SUPPLY CHAIN EXCELLENCE. SIMPLY DELIVERED. · Number one global contract logistics provider ... Source: Based on a presentation given by Richard Douglass, IBM, at the University of

SUPPLY CHAIN EXCELLENCE. SIMPLY DELIVERED.

DHL Supply Chain

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26th November, 2015

IST

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2Presentation title | Location | xx Month 20xx

1 Trends & challenges

Major trends and threats that impact supply

chains worldwide

2 Deutsche Post DHL Group facts and figures

One company with two strong pillars

3 DHL Supply Chain facts and figures

Number one global contract logistics provider

4 DHL Supply Chain portfolio

Solutions across the entire supply chain

5 Operations excellence

Achieving excellence together

6 IT solutions

Customizing solutions to meet your needs

Agenda

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Major trends that impact supply chains

Four major driving trends shape commerce globally and threaten to disrupt

supply chains

What happens in one sector shows up in an entirely different sector

Continually escalating expectations for service, price and performance

Competition can come from anywhere at anytime

Consumerism andboundary bleed

Engines of demand with growing middle class and

urbanization

Rising consumer expectations

Lack of transportation infrastructure, adequate warehousing space and

even supply chain expertise in some

markets

Emergingmarkets

Increased speed of business

Increased interconnectedness

Highly complex, intertwined and fast market place which

creates enormous risks and volatility

Fast, lean and risky

Trade flows are shifting away from long-distance and east-west orientation

Regionalized supply chains in which goods are

produced and sold/ consumed in the same

geographic region

The rise of regionalism

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What it takes to build a resilient supply chain

The fast, lean and resilient supply chain has emerged as the new model to

face the major trends. It balances efficiency and cost management with contingency capacity, scale and capability

Market research

R&D/product design

Manufacturingdesign/

engineeringProcurement Manufacturing Logistics

Vendors and suppliers OEMs

Traditional supply chain – linear and siloed

• Functional departments are kept isolated, despite working along the same chain

• Separation has important benefits, but it leads to a lack of collaboration and information mismanagement

• Throw it over the wall: departments complete their portion of the process without a comprehensive hand-off or sharing

of information

• Supplier centric

Source: Based on a presentation given by Richard Douglass, IBM, at the University of Maryland, 2013

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What it takes to build a resilient supply chain

The fast, lean and resilient supply chain has emerged as the new model to

face the major trends. It balances efficiency and cost management with contingency capacity, scale and capability

• Immediately responds to all

customer demands – demand

driven

• Accurate visibility and real-time

information across the extended

chain

• Continues to optimally synchronize

its network within the market place

• Integrates across the entire

business from customer, partners,

supplier and service providers

Vendors

Outsourcingpartners

Other 3rdparties

Otherparties

OEMs

Suppliers

Customeralignment

Smarter demand driven supply chain

Source: Based on a presentation given by Richard Douglass, IBM, at the University of Maryland, 2013

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chains worldwide









6 IT solutions


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A strategic resource to optimize your supply chain

DHL Supply Chain is part of the Deutsche Post DHL Group with a global

network and an extensive logistics portfolio

1) 2014 figures; Including Corp. Center/Other/Consolidation

Employees: ~ 488,000/Revenue: EUR 56.6bn1)

One team: Professional, diverse, and in tune with market needs

Focus on governance/ownership tasks

Stand alone divisions connected by a common management approach

Joint key account management and focused shared service unit

One global team

Lean corporate center

DHL Customer Solutions & Innovation

Selective group-wide shared functions and services

EXPRESS

GLOBAL

FORWARDING,

FREIGHT

SUPPLY CHAINPost – eCommerce – Parcel

(PeP)

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chains worldwide









6 IT solutions


Agenda

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DHL Supply Chain Strategy 2020: Focus.Connect.Grow.

DHL Supply Chain Strategy 2020 – Three pillars

Define the logistics industry globally through standardized, cost

efficient, high quality and innovative solutionsVISION

Presentation title | Location | xx Month 20xx

Shift the portfolio – sectors,

products, geographies…

Grow

Create an effective

organization globally…

Connect

Drive standardization and

reduce complexity…

Focus

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How will we define the logistics industry?

We will CERTIFY all of our global employees to ensure they have the same

skills and shared mindset to deliver quality leadership and service excellence in every market we serve

As the world’s largest logistics

company we are an important part of global trade, making us an essential part of every day life.

If we don’t do our job, then your customers and ultimately your business suffers.

To ensure all of our people know the importance of the part they play, we developed the world’s first global certification program the Certified Supply Chain Specialist (CSCS) Program.

It underpins our 2020 aspirations to drive greater success for ourselves and our customers.

Logistics

knowledge & skills

.

Our ‘Can Do’ attitude makes

sure we get the job done.

Customer

focused mindset

We are ‘Passionate’ about

what we do as a team for

our customers and will

always strive to go the extra

mile.

Consistent

behavior & approach

We will always pride

ourselves on getting it

‘Right First Time’.


