Customizing solutions for the airline industry

 
Customizing solutions for the airline industry
Customizing solutions for the airline industry
                                                                                 Cost savings vs. Enhanced Customer proposition. Why not have both?

DHL Supply Chain
Ocean House
The Ring
Bracknell
Berkshire
RG12 1AN
United Kingdom

Telephone: +44 1327 308 474
Email: airlinebusinesssolutions@dhl.com

www.dhl.com

All information is correct as at time of printing: August 2009

                                                                 08-09/CV/5046
Customizing solutions for the airline industry
DHL Supply Chain                                                                                                                                                    Airline Business Solutions   1

                   THERE IS SOMEONE WE WANT TO SATISFY
                   EVEN MORE THAN YOU: YOUR CUSTOMER

                   In our business as one of the world’s largest airlines     At DHL we believe our approach represents a fundamental
                   and managing 12% of the world’s cargo (spending            shift from a catering-led approach. We consider the
                   over $2bn p.a. with commercial airlines) we                airlines’ onboard requirements, examining the end-to-end
                   recognize and share the pressures facing the airline       process and re-evaluating the total supply chain.
                   industry – escalating commodity prices, increasing
                   competition, stricter safety regulations and higher        The airline catering model is based around logistics.
                   value inventories.                                         “Flight catering is 80% logistics and 20% catering
                                                                              (some said 70:30 and others 90:10)”1. It’s with this in
                   How should airlines respond to fluctuating consumer        mind that DHL has entered the market, applying its
                   demand, lower passenger yields, food cost inflation and    strategic thinking, operational excellence, supply chain
                   the price of fuel? Who will survive and how will we        and business transformational expertise into the global
                   work together to weather the storm?                        airline services market. Our aim is to drive mutual
                                                                              commercial benefit through improved efficiency,
                   The successful airlines will be those which can adapt to   product selection and cost reduction.
                   change, and make it work in their favor. In the current
                   business climate is the answer to trade your customer      DHL Supply Chain provides a range of industry-specific
                   proposition for cost savings? We think there is a better   solutions. These incorporate consultancy services,
                   way. DHL’s Airline Business Solutions aims to help         business solutions and design, sourcing, production,
                   airlines take a strategic approach to business             storage, assembly and delivery to after-sales and returns.
                   transformation related to their ‘above the wing’           Our customers can rely on us to utilize the wealth of
                   expenditure, creating value by reducing cost, while        skills and capabilities within our organization to develop
                   improving the customer experience.                         innovative solutions that work for their industry and
                                                                              their environment, no matter how demanding.

                                                                              1   Professor Peter Jones, University of Surrey, OnBoard Hospitality, February 2009
Customizing solutions for the airline industry
2   DHL Supply Chain                                                                                                                             Airline Business Solutions   3

                       THERE IS SOMEONE WE WANT TO SATISFY
                       EVEN MORE THAN YOU: YOUR CUSTOMER

                       We have vast experience in managing extremely                 We drive sustainable competitive advantage for
                       complex supply chains across a broad range of                 our customers by getting their products to market
                       business sectors, from aviation to automotive, consumer       faster and more efficiently. Whatever their size, our
                       to technology, food retail to fashion and industrial to       customers can rely on us to draw on our local insight
                       healthcare. Each of these industries has its own critical     and global scale to deliver value across every aspect of
                       activities, whether it be delivering chilled/frozen food to   their supply chain. Our role, in short, is to help make
                       supermarket stores nationwide on a 15 minute deadline,        our customers successful.
                       delivering time-critical sensitive healthcare products,
                       or managing customized line feeding of car parts to a         And what is our knowledge based on? In addition to
                       continuous production line.                                   being the largest global supply chain and freight
                                                                                     forwarding business, we also operate 350 of our own
                       We use our industry and supply chain expertise to turn        aircraft, as well as utilizing the capacity of many other
                       complex customer requirements into flexible solutions         airlines. We have representation at over 220 airports
                       which meet customer challenges head-on. It’s your             globally and partner with some of the leaders in the
                       perspective we take and it’s your business needs              industry to provide specialist transportation services.
                       we anticipate. We make it our business to understand          We have airside facilities and are highly experienced in
                       your goals, objectives, key customers and competitive         managing airside operations, with approved drivers and
                       issues to help improve their business models. We              vehicles as well as knowledge of aviation legislation and
                       work closely with our customers, shoulder to shoulder         insurance requirements.
                       with their management teams to establish trust and
                       confidence to develop same-side-of-the-table behaviors
                       to drive mutual success.
Customizing solutions for the airline industry
4   DHL Supply Chain                                                                                                                                                                                                                              Airline Business Solutions    5

