DHL Global Forwarding

Transcription

DHL Global Forwarding
Chris Fahy, COO
An excellent market position
DHL Global Forwarding, the global industry leader in forwarding with a
leading market share of 11,6 % in AFR and 8,6 % in OFR
Strong position in all regions
Globally balanced weight of the 3 main regions
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Global Forwarding organization
Global
Forwarding COO
Chris Fahy
Products / M&S
General
Air Freight
Tony Widmer
Presenting
today
Ocean Freight
Andreas
Boedeker
Presenting
today
CPM
Integration
Stephen
Chipping
Europe/CEE
Thomas
Nieszner
Strategy
Daniel
Furrer
North America
Asia
Hans Toggweiler Peter Landsiedel
Industrial
Projects
Louis Fret
BPO
Andrew Thorne
EMA
Enver Moretti
IS Demand
Ralf
Weissbeck
HR
Alison
Houldsworth
Marketing
& Sales
Mark Oxtoby a.i.
CFO
Martin Sigel
Field sales
Tradelane
Latin America
Samuel Israel
functions
Presenting
today
MNC Business
Development
Michael Young
a.i.
MNC /Bid/ sector
sales
Presenting
today
The Logistics Market in 2010: Our View
A Consolidated Market
Only a Small Group of Strong Competitors Left
Commoditization of More Products
Increasing focus on core product lines
Higher Customer Expectations
Better Value and Customization Expected
More Cross Border Trade
More International Services / Solutions
Rise in Importance of China, India, Brazil
Big Growth Opportunities
More Outsourcing
Growth in Importance of Value Adding Services
Main emphasis in 2006 has been integration
Scope
Focus Area
Organisation
Operational
platform
Branch
Mergers
Implement a standardised organisation design in all countries
Migrate all countries into the standard operational platform called Logis
Merge all overlapping branches
Customer
Solutions
Migrate all customer solutions
Products
Renegotiate global agreements
Co-load programs for AFR and OFR
Agents & JV’s
Terminate agents and implement single representative
Integration: achievements per end of November
9 Standard organisation implemented in all regions and countries
9 80 % of all countries in scope migrated to Logis
9 130 branch co-locations completed
9 95 % of customer solutions migrated
9 New carrier global agreements completed resulting in COS synergies
9 95 agents terminated (100 %)
Latest LOGIS Migration schedule – 6 December-06
2007
2006
Months
Europe
Jan
Feb
March
Apr
May
BE
Jun
Jul
Aug
Sept
Oct
ES
AT
NL
PT
IE
FI
CH
Europe
PL*
DK**
Nov
GB
SE
NO*
Dec
Jan
Feb
Mar
DE
HU
FR
CZ
Other CEE countries*
IT**
exceptions
EG*
TR*
EMA
ZA
AE***
GR*
N America
CA
Asia
NZ
US
AU
SG
S America
TW,
KR
TH
HK
ID
PH
VN
JP
MY***
IN CN
PK ***
CL*
AR*
BR*
MX
PE*
* Migration to LOGIS from non-U21 application
** Migration initially to non-LOGIS local application
*** Migration subject to JV resolution
2
3
3
0
15
21
18
10
15
5
1
8
90
100
Future plans and goals
Strategic four year program launched covering following initiatives
Sales force efficiency
Operational excellence
First Choice
Product Design & Innovation
Carrier Management
First Choice is particularly relevant to DHL Global
Forwarding

Aspiration to consistency…
provides a systematic methodology to
leverage staff skills for identifying root
causes, monitoring quality and
continually improving processes
Large number of small and
medium sized customers

No direct end-to-end control

–
Flexible processes are
required to consistently
address needs of
fragmented customer
base
Focus on consistent/efficient
products
–
… but unique challenges
DGF depends on “daily heroes”:
skilled employees making ad hoc
decisions and continuous small
improvements on the front line
First Choice allows the necessary
flexibility on country level by at the
same time opening a change
platform for global initiatives
Standard products, with
value-add, to combine
efficiency of operations with
customer orientation
Dependency on many
operational partners (e.g.
airlines, ocean carriers) limits
internal direct control on
operations and requires
extensive coordination
Global networked business

