DSV Solutions China General Presentation
Warehousing and Transportation
2016 Q3
2 | DSV – Q3, 2016
Breakdown of EBIT by division
Air & Sea
Road
Solutions
Breakdown of EBIT by geography
EMEA
Rest of world
20
08
19
76
10 independent
hauliers establish
DSV
19
89
DSV acquires
several Danish
competitors
19
97
DSV acquires
Samson Transport
and becomes
DSV Samson
Transport
20
00
20
06
DSV acquires
DFDS Dan
Transport Group
and quadruples the
size of the
company
20
14
100%
DSV acquires
Frans Maas
The DSV activities
change name from
DFDS Transport to
DSV (2007) and
DSV acquires ABX
LOGISTICS
DSV strengthens
the global network
through a number
of smaller
acquisitions along
with solid organic
growth
140 USDm Revenue
6 USDm EBIT
475 USDm Revenue
17 USDm EBIT
3,400 USDm Revenue
150 USDm EBIT
5,600 USDm Revenue
265 USDm EBIT
6,600 USDm Revenue
340 USDm EBIT
8,600 USDm Revenue
460 USDm EBIT
20
16
DSV acquires
UTi Worldwide
12,000 USDm Pro forma
Revenue (2015)
38%
59%
3%
58% 32%
10%
Strong Track Record of Successful M&A More than 50 companies united over time
3 | DSV – Q3, 2016
A true logistics partner
Listed on the OMX Copenhagen
More information on DSV.com
A strong global network
+40,000 employees worldwide
+$12 Billion annual revenue
Transport and logistics
services
Own operations in over
80 countries
4th largest 3PL
worldwide
800 offices and 350
logistics facilities
Founded in Denmark in
1976
DSV Global Transport and Logistics At a glance
4 | DSV – Q3, 2016
37.5
23.4
19.0
12.9
12.0
7.9
7.3
7.1
6.6
5.9
5.8
5.8
5.7
5.5
4.6
4.3
4.2
4.1
4.1
3.9
DHL Logistics (DE)
Kuehne + Nagel (CH)
DB Schenker (DE)
(DK)
C. H. Robinson (US)
CEVA Logistics (NL)
Panalpina (CH)
Dachser (DE)
Expeditors (US)
SNCF Geodis (FR)
J. B. Hunt (US)
UPS (US)
Sinotrans (CN)
Gefco (FR)
Toll (AU)
Bolloré (FR)
Agility Logistics (KW)
Yusen Logistics (JP)
Rhenus (DE)
Hellmann (DE) Source: Journal of Commerce, 15 April 2015, Transport Intelligence
• DSV and UTi Worldwide combined
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Competitive Landscape Global top 20 3PL based on 2014 revenue (billion USD)
5 | DSV – Q3, 2016
Global transport and logistics services Three divisions working together to support the entire supply chain
• Leading road freight operator in in
Europe
• Distribution in North America,
Africa and Asia
• More than 20,000 trucks on the
road every day
• LTL and full-load services
• Global contract logistics services
• 300 logistics facilities – a total of
4.7 million m2
• Special competences in key
industries
• Solutions for E-commerce
• Access to all markets through our
global network
• Annual ocean freight volume of
more than 1.3 million TEU
• Annual air freight volume of
more than 600,000 tonnes
• FCL/ LCL and special projects
DSV Air & Sea
+
UTi Freight Forwarding
DSV Road
+
UTi Distribution
DSV Solutions
+
UTi Contract Logistics
6 | DSV – Q3, 2016
DSV Solutions Services and Vertical Sales
Integrated
Global Network
Technology
Leadership
Process
Excellence
Empowered
People
Strategic Cornerstones
Value-Added
Services
Outbound
Distribution
Warehousing
Inbound
Logistics
After Sales
Services
Industry
Concepts
Road Air & Sea Contract
Logistics
Automotive
Consumer Products
Healthcare
High - Tech
Industrial
Americas
APAC
EMEA
Service Portfolio
Solutions
7 | DSV – Q3, 2016
DSV Solutions APAC Key Facts and Figures
Employees 2000
Facilities 98
Surface
managed
467,000 m2
Revenue
2015 pro
forma
100 Million
USD
Countries 12
Key Clients Estee Lauder
Ford
Group SEB
Nestle
Reports to the APAC Regional Director, DSV Solutions
8 | DSV – Q3, 2016
DSV Solutions Asia Pacific Regional Management team
APAC
Guillaume Burette
North/East
China
Guillaume Burette
Taiwan
Robert Lin
Thailand
Eddie Haapala
Singapore
Fang Xie
Philippines
Ralf Bekink
Dir
ec
tor
Brian Ejsing
CEO
Japan
Takashi Suzuki
South China
Sanson Ko
India
Hariharan
Sivaprakasam
Australia /New
Zealand
Paul Thomsen
Korea
Moonho Choi
9 | DSV – Q3, 2016
Business
controller Guillaume Burette