                                                                                         AIRLINE BUSINESS SOLUTIONS

                                  Procurement
                                   & Sourcing
                                                            AIRLINE BUSINESS SOLUTIONS

                                                                                         DHL are a large business with a turnover in excess of       solution through a comprehensive range of services            optimizing our network, whilst seeking continuous
                                                                                         €41.6bn and we have real credibility in transforming        and operating models. And by partnering with world            improvement and cost reduction. We take responsibility
                                                                                         businesses. As a result many customers come to us with      class organizations, the DHL approach creates a ‘best         for assembling and controlling the resources, capabilities
                                                                                         their business problems, often broader than purely          of breed’ solution and allows for the creation of a more      and technologies of our own organization (3PL) or
                                    AIRLINE                                              supply chain.                                               targeted customer proposition. The result is a customized,    sourcing from the right third party service providers
                        Food                                                                                                                         leaner, more cost effective, responsive business model to     (4PL), whether they be producing raw or finished
                       Services
                                   BUSINESS     Logistics                                Through our supply chain consulting and network             meet and adapt to changing market dynamics.                   materials (food or retail). We assume accountability
                                  SOLUTIONS                                              design studies, we help customers with the big picture;                                                                   for the management, performance, cost and
                                                                                         we understand what’s working and what can be                Past experiences have taught us that in order to gain the     development of the entire business solution.
                                                                                         optimized for improved operational efficiency and           best sustainable return for your business, a strategic
                                                                                         enhanced customer service.                                  approach and partnership is key. Tactical initiatives         Whether our customers want a full end-to-end seamless
                                                                                                                                                     can then be implemented to fulfill the strategic              solution or just an element of the solution, DHL can be
                                                                                         Our business has a long and successful track record of      objectives by adopting a true end-to-end approach for         relied on to help fulfill their business objectives.
                                                                                         delivering step change transformational programs            the provision of ‘above the wing’ services.
                                                                                         that address large, complex and underperforming                                                                           The four key principles to our ‘above the wing’ airline
                                                                                         business-critical issues. These can be driven by an         Successful transformational change requires a strong          solutions are:
                                   Commercial                                            internal or external trigger for change and generate        relationship between both parties: shared vision              •    eliver great tasting food
                                                                                                                                                                                                                       D
                                     Model                                               significant customer value. We plot out the path,           and goals, shared risk and reward with joint                  •   Optimal cost procurement
                                                                                         re-engineer and work with our customers to deliver          incentives to motivate both parties to exceed expectations.   •   Intelligent logistics
                                                                                         the change.                                                                                                               •   Flexible commercial model
                                                                                                                                                     By adopting our airline business solution as a Fourth
                                                                                         DHL is able to offer airlines a ‘one-stop shop’ utilizing   Party Logistics Provider (4PL) or 3PL provider we will
                                                                                         our expertise to design the appropriate business            adopt lean thinking across the end-to-end process,
Customizing solutions for the airline industry
6   DHL Supply Chain                                                                                                                                                                                                                                             Airline Business Solutions   7

                                                                                                          WORKING WITH THE RIGHT PARTNERS
                                                                                                          TO DELIVER GREAT TASTING FOOD

