DHL & its E- Business

Outline
1. DHL Company Overview
2. Logistics Environment

Characteristics

Trends

Future Shape

3. e-Business Standards at DHL

Our expectations

Relationships with Standards Organizations

e-Business with our Customers

Internal e-Business

Conclusion

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DHL Overview
DHLs parent company Deutsche Post World Net is the worlds leading logistics
group. With revenues of more than 63 billion and 500,000 employees in more
than 220 countries and territories it is one of the biggest employers worldwide.

DHL | September 2008

Largest Courier and Express provider in Europe,

Asia Pacific and Middle East /Africa
Top 3 worldwide

8 million customers
36 Hubs and 4,700 bases
350 aircraft, 72,000 vehicles

Worlds No.1 in Warehousing, Distribution &

Contract Logistics

59 countries and territories

2,500 logistics centers, warehouses,
terminals
23million m2 storage capacity

Worlds No.1 in Air and Ocean Freight

150 countries and territories

813 terminals & warehouses
4.4million t Air; 2.8miliion TEU Ocean

Europes No. 2 in Road Freight

30 countries and territories

160 terminals
2million full truck load movements

Largest worldwide network for Mail Distribution

Cross-border solutions for business

mail, publication distribution, direct
marketing and merchandise
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Characteristics
So what is Logistics?
The Art or Science of getting:-

and its not:-

The right thing and the right person

The next best thing

In the right quantity

To the nearest economic delivery quantity

In the right place

To the storage point, not the usage point

At the right time

A week earlier, to be sure

At the right quality

Requiring inbound inspection

Every time

95% of the time

At the optimal cost

At a cost we can get away with

Doing least harm to the world

Paying lip service to the environment

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Characteristics
Evolving Business Models in Logistics Outsourcing

Core

Core Logistics
Competence

Traditional

Typical

Leading

Visionary

Business
Strategy

Customer
Customer

Strategy

Competence

Customer

Planning

LLP

Coordination

Execution

Supply Chain
Manager

4PL
Warehousing

Logistics

Supply
Chain
Orchestrator

Customer

Distribution

Functional Processes

Cour
ier

Freight WareTrans- hou

port
sing

Couri Freight WareTranshou

er
port
sing
3PL
Integrated
Logistics
Provider

Single function transactional relationship

Local / regional reach
Physical asset heavy, process execution
Cost plus management fee
Fixed upfront cost to change
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3PL

Value
Added
Svcs.
3PL

Exp Freight Ware- Value

ress Trans- hou Added
port
sing Svcs.

Value
Added
Services

Business
Processes

Sourcing
Production

Courier

Freight
Transport
Engineering

Strategic multi-functional partnerships

Global, door-to-door coverage
Bring integrated IT solutions ready to use
Continuous innovation (cost & service)
Risk/Gain share
Reduced need for capital
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Future Shape of the Logistics Environment

Embracing the possibilities of information and technology
Sophisticated customer solutions
Deeper integration with other enterprises means more and more information exchange
Increasingly diverse and complex processes mean e-Business capabilities are becoming
more sophisticated and expanding to meet needs across multiple industries
and disciplines

Capitalizing upon innovation

Smart Sensors

Solar Powered
Warehouses

Parcel Robots

E-Paper
Remote vehicle
intelligence

DHL | September 2008

Electric Vehicles

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e-Business Standards at DHL

Operate a profitable global business
Use e-Business to help standardize business processes and encourage re-use
Reduce operational overheads through process simplification and standardization
Enable advanced business models that provide global coverage and consistency

Ability to deliver consistent, effective and innovative solutions

Use e-Business to create a competitive edge
Establish global standards-based services leading to robust, replicable customer
solutions
Reduce implementation & running costs; increase margins and benefits to the
customer.