Quality / CIP
Edward Haapala
Ganesan Chinniah
Solution Design
Fang Xie
Jessie Jin
Implementation
Andre Steenkamp
APAC WMS
Allen Shi
Commercial
Ralf Bekink
Legal
Charles Goldsmith
DSV Solutions Asia Pacific Regional Centre of Competence
Quality CIP: Ensure same quality process throughout the region
Solutions Design: Same calculation and processes no matter the location
Implementation: Coordinate APAC implementations
APAC WMS: One central WMS which can support all APAC locations
Commercial: Connecting the countries, one contact point for regional biddings
Legal: One contact for all APAC contracts
10 | DSV – Q3, 2016
DSV Solutions Asia Pacific Facilities Footprint
10
DSV countries Australia
New Zealand
India
China Japan Korea
Taiwan
Philippines
Vietnam
Thailand
Malaysia
Singapore Indonesia
Bangladesh Hong Kong
Country No. of sites Warehouse space
China 28 158,000m2
Hong Kong 3 21,500m2
India 19 71,000m2
Japan 6 11,000m2
Korea 4 2,000m2
Malaysia 3 5,000m2
New Zealand 1 3,500m2
Philippines 6 26,000m2
Singapore 9 37,000m2
Taiwan 5 74,000m2
Thailand 12 47,000m2
Australia 2 11000㎡
Total 98 467,000m2
11 | DSV – Q3, 2016
DSV Solutions China Overview
Transportation Hub
DSV Solutions Site
Chengdu
Xi’an
Chongqing
Liuzhou
Shanghai
Xiamen
Shenzhen
Suzhou
Wuxi
Qingdao Jinan
Beijing
Tianjin
Shenyang
Fuzhou Guangzhou
Golmud
URMQ
Korla
Lanzhou
Wenzhou
Zhengzhou
HK
Harbin Qqhr
Changchun
Dalian
Taiyuan
SJZ
Kunming
Country network • Own operations in 28 sites, 158,000 m2 warehouse space
• More than 360 employees serving for 80 customers
• 2015 turnover CNY 105 million
Products for 4 verticals
• Consumer, Hi-tech, Auto & Industrial
• Freight management
• Warehousing & distribution
Country functions
• Business Development
• Finance
• WMS
• Continuous improvement (DSV Sigma)
• Solutions design (DSV Sigma)
• Account management
12 | DSV – Q3, 2016
Transportation Hub
DSV Solutions Site
Chengdu
Xi’an
Chongqing
Liuzhou
Shanghai
Xiamen
Shenzhen
Suzhou
Wuxi
Qingdao Jinan
Beijing
Tianjin
Shenyang
Fuzhou Guangzhou
Golmud
URMQ
Korla
Lanzhou
Wenzhou
Zhengzhou
HK
Harbin Qqhr
Changchun
Dalian
Taiyuan
SJZ
Kunming
TW
DSV Solutions China Pan-China Footprint
Regions Locations Warehouse Space m2
North China
Shenyang 1000
Haerbin 500
Beijing 6000
Tianjin 18000
Suzhou 4000
Wuxi 6000
Shanghai 75500
Ningbo 8000
Fuzhou 500
Chengdu 1000
Kunming 1000
South China Guangzhou 3500
Shenzhen 33000
HK Hong Kong 21500
TW Taiwan 74000
Total 33 253,500
13 | DSV – Q3, 2016
Grade A warehouse:
High ceiling, with docks
Grade B warehouse:
High ceiling, no docks
Grade C warehouse:
Low ceiling, no docks 10000m2 +
5000m2
2000m2 Site Name
Surface in m2
Largest account name
• Bonded inventory: Delay Duties payment / Production /Regional DC
• Import for local distribution
• Import for domestic distribution / China-China flows
• Local production distribution / China-China flows
DSV Solutions China Shanghai Footprint
Site: Pudong
m2 : 2,200
Client: JCB
Site: Yangshan
m2 : 19,000
Client: BoConcept,
Zebra
Site: CFTZ
m2 : 500
Client: FOSS
Site: Waigaoqiao
m2 : 14,500
Client: Estee Lauder
Site: Ningbo
m2 : 8,000
Client: Group SEB
Site: Suzhou
m2 : 4,000
Client: Vestas
Site: Wuxi
m2 : 6,000
Client:
Schneider
Site: Kangqiao
m2 : 2,500
Client: WWRD, JCB
Site: Minhang
m2 : 5,800
Client: ZF
Site: Qingpu
m2 : 23,000
Client: Balluff,
RRD, JCI
Site: Songjiang
m2 : 5,000
Client: Rittal
Site: Jia ding
m2 : 2,900
Client: Autoliv
14 | DSV – Q3, 2016
Own Staff I Own Systems I Own Equipment & Locations
Bonded Supply Chain:
- Import distribution via FTZ with I/E trading
- North Asia DC in FTZ or BLP
- BLP & HKG U-turn
- Export Pick & Pack DC
Domestic Supply Chain:
- National & regional DC
- Inbound & manufacturing DC
Transport & Distribution:
- Transport management
- Bonded & Non-bonded trucking
- FTL/LTL
- Retail store delivery
- Domestic express delivery (spare parts)
- Factory – DC shuffle
IT Suite:
- 2-tier WMS solution with RF
- EDI integration
- Web-based order & invoice tracking