                                                                             AIRLINE BUSINESS SOLUTIONS

                                                                                                          We will find the right partners for your region with         Consumer knowledge - we provide airlines with real          Food safety - highly qualified teams assure the quality
                                                                                                          the capability to design and consistently produce            customer insight and ensure that we are responsive to       and the safety of the food that is produced. We ensure
                                            Consumer                                                      an enhanced customer experience. Whether it be               changing consumer and market trends; whether that           rigorous hygiene standards are maintained
                                            knowledge
                                                                                                          recruiting specialist chefs to adapt the latest restaurant   be a greater demand for seasonality, healthier options,     through all stages of the supply chain from the
                                                                                                          trends into a premium in-flight dining experience or         international recipes, or perhaps for different packaging   raw materials that are bought through to the finished
                                  Food                  Food-related
                                 safety                 procurement                                       utilizing the latest manufacturing techniques to             to reduce the impact on the environment. This insight       products which leave our facilities.
                                                                                                          produce best quality offering at the right price, DHL        is gained from our customers and partners’ experience,
                                                                                                          can find them.                                               incorporating the latest retail and restaurant trends       Food packaging - through our innovation, industry
                                                                                                                                                                       supplemented with targeted market research.                 insights and materials knowledge we can introduce
                                                                                                                                                                                                                                   new packaging options to enhance the look of the
                                                                                                                                                                       Food-related procurement - our partners understand          product, reduce space and support environmental
                       Menu                  Food              Non-premium
                                                                   food                                                                                                your customer proposition and using this knowledge          and sustainability objectives. We also show great
                       design
                                            Services            production                                                                                             determine whether to make or buy in prepared goods.         consideration to ensure ease of use by the consumer and
                                                                                                                                                                       They utilize their buying power to purchase quality         service delivery by cabin services.
                                                                                                                                                                       materials, ingredients and services from preferred
                                                                                                                                                                       suppliers at the best price.                                Tray assembly - we look to constantly innovate our
                                                                                                                                                                                                                                   assembly processes based on our learnings across a
                                                         Premium
                                  Food                                                                                                                                 Premium and non-premium food production - from              wide range of industries to deliver cost savings.
                                                           food
                                packaging                                                                                                                              creation of premium food menus to buy on board retail
                                                        production
                                                                                                                                                                       services, our partners have the knowledge and expertise     Menu design - through our chefs’ knowledge,
                                               Tray
                                                                                                                                                                       using the latest food production, innovation and food       consumer insight and food science expertise we can
                                             assembly
                                                                                                                                                                       science techniques to consistently produce high             plan, design and seek to push the boundaries for
                                                                                                                                                                       quality food and improve the customer experience.           new menus.
Customizing solutions for the airline industry
8   DHL Supply Chain                                                                                                                                                                                                                              Airline Business Solutions   9

                                                                                               OPTIMAL COST PROCUREMENT & SOURCING SOLUTIONS

                                                                  AIRLINE BUSINESS SOLUTIONS

                                                                                               We determine our customers’ real procurement needs    In-house design - the formula for success is based on a        Optimum cost procurement - due to the size of
                                                                                               and produce long-term solutions. We do whatever it    flexible, innovative approach backed by deep procurement       our group and the expertise of our people we unlock
                                        In-house                                               takes to deliver their objectives.                    expertise and the insights gained from working relationships   hidden savings and utilize our global buying power.
                                       design team
                                                                                                                                                     with some of the world’s biggest companies. Dedicated teams    Through our people and processes we enable optimum
                                                                                               From strategic sourcing to fully outsourced           can be established in-house, leveraging a considerable         cost procurement which leads to improved asset
                                                                                               procurement, our capabilities cover every aspect of   skilled off-site resource using procurement technology.        utilization, reduced sourcing cycle time, increased
                                                       Global                                  today’s purchasing and supply management functions.                                                                  supplier-led innovation, improved working capital
                       Consultancy                                                                                                                   Global sourcing - our performance is maximized by              & cash flow and process improvement.
                                                      sourcing
                                                                                                                                                     leveraging our experience in local, regional, and
                                                                                                                                                     global supply markets with our significant market              Inbound management - the integration of
                                                                                                                                                     purchasing power. Our transparent commercial                   purchasing within our solutions creates the basis
                                     Procurement                                                                                                     approach to procurement gives us the edge, meaning             for establishing a total end-to-end process for
                                      & Sourcing                                                                                                     that ultimately our customers benefit from getting             logistics process management. Purchasing and
                                                                                                                                                     products to market more quickly and cost effectively           procurement thus becomes the enabler for the logistics
                                                                                                                                                     and without the internal resource needed.                      ability of a company.
                        Inbound                      Purchasing
                       management                    strategies                                                                                      Purchasing strategies - we have developed an unrivalled        Consultancy - we can help with every aspect of the
                                                                                                                                                     combination of capabilities, particularly in complex,          procurement challenge and the objective is to deliver
                                                                                                                                                     service-based categories. We deliver results by drawing        tangible and sustainable benefits for our customers.
                                                                                                                                                     upon a proven combination of methodologies, tools,             We provide a structured approach that accurately
                                      Optimum cost
                                                                                                                                                     systems and specialist expertise to help in generating         identifies value improvement opportunities, then
                                      procurement
                                                                                                                                                     the best possible purchasing strategy (developing key          we ensure the benefits are delivered and locked in for
                                                                                                                                                     supplier partnerships to e-tendering).                         the long term.
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10   DHL Supply Chain                                                                                                                                                                                                                                                Airline Business Solutions   11

