dhl global forwarding bangladesh logisticsshipwrights.com.bd/dhl_global_bd_presentation.pdf · dhl...

Presenter: Nooruddin Chowdhury, Country Manager - Bangladesh

Date: 17 January, 2012

DHL Global Forwarding Bangladesh

Logistics Service Providers Perspective on Transportation of export-import

containers through inland waterways; Challenges & Opportunities

Introduction of DHL

We are One Company with Two Strong Pillars

DHL | PageDHL Global Forwarding Company Presentation | Global | June 2011 2

Die Postfür Deutschland

The Logistics Company for the World

Deutsche Post DHL – Vision

Die Post für Deutschland

The Logistics Company for the World

Our Purpose


Results

Respect

Our Guiding Principle

Sustainable Solutions

Simplifying Services

Our Customer Promise

DPDHL Strategy

We measure success along three bottom lines …

Provider of

… and have a consistent customer promise

• We strive to simplify our customer operations

by providing improved transparency, reduced

complexity and by becoming more proactive

Simplifying Services


Investment of

Choice

Employer of

Choice

Provider of

Choice

• Massive 6-sigma/lean investments, improved IT

capabilities and capability training will make our

services more reliable and sustainable

• We are the only logistics company with a firm

commitment to an increased CO2 efficiency of

30% by 2020 (10% by 2010)

Sustainable Solutions

Group Overview 2010

• Delivers 70mn mail items to • Global market leader in air • Global market leader in • Market leader in the inter-

Revenue: EUR 51.5bn1)

Mail Global Forwarding,

Freight

Supply Chain Express


• Delivers 70mn mail items to

more than 40mn house-

holds in Germany

• DHL Global Mail largest

network for mail distribution

worldwide

• Global market leader in air

freight and among top two

leading ocean freight

services

• Specialist in industrial

projects and end to end

transport management

solutions

• One of Europe’s leading

road freight forwarders

• 3,000 locations

• Strong customer base

(>50% of Forbes 500)

• Global market leader in

contract logistics with 8.5%

global market share

• ~23mn square metres of

warehouse space

• 2,500 logistics centers,

warehouses and terminals

• Leading provider

of corporate information

solutions worldwide

• Strong customer base built

on long-lasting partnerships

• Market leader in the inter-

national time-definite

express market in all

regions outside the

Americas

• Presence in more than

220 countries and territories

• 32,300 service points

• 4,000 facilities

• 250 aircrafts

• 3 main global hubs

18.8 14.3 13.3 11.1

144,000 41,000 132,000 88,000

Revenue(EUR bn)

Employees(FTE)

1) Divisional revenues including also Corporate Center/Others, all numbers 2010

Group Market Position 2010

International express parcel

providers

Air freight forwarder

Ocean freight forwarder

European road freight forwarder

Contract logistics service provider

1111 2222 2222 1111 1111

Global Market Position 2010


1) Air freight market share is based on air freight volumes moved in 2010, figures stated are in export tons2) Ocean freight market share is based on ocean freight volumes moved in 2010, figures stated are in TEU’s3) 2010 data4) 2010 TDI Revenue: BE, CH, DE, ES, FR, IT, NL, PL, SE, UK, AE, RU, ZA, AU, CN, HK, IN, JP, KR, SG, US, BR, CA, MX

2,772TEU’s2)

8.3%Global Market

Share3)

~30%Global International Express

Market Share4)

2.4%European Market

Share3)

2,459Export Tons1)

� Logistics facilities in 3,370 locations

� 32,300 Express service points in over 220 countries and territories

� about 275,000 people worldwide

• The transport sector is accountable for 14% of the global

greenhouse gas (GHG) emissions which are seen as the prime

cause for global warming

Rationale

• As the leading logistics company Deutsche Post DHL has a special

responsibility in the global battle against climate change

Goal

Sources of Man-Made GHG Emissions

8%

5%

Transport

14%

Industry14%

18%

Waste3%

Other Energy-Related

Buildings

Agriculture

14%

Deutsche Post DHL – Green Strategy Rationale


To reach this target Deutsche Post DHL is applying a three-step

method of assessing, reducing and offsetting

• All CO2 emissions will be assessed

• CO2 emissions will be reduced, if possible

• CO2 emissions will be offset, where appropriate

responsibility in the global battle against climate change

• We therefore aim to improve our own as well as

subcontractors’ CO2 efficiency by 30% trough 2020

• In a first step, we strive to improve CO2 efficiency

of our own operations by 10 % through 2012

Approach

DPDHL CO2 Efficiency Target (Index) – (%)

Land-Use Change

18%

Power

24%

34

66

70

90

-30%-10%

Indirect control

Direct control

202020122007

100

Source: Corporate Board Presentation, February 2008, Stern Review; Houweling et al., 1999

Deutsche Post DHL – Green Strategy Measures

• Gradually renew our own air, and ground fleet

• Count on a partial shift from air to ocean and road

Fleet Optimization

• Raise the efficiency of our own fleet and offer resource-saving

solutions to customers

• Develop highly innovative products based on future logistics trends

Innovative Technology

What Sets Us Apart from Others?