Value-added services:
- Import/Export trading license
- Labeling, co-packing, kitting
- All-risk insurance
Integrated Logistics Solutions for entire supply chain
DSV Solutions China Contract Logistics
15 | DSV – Q3, 2016
DSV Solutions China IT/WMS Landscape
Client ERP
Inventory &
replenishment management
Overseas Shipment tracking
& PO information
Web-based final delivery visibility
& billing reports
Top-tier
WMS
solution
DSV EDI
enterprise
CW One
Easy to
implement
local WMS
solution
16 | DSV – Q3, 2016
• Combination of Lean, Six Sigma and Change Management
• Launched in DSV Solutions in 2013
DSV Sigma is part of Strategic Wheel DSV Solutions
• DSV Sigma community set up to register projects & share experiences / successes
• Goal: • Reduce costs
• Become more efficient in daily work processes
• Create a culture of continuous improvement
• Offer advanced and cost saving solutions to the customers
• DSV Sigma is proven standardized methodology
to help DSV to improve our operation and to create a spirit of
continuous improvement.
• Implementing Best practices (Plan Tool, Recap)
• Sharing information (DSV Pedia, Trade Portal, Smart Solutions Library)
DSV Solutions China DSV Sigma
17 | DSV – Q3, 2016
Hi-tech Consumer Auto Industrial
DSV Solutions China Major Clients
18 | DSV – Q3, 2016
DSV Solutions China Key Distribution Center
Shanghai Qingpu Shanghai Yangshan Wuxi Ehu
Hong Kong Shatin Shanghai WGQ Shenzhen Yantian
All facilities operated by DSV Staff, MHE & WMS
19 | DSV – Q3, 2016
DSV Logistics License DSV Freight Forwarding
License
DSV Domestic
Transportation License
DSV I/E Trading License
DSV ISO 9001 Certificate DSV A-class Customs licenses in SHA WGQ FTZ and
AA – Class in YS FTPA
AAA credit grade China
International forwarders
DSV Solutions China License in Mainland China
20 | DSV – Q3, 2016
GE Transportation
Domestic trucking 2012
Honorable mentioned in
Antalis CSR Report 2014
Rockwool Appreciation
Letter 2015
Danfoss North China DC
2012
DSV Solutions China Customer Recognition
21 | DSV – Q3, 2016
• Servicing China in more than 550 cities with >1.200
of which 170 are long-termed leased.
• Selective vendor management
• LTL & FTL solutions
• Milk-runs & shuttle services
• Time sensitive
• Order tracking
• Solution design
• Cross-docking
DSV Solutions China Transportation
22 | DSV – Q3, 2016
Improved Visibility through DSV TMS
DSV TMS is an online ‘Software as a Service’ solution
• No software to purchase or install
• Chinese language and Address data base from China
Post
• Orders/rates/comments automatically updated through
the system
• No multiple order entry – Eliminate waste & errors
• Order track & trace through multiple vendor layers
• Pre-billing based on shared tariffs x volumes –
Transparency
• e-POD – Drivers take picture of the PODs, uploaded and
linked to orders on the website
• KPI reports
• Automatic emails to inform consignees about order
status
DSV Solutions China Trucking E-Visibility
23 | DSV – Q3, 2016
Partner that is easy to deal with:
• Simple, lean and flat organization that is agile in responding
to client & market needs.
• Focused on customers & operational excellence and not pre-
occupied with internal workflow and grand strategies
• Right partner for like-minded clients
Professional partner:
• State of the art WMS (RedPrairie) and TMS (www.otms.com)
• Capable people with China domestic logistics experience
from international 3PL market leaders
• Solution & implementation focused organization
• Experts in importation, Customs & bonded logistics
• Good value at the right cost do not accept operational
shortcuts however keep the overhead and ‘frills’ to the
minimum
• Capability to offer integrated supply chain solution leveraging
on both global and China forwarding network
• Access to professional expertise, IT and project management
from DSV Solutions (Number 5 in Europe)
WHY DSV?
24 | DSV – Q3, 2016
Stronger together
– Let us be your global transport and logistics partner