The DSC Essentials

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DHL Supply Chain – Number one global contract logistics provider

1) Market share more than 3 times higher than No. 2; Highly fragmented market estimated at EUR 168bn; top 10 players account for about 21% of the overall market;

2) Countries with significant supply chain revenue, DPDHL is present in more than 220 countries and territories; 3) Square meter warehousing space

● Excellent operations and innovative solutions across the supply chain

● Supply chain solutions based on industries’ requirements and needs

● Network of approx. 146,000 experts in56 countries and territories

● >13.7 million square meters warehouse space

● Global market leader with 8% market share1)

● EUR 14.7bn in annual revenue in 2014

DHL Supply Chain presence

Getting you aheadof your competitors

AHEADAHEAD

industry sectorsKEYKEY

• Energy & Chemicals // Automotive Technology // Engineering & Manufacturing // Retail // Life Sciences & Healthcare // Technology // Consumer

13,740,0003)

Square meter

1,600Customers

2590Locations

~146,000Employees

# of countries2)

Americas >13

APMEA >22

Europe >21

Revenue split | %

Americas 26

APMEA 14

Europe 60

Other DPDHL Group operations

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Well-established provider for global leaders

The majority of industry leaders trusts us to manage their supply chain

1) © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates, share of DHL customers on top 25

2) Sector rankings top 15 by revenue, figures taken from Annual Reports and Onesource

24/25

GARTNER TOP 25

Serving the worldwide best rated supply chains1) Serving key players across all vertical industries2)

Life Sciences & Healthcare

0 5 10 15

Retail

Technology

Engineering & Manufacturing

Energy & Chemicals

Consumer10/1510/15

7/157/15

12/1512/15

8/158/15

12/1512/15

13/1513/15

Automotive13/1513/15

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DHL in Gartner’s global 3PL magic quadrant study 20141)

DHL is positioned in the “Leaders” quadrant of the global 3PL magic

quadrant study 2014 by Gartner, Inc.

Challengers

Niche players

Leaders

Visionaries

Completeness of vision

Abili

ty t

o e

xecute

DHL

Kuehne+Nagel

DB Schenker

Agility

UTi

SDV

Pantos Logistics

DSV Damco

Ceva

UPS Supply Chain Solutions

Expeditors

Source: Gartner (May 2014); 1) Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only

those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact.

Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose

Key strength of DHL

• Wide range of industry-leading solutions across DHL’s focus sectors

• Global reach of 3PL capabilities (220+ countries)

• High-performing services across DHL

• Strong understanding of market dynamics and execution along evolving customer/industry needs

• Track record in executing on solution design

• Forward-looking talent management

• Robust technology platforms

• Healthy financial position

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chains worldwide









6 IT solutions


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Whatever your need is we have the right solution

Integrated Supply

Inbound Supply Chain Management

Source

Manufacturing Logistics

Make

Distribution Logistics

Deliver

Aftermarket Logistics

Service Logistics

Return Logistics

Return

Supply Chain Consulting (SCC)

Lead Logistics Provider (LLP)

Plan

Our core services: Warehousing | Transportation | Value Added Services | Management ServicesOur core services: Warehousing | Transportation | Value Added Services | Management Services

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Supply chain solutions across key industries

We understand your business needs

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chains worldwide









6 IT solutions


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Operations excellence: Creating real value for your business

You benefit from our vast operational experience regardless of wherever

you are thanks to our global approach to managing operations

Standardization

Simplification

Continuousimprovement

We standardize our service offerings and operations management capabilities

We actively promote best practice sharing and innovation in our operations

We drive simplicity into our sites globally by streamlining our activities and tools

We engage all of our people and tap into their enthusiasm and expertise to make continuous improvement part of our DNA

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We both set KPIs to assess our performance and we closely track and analyze them to ensure our services meet agreed targets

Performance measurement


How we work together to achieve excellence

Continuous employee commitment and involvement is the binding factor

across all disciplines, which delivers real benefits for our customers

Our solution design experts tap into our collective global experience, local insights and proven industry best practice to design solutions that meet your business needs

Solutiondesign

We commit the right expertise and resources to ensure your solution is implemented on time and on budget

Our team works with you to mitigate the risks any new projects bring

Project management

Our trained operators ensure minimum operational standards are met everyday, and are responsible for the health and safety of everyone on site

Operations

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How we work together to achieve excellence

We work closely with our customers to ensure we deliver the flexible service

they need to make their business a success

We deliver real benefits to our customers

Cost effective operations

Customer loyalty

Innovation

Meeting your business needs

We set high standards that comply with international quality standards and local regulations, and set the benchmark for the industry

Qualityassurance

We have a culture of continuous improvement and the right tools and skilled facilitators to drive process improvement initiatives that make a difference to your operations

Processimprovement

We make a commitment to our customers to stay engaged with you, creating joint business plans, conducting regular business reviews so we can react quickly to your evolving needs

Accountmanagement

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DHL Supply Chain health and safety strategy

Leading the industry by delivering a „Safety First“ culture for our

colleagues and customers


MoralInjury prevention

Safer and moreeffective workplace

Behavior based safety

Transport safety

Distribution center safety

Absence management

Resource optimization

Sector alignment

Reduced cost, greater efficiency and service

EconomicBusiness value

SAFETYFIRST

!

LegalImproving resilience

Global standards

Reporting & investigation

Robustlegal compliance

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chains worldwide









6 IT solutions


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We customize our IT solutions to meet your needs

We offer world class IT products, customized to meet your needs and

manage your risk, allowing you to manage your business more effectively

You

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THANK YOU

Documents

SUPPLY CHAIN EXCELLENCE. SIMPLY DELIVERED. · Number one global contract logistics provider ... Source: Based on a presentation given by Richard Douglass, IBM, at the University of