Cross-country and crossregional teams have different
operating norms
–
Product delivery requires
coordination across
regions
Trade Lane Management
Trade Lane strategy in Global Forwarding
21st Century approach to a traditional Freight forwarding sales activity with strong customer focus and
end to end service capability via Air Freight and Ocean Freight.
Management of trade lanes through bilaterally agreed budgets and business plans with clearly defined
target lists, scheduled overseas travel by a team of experts throughout the world, sales campaigns,
supported by market analysis and product initiatives.
Achieve business Growth above market
Increase market share
Product development – increased carrier
selection and service frequencies
Bilateral agreements (country/country)
Strong focus on SMC segment
Sales visits to new and existing customers
Import value propositions
Drive growth opportunities
Achieve trade lane budgets
Optimize visibility of customer segments, commodities, load factors
Customer Stability
Pipeline
Global
Revenue Split
40%
Corporate
Customers
Forwarding - Pipeline
Solid Pipeline – 20% Renewal / 80% Potential Business (YTD ’06)
Total monthly DGF pipeline is equivalent to 38% of DGF’s total
Revenue
RFQ Hit rate 35% an increase of 4% over legacy companies
Good mix across customer segments and regions.
High renewal rates on existing business.
Key element of 2007 strategy is increasing pipeline to ensure higherthan-market growth rates.
Notable Wins 2006
Outbound finished goods and inbound
equipment for global production.
Global Air freight and cross-dock
program for final mile distribution.
60%
Small,
Medium
Customers
Global Ocean freight and Air freight of
finished goods.
APAC to Europe final mile delay program.
Global Air freight and Ocean Freight.
From Service Provider
To Strategic Partner
Customer Case Study
Market Leader in roasting high –quality coffee beans sold through own
retail stores
Key Operational Dynamics:
Relationship Development:
Global and intra- Asia less-than-container load (LCL) ocean and air shipments Regional distribution centers in Singapore,
Hong Kongand Shanghai.
Retail distribution in Singapore, Hong
Kong and China.
Regional implant customer service center
in Singapore covering all Asia.
EMEA DC just awarded in Essen ,
Germany.
Result:
DHL is now viewed by this client globally across all of its regions as an internal integral logistics partner.
Key Success Factor:
Key Account Management Structure.
AMD Global Air Freight and Visibility
Advanced Micro Devices
Case Study
Electronic Components
Out-bound Finished Goods and In-bound Equipment for global
production platform in Asia, Europe, and the Americas.
Project goal
Provide AMD customers with web-based, end-to-end visibility on
their orders shipped through the DHL network or other third-party
providers (including the “final-mile” delivery component).
Enable AMD customers to track shipments with a unique reference
number through the AMD website.
DHL solution
AS AMD’s global freight partner, DHL delivers a reliable, quality
visibility tool that exceeds AMD’s expectations.
Facts and figures
Value delivered to customer
AMD is a leading manufacturer and marketer of electronic
components.
AMD customers:
Materials planning
& scheduling
accuracy
Aggregated
inventory buffer
AMD corporate:
Order planning
accuracy
Reduced shortterm capital
deployed
AMD sales:
Added and
enhanced new
business
Eliminated most
customer
inquiries for
shipments
DHL secured a two-year contract period.
AMD business to grow significantly 2007 and 2008.
Asia-Pacific region is main focus of global production for
AMD.
Europe – Air & Ocean in motion
Thomas Nieszner, CEO DGF Europe/CEE
Europe/CEE at a glance
Key Facts
32 Countries
280 Locations
8‘600 Employees
Employees
Highly skilled
No. 1 in Air Freight:
1.2 million tons (est ‘06)
No. 2 in Ocean Freight:
1.33 million TEU (est ‘06)
Highly motivated
Low attrition
rate
Europe/
CEE
33%
67%
Rest of
the world
Total 2005 = 25‘400 employees
Our Achievements
Net Revenue
Biggest
contributor
to global
revenue
Europe/
CEE
42%
58%
Rest of
the world
TOP Ocean Freight Countries (Revenue)
TOP Airfreight Countries (Revenue)
400
300
Germany
Germany
France
UK
Italy
Netherlands
UK
France
Belgium
YTD Oct ‘06
million €
Sweden
YTD Oct ‘06
million €
Our Strengths
What makes DHL GF Europe strong and unique
Products
Products
Market Leader in
Airfreight
Leading Ocean
Freight provider
Broad product
portfolio within Air
and Ocean
including value
added services
Serving profitable
niches
Strategy,
Strategy, Structure
Structure &
& Systems
Systems
Exel Integration completed extremely
successfully and synergies significantly above
plan
Tremendous buying power through our size
and intelligent European consolidation
(Starbroker & Multinational Gateway Concept)
Clients
Clients
Healthy balance in
customer portfolio
revenue
40% global/
multinational
companies
60% SME
Strong focus on optimizing and expanding
country to country trade landes
Common worldwide IT-platform linked to
carriers and clients
Presence at all airports in Europe and all
mayor seaports
Cross Selling
activities with other
business units
Strong presence in
growing industries
Æ Significant contribution to bottom line results of DPWN!
Our Portfolio
Strong in the strongest Industry Sectors
Niche Excellence…
…completes our product portfolio
