dhl - logistics & ebusiness standards

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eBusiness Standards in Logistics


  • 1. International Conference on Advancing Public-Private Partnerships for e-Business StandardsCharacteristics, Trends & Future Shape of the Logistics Environment Interaction with Standards WorkHarry Strover Geneva, September 18-19th 2008

2. Outline1. DHL Company Overview 3. Logistics EnvironmentCharacteristicsTrendsFuture Shape 4. e-Business Standards at DHLOur expectationsRelationships with Standards Organizationse-Business with our CustomersInternal e-BusinessConclusionDHL | September 2008 Page 2 3. DHL Overview DHLs parent company Deutsche Post World Net is the worlds leading logisticsgroup. With revenues of more than 63 billion and 500,000 employees in morethan 220 countries and territories it is one of the biggest employers worldwide. Largest Courier and Express provider in Europe, 8 million customersAsia Pacific and Middle East /Africa 36 Hubs and 4,700 bases Top 3 worldwide 350 aircraft, 72,000 vehicles Worlds No.1 in Warehousing, Distribution & 59 countries and territoriesContract Logistics 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 Cross-border solutions for business Largest worldwide network for Mail Distributionmail, publication distribution, direct marketing and merchandise DHL | September 2008 Page3 4. Outline1. DHL Company Overview 3. Logistics EnvironmentCharacteristicsTrendsFuture Shape 4. e-Business Standards at DHLOur expectationsRelationships with Standards Organizationse-Business with our CustomersInternal e-BusinessConclusionDHL | September 2008 Page 4 5. 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 DHL | September 2008 Page 5 6. CharacteristicsEvolving Business Models in Logistics Outsourcing Core Logistics Competence TraditionalTypicalLeading VisionaryBusinessStrategyCoreCustomerCustomerStrategySupplyCustomer CompetenceChainSupply Chain OrchestratorManagerPlanningCustomerLLP 4PL WarehousingDistributionCoordi-nationFunctional ProcessesCourier ValueBusinessCouri Freight Ware- Value AddedProcessesLogistics Cour Freight Ware-er Trans- houAdded ExecutionExp Freight Ware- ValueServicesier Trans- hou port singSvcs. Freightress Trans- hou Added port sing Sourcing Transportportsing Svcs.3PL 3PL 3PL IntegratedProductionEngineeringLogisticsProvider Single function transactional relationship Strategic multi-functional partnerships Local / regional reach Global, door-to-door coverage Physical asset heavy, process execution Bring integrated IT solutions ready to use Cost plus management fee Continuous innovation (cost & service) Fixed upfront cost to change Risk/Gain share Reduced need for capitalDHL | September 2008 Page 6 7. TrendsFast & Fundamental Global Change is upon us Indian population grows as fast in 1 week as the EU population does in 1 year Globalization moves The Chinese middle class is consuming more and more of what it makes to a Multi-Polar world Major new hubs are being built around the world (e.g Dubai) Much of the world is now on-line, mobile commerce is developing quickly Technology led Humble delivery equipment (containers, totes, hangers) become intelligent complexity accelerates Increasing dependence on automation Rising oil prices slowing the growth in global trade After a decade, Globally food prices and inflation rates rising (China12%, Vietnam 25%) inflation is back Marked shift from Air to Ocean in Technology and Healthcare companiesTerrorism has Container scanning will slow ports down, compliance will tie up management created a new cost Security issues can cost hundreds of dollars per container pressure Carbon: Sustained investment hampered by short term who pays argument The Smarter are Energy costs steeply rising; Efficiency/carbon abatement actions needed getting Greener Water supply is becoming the next sustainability issue for some Imbalance of white-collar talent is limiting growth in the developing world Who will win the Wal-mart report Blue-collar labour shortage in the US as a growing issue War for Talent ? Employers of choice make training a priority..these are opportunities if we grasp them, real threats if we do notDHL | September 2008Page7 8. Trends ..with significant impact