DHL - Supply Chain and Logistics: Nivesh Aa
DHL - Supply Chain and Logistics: Nivesh Aa
DHL - Supply Chain and Logistics: Nivesh Aa
Logistics
Nivesh aa
Agenda
DHL
Global
Supply
Express Global Mail Forwarding
Chain
and Freight
Supply chain in terms of DHL
Industrial Transportation
Supply chain projects & Distribution
Procurement transportation
Analysis &
services
Design
Finished goods Reverse
warehousing logistics
Service parts
logistics
Inbound to
manufacturing
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
truck
A
A
Airport
courier cargo
Air India or Cargo or Courier
Blue Dart
Kingfisher Flights
Passenger
Destination / Hub
truck
no DHL Office at
Destination found? Destination
yes
Destination
Life sciences Technology Consumer & retail
• Good business opportunity • Inbound-to-manufacturing • Highest revenue sector
• Existing supply chain is • Warehousing & distribution • Priority growth area
approximately EUR1 billion over 10 years
immature • Integrated packaging • Manage source of supply
that aims to generate savings for the NHS of
• Pressure to reduce cost is • Returns management to retail shelves
for the British National Health Service (NHS)
high • Technical service solutions
• Mainly procurement and
DHL developed successful supply chain model
distribution services
• Automotive
Sectors served
Sectors served
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
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 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
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 Fashion & Apparel
Industry
• Acts a 4PL to JLR • Carrier and logistics provider to
• An expansive operation with the $250-billion fashion and
over 980 full and partial load apparel industry
collections every week
• Four weeks from project • The official express carrier and
approval to implementation logistics provider for IMG
• More than 10 % improvement Fashion's Mercedes-Benz Fashion
in supply chain efficiency Week.
• Collection strategies - full truck
loads & milk round collections. • DHL operated shipping service
• Greater transparency and kiosks for guests at the New York,
supply chain visibility. 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
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