• Deutsche Post DHL is the first logistics company to

communicate specific CO2 targets

• We are the first logistics company that has bundled our

innovation activities to develop sustainable solutions for


Source: Corporate Board Presentation, February 2008

• Raise awareness and involve employees

• Support employees in leading an environmental-friendly life both at

work and at home

Changing Behavior

• Offer customers the GoGreen option to send shipments

in a carbon-neutral way

• Demand transparency in regard to CO2 emissions

from subcontractors

• Encourage subcontractors to reduce their emissions

in their operations

Sharing Responsibility

the industry

• We are the first logistics company that offers green

products and services and has set up a certified carbon

management

Deutsche Post DHL is the first logistics company to set a concrete CO2 target

Corporate Sustainability – Key Pillars

Corporate Sustainability

• Go Green – minimize the impact of our actions on

the environment by using resources in a responsible

• Go Help – Global partnerships

(UN, UNICEF, UN OCHA, UNDP)

Social ResponsibilityEnvironment


the environment by using resources in a responsible

manner

• Tackling the causes of climate change

• Offering sustainable products and services

(UN, UNICEF, UN OCHA, UNDP)

• Local community investment initiatives

• Go Teach – promoting and developing initiatives that

support individuals in their development and expand

their skill set

Activities In Bangladesh

Air Freight and

Ocean Freight Services

World-wide

Transportation

Contract Logistics

and Industry Solutions

Export, Import

and Domestic Products

Global Forwarding, Freight Supply Chain Express

• Air Freight Time DefiniteSupply Chain SolutionsFlexible and customized


• Air Freight

• Ocean Freight

• Multimodal

• International Supply Chain

• Industrial Projects

• Customs Brokerage

• Transport Control Towers

• Lead Logistics Provider

• Niche (high value, fashion,

perishables and motor sport)

Time Definite

• DHL EXPRESS

9.00, 10.30, 12.00

• DHL EXPRESS WORLDWIDE

• DHL EXPRESS ENVELOPE

• DHL EXPRESS EASY

Same Day

• DHL SAME DAY

Day Definite

• DHL ECONOMY SELECT

Plus additional Services (e.g.

Global Trade Services) and

Solutions (e.g. DHL MEDICAL

EXPRESS)

Supply Chain Solutions

• Warehousing

• Distribution

• Managed Transport Service

• Value Added Services

(e.g. packaging, technical

services, procurement)

Information Solutions

• Marketing Solutions

• Correspondence Management

• Office Document Solutions

Flexible and customized

road and intermodal transportation

network

• Groupage

• Part Loads

• Full Loads

• Rail Transportation

• Customs Services

• Trade Fairs and Events

WAREHOUSING & SUPPLY CHAIN MANAGEMENT

Features Customer Benefit

� Medium- & Long-term Storage

� Service Parts Logistics

� Inventory Management

� Inventory visibility & high accuracy

� Trained staff

� KPI reports

� Security & safety


WAREHOUSING

&

DISTRIBUTION

Management

� Value Added Services

� Solution Design

Factors that Influences the sustenance of Supply chain in

Bangladesh

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Political Stability

Rate of technological diffusion

Technology impact on cost infrasutructure

Availability of commercial Engergy

Government Interventionin the free market

Trade regulation and tariffs

Legal framewrok for contract enforcement


0

0.5

Enterpreneurial Sprit

Culture

Education

Environmental/Climate Effect

Inflation Rate

Economic Growth Rate

Labor Cost to business

Skill Level of workforce

Infrastructure Quality

New Mode of TransportationDhaka City Limit to Chittagong

Current Mode of TransportationDhaka City Limit to Chittagong

Existing Surface

Road Rail River way

Export Export Export


ExportCost : BDT 31,000 (Approx)Lead Time: 15 Hours (Approx)

ImportCost : BDT 32,000 (Approx)Lead Time: 15 Hours (Approx)

ExportCost : BDT 26,000 (Approx)Lead Time: 36 Hours (approx)

ImportCost : BDT 47,500 (Approx)Lead Time: 288 Hours (approx)

ExportCost : BDT 22000Lead Time: 20 Hours (Approx)

ImportCost : BDT 22000Lead Time: 20 Hours (Approx)

Modal Share of Freight Traffic

Modes of Transportation Ton-Km (bn) Freight Modal Share

Road 15.7 80%

Rail 0.8 4%

IWT 3 16%

Total 19.5 100%

Source: Ministry of Commerce, Roads & Railway Division

� Narrow Highways (Major portions 2 lane)

� Highly Danced Traffic

� Poor Accident Data Recording System

� Lack of Road Safety

Constrains - Road


� Lack of Road Safety

� Lack of Road Safety Measures

� Insufficient Highway Police

� BRTA Resource Constraints

� Lack of Professional Capacity and Expertise

� 2 wagon train with capacity of 28 FFE

� Lack of Wagon

� Meter Gauge Railway Link between Dhaka And Chittagong

Constrains - Rail


� Most of the areas are Single Line

� Operational bottlenecks

� Diesel Engine operation

� Lack of Professional Capacity and Expertise

Advantages – Water Ways

� Operating Class Vessel� 4 Sailing per week / per operator� Vessel Capacity 108-116 TEUs� P&I Club Coverage� Bill Of Lading issue Point� Direct connection to vessel� No Cut-Off� Time Savings for Import


� Time Savings for Import Containers � Early Empty reposition� No Unforeseen delays due to (Strikes, �Road blockage and accident� No Traffic Issue� Cost Effective� Green Transport – Environment Friendly

Areas need to be addressed

River

Quality of terminal operational service in the inland river

container terminals and their hook up with the

CTG PortQuality of vessels doing the shuttle service carrying

international cargo ( must be built fully

under Class to carry int. freight

insurance )

Cost of trans-shipment ( inland

& out ) in CTG Port has to be supportive to

make this mode of transport

successful.


River Terminal Projects

Quality of surface transport

connecting the industrial hubs

around Dhaka with the upcoming river

terminals

Cost of service in the river terminals

Cost of freight for the river transport

Bring new dimension on Operational and Support Concept development

Increase consolidation facility for effective logistics solutions

Introduce new service local and global customer network

DHL Position to Support


Increase custom bonded warehouse

Boost up vessel productivity and port efficiency

Contribution on Reliability, Availability and Maintainability

Deployment of normative and effective Green Strategy

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