MODE MANAGEMENT: EMBRACING THE BEST FIT Becky Ayotte, DHL Customer Solutions & Innovation Thiago Aracema, DHL Global Forwarding /Industrial Projects Matt Morrow, DHL Express 1
Mode Management: At a glance Mode Management is designed to provide cost-optimal solutions for our customers while leveraging the full range of transport services and products 2
Mode Management: A diverse solution Volatile Supply Chain Symptoms High Transportation Costs Excess Inventory & Overstock Stock outs & Loss Sales Lost & Stolen Cargo Damaged Products Increased Carbon Footprint Opportunities for Mode Management Optimize shipment frequency and consolidation Optimize freight shipment weights and cube Dynamic mode shift Misalignment between shipments & services 3
Mode Management: The concept applied Optimizing shipment frequency and consolidation Container Utilization Analysis identified opportunity for 11% reduction in containers shipped Optimizing freight shipment weights and cube Best Fit Analysis identified 7% cost savings Dynamic mode shift Transportation Modeling Analysis used to identify optimal cost and transit time 4
MODE MANAGEMENT FOR OPTIMIZATION WHAT IS THE WEIGHT BREAK? Matt Morrow, DHL Express 5
Mode Management concept Transport speed / Service Level Some day Timedefinite Daydefnite Air Cargo Forwarding Express Air Same day Potential area where shipments are reviewed for Best Fit 1kg 30-75kg 1,500kg 8,000kg >100 tons Weight / Consolidation Mode 6
Typical Supply Chain Manufacturing, Projects Projects, Manufacturing International Suppliers Consolidation Hubs Customs Clearance Domestic Suppliers Consolidation Centre or X-Dock Site Store Worksite Physical Supply Chain Planning Procurement, Expediting & Supplier Management In-bound International Supply Chain Warehousing & Consolidation Distribution Reverse Logistics On-Site Materials Management Functional Planning Construction Hand-Over Commissioning Start-Up Operations (MRO & Turnarounds) Project Lifecycle 7
Barriers & Benefits Barriers Historic practice & precedence Procurement approach Local Sourcing Weight Break Mystery Consolidation Perceived Risk Customs Brokerage Requirements Added Work Load Logistics Consolidation vs Single Shipments Carrier Options Ease of Use Benefits Shipment Visibility Same Day Uplift Resource Dedication Quote Turn Time Supply chain optimization (E2E) Cost / Inventory Customs Brokerage Flexibility Cost Savings 30%+ 8
Case Study Service Company - US Delivering cost savings through global Maintenance, Repair & Operations Customer Facts Geography Industry United States Energy Customer Challenge Options needed for Rig Down and non-oversize freight Projects with tight deadlines Support growth aspirations Customs Clearance time too long DHL Solution Utilization of Express provider in bids in addition to approved freight forwarders Airbill Preparation Export Declaration Preparation Same Day Uplift Control tower Proactive Tracking of shipments Customer Benefits A carrier that is awarded 70% of rig down shipments tendered Single Point of Contact to handle all communication Service Level performance +98% on time Cost Savings 9
Case Study Service Company - US Customer Facts Geography Industry United States Energy Customer Challenge Wide Variety of shipment sizes TMS that rate shops Freight Forwarders for international shipments Cost Reduction Mode Mystery in Ideal Weight Break DHL Solution Data Set Provided for Solutions Design team to model ideal weight break Data set included normal Freight Forwarder Fees as well as freight/fuel/security Solution Design Team analyzed all weight breaks, with solution as 29 kg Brokerage Not Factored Customer Benefits Cost Savings 30%+ compared to air consol Transit Time Improvement Defined Business Rules for optimized routing Exceptions in certain lanes could yield further savings Customs Brokerage already being performed in 80% of destinations, further savings 10
RIG MOVES: EMBRACING THE BEST FIT Thiago Aracema, DHL Global Forwarding /Industrial Projects 11
Agenda 1 Loading Sequence: Rig-Down to Rig-Up Managing loading sequence to Rig up 2 Rig Data Management Best practice to keep a Rig data up to date 12
LOADING SEQUENCE FROM RIG DOWN TO RIG UP 13
Loading sequence Rig down to Rig up RIG DOWN Physical move RIG UP Planning ORIGIN COUNTRY TRANSPORTATION DESTINATION COUNTRY PACKING & ON LOADING PRE CARRIAGE & PORT HANDLING SHIP S LOADING AND DISCHARGE PORT HANDLING & ON CARRIAGE OFF LOADING CUSTOMS CUSTOMS Rig Passport Rig Passport 14
Loading sequence Rig down to Rig up The Vessel stowage plan can be adjusted considering final delivery sequence in the rig-up operation The cargo is distributed within the ship s holds to facilitate as most as possible the delivery sequence at the destination port. It is also considered the cargo requirement for on or under deck stow (i.e.: electrical components, etc.) 15
Loading sequence Rig down to Rig up The on carriage to the final site is determined based on the delivery priority list from the drilling operator Here is an example of a land rig packing list with the truck load sequence (sample only) 16
RIG INVENTORY & DATA MANAGEMENT 17
Rig inventory and data management The Rig Passport will capture the equipment data, considering: Rig number Equipment name Asset number Country of Origin Package type All weights/dimensions information in different scales if required Additional comments Photographs 18
Rig inventory and data management The Rig Passport will keep track of the rig data and eventual changes considering: Replacement of parts with up-dated description (serial numbers, etc.) Up-dated photograph with most current packing condition (for shipment) The most up dated inventory of the rig to be used for the re-export 19
Mode Management: A strategic solution Driving Customer Satisfaction Not just a cost savings Understanding Market Impacts Starting with the Network Optimization Looking beyond the shift from airfreight to express 20