and contributes to profitable
organic growth.
Life
Life Science
Science
&
& Chemicals
Chemicals
Audio
Audio Video
Video
Telecom
Telecom
Automotive
Automotive
Motor Sports
Consumer
Consumer
Products
Products
&
& Services
Services
Complete logistics packages
related to any kind of racing
event, most famously the
Formula 1.
Electronic
Electronic
Components
Components
Beaujoulais
Engineering
Engineering &
&
Manufacturing
Manufacturing
Electronic
Electronic
Equipment
Equipment
Within the timeframe of 9 Nov
to 16 Nov two million bottles
were delivered to the furthest
places in
the world
for the past
20 years.
Future Plans & Opportunities
Econ. Environment
Prospering regional
economy within
Europe in the next
years
New Market potential
with expansion of
European Union
Our Assets
DGF Europe: mid-term growth plan
Net
Net Rev
Rev Growth
Growth
Return
Return on
on Sales
Sales
Dominant presence in
growing industries
(Pharma, Biotech, …)
Financial resources
to further expand into
new markets
Full sales pipeline for
clear visibility of future
business with existing
and new customers
Logistics sector
growing above GDP
06 07 08 09
06 07 08 09
Selection of initiatives to boost growth for DHL Global Forwarding Europe
First Choice
Ocean Drive
Airfreight PLUS
Be the preferred service provider for
our customers
Therefore intensifiying customer focus
& perfectionizing quality
Strategic regional sales
initiative to significantly
increase the transatlantic
Ocean Freight volume
Intra-European Airfreight
product with high bottom
line contribution
Asia
Peter Landsiedel, CEO DGF Asia-Pacific
Asia Pacific at a Glance
DHL
DHL is
is the
the clear
clear market
market leader
leader in
in Asia
Asia Pacific
Pacific
Regional head office:
Singapore
AP Global Forwarding Staff:
Approx. 8,000
Countries:
23 (5 sub regions)
Locations:
123
Highly secured locations:
22 (TAPA certified)
Ocean freight
Airfreight
Undisputed
Undisputed market
market leader
leader in
in
LCL
LCL product
product
The
The Top
Top airfreight
airfreight forwarder
forwarder in
in
Asia
Asia Pacific
Pacific (IATA
(IATA ranking
ranking #1)
#1)
Over
Over 660,000
660,000 TEU
TEU in
in 2005
2005
More
More than
than 1,200,000
1,200,000 tons
tons in
in
2005
2005 (export
(export &
& import)
import)
More
More than
than 180
180 ocean
ocean freight
freight
operational
operational locations
locations in
in AsiaAsiaPacific
Pacific
96
96 airfreight
airfreight facilities
facilities in
in AsiaAsiaPacific
Pacific
Asia Pacific – Integration
Status
Status Quo
Quo
9 Countries are already integrated (AU, JP, KH, KR, NZ, SG, TH, TW, VN)
Lean organization and management teams are in place in all countries which enabled
DGF to further improve cost basis
Dedicated heads in integrated “back office” functions ensure a stronger focus on previous
challenges
Productivity went up in all countries which were migrated to the new system
A clear governance structure between all business units in place (DHL Exel Supply
Chain, DHL Express, DHL Global Mail)
Scale of DGF Asia Pacific business volumes result in strong position with carriers
Next
Next Steps
Steps
6 countries (incl. Hong Kong, China and India) will be integrated in 2007
Review sessions to further improve profitability & productivity
Customer Satisfaction Surveys in all migrated operations
Driving Asia Pacific: China & India
China
India
Strong Market Position
Coverage 44 locations in 23 cities
Coverage 44 locations in 21 cities
Employees 2,100 FTE
Employees 1,300 FTE
Warehouse space 116,700 sqm
Warehouse space 242,700 sqm
Establishment DDAO 1991, Exel 1984 (ExelSinotrans JV, since 1996)
Establishment DDAO 1996, Exel 1997
Offices more than 37 branch offices
Air Freight 89,000 tons (2005)
Air Freight 226,000 tons (2005)
Ocean Freight 37,000 TEUs (2005)
Offices 21 branch offices
Ocean Freight 280,000 TEUs (2005)
Huge Investments in the past three Years
Investments Double digit EUR spending to ensure
leading market position (2004 - 2006)
Investments Double digit EUR spending to strengthen
network & coverage (2004 – 2006)
Bright Outlook for the Future
Saint Gobain Global Ocean Freight LLP
Case Study
Saint Gobain
Engineering and Manufacturing
Global Ocean Freight Lead Logistics Provider (LLP) and sole
shipping agent to support production and sales locations.
Project Goal
¾ Optimize logistics operations and extend cooperation geographically
with core carriers.
¾ Provide support for strategic expansion plans in emerging markets.
DHL Solution
¾ In its capacity as global LLP, DHL coordinates with carriers on rates,
and deploys an analysis tool to optimize cost and quality.
Facts and figures
Value delivered to customer
Fulfilment of
carrier contracts
100%
Overall transport
costs
Expansion into
emerging
markets
In-house resource
spent on
freight planning
and coordination
¾ Saint Gobain delivers virtually every kind of glass, refractory products
and material that is used in buildings and cars throughout the world.
Integration of
services across
the supply chain
¾ Saint Gobain has more than 1,200 consolidated businesses and is
present in more than 50 countries.
Time spend
on freight
procurement and
related activity
¾ DHL’s scope of services are expanding into oceanfreight LCL, airfreight, warehousing, as well as domestic road transport
¾ Total shipments with DHL grew from 9,000 in 2004 to 30,000 in 2006.
Recognized by Peers & the Media

