DHL Introduction for ICN FTZ Business
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1 DHL Introduction for ICN FTZ Business
2 AGENDA 1. DHL Vision and Mission 2. DHL Service Portfolio 3. DHL Korea Introduction 4. DHL ICN FTZ Capability 5. IT Solution 6. Account Management 7. Continuous Improvement Plan 8. Transition Management ICN FTZ Seminar Korea Apr 2009 Page 2
3 Vision & Mission Our Vision - To lead the Logistics industry into a new Era of Innovation, Quality, Productivity, employee Opportunity and Social Responsibility Our Mission - Making the most of our collective Passion, Experience and Scale, to build the best logistics company and become our customers and our employees first choice worldwide. World Class Logistics for the 21 st Century Building the Best Our Six Strategic Steps Consistent Service Globally Attract, Retain & Develop Talent, Globally Intensify Customer Focus Relentlessly Improve Efficiency Extend Capabilities Proactive Social Responsibility Our Brand Values Proactive Solutions Personal Commitment Local Strength Worldwide Our Business ICN FTZ Seminar Korea Apr 2009 Page 3
4 AGENDA 1. DHL Vision and Mission 2. DHL Service Portfolio 3. DHL Korea Introduction 4. DHL ICN FTZ Capability 5. IT Solution 6. Account Management 7. Continuous Improvement Plan 8. Transition Management ICN FTZ Seminar Korea Apr 2009 Page 4
5 CONTRACT LOGISTICS > Portfolio DHL Service Portfolio DHL Supply Chain Integrated Solutions Manufacturer & Raw Materials Export / Import Activities Primary Movement Distribution Centers Secondary Movement B2B & B2C Distribution After Sales Services Sector Solutions Automotive / Industrial Healthcare / Life Sciences Retail / Fashion Consumer Technology / AeroSpace Inbound to manufacturing Clinical trials logistics International supply chain Contract manufacturing Inbound to manufacturing Service and Pharmaceutical management Co-packing Technical replacement parts Engineering response grade logistics Temperature assured Direct to pharmacy Distribution to stores In store logistics Home delivery Shared-user and campus solutions Ambient and temperature control distribution Technical services Service parts logistics ICN FTZ Seminar Korea Apr 2009 Page 5
6 CONTRACT LOGISTICS > Industry Solutions > Technology DHL Service Portfolio_Technology The Challenges Product life cycles are becoming ever-shorter, while at the same time, manufacturing and distribution locations rapidly change to meet the need for quick and low-cost sources of supply. DHL provides specialized services covering inbound and manufacturing logistics, distribution, installation and commissioning for fragile and sensitive equipment, aftermarket solutions, and exchange / return logistics. Wherever appropriate, shared-user and vendor hub solutions are used to maximize the economies of scale for customers. Supply Chain Solutions Inbound Logistics inbound to manufacturing Supply Chain Management supply chain partner transport management services Air and Ocean forwarding, Road and Rail freight Manufacturing Logistics kitting and packaging configuration assembly Distribution Logistics warehousing and distribution staging/deployment technical distribution Reverse Logistics environmental compliance asset recovery Service Logistics service parts logistics return logistics exchange logistics Key Customers 3Com Apple Canon Dell Ericsson Fujitsu Honeywell HP IBM Logitech Cisco Motorola Nokia KLA TENCOR Lam Research FSI Seoul Semiconductor Toshiba Unisys Agilent Orange Ricoh Sony Sun Microsystems Sensata Xerox ICN FTZ Seminar Korea Apr 2009 Page 6
7 AGENDA 1. DHL Vision and Mission 2. DHL Service Portfolio 3. DHL Korea Introduction 4. DHL ICN FTZ Capability 5. IT Solution 6. Account Management 7. Continuous Improvement Plan 8. Transition Management ICN FTZ Seminar Korea Apr 2009 Page 7
8 DHL KR Introduction_Organization DHL Supply Chain KR has professional resources to support the customer business success. SPL (Service Parts Logistics) team is specialized and focused on Hi Tech customers. Country Manager Technology Account Team Business Development Service Parts Logistics Finance HR IT Procurement Operation / Excellence Business Development (FG) Solution Design & Implementation Business Development Account Management Operation Excellence / Quality Mgmt Operation Mgmt ICN FTZ Seminar Korea Apr 2009 Page 8
