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© Stockbyte/getty images DHL Sector Management 201 DHL GLOBAL TECHNOLOGY CONFERENCE July 2011 EDITORIAL | P. 2 CONNECTING THE DOTS WITH CUSTOMERS more PLENARY PRESENTATION | P. 3 TAMING THE TECH SUPPLY CHAIN more BREAKOUT SESSIONS | P. 6 COMPUTING & PRINTING – LESS RISK, MORE INNOVATION more CONSUMER ELECTRONICS – CHALLENGES AND OPPORTUNITIES FOR MANUFACTURERS AND RETAILERS more SEMICONDUCTOR – COLLABORATION IS KEY more TELECOMS – FLEXIBILITY IN THE SUPPLY CHAIN more © x © Solaris – Fotolia CUSTOMER FEEDBACK | P. 14 HIGHLIGHTS FROM ONLINE CUSTOMER SURVEY more Page 1 | 14

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Page 1: DHL Sector Management 201 DHL GLOBAL TECHNOLOGY … · Ta MIng THe Tec H SUppLy cHaIn DHL technology customers and industry experts put their heads together to ... service levels

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DHL Sector Management

201 DHL GLOBAL TECHNOLOGY CONFERENCE July 2011

eDITorIaL | p. 2

connecTIng THe DoTS wITH cUSToMerS more

pLenary preSenTaTIon | p. 3

TaMIng THe TecH SUppLy cHaIn more

BreakoUT SeSSIonS | p. 6

coMpUTIng & prInTIng – LeSS rISk, More InnovaTIon more

conSUMer eLecTronIcS – cHaLLengeS anD opporTUnITIeS for ManUfacTUrerS anD reTaILerS more

SeMIconDUcTor – coLLaBoraTIon IS key more

TeLecoMS – fLexIBILITy In THe SUppLy cHaIn more

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HIgHLIgHTS froM onLIne cUSToMer SUrvey more

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Dear customer,These are exciting times in Technology!

My background has always been in the technology sector, so I am really excited to be in a position where I can hopefully make a difference for you, our technology customers.

We have just held our first DHL Global Technology Con-ference, which was a great experience for me as I settle into my new sector management role, and a fantastic opportunity to meet so many of you in person. I have to say that the qual-ity of the speakers and the level of participation were abso-lutely fantastic, setting a very high bar for next year!

Over the last 18 months, we’ve been working with custom-ers to define our technology strategy, and now we are fine-tun-ing our propositions tailored to the eight sub-sectors identified across the industry. We’ve created good momentum in some of those sub-sector groups and the Frankfurt conference has enabled us to start to put some of those plans into action.

The biggest thing that came out of the conference for me was that some of our customers had a real paradigm shift – “My god, these guys really get it!” – the realization that you can call on us when you need us. And, I think we’re maybe starting to be recognized as a thought leader for the technol-ogy sector – that we’re doing things that no one else is doing.

The other key outcome for me was our ability to “connect the dots” of the supply chain and make that real at the confer-ence: we had the semiconductor industry; the ODMs and

EMS organizations; the finished goods OEMs; and the point of sale retailers – the entire Technology supply chain – all talking together in one room.

I think everyone appreciated the constructive environ-ment we were able to create, where our customers felt com-fortable talking openly about common issues – despite the competitiveness of the technology sector. In fact, I think we revealed a lot of common ground and areas where customers could engage in mutually beneficial dialogue, and even open-ing up prospects for horizontal collaboration in the technol-ogy supply chain.

A lot of the comments from the event were around “what happens next,” and the follow up will be key. The sub-sector leaders will take the feedback and ideas generated in Frankfurt, feed these to the customer managers, and organize follow-ups with customers in subsector workshops.

I hope you enjoy reading this newsletter and I look for-ward to seeing many of you at next year’s conference, if not sooner!