DGF won Best Air Freight Forwarder award at the 2006 Asian
Freight & Supply Chain Awards

DGF won Airfreight Forwarder of the Year at the inaugural
Lloyd’s List FTB Asia China Logistics Awards 2006

DHL Danzas Air & Ocean Lemuir in India was presented with the
Award for Excellence by NEG Micon

DGF won Airfreight Forwarder of the Year at FTB Asia’s
Logistics Awards 2006
Leading in Quality & Sustainability
Quality Certification (ISO 9001:2000) & Environmental
Certification (ISO 14001)
A total of 14 countries including the regional office covering 157
sites are certified to Quality & Environmental Management
Systems in the Asia Pacific Region
Quality & Environmental Integration
Strong commitment to Corporate
Sustainability in Asia Pacific
Our way forward
Delivering on “First Choice”
– Customer relationship
– People development
– Product quality
– Innovation (new fields)
Consolidating Integration
– Continuing customer and employee retention
– Delivering on synergies
– Review of productivity & profitability
Improving Cost Management
North America
Chris Fahy, COO
DHL Global Forwarding: North America
Recognized No. 1 Logistics Provider in North America and globally
Four successive profitable years
Canada and USA
2005
2006(E)
Employees
3,480
5,213
Offices
75
125
Shipments
2.8 M
3.2 M
Exel Freight Management integration on schedule and in final phase.
DHL Global Forwarding: United States
There is a certain peace of mind that comes with leadership
United States

111Offices
70 Dedicated Brokerage Offices
4,881 Staff
Operating: 1935
Certification: ISO 9001:2000,
No. 1 in Airfreight in the United States
No. 1 in less-than-container-load (LCL) ocean freight
One of the top 3 leaders in customs brokerage and import services
4th largest non-integrated domestic heavyweight logistics provider
Key Tradelanes are 1. Europe and 2. Asia
DHL Global Forwarding: NAFTA
The link for shipping finished products or parts between the US, Canada and
Mexico