                                                                                                                 INTELLIGENT LOGISTICS, MEETING YOUR
                                                                                                                 CURRENT AND FUTURE BUSINESS NEEDS

                                                                                    AIRLINE BUSINESS SOLUTIONS

                                                                                                                 As the world’s largest contract logistics specialist we   Through performance measurement we:                         To keep our customers ahead of the game, DHL
                                                                                                                 pride ourselves on consistently delivering excellent      • L isten to and understand the voice of our customer      adopt a proven process improvement methodology. We
                                                 Carbon                                                          operations. Our customers can rely on solutions           • Provide the customer with detailed                       collaborate with our customers to identify opportunities
                                               assessment
                                                                                                                 that work harder for their business through our              management information                                   to re-engineer or continuously improve operations
                                   DHL                                                                           commitment to listen and innovate, supported by           • Conduct operational performance reviews                  based on their business objectives.
                                                                 Storage
                                Aerospace                                                                        our disciplined approach to performance measurement,      • Support problem solving and continuous
                                                                                                                 quality assurance, project management, environmental         improvement                                              Environmental management and sustainability are
                                                                                                                 management and process improvement.                                                                                   core to our business. Customers are expecting greener
                                                                                                                                                                           Planning is critical to business success, that’s why        solutions and we are market-leading within the airline
                           Fleet                                        Inventory                                We engage with our clients on a consultancy basis,        DHL has made project management a core discipline           industry, actively tracking and minimizing our effect on
                        management                                     management                                but unlike other consultants, we deliver from             and a key differentiator. Through our DePICT® project       the environment and sourcing products from sustainable
                                              Logistics                                                          implementation to steady state. It is for this reason     management methodology, we ensure that the solution         sources wherever possible.
                                                                                                                 that we focus all of our expertise and experience on      is implemented on time, to budget and becomes an
                                                                                                                 driving sustainable competitive advantage for our         operational reality. We define roles, expectations, scope   DHL as a business is committed to the environment
                                                                                                                 customers now and for the future.                         and goals, then monitor projects so closely that we can     and through its environmental program, GoGreen, is
                           Waste and                                                                                                                                       anticipate and respond to risks and opportunities before    targeting a reduction in its carbon footprint: 10% by
                            returns                                   Security
                                                                                                                 Our performance metrics provide DHL management            they happen, which is key to keeping a project on track.    2012 rising to a 30% reduction by 2020.
                          management
                                                                                                                 teams with the appropriate tools and management
                                                                                                                 information to understand performance and manage the      We are passionate about quality assurance. Quality
                                          Print           Freight                                                business on your behalf.                                  is about finding ways to constantly raise the bar. When
                                       management       forwarding                                                                                                         we say quality, we mean delivering the highest levels
                                                                                                                                                                           of accuracy, on-time performance, and exceeding food
                                                                                                                                                                           hygiene and regulatory requirements, to drive ultimate
                                                                                                                                                                           value for the customer.
Customizing solutions for the airline industry
12   DHL Supply Chain                                                                                                                                                         Airline Business Solutions    13

