Freight Management

DSV Solutions

2 | DSV – June, 2016

Air & Sea● Air Freight● Ocean Freight (LCL / FCL)● Inter-Modal (Short Sea / Rail)Service Levels: Budget – Classic – Priority

Special ServicesTemperature 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 ManagementTransportation Service Portfolio

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 implications2

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)

3

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

1

Control Tower

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 SettlementFreight bill audit & invoicing

Performance Reporting Carrier management (KPI)

Exception Handling Pro-active communication & corrective actions

Shipment Monitoring:Event management (track & trace)

5 | DSV – June, 2016

Freight ManagementReporting

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 | DSV – June, 2016

Performance ReportingKey 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 | DSV – June, 2016

Independent voluntary program for ‘green’ road transport in Europe

Reporting and monitoring carbon emissionso Unified European databaseo Standardised informationo Transparency / measurability

A forum for collaboration between carriers and shipperso Standardised criteria for procuremento Best practice in all transport matters

SustainabilityGreen 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 | DSV – June, 2016

Freight ManagementValue Proposition

Order Planning

Financial Control

Execution Monitoring

Performance Management

Efficient Operation

Efficient Operation

+

+

+= + = VALUE

Efficient Operation

Justified Payment

Order Visibility

Continuous Improvement

Freight Management System

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 GroupingOrders, Shipments & Carrier Selection

Orders Shipments Consignment

Carrier + Service level

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 | 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

Freight Management and Systems

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

Com

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attr

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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

Ope

ratio

nal S

ervi

ces

Global flexibility, one central view

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

Com

mer

cial

attr

ibut

esO

pera

tiona

lat

tribu

tes

Phy

sica

lat

tribu

tes

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

Ope

ratio

nal S

ervi

ces

Global flexibility, one central view

DSV OPERATIONAL SYSTEM

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

Com

mer

cial

attr

ibut

esO

pera

tiona

lat

tribu

tes

Phy

sica

lat

tribu

tes

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

Ope

ratio

nal S

ervi

ces

Global flexibility, one central view

DSV OPERATIONAL SYSTEM

DSV SUPPLY CHAIN PLATFORM