Understand & Manage the Business Better

More in depth visibility of the information supply chain, better control of the
process, improved business performance, and reduced organizational cost
Making change a part of the process agility is key to a successful business
Allow operational teams more control of the supply chain, allowing in-flight changes
and decisions to be made easily, reducing the risk of failure

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Customers /
Partners

e-Business Standards at DHL

DHLs customers use many different standards
In connecting with thousands of
e-Business customers, they use
many different standards.

RosettaNet

EDIFACT

IDOCs

OAGi

GS1

Custom

DHLs Customer Integration Platform(s)

DHL

Still
unnecessarily
complex

Standards provide:
Familiar target for involved
parties common dictionary,
syntax and process
Greater re-use and hence
reduced risk for the
customers
Faster deployment of
solutions

Over one billion e-Business transactions annually

Approximately 8,000 customers, suppliers, customs authorities, etc.
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Customers /
Partners

e-Business Standards at DHL

Standardizing e-Business transactions between internal systems
A common data model will make
standards really work for DHL
Standards provide:

RosettaNet

EDIFACT

IDOCs

OAGi

GS1

Custom

DHLs Customer Integration Platform(s)

Common Data Model

Good direction for internal eBusiness transactions

Supporting knowledge for
business transactions and
data models inside the
enterprise

DHL

Common Data Model

DHL Enterprise Internal Integration Platform(s)

This is DHLs biggest current e-Business initiative

DHL | September 2008

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e-Business Standards at DHL

Case Studies - Implementing Standards for internal e-Business
Large Healthcare Customer

Large Consumer Customer

Selected RosettaNet as internal

e-Business standard

Selected GS1 as internal

e-Business standard

Not all internal requirements were met by

the selected standard

Not all internal requirements were met by

the selected standard

Made structural and semantic changes to

Standard

Made structural and semantic changes to

Standard

Forked from standard version

Proposed Changes to GS1 governing

body
Project was delayed considerably
Created complexity for External Parties
Risk of forking from standard version

Implementing external standards for internal e-Business is challenging

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Conclusion

DHL uses e-Business standards with customers

Standards provide the best way of providing an open, re-usable way of inter-operating
with our customers
Using e-Business standards when working with our customers benefits DHLs internal
operations

Implementing standards within organization is challenging

Selective when implementing standards internally
e-Business standards do not represent all internal business interactions
Our strategic software vendors need to participate with us in implementing standards
Standards compliance and version alignment is difficult especially where the fit is not ideal
If not managed well, standards limit the agility of the internal solutions

Many other organizations regard internal e-Business as a key differentiator / asset

Not all are willing to share and help develop standards for this purpose

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Conclusion
e-Business is much more than data exchange
Information quality and its associated benefits all require standards to be in
place
e-Business for DHL is about business process interactions across multiple
enterprises
Standardizing business processes is the real challenge

DHL | September 2008

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InternetDart

Track on-line the status update of your shipments sent over the last 45 days.
You may track by a range of dates, origin, destination, delivered or undelivered
shipments or service used, on-line. You may generate a series of reports, at a
pre-determined frequency, and sort the results on-line.
For on-line queries and reports: on providing the input of range of pickup dates,
origin, destination and services used, you can check any of the following, online:

Waybill details and status of all shipments sent during a given period
Details of all delivered shipments
Status of all undelivered shipments
Details of all RTO (Return to Origin) shipments
Details of all Re-directed shipments
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ShopTrack

ShopTrackTM is an API (Applications Program Interface) designed specifically

to support and enhance the services provided by a portal or any e-business.
Research indicated that, while etailers provided an entire gamut of product
services and information, eshoppers invariably had to leave the website or use
manual means to track their purchases. The result - less eyeball time on their
pages. Portals that sought to resolve this dilemma were faced with the
unattractive alternative of database maintenance and call centres.
1.Effortless, customised solution
2.Customers no longer have to leave the Portal site to track their purchases.
They just need to enter the order-number of their purchase and the shipping
and delivery details are displayed on the same page.

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Thank You!

DHL | September 2008

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