                        INTELLIGENT LOGISTICS, MEETING YOUR
                        CURRENT AND FUTURE BUSINESS NEEDS

                        Building on our customer-focused culture and               Our inventory management system allows us to                to all levels of staff and have a wealth of experience and
                        passion for successful operations we can bring a           efficiently manage the flow of materials, people and        knowledge of airport operations around the globe.
                        unique set of skills and capabilities to the airline       equipment to a high degree of visibility. Enabling our
                        sector to help develop a competitive advantage             customers to reduce their inventory and have access to      Waste management - our Environmental Compliance
                        for our customers. These include:                          greater availability.                                       Solutions group within DHL delivers an environmentally
                                                                                                                                               focused approach to waste management. We promote
                        Business solutions - through our industry knowledge        Freight forwarding - we are the No.1 provider of air        re-use, pre-treatment and segregation of waste to
                        and expertise we turn complex customer requirements        and sea freight operating globally in over 150 countries.   improve recycling rates and eliminate landfill.
                        into flexible solutions that appear seamless and simple,   We source products from around the world and have
                        while meeting our customers’ challenges head-on.           the infrastructure and network to design a customer         Print management - we provide expert management
                                                                                   solution based on the desired service levels and optimize   of all the printed and digital materials through Williams
                        Full outsourced solutions - as a successful Fourth         transport costs.                                            Lea, renowned as world leaders in the provision of
                        Party Logistics Provider (4PL) we can apply the                                                                        Corporate Information Solutions.
                        resources and expertise of the DHL organization to take    Our fleet management solutions use the latest
                        full responsibility for the complete management of our     technologies related to vehicle design, traceability
                        customers’ end-to-end operations.                          and regulatory compliance. This advancement gives
                                                                                   our customers the operational confidence to meet
                        Facilities and inventory management - we manage            their desired service levels in the most efficient and
                        the design, build, implementation and operation of         environmentally friendly manner.
                        dedicated and shared-user facilities – including bonded,
                        temperature-controlled, industry-specific (e.g. airside)   Security - we co-operate with regulatory authorities
                        and conventional warehousing. Whether facilities are       to design and implement regional and global security
                        provided by us or sourced from a third party provider.     policies and procedures. We provide security training
Customizing solutions for the airline industry
14   DHL Supply Chain                                                                                                                                                                                                           Airline Business Solutions   15

                                                                                                           A FLEXIBLE COMMERCIAL APPROACH

                                                                              AIRLINE BUSINESS SOLUTIONS

                                                                                                           In any operation we believe that different commercial      DHL is committed to balancing both operational
                                                                                                           options should be available, depending on our              and financial needs to provide best value. Sharing
                                                  Closed                                                   customers’ needs.                                          risk and reward gives both parties the incentive needed
                                                   book
                                                                                                                                                                      to form long term strategies. Through the open book
                                                                                                           Our open book management model gives our customers         commercial model we can provide structured savings.
                                                                                                           full transparency of the financial information regarding
                                                                                                           their operation. This enables us to work together          By adopting our airline business solution as a Fourth
                                                                                                           to make more informed decisions and ensure our             Party Logistics Provider (4PL) or 3PL provider, DHL can
                                                                       Open                                customers have greater control over their budgetary        add real value to your business by:
                        3PL
                                                                       book                                spend. Through this model we are able to work towards      •	Reducing operating costs through improved
                                                                                                           aligned goals, eliminate conflicts of interest and            distribution, transport, procurement and staffing
                                               Commercial                                                  provide the flexibility over the term of the contract      • Reducing your working capital through reduced
                                                                                                                                                                       	
                                                 Model                                                     to support any changes in the customer’s strategic            inventory and improved availability
                                                                                                           direction. Open book information includes, but is not      • Reducing fixed capital expenditure through improved
                                                                                                                                                                       	
                                                                                                           limited to, revenue, profit, cost of goods and services,      asset utilization across our network
                                                                                                           cash flow and expenses.
                                                                                                                                                                      Ultimately, the DHL solutions deliver enhanced
                                                                                                           Our commercial model of closed book management             customer value by improving product quality,
                              Lead logistics                Risk and                                       and accounting is very much still prevalent in today’s     availability and customer service performance, whilst
                                provider                     reward                                        business. Benefits of this include having fixed pricing    reducing cost and capital investment which results in
                                                                                                           with a matrix of charges depending on volume and           improved profitability and shareholder value.
                                                                                                           the services required.
Customizing solutions for the airline industry
18   DHL Supply Chain                                                                                                                                                                                                                                                                                                                                                                                                                   Airline Business Solutions    19