on supply chainInternational Supply After MarketChain ManagementManagement The Wider Supply Chain(21st Century focus)GlobalCustomers/ LocalCustomers/ Supply /ProducersConsumers Suppliers Retailers Sourcing After MarketThe Immediate Supply Chain (1980/90s focus)Reverse Flow Logistics Ever increasingSecurity & Risk Being serious about Disruptive Transport Costs Managementthe EnvironmentTechnology Waves DHL | September 2008Page 8 9. Future Shape of the Logistics Environment Embracing the possibilities of information and technologySophisticated 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 Solar PoweredSmart Sensors WarehousesParcel Robots E-PaperRemote vehicleintelligenceElectric Vehicles DHL | September 2008Page 9 10. Outline1. DHL Company Overview 3. Logistics EnvironmentCharacteristicsTrendsFuture Shape 4. e-Business Standards at DHLOur expectationsRelationships with Standards Organizationse-Business with our CustomersInternal e-BusinessConclusionDHL | September 2008 Page 10 11. e-Business Standards at DHL Our expectations 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 customersolutions Reduce implementation & running costs; increase margins and benefits to thecustomer.Understand & Manage our Business Better More in depth visibility of the information supply chain, better control of theprocess, 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-flightchanges and decisions to be made easily, reducing the risk of failure DHL | September 2008 Page 11 12. e-Business Standards at DHL Relationships with Standards Organizations DHL is proactively engaged in the use and definition of e-Business standards (e.g. UN EDIFACT, RosettaNet, OAG, GS1, IATA, ANSI) Standards organizations provide a supporting community Effective collaboration between standards organizations is criticalEANcom GUSI Woodx Petro-chemSIGPIDX CONSUMERCHEMICALTradacomsGSI CIDXPAPER/FORESTDR HI -TECHPAPIN ETC TNPetro-chem ROSETTANET FAJCPI /CEDI/ CEUNRETAIL/PHARMA GS1CargoImpG ENERIC G ENERICUN/CEFACT AIRCARGO X12IATACargoFACTESRIebXMLSTHEALTHCAREDU HL7GaliaINVDA XM LST GENERICD VICSAUTOMOTIVE S OdetteOASIS G ENERIC JAIFOAGi AIAG JAMA/HRXML JAPIASTAR AAIA DHL | September 2008 Page 12 13. e-Business Standards at DHL On-Demand Customer Requirements Our customers and other Customers / business partners require:Partners Operational agility Continuous business process change Scale from small to largeComplexoperations Scale from low to high volumes DHL DHL to use (their) standards. DHL | September 2008 Page 13 14. e-Business Standards at DHL DHLs customers use many different standards In connecting with thousands of e-Business customers, we use Customers / many different standards.Partners Standards provide:RosettaNetEDIFACT IDOCs OAGiGS1 Custom Familiar target for involved parties common dictionary, DHLs Customer Integration Platform(s) syntax and process Greater re-use and hence reduced risk for our customersStill DHL Faster deployment ofunnecessarilysolutionscomplex Over one billion e-Business transactions annually Approximately 8,000 customers, suppliers, customs authorities, etc. DHL | September 2008 Page 14 15. e-Business Standards at DHL Standardizing e-Business transactions between internal systems A common data model will make standards really work for DHL Customers / Standards provide:Partners Good direction for internal e-Business transactions Supporting knowledge forRosettaNetEDIFACT IDOCs OAGiGS1 Custombusiness transactions and DHLs Customer Integration Platform(s) data models inside theCommon Data Model enterprise Leverage and ease ofCommon Data Modelimplementation with our majorIT providers DHL DHL Enterprise Internal Integration Platform(s) This is DHLs biggest current e-Business initiativeDHL | September 2008Page 15 16. e-Business Standards at DHL Case Studies - Implementing Standards for internal e-BusinessLarge Healthcare CustomerLarge Consumer Customer Selected RosettaNet as internal Selected GS1 as internal e-Business standard e-Business standard Not all internal requirements were met by Not all internal requirements were met by the selected standard the selected standard Made structural and semantic changes to Made structural an


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