9 DHL KR Introduction_Business Experience DHL Supply Chain Korea has experiences covering all industry sectors in 3PL. (Hi-Tech / Total KR Biz 55%) ICN FTZ Seminar Korea Apr 2009 Page 9
10 DHL KR Introduction_Site Information Item Figure Employees Number of warehouse location Warehouse space (SQM) ,911 ICN FTZ Seminar Korea Apr 2009 Page 10
11 DHL Introduction_Quality Certificate DHL Supply Chain quality management, continuous improvement system ensures best in class supply chain operation management. ICN FTZ Seminar Korea Apr 2009 Page 11
12 AGENDA 1. DHL Vision and Mission 2. DHL Service Portfolio 3. DHL Korea Introduction 4. DHL ICN FTZ Capability 5. IT Solution 6. Account Management 7. Continuous Improvement Plan 8. Transition Management ICN FTZ Seminar Korea Apr 2009 Page 12
13 Total Solution Provider DHL ICN FTZ Capability_Total Solution Total Solution Provider can offer the optimal supply chain services. Int l Freight Express Global Forwarding Lead time-driven (Express Service) Small volume Cost-driven Large volume DHL Express DHL Global Forwarding Local Service Local Distribution Warehousing Various option for service level - SDD (Same day delivery) Direct Trucking - NBD (Next business day) Global Leading Contract 3PL DHL Supply Chain Customs clearance Partnership with Korea #1 agent for Customs Service ICN FTZ Seminar Korea Apr 2009 Page 13
14 DHL ICN FTZ Capability_DHL Location All of the DHL Business Units are located in the Incheon Airport strategically to develop ICN FTZ business and support the customer business more effectively in timely manner. Mooring Area DHL Warehouse (AMB) DHLE DGF DEL CCU MAA BKK PEK CAN KUL SIN HKG SPK ICN NGO OSA SHA TYO FUK OKJ TPE Mooring Area Terminal Area Free Trade Zone SY MEL D *abstract from AKL ICN FTZ Seminar Korea Apr 2009 Page 14
15 DHL ICN FTZ Capability_DHL Supply Chain [ Features of Warehouse ] Newly Built Up: Jan 2008 Facility Owner : AMB (Global top 3 Invest and Leasing Company) Space: 3,453sqm Specification : A Class Warehouse a. Height: over 10m b. Sufficient No of Docks & Truck Accessibility - Wide & Deep Canopy: Wing type accessibility c. High Flexibility of Space Expansion d. Energy efficient Lighting fixtures - Energy efficient Lamp - Indirect Sun-lighted e. Security system with CCTV ICN FTZ Seminar Korea Apr 2009 Page 15
16 DHL ICN FTZ Capability_Forwarding [ Incheon (IILC) Gateway facility ] Invested 1.5 million Euro Established in 2004, Total Space 2,209 sqm Total capacity to handle; 45,000 tonnage Participated in consortium by Korea International Freight Forwarders Association in Build-Operate-Transfer Leased 50 years from the Government Air Export, Import and warehousing [ IACT Air Import facility ] Invested 0.5 million Euro Established in 2001, Total Space 485 sqm Total capacity to handle; 10,000 tonnage Leased 50 years from the Government Specialized bonded warehouse for import shipment ICN FTZ Seminar Korea Apr 2009 Page 16
17 DHL ICN FTZ Capability_Express Facility size - Building footprint area : 10,491sqm - Gross floor area : 19,946sqm - Land size : 17,000sqm Handling capacity - 13,500 pieces (1 st phase) / hrs Project investment Million Euro Truck and ULD loading/unloading capacity - Truck un/loading positions : total 25 - ULD un/loading positions : total 116 (LD3 position) Others - 20 years Concession period - Direct access to airside ramp - Full auto-sort of parcels + manual flyer sort - 7 X-ray machine (3 auto X-ray + 3 manual + 1 NCY X-ray) - 11 telescopic conveyors + total 1,000m powered conveyor line ICN FTZ Seminar Korea Apr 2009 Page 17
18 DHL ICN FTZ Capability_Customer Seminar DHL Supply Chain KR successfully co-hosted the ICN FTZ seminar high-lighting the advantage of ICN FTZ and DHL s core solution at Ritz Carlton Seoul on 26 March, Co-hosted by DHL and IIAC (Incheon Int l airport Corp.) with ICN airport Customs office and MoKE - Over 100 customers from global companies in Korea including Samsung & other semicon. equip. companies ICN FTZ Seminar Korea Apr 2009 Page 18