                            MANUFACTURING
                            & RAW MATERIALS
                                                                    EXPORT / IMPORT
                                                                       ACTIVITIES
                                                                                                               PRIMARY
                                                                                                              MOVEMENT
                                                                                                                                                 DISTRIBUTION
                                                                                                                                                   CENTERS
                                                                                                                                                                                     SECONDARY
                                                                                                                                                                                     MOVEMENT
                                                                                                                                                                                                                       B2B & B2C
                                                                                                                                                                                                                      DISTRIBUTION
                                                                                                                                                                                                                                                       AFTER-SALES &
                                                                                                                                                                                                                                                     reverse logistics
                                                                                                                                                                                                                                                                                 NO MATTER HOW COMPLEX YOUR BUSINESS IS,
                              International/national
                        transportation, order processing,
                             inventory management
                                                                Integrated services - trucking,
                                                                   warehouses, air/ocean
                                                               import/export, customs team
                                                                                                        Transporting from import to
                                                                                                          warehousing, including
                                                                                                           management of fleet
                                                                                                                                            Warehousing - can include
                                                                                                                                             ambient, chilled, frozen,
                                                                                                                                               bonded, automated
                                                                                                                                                                              Movement of finished goods
                                                                                                                                                                               from distribution centers
                                                                                                                                                                                    to local areas
                                                                                                                                                                                                                  By specialist trucks, vans
                                                                                                                                                                                                                  or by post to businesses
                                                                                                                                                                                                                       or consumers
                                                                                                                                                                                                                                                       Management and
                                                                                                                                                                                                                                                     transporting of used/
                                                                                                                                                                                                                                                   damaged/unwanted goods        THERE IS A SOLUTION FOR YOU
                        Customizing feeding line-           Supplier component                                                        A scalable warehousing and                                           Warehousing of motorcycles,
                        side parts to a continuous          collections, consolidation                                                distribution solution for tyres                                      packaging and delivery to
                        production plant                    and forward distribution to                                               to allow for seasonal demand                                         national and international
        AUTOMOTIVE
                                                            production lines across EMEA                                                                                                                   dealers

