case study SCM in DHL

1. Supply Chain Management
and Logistics
By-
Rahul Jonwal 2K15/EL/59
Dilkhush Meena 2K15/SE/18
Abhishek Kumar 2K15/SE/03

2. Operations 220 countries
& territories
300000 employees
world wide
Revenue of 54 billion
Euros in 2009
Touches about 5% of
global trade volume
through extensive
network & infrastructure
DHL strengths
in numbers
About the Company

3. Business divisions
DHL
Express Global Mail
Global
Forwarding
and Freight
Supply
Chain

4. 4
One of the world’s
leading express
parcel providers
World's largest
air freight forwarder
GROUP OVERVIEW
Global Market Leader
 Annual Revenues: € 41.5 billion (2008 – excludesMail)
 Customer base includes >50% of Forbes 500companies
 Logistics facilities in more than 4,500 locations, 220 countries andterritories
 More than 281,000 logisticemployees
World's largest
ocean freight
forwarder (in both
FCL & LCL1)
One of Europe's
leading road freight
forwarders
Worlds largest
logistics service
provider
9.3%
GlobalMarket
Share
6.4%
GlobalMarket
Share
~22%
Global InternationalExpress
Market Share2)
2.0%
European Market
Share
11.9%
GlobalMarket
Share

5. 5
SUPPLY CHAIN
GLOBAL FORWARDING, FREIGHT EXPRESS
Air Freight &
Ocean Freight Services
Europe-wide
Transportation
Contract Logistics &
Industry Solutions
Export, Import &
Domestic Products
• Air Freight
• Ocean Freight
• Multimodal Transport
• International Supply Chain
• Industrial Projects
• Customs Brokerage
• Transport Control Towers
• Niche (high value, fashion,
perishables & F1)
Flexible and customized
road and intermodal
transportation network
• Groupage
• Part Loads
• Full Loads
• Rail Transportation
• Customs Services
• Trade Fairs & Events
• Supply Chain Management
• Warehousing
• Distribution
• Managed Transport
Service
• Value Added Services –
e.g. packaging,technical
services, procurement
• Customer Information
Solutions
• Same Day Products
• Time Definite
• Export - DHL
EXPRESS 9, 10.30,
12.00, WORLDWIDE,
ENVELOPE & EASY
• Import - DHL IMPORT
EXPRESS 9, 10.30,
12.00, WORLDWIDE
& FLEX
• Day Definite Products
• Domestic Products

6. GROUP STRUCTURE 2009
Revenue: €54.5 bn*
 Delivers 72 million
mail items to 40
million
households in
Germany
 DHL GlobalMail
largest network
for mail
distribution
worldwide
MAIL
 Market leader in air and
ocean freight services
 Specialist in industrial
projects and end-to-end
supply chain solutions
 One of Europe's leading
road freight forwarders
 Strong customer base
(>50% of Forbes 500)
GLOBAL
FORWARDING, FREIGHT
 Contract logistics
 22.8m square metres of
warehouse space
 2,500 facilities
 Leading provider
of Corporate Information
Solutions worldwide
 Strong customer base
(50% of Forbes 500)
SUPPLY CHAIN
 Cross-border express
service
 Presence in more than
220 countries and
territories
 4,500 facilities
 350 aircraft
 36 hubs
EXPRESS
14.4 14.2 13.7 13.6
186,000 41,000 140,000 100,000
Revenue
-€ bn -
Employees
(approximates)

7. 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

8. 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

9. Individual Customers Corporate Customers
DHL Office
Central Location Office
drop
DHL Pack
pickup drop
Local or National/
International
Distribution
local
Region sorting and bulk packing
Regional Hub Distribution if local
truck
A
Supply chain

10. Cargo or Courier
Airport
Destination / Hub
cargo
courier
Blue Dart Flights
Air India or
Kingfisher Passenger
Destination
truck
Destination Warehouse
truck
Destination found?
yes
DHL Officeat
Destination
no
Reverse logistics
to sender
A

11. Lead logistics Services
Instigating and managing change across
your entire supply chain
Reduced Operating
cost
Lower working capital
Lower fixed capital
Enhanced customer
service
Added Value

12. Global Logistic Contracts
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
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
Wal-Mart-Chile
DHL provides supply chain services, including warehousing, distribution
management and reverse logistics, to Ekono’s 110 stores nationwide.

13. 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 well
Purchasing
Supplier
management
Payment
POD
Order matching
TRUST &
Hospitals
Benefits
More time and
resources to
patient care
Ex-
pricing
Orders
Delivery
Approved
supply

14. Contract Manufacturing
Services
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.

15. 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

16. DHL Connect
• Establishing air-bill identification numbers
• Checking addresses to confirm deliverability
• Tracking the shipment
• 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
Functions
Benefits

18. 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

19. Assembly & co-packing
• Subassembly
• Co-packing
• Customization
• Postponement
• Kitting
• Sequencing
• Pre-retail activities
Services
• Reduced costs
• Reduced inventories
• Better demand-supply match
Benefits

20. Warehousing
Types of
warehouses
at DHL
Ambient
T
emperature
controlled
Bonded
Raw
Materials
Finished
goods
Automated

21. 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

22. Supply Chain Metrics
• 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

23. Supply Chain Innovation
Supply
chain flows
Physical
Information
VMI
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

24. Client as-is Supply chain

25. Adding DHL and a Financial Services
Provider (FSP) into the Supply chain

26. 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.

27. THANK YOU