DHL Trend Research Delivering Insights Today. Creating Value Tomorrow.

Gina Chung – Head of Trend Research DHL 25th August 2016 DHL Innovation & Trend Research

Why should we look into trends?

Inability or unwillingness of people to react to significant changes that occur gradually

DHL Innovation & Trend Research

Agenda

Our Journey Towards Customer-centric Innovation

Putting Innovation into Practice – The DHL Logistics Trend Radar

DHL Innovation & Trend Research

When people think of logistics, we want them to think DPDHL EUR 59.2bn Group Revenue

Post – eCommerce – Parcel (PeP) Europe’s largest postal service

Express No. 1 in international express delivery

500,000 employees in 220 countries & territories

Global Forwarding, Freight Leader in the forwarding business Partner for e-Commerce and a pioneer in secure digital communications Supply Chain No. 1 in contract logistics

DHL Innovation & Trend Research

Our customer-centric innovation approach Customer-centric Innovation INSPIRE, CONNECT & ENGAGE Innovation Centers

Goals:

Trend Research

1. 2.

Strategic customer engagement driving new business Thought leadership driving market perception & brand value

3.

First mover to provide innovative solutions to customers

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From visions to trends to solutions – a new customer experience Solution box Vision suite

Imagine Logistics in 2050 …

Center piece Follow the best practices along the end to end Supply Chain

Trend cubes Touch & feel the new trends and explore their use cases in logsitics

Lobby & lounge

DHL Innovation & Trend Research

Agenda

Our Journey Towards Customer-centric Innovation

Putting Innovation into Practice – The DHL Logistics Trend Radar

DHL Innovation & Trend Research

Logistics Trend Radar - A basis for exploration

Source: DHL Trend Research

DHL Innovation & Trend Research

Trend Research Value Chain Translating research into commercial success

1

2 TREND REPORT

3

4 PROOF OF CONCEPT

INNOVATION CENTER EXHIBIT

TREND RADAR

Source: DHL Trend Research

DHL Innovation & Trend Research

Omni-channel Logistics

70-80%

Consumers use multiple channels to learn about products & services before buying1)

52%

have made a purchase on a mobile device 2) World population will be covered by fast mobile internet by 2019 3)

90%

Source: 1) Accenture study 2013 and Best Buy study on showrooming and webrooming; 2) Accenture Retail study 2014; 3) Ericsson (2013)

DHL Innovation & Trend Research

Why Omni-channel Logistics? Four out of five expectations are logistics driven. Fast delivery, product variety and availability are key expectations of consumers. Top 5 Customer Expectations Fast delivery

71%

64%

Product variety and availability

59%

Enhanced search functionality Flexible delivery options Easy return and exchange

54% 52%

Source: DHL-IDC Manufacturing Insights Survey, June 2015

DHL Innovation & Trend Research

Last-mile Delivery, Anytime, Anywhere Today vs. Tomorrow

Parcel Stations

Parcel ‘Butler’

Crowd delivery

Home Delivery

Delivery to Neighbor

Car-drops

Parcel Robots

In-home Delivery

Source: DHL Trend Research

Delivery to Retail Store/Kiosk

Personal Parcel Lockers

DHL Innovation & Trend Research

Big Data Big data projects at DHL to increase operational efficiency, improve customer experience and create new business models With partners developed a data-driven supply chain risk management tool “Resilience 360” Designed to minimize emergency costs, maintain service levels, protect sales and enable fast recovery Source: DHL Trend Research

DHL Innovation & Trend Research

Robotics & Automation DHL has piloted together with French startup Effidence an autonomous follow-me robot that assists pickers The “Effibot” can carry up to 300kg and operates max 7km/h) Solution will be further piloted in 2016 with full evaluation of BCA Other shuttles include integrated RFID transponders Source: DHL Trend Research

DHL Innovation & Trend Research

Unmanned Aerial Vehicles (Drones) Since 2013, DHL has completed 3 “Parcelcopter” pilots focusing on delivery of medical and urgent goods to remote areas such as islands and mountainous regions 1st pilot used quadrocopter with a payload of 1.2kg and speed of 43km/h. 3rd pilot used tilt wing with a payload of 2kg and speed of 70km/h Parcelcopter will be further evaluated for niche uses Source: DHL Post-eCommerce-Parcel

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