                        Consolidation point for             DHL provide all export/import                                             DHL receives, stores and           Delivery of bulk petroleum        Collection of finished              Just-in-time delivery of
                        inbound deliveries prior            activities for construction                                               manages products at a facility     to a national supermarket         windows from two factories,         materials, components and
                        to kitting, assembly and            materials plus timed                                                      located inside a plasterboard      garage forecourt of over          cross docked where orders           maintenance parts to 2,500
        INDUSTRIAL      transportation of components        distribution to enable a                                                  manufacturing plant. Products                                                                            trackside and depot railway
                                                                                                                                                                         270 sites                         are consolidated for daily and
                        to a train manufacturer in          project in a highly populated                                             are then loaded onto trucks                                          onward delivery to stores           engineers throughout the UK       We are confident that we can meet your business             Our best example of the savings can be seen with the        central role in planning and managing other supply
                        Barcelona                           city to run on time                                                       for further distribution
                                                                                                                                                                                                                                                                                 challenges faster and more effectively. Our scale and       NHS Supply Chain business. In 2006, we entered into         chain service providers on behalf of its customer,
                        Inbound to manufacturing-           Global clinical trial study           Inbound transportation and          Off-site hospital warehouse        Movement and kitting              Over 200,000 deliveries of          Providing storage and express     expertise mean that, the chances are, we’ve already         a 10 year contract with the English National Health         including freight and express services.
                        including freight, customs          management including                  storage at -150ºC and onward        and on-site customer service       of expensive drugs to 26          medical devices to diabetic         distribution of replacement
                        clearance, and inventory            blinding packs, labeling, and         shipping within re-usable           point to reduce hospital           countries with labeling,          patients in Italy                   IV infusion pumps to cover        solved your problem many times in the past. In fact,        Service (NHS), where we are responsible for managing
        HEALTHCARE      management for an                   temperature monitoring                liquid nitrogen containers          traffic and avoid duplication                                                                            refurbishment units within UK
                                                                                                                                                                         literature and quality checks                                                                           the likelihood is that we’ve made it a best-practice        the procurement of over 620,000 healthcare products         Our flexibility and adaptability mean that we can manage
                        orthopaedic manufacturer                                                                                      of stocks                                                                                                hospitals
                                                                                                                                                                                                                                                                                 solution, ready to be implemented by an account team        and targeted with over £1 billion savings to be channeled   fluctuating daily and weekly demands. We operate a
                        Shuttle and line-side               Inbound and outbound                  Management of inbound               Warehousing, assembly of           Management of materials           Delivery and installation           Return and repair services        that intimately understands the market.                     back to the NHS, to improve patient care.                   network of distribution centers and transportation for
                        services to production              transport management                  freight from port to a central      products and distribution of       through Europe, Middle East       of photocopiers and home            for mobile phones including                                                                                                                               a leading supermarket retailer, which entails picking
                        lines for a global computer         through a control tower               European distribution center        products for an information        and Africa of backup power        cinema etc to the home or           swap stock distributed direct
        TECHNOLOGY      manufacturer in Ireland             service for a global PC               for a printer manufacturer          management and storage                                                                                   to the end user                   We’ve described our business excellence and here are just   It’s not just about delivery: our power packaging           and packing of store products with an accuracy rate of
                                                                                                                                                                         supplies                          office so that it is ready for
                                                            manufacturer                                                              specialist                                                           use straightaway
                                                                                                                                                                                                                                                                                 few examples of our depth and breadth in practice:          operation is the largest contract manufacturer of food      over 99.8%. Within individual locations the volume can
                                                                                                                                                                                                                                                                                                                                             and beverage products in North America. We produce          rise to up to 2 million cases per week with a demand
                        Providing shuttle transport         Management of point-of-sale           Using our dedicated planning        Warehousing operations that        Storage, kitting and              Distribution of consumer
                        of packaging deliveries to a        for 52 beverage distributors          center, DHL manage all              provide multi-user services        preparation (including local      goods from a multi-user                                               We perform global supply chain management for a             everything from beverages to cake mixes for some of         fluctuation of 40,000 cases per day. Due to the design
                        leading global brewer               across three regions, globally        primary movements for one of        and processes to store, handle     language printing of vacuum       ambient and temperature-
         CONSUMER                                           from 300 vendors in Asia,             the world’s leading consumer        and distribute goods for food
                                                                                                                                                                                                                                                                                 leading toy retailer, managing the buying process and       the biggest consumer brands in the world in a variety of    setup, the distribution centers also act as a hub within a
                                                                                                                                                                         cleaners to be distributed to     controlled facility across
                                                            Europe and the Americas               manufacturers                       manufacturers                      emerging countries)               Spain                                                                 transportation for suppliers principally from Asia to       packaging options.                                          hub and spoke network to move bulk supplies efficiently
                                                                                                                                                                                                                                                                                 the Americas and Europe. Our warehousing operations                                                                     around our facilities for distribution to the stores.
                        The management of up to                                                   The management of over              Start-up distribution center       Distribution of chilled and       Two-man home delivery               Collection of returned            in each region manage peak seasonal demand of over          Our European, inbound logistics solution for a leading
                        4,000 container movements                                                 1,000 containers of inbound         in Slovakia for a supermarket      frozen goods to over 400          service for larger goods such       products, waste and
                        from Asia and 1,300 road /                                                products from printers across       chain’s expansion into this        supermarkets nationally           as sofas and brown goods            packaging plus product            50,000 orders a day employing 1,100 personnel. To           luxury car manufacturer, has resulted in considerable
          RETAIL        rail movements from across                                                the globe into China, US and        new country                                                                                              recalls for a retailer of baby
                        Europe into production facilities                                         UK warehouses                                                                                                                                products in the UK
                                                                                                                                                                                                                                                                                 handle the seasonal variation, DHL has set up its own       cost reduction and more responsive logistics planning.
                        for a kitchen manufacturer                                                                                                                                                                                                                               temporary employment service. This arrangement              As the Fourth Party Logistics Provider (4PL), DHL’s
                                                            Receiving inbound garments                                                The warehousing, picking and       The distribution to a network                                         Pickup and return distribution    provides us with greater flexibility, whilst retaining      control tower operation has a key success factor in the
                                                            from the Far East to three                                                packaging of branded items         of 175 national fashion stores                                        to factory outlet for a fashion   the business knowledge by attracting more returning         European element of inbound logistics, involving 500
                                                            warehouses in Europe                                                      ready for distribution around                                                                            label
          FASHION                                                                                                                     France                                                                                                                                     seasonal employees. Through this initiative our quality     automotive component suppliers in 17 countries and
                                                                                                                                                                                                                                                                                 improvement process has led to a 30% increase in            leading to just-in-time delivery of customized parts to
                                                                                                                                                                                                                                                                                 efficiency since its start-up.                              the production line. Acting as the 4PL, DHL played a
20   DHL Supply Chain                                                                                                                                 Airline Business Solutions       21

                        WHAT MAKES US DIFFERENT?