Northern and Southern Border
Infrastructure and Services:
– Comprehensive end-to-end solutions
to importers and exporters trading
between the largest trading partners
in the world.
– Unmatched network of 27 dedicated
brokerage offices strategically
located on the Canada/U.S. border
and 5 at the U.S./Mexico border.
– Unique, personalized solution based
on customers’ specific needs
DHL Global Forwarding: Achievements
The most challenging deliveries in the world are what we do every day
Customer Recognition:
– Moen: “Creativity Unleashed” Award for
supplier innovation and excellence.
– Unique Industries: recognized DHL Global
Forwarding with its “Distinguished Service Award.”
Logistics Management Magazine: awarded 2006 “Quest for
Quality" award in the category of freight forwarding
Case Study: Moen
Winning Innovation for Moen Incorporated
Moen is the number one brand of faucet in North America
Customer Needs: Recently restructured its operations and
asked vendors to think strategically and not focus on
tactical execution.
Action Plan: DGF re-engineered Moen’s trans-Pacific allwater supply chain to a 28 day “trans-load” service.
The Result: The service, supported by real-time pipeline visibility
1. Cut transit times by 11 days.
2. Slashed inventory costs
3. Reduced Moen’s reliance on expensive air freight
Airfreight
Tony Widmer, Head of AFR
Airfreight at DHL Global Forwarding
Airfreight
No. 1
Airfreight
Top 7 Companies
(2005 Market Share In % By
IATA Turnover )
>2x
3.9
1.8
DHL Global Forwarding1)
11.6
6.8
2.2
Schenker/BAX Global2)
2000
Nippon Express
5.2
64.2
(Volume In Mio. Ton)
3.5
3.1
2.9
2.7
Kühne + Nagel
Expeditors
Kintetsu
Panalpina (excl. ASB)
Other
Market Volume3):
€ 19.8 bn
1) Pro
1) Pro
Source: IATA/CNS and corporate estimates
2005
1)
forma, 2005
Over 6’500 operational air freight experts
worldwide
Over 600 air freight offices/terminals (excl.
agents)
Airline net turnover 2.4 Billion EUR (excl.
surcharges)
forma, 2005
Pro forma, combination of Schenker & BAX Global in 2005
3) Data originates from IATA report and does not refer to airfreight sales as published by the companies
2)
2004
Airfreight Products Portfolio
Air First
Priority uplift
Airport-to-airport or door-to-door
Individual handling and monitoring
Clear transit time statement
Charter
Full and part charter
Flexible capacity
For routes with limited commercial
lifts, during peak seasons or for
oversized cargo
Air Premier
Combines price and time
Airport-to-airport or door-to-door
Scheduled direct services with

prime carriers
Clear transit time statement
Sea/Air
Combines speed of Air Freight with
economy of Ocean Freight
Asia to Europe and Latin America
For All Products (Incl. / Opt.)
Air Value
Economy service, for less time

sensitive freight
Lower air freight rates
Routing mainly via gateways
Defined transit time statement
Dedicated Customer Program

Management (CPM) offerings
No weight or size restrictions
(subject to aircraft type)
Tracking and tracing
Customs clearance, pick-up and
delivery
Integration Benefits
Network
Increased and upgraded Station / Country Network
Offering
Enlarged service offering (increased consolidations services
and frequencies)
Quality
Less risk due to increased built up through units and increased
Quality
Productivity
Productivity synergies
Set-up
Clear communication, planning and implementation as well as
dedication on all levels created minimal integration issues
Customer
Customer “first policy” throughout the entire integration process
Carriers
Best positioning with all major airline partners
Outlook
Finalization of integration Q1 2007
Stabilization (make robust) all basic processes, best practice
Expand in-house carrier offering:
- Strategic network management
- Balance with global carrier management
- Optimize network opportunities
Increase and further expand interface between StarBroker and DHL
Aviation to build up strategic markets and improves economies of scale
Further enhancement of capabilities:
- Staff (Training on all levels)
- Equipment (IT)
- Infrastructure
Positioning
Remain The Leader In Global
Airfreight Services By
Exceeding Expectations
In Providing Excellent,
Safe And Environmental
Responsible Service
Oceanfreight
Andreas Boedeker, Head of OFR
Ocean Freight At DHL Global Forwarding
Oceanfreight
No.11
No.
Oceanfreight (Volume In Mio. TEU)
Top 4 Companies
(2005 Market Share In %
By Twenty Foot Equivalent Unit)
>2x
2.0
1.1
DHL Global Forwarding1)
8.6
0.7
Kühne + Nagel
8.3
Schenker
2000
4.3
4.0