19 AGENDA 1. DHL Vision and Mission 2. DHL Service Portfolio 3. DHL Korea Introduction 4. DHL ICN FTZ Capability 5. IT Solution 6. Account Management 7. Continuous Improvement Plan 8. Transition Management ICN FTZ Seminar Korea Apr 2009 Page 19
20 IT Solution_Line Up DHL has full IT line up to support the customer requirements effectively with the most reasonable cost. High WM500 Cost Med WM300 SeLECT for SPL Heavy Low Operation Support Tool WM100 Medium Light Basic Standard Advanced Functional Complexity & Scale ICN FTZ Seminar Korea Apr 2009 Page 20
21 IT Solution_WMS INTERFACE DHL IT Solution is architected to minimize the number of interface touch points with an ERP/Host system. Customer ERP DHL WMS Goods Receipt Sales Order Confirmation Status Change Inventory Adjustment Inventory Snapshot (Middleware And/Or VAN Gateway) DHL Integration Hub PO ASN Sales Order Status Change Batch Master Item Master Web Visibility Workstation RF Devices Database Server Application Server Inventory Master Data ICN FTZ Seminar Korea Apr 2009 Page 21
22 AGENDA 1. DHL Vision and Mission 2. DHL Service Portfolio 3. DHL Korea Introduction 4. DHL ICN FTZ Capability 5. IT Solution 6. Account Management 7. Continuous Improvement Plan 8. Transition Management ICN FTZ Seminar Korea Apr 2009 Page 22
23 Account Management Key Account Manager as a single contact point may support all commercial / operational issues and provides the solution to the customer on request. DHL Customer Issues/Complaints: Transportation Logistics Return & Repair Partner Billing Resolution (agreed schedule) Transportation, Logistics, repair Partner, billing issues Performance data reactive Proactive data sharing Account Manager (Site Manager) Transport problem & Resolution Logistics problem & Resolution Repair problem & Resolution Partner problem & Resolution Billing problem & Resolution Transportation Warehousing Repair Vendor Service Partners Billing DHL Functional Partners ICN FTZ Seminar Korea Apr 2009 Page 23
24 Account Management_KPI Every operation maintains a report that highlights customer-specific KPIs and reports these to DHL and Customer top-level management on a weekly & monthly basis Scorecard Menu Menu Performance summary table table Performance Charts Charts Daily Daily performance management ICN FTZ Seminar Korea Apr 2009 Page 24
25 AGENDA 1. DHL Vision and Mission 2. DHL Service Portfolio 3. DHL Korea Introduction 4. DHL ICN FTZ Capability 5. IT Solution 6. Account Management 7. Continuous Improvement Plan 8. Transition Management ICN FTZ Seminar Korea Apr 2009 Page 25
26 Continuous improve plan_first Choice First Choice is a permanent, corporate-wide approach to continuously meet & exceed our Customers Supply Chain objectives and expectations How can we ensure we consistently deliver and improve the Customer Experience? 5 Control 1 Define What is important to our customers? 4 Improve 2 Measure How are we doing against Customer Expectations? 3 Analyze How can we improve Customer Experience? How can we assess strengths and areas of opportunity in meeting customer expectations? ICN FTZ Seminar Korea Apr 2009 Page 26
27 Continuous improve plan_first Choice Activity DHL Quality Assurance Dept conduct a Process Improvement Methodology Workshop at each operation to identify improvement projects and monitor until closure. ICN FTZ Seminar Korea Apr 2009 Page 27
28 AGENDA 1. DHL Vision and Mission 2. DHL Service Portfolio 3. DHL Korea Introduction 4. DHL ICN FTZ Capability 5. IT Solution 6. Account Management 7. Continuous Improvement Plan 8. Transition Management ICN FTZ Seminar Korea Apr 2009 Page 28
29 Transition Mgmt_Project Management For a successful transition into DHL operation, our Depict methodology gives a clear guideline of how to manage transition risk efficiently and effectively. ICN FTZ Seminar Korea Apr 2009 Page 29
30 Transition Mgmt_Project Management DHL will use our project methodology and apply it for Customer-specific requirements. Our detailed Project Plan and Status Report will be shared with Customer throughout the course of the implementation. 1. Detailed Project Plan (200 lines) 2. Bi-Weekly Project Status Report ICN FTZ Seminar Korea Apr 2009 Page 30
31 THANK YOU FOR YOUR ATTENTION ICN FTZ Seminar Korea Apr 2009 Page 31
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