                        1.	Customer focus - We aim to think from our             3.	Business transformation - Globally we have
                           customers’ perspective and to anticipate their           teams dedicated to business transformation using
                                                                                                                                                          1
                           corporate needs. We make it our business to              the most comprehensive change management tools
                                                                                                                                                     Customer
                          understand their growth objectives, key customers,        and processes available. These include our industry-               focus                   2
                          profitability goals, competitive issues, and more,        leading methodology DePICT®. No project goes live                                       Leverage
                                                                                                                                                                              scale
                          helping to improve their business models through          within DHL without adopting this methodology.
                          focused relationship management.                          Success can only be achieved with shared vision and
                                                                                    shared goals. Together with effective leadership,
                                                                                                                                                 4
                        	We work closely with our customers, often shoulder        customer focus and employee engagement
                                                                                                                                             Delivering                 3
                          to shoulder with their management teams – building        we create the drive for successful operational             value
                          confidence and trust in the delivery of their service     change to happen.                                                                Business
                                                                                                                                                                  transformation
                          whilst encouraging same-side-of-the-table behavior to
                          gain mutual success.                                    4.	Delivering value - We can deliver value through
                                                                                    streamlined processes, greater efficiency, innovation,
                        2.	Leverage scale - DHL are active in more than            thought leadership and adopting best practice
                          220 countries and territories, around the world,          from our global business in a broad range of
                          employing around 310,000 people. With each of these       industries. This allows our customers to have the
                          countries, territories and markets comes different        opportunity to realize both cost savings and an
                          challenges, and our ability to meet these challenges      enhanced customer proposition.
                          has led us to hold a No.1 position in many of our
                          markets. But to us, being No.1 is about much more       Then the process starts all over again…
                          than size. It is about being a leader in service,
                          innovation and meeting our customers’ needs.
22   DHL Supply Chain                                                                                                                                                               Airline Business Solutions   23

                        Proactive Solutions; Personal Commitment;
                        Local strength, worldwide

                        DHL is a Deutsche Post DHL brand with a vision to                  successful staff recruiting and human resources development.   FOR MORE INFORMATION
                        become “The logistics company for the world”. Our                  Ultimately we have committed people that don’t accept the
                                                                                                                                                          DHL will always strive to understand your airline
                        promise to customers is to provide simplifying services            status quo – every day, across the world, our people work
                                                                                                                                                          business needs and work with you to develop the
                        and sustainable solutions, and to always demonstrate               hard to stay informed about local markets and growth
                                                                                                                                                          most intelligent solutions.
                        respect without compromising on results.                           trends, and we proactively inform our customers about new
                                                                                           solutions and opportunities, gained from experience in other
                                                                                                                                                          Simply email Chris Jackson or Richard Cawthra at:
                        We bring together the combined strength of DHL                     markets and operations around the globe. This creates real
                                                                                                                                                          airlinebusinesssolutions@dhl.com
                        Global Mail, DHL Express, DHL Freight, DHL Global                  growth opportunities for our customers. We’re a name
                        Forwarding and DHL Supply Chain services.                          you can trust in places you may not.
                                                                                                                                                          Alternatively you can telephone DHL Supply Chain
                                                                                                                                                          on: +44 1327 308 474.
                        We aim to be the First Choice – our way of working, our            Deutsche Post DHL is not just the largest logistics
                        corporate culture, our ambition to be the first choice             company. It is also rated as one of the most innovative
                        for our employees, investors and customers. The goal of            companies in the industry worldwide. The Group
                        First Choice is to establish a customer-oriented culture           contains its innovation activities in the DHL Innovation
                        throughout the company. For us, this means offering new            Center, which opened in 2007. To bring new logistics
                        and existing customers even better services, to ensure that        products to the market, the DHL Innovation Center
                        they continue to work with us and recommend us to others.          maintains strategic partnerships with leading global
                        That is the path that will take us forward, in all divisions all   companies as well as research alliances with the logistics
                        over the world. First Choice is a central tool for us to reach     institutes of universities and societies around the world.
                        our objective of becoming the “provider of choice”, the
                        “investment of choice” and the “employer of choice”.               We continue to improve the overall customer
                                                                                           understanding and drive our organization to become
                        DHL is only as good as its employees, and that’s why we            even more customer-centric and to be first choice for
                        work hard to design policies and concepts focused on               our global customers.
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