV’s target to lower its
• carbon dioxide (CO2) emissions.
Carbon emissions are based on average emission factors from DSV’s subcontractors.
DSV’s carbon emission reporting will be aligned according to new European standard EN 16258:2012.

8. 8 | DSV – June, 2016
Freight Management
Value Proposition
Order Planning
Financial
Control
Execution
Monitoring
Performance
Management
Efficient
Operation
Efficient
Operation
+
+
+= + = VALUE
Efficient
Operation
Justified
Payment
Order Visibility
Continuous
Improvement

9. Freight Management System

10. 10 | DSV – June, 2016
One or more orders with the same delivery address or customer can be consolidated into a single
shipment. The consolidation has the following set of constraints either on order (e.g. selects only orders
with weight less than 35 kg) or shipment (e.g. maximum volume of shipment 4 m3)
− Weight
− Volume
− Loading meters
− Value
− Quantity
Shipments are combined into a consignment with an assigned carrier and service level with the
additional constraints
− Maximum number of customers
− Country
− City
− Postal code range
Order Grouping
Orders, Shipments & Carrier Selection
Orders Shipments Consignment
Carrier + Service level

11. 11 | DSV – June, 2016
WMS
• Calculation of either ship by and deliver by date-time or both is supported
– Calendars to define the openings hours of warehouse (daily basis + holiday support), carrier depot (if applicable)
and customer
– Forward calculation from ship by date to deliver by date
– Backward calculation from deliver by date to ship by date
Ship by & Deliver by date-time
Warehouse
activities
Carrier
Depot
Customer
Handling hours
Transport hours
Handling hours
Transport hours
Calendar Calendar
+
Latest ship time
Calendar Calendar Calendar
Ship by date & Deliver by date

12. 12 | DSV – June, 2016
FMS Functionality
FMS
Functionality
Reporting
• Account tracking
• Carrier Metrics
• Account following and data
mining
• Events and alerts
Visibility and Event
Management
• Track and trace
• EDI / Portal status updates
• User-personalized views and
notifications
• User reporting
Reporting
• Account tracking
• Carrier Metrics
• Account following and data
mining
• Events and alerts
Freight Settlement
• Self billing
• Invoice processing
• Exception processing
• Match and pay

13. Freight Management and Systems

14. 14 | DSV – June, 2016
1.2 DSV freight management systems
Booking
Airport / Port
activities
International
Transport
documents
Trade
compliance
Invoicing
Inco term
ConsolidationPre-collection Onward transportDe-consolidation
Rate validity –
Indexed – GRI
/ PSS
FSC/SSC/
BAF/CAF
Port of Departure
Liability
Cargo
requirements
Demurrage /
Free time
Credit &
Payment terms
Multiple transit
times
P to P
Global
coverage
THC
Port of Arrival
THC
Shipper / Vendor Consignee / Buyer
Track &
Trace
CSR &
Environmental
policies
Commercial
attributes
Operational
attributes
Physical
attributes
Supply Chain
Execution
Implementation
mngt one-off
Control
Tower
SOP
Buyer’s
consolidation
Vendor
Management
EDIWHS value-
added services
GASS
services
GAM
Purchase
Order
Management
Cargo
insurance
OperationalServices
Global flexibility, one central view

15. 15 | DSV – June, 2016
1.2 DSV freight management systems
Booking
Airport / Port
activities
International
Transport
documents
Trade
compliance
Invoicing
Inco term
ConsolidationPre-collection Onward transportDe-consolidation
Rate validity –
Indexed – GRI
/ PSS
FSC/SSC/
BAF/CAF
Port of Departure
Liability
Cargo
requirements
Demurrage /
Free time
Credit &
Payment terms
Multiple transit
times
P to P
Global
coverage
THC
Port of Arrival
THC
Shipper / Vendor Consignee / Buyer
Track &
Trace
CSR &
Environmental
policies
Commercial
attributes
Operational
attributes
Physical
attributes
Supply Chain
Execution
Implementation
mngt one-off
Control
Tower
SOP
Buyer’s
consolidation
Vendor
Management
EDIWHS value-
added services
GASS
services
GAM
Purchase
Order
Management
Cargo
insurance
OperationalServices
Global flexibility, one central view
DSV OPERATIONAL SYSTEM

16. 16 | DSV – June, 2016
1.2 DSV freight management systems
Booking
Airport / Port
activities
International
Transport
documents
Trade
compliance
Invoicing
Inco term
ConsolidationPre-collection Onward transportDe-consolidation
Rate validity –
Indexed – GRI
/ PSS
FSC/SSC/
BAF/CAF
Port of Departure
Liability
Cargo
requirements
Demurrage /
Free time
Credit &
Payment terms
Multiple transit
times
P to P
Global
coverage
THC
Port of Arrival
THC
Shipper / Vendor Consignee / Buyer
Track &
Trace
CSR &
Environmental
policies
Commercial
attributes
Operational
attributes
Physical
attributes
Supply Chain
Execution
Implementation
mngt one-off
Control
Tower
SOP
Buyer’s
consolidation
Vendor
Management
EDIWHS value-
added services
GASS
services
GAM
Purchase
Order
Management
Cargo
insurance
OperationalServices
Global flexibility, one central view
DSV OPERATIONAL SYSTEM
DSV SUPPLY CHAIN PLATFORM