2005 1)
Panalpina
1) Pro
74.8
Other
Market volume2): 22.9 m
Twenty Foot Equivalent
Unit (TEU)

worldwide
More than 330 operational locations
Close to 2’000’000 m3 of LCL* annually
More than 35’000 weekly point pairs for LCL*
globally
*) LCL:
forma, 2005
Estimated part of overall market controlled by forwarders
Source: Global Insight Trade Databank, annual reports/publications and corporate estimates;
forma, 2005
Approximately 3’300 operational experts
1) Pro
2)
2004
Less than Container Load
Ocean Freight Core Products
LCL (Less than Container Load)
Operated through “Danmar Lines“, the NVOCC* of DHL Global
Forwarding
Defined global routing matrix with over 35,000 point pairs
Routing via dedicated gateways through own feeder concept
* Non Vessel Operating Common Carrier
FCL (Full Container Load)
Centralized purchasing through “Danmar Lines”
Long-term agreements and EDI** links
with partner/core carriers
Container inland logistics
through competence centers
** Electronic Data Interchange
Non Containerized Load
Oversized project cargo management through a dedicated team
of industrial projects experts
No weight or size restrictions
Oceanfreight
Logistics
Extended Product Portfolio
DHL Global Forwarding Ocean Freight Logistics
Basic OFR Services
Ocean Freight
- FCL
- LCL
- Break Bulk, Projects
Traditional OFR Value Adds
Trade documentation
Additional OFR Related Activities
Warehousing, Distribution
L/C Handling / Banking
LLP / 4PL (Control Tower)
Insurance
Local Pick-up
Quality Inspection
Buyer’s Consolidation
Inland Freight
Transit Warehousing
Drayage
CFS Management
Port and Terminal Activities
P/O Management
Customs clearance
Tracking & Tracing
Information Flow
Advanced Visibility Tools,
Information Flow
- DHL Interactive
- Transportation plus
- Ocean Cargo Management
- Logistics Management
Services
Information
Transportation
Flow
Flow
Visibility, Transparency
From Door to Door
The Ocean Freight Process
Oceanfreight Challenges
Transportation
Chain
The overall transportation chain remains
an important issue as effectiveness of
global supply is heavily reduced by
delays
Operating
Costs
Carriers operating costs rise because of
extended vessel turnaround times, full
speed sailing, seeking of different
gateways
Terminals
Terminals are under pressure due to the
explosively increase in container
volumes and the terminal infrastructure
could become the bottleneck fro growth
in the future
Port
Congestions
Port congestions will almost certainly
return very soon without a big
investment in new capacities
Why Do More Customers Choose DHL?
Deep Global Coverage
Leverage Of Scale: Best Price And Guaranteed
Space
Sophisticated Cargo And Information
Solutions
Flow
Flexibility Range: From Standard To
Service Portfolios
Tailor Made
Inland Logistics and In-House
Concept (LCL – FCL)
Carrier
Multiple Carrier and Port Alternatives
Outlook
The DHL Global Forwarding Oceanfreight Wave Forward
Further
Refining/Reshaping
Our Core Carrier
Policy, To Ensure
Maximum Price And
Service Leveraging
Expansion Of LCL
In-house Carrier
Network By
Increasing Direct
Connections
Further Improving
And Strengthening
Of Our
Operational
Processes,
Reduction Of
Interfaces
Attract Best Industry
Talent For DHL,
Through Our
Employee Value
Proposition And
Consequently Give
The Customer The
Best In Market
Logistic Solution
Conclusion
Chris Fahy, COO
Why is Forwarding attractive?
Low asset base
High growth potential
Global coverage
Large customer base
Product offerings are time definite
and cost sensitive
Cash generating
Market driven by global trade
Looking forward to the future!