DHL Solutions & Innovations

Trends in the Logistics Industry Maren Böhmer – Expert Patent Management HALPIM Next Practice Conference Budapest, June 9, 2011

Agenda

1. Introduction 2. Innovations in the Logistics Industry 3. Trends in the Logistics Industry

(1) Visibility (2) Security (3) City Logistics (4) Sustainability

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1. Introduction Deutsche Post DHL – Strategy 2015

The postal service for Germany

Our purpose The logistics company for the world Respect

Our guiding principle Results

Simplifying Services

Our customer promise Sustainable Solutions

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2. Innovations in the Logistics Industry What does innovation mean in the supply chain?

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2. Innovations in the Logistics Industry Is Logistics an innovative industry?

E-Services

Sensors Telematic

Automated sorting centers

RFID

FedEx-Overnight Delivery (Focus USA)

Green Logistics

Barcode (also baseline for the online shipment tracking)

Smart vehicles Standard Container Split information/goods (Foundation of DHL - 1969)

1960

1970

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1980

1990

2000

2010

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3. Trends in the Logistics Industry What is currently talked about in scientific journals on Logistics sustainable multi-modal transportation systems in large urban areas

routing software development

supplier selectionorder allocation

PPP arrangements

BRIC: Innovation in the Automotive Sector Disruption Risk Management

RFID

city logistics

inventory distribution Measuring Sustainability cloud computing

food supply chain

collaboration and C-commerce

post peak oil era solutions

Security high-rise warehousing

Open Innovation

e-procurement

Future Value Chain 2020

Source: MRSC Journal Research Q1 2011, different sources

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3.1. Visibility Visibility – challenges •

Consistent transparency throughout all transport processes and inventories

•

Real time information

•

The Internet of Things

•

RFID privacy and security concerns

•

Software-as-a-service (SaaS)



How to collect, process and transmit information

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3.1. Visibility Visibility – solutions RFID • RFID systems transport information about a product, a pallet or entire inventories • Fast and automatic reading of data without direct visual contact

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Smart Sensor • Constant temperature monitoring during the entire transport • Online tracking & tracing and data analysis via web portal

Real Time Solutions • Provides visibility on temperature, humidity, shock or light • Worldwide location tracking based on GPS / GSM

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3.2. Security Security – challenges •

Anti-theft: lost or stolen assets, increasing insurance costs

•

Life Sciences: Industry standards for medical transports

•

Recalls and repairs: customer safety, customer complaints, company reputation

•

Anti-counterfeiting: the global trade in counterfeit goods is growing at an alarming rate



How to minimize security risks and to monitor access control

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3.2. Security Security – solutions Cold Chain Cold Chain

Recall Solutions Recall

City Logistics Anti-theft

• Temperature-controlled and -monitored shipping across all sectors

• Recalls have to be carried out quickly to prevent further damages

• Security monitoring due to GSM/GPS tracking devices

• Online tracking & tracing and data analysis via web portal

• Increased consumer safety

• Enables real time exception management of sensitive shipments

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3.3. City Logistics Supply Chain Management in megacities

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3.3. City Logistics Urbanization – challenges •

Increase in the urban share of the overall population

•

Continuous emergence of new megacities

•

Cities take up 2% of the earth’s surface and consume about 75% of their resources

•

general infrastructure matters, air pollution, and transport and traffic issues

•

Transportation of goods within cities requires efficient logistics



How to adjust how cities use resources to the new social, economic and ecological conditions

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3.3. City Logistics Urbanization – solutions City Logistics • Reduces inner city traffic volumes • Transport of consolidated loads reduces CO2 • City and government authorities as customers and major supporters

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Smart Truck

Packstation

• Navigation technology and the consideration of current traffic conditions • Lowering transport costs and CO2 emissions due to optimized tour planning

• Fully-automated parcel service in urban areas • Five DHL SERVICE POINT 24/7 outlets in Dubai - profile as a sustainable city

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3.4. Sustainability Sustainability – challenges •

Up to 80 % of warehouse energy consumption is due to lighting.

•

253 million tons of packaging is used annually in the consumer industry - half paper, half plastic. Production of the paper requires 7 million trees to be felled.

•

Out of 1.62 billion tons of truck emissions in Europe, roughly one quarter are caused by trucks running empty.

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Aerodynamic drag is responsible for 40 % of the fuel consumption of heavy duty trucks at highway speeds.

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38 % of risk managers consider the availability and price of fuel and power as one of the top future risks for companies.

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84 % of consumers in China, India, Malaysia and Singapore say they would accept a higher price for green products - compared to only 50% in Western countries.



Consumers expect to be presented with solutions

Source: http://www.dp-dhl.com/en/logistics_around_us/trends/sustainable_logistics/facts_figures_sustainable_logistics.html

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3.4. Sustainability Sustainability – trends DPDHL study “Delivering Tomorrow: Towards Sustainable Logistics.”

1.

Logistics counts – it is not a commodity

2.

Technological change will be achieved through a concerted drive from companies, governments and financial institutions

3.

Collaboration will increasingly be seen as an enabler to attain sustainability; even erstwhile competitors will cooperate more closely

4.

Business models of logistics companies will change as sustainable innovations open up new opportunities

5.

CO2 labeling will become standardized

6.

Carbon emissions will have a price tag

7.

Carbon pricing will lead to more stringent regulatory measures

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3.4. Sustainability Sustainability – solutions Cold Chain GoGreen

• DPDHL 1st to offer carbon neutral products and 1st to announce a CO2 efficiency target in 2008 • Goal of improving CO2 efficiency by 30% by the year 2012

RecallLiving Solutions Responsibility

City LogisticsResponse Team Disaster

• Corporate Strategy embraces the concept of sustainability

• Three DRTs with about 300 DHL volunteers all over the world

• Responsibility in the areas of environment, disaster management, education

• Free-of-charge handling of relief goods at the airport closest to a disasteraffected area • DHL Speedball – bundle of relief goods

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3.4. Sustainability Disaster Response Team – We deliver help

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DHL Solutions & Innovations

Thank you!

Contact For any comments or feedback, please contact:

Maren Böhmer DHL Solutions & Innovations Expert Patent Management Phone +49 228 182-67478 [email protected]

Deutsche Post DHL

www.dp-dhl.com

DHL Solutions & Innovations

www.dhl-innovation.com

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