All the best,

Scott AllisonDHL SVP GCS Technology, Technology Sector Management

By the way, you can watch the DHL Technology Video here

conTenTSpLenary preSenTaTIon 3

Taming the Tech Supply Chain 3

BreakoUT SeSSIonS 6

Computing & Printing – Less Risk, More Innovation 6

Consumer Electronics – Challenges and Opportunities

for Manufacturers and Retailers 8

Semiconductor – Collaboration Is Key 10

Telecoms – Flexibility in the Supply Chain 12

cUSToMer feeDBack 14

connecTIng THe DoTS wITH cUSToMerS

IMprInT published by Deutsche post agcharles-de-gaulle-Str. 2053113 Bonn represented by:Scott allison Svp Technology Heike Humpf vp public relations responsible for content:Thomas Dammann, vp Technology Sector Management editorial Team:Diane rinas, Michelle Bach

writer: keir Bonine

photo editor: Marialuisa plassmann

Layout: Dirk Hrdina website:www.dhl.com

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TaMIng THe TecH SUppLy cHaInDHL technology customers and industry experts put their heads together to streamline the supply chain

over 70 key decision-makers recently took time out of their busy schedules at Hewlett Packard, Samsung,

Dell, Amazon, Motorola, and other leading technology companies, to address supply chain issues critical to their companies’ future success. They came to Frankfurt for the first DHL Global Technology Conference to confer with industry experts on streamlining the supply chain, share best practices and compare notes with their peers. As DHL customers, they

were there to learn about the latest supply chain innovations, as well as to communicate their business priorities and needs to the leading logistics provider to the technology sector.

Under the theme “Driving Value for Your Business,” topics on the agenda of the June 8-9 event addressed such key issues as supply chain security, market segmentation, sector strate-gies, direct distribution, and many other critical supply chain concerns of today’s technology leaders.

LISTenIng To THe cUSToMer

In his welcome address to attendees, Deutsche Post DHL CEO Frank Appel emphasized that the conference was not about pushing the service of DHL, but about listening to the needs of customers and giving them the opportunity

to exchange ideas among themselves. “We understand that you’re facing stiff competition in a changing world,” he told the gathering. While globalization of markets, shorter product cycles and continuous cost pressure remain key challenges, increased volatility presented a new quandary for the supply chain, Appel noted. He told delegates that DHL was listen-ing carefully and had already put several solutions in place to address their needs. In fact, technology was one of three key focus industries at the heart of DHL’s cross-divisional sector management strategy.

“Speed is vital in the technology world,” noted DHL Ex-press CEO Ken Allen, as he outlined how DHL’s new Express routes into and out of Asia would help to better meet cus-tomer needs. Allen, who is also the Deutsche Post DHL Board

“Very interesting, lots of ideas, very positive”

Nigel Cowmeadow from Panasonic Frank Appel (left) and Ken Allen listen to DHL customers at the conference

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Sponsor for the technology sector, explained that, because the technology sector was such a broad and diverse industry, DHL recognized that each of its varied segments required a specific sub-sector approach to address their particular supply chain requirements. Moreover, DHL was committed to fur-ther investing in its capabilities, including regional infrastruc-ture, product and solution development, and expertise, to drive value for its technology customers, he assured delegates.

SUppLy cHaIn SecUrITy

Supply chain security is a particular concern across the technology sector and Nokia’s Thorsten Neumann pointed out that creating awareness of security risks and requirements was a prerequisite to developing the right mitigation strate-gies. He added that increased security does not have to mean additional costs, as it can actually help save money and ensure revenue opportunities.

A major step forward in terms of higher reliability, visibil-ity and security levels is DHL’s new GPS-based Ocean Freight Secure tracking solution for containers, explained Luc Jacobs of DHL Ocean Freight.

BeST-fIT DeSIgn

For NXP’s Marcel Visser, the zero-defects mindset of the semiconductor sub-sector means always striving to continu-ously improve supply chain reliability. The challenge for NXP was to deliver a failure-free supply chain without adding costs through traditional mitigation strategies, such as numerous

stocking locations. His company relies on DHL to provide a direct distribution solution, thus minimizing risks, and NXP’s decision to focus on one main logistics provider has meant streamlined processes with lower overhead costs.

In order to make the benefits of a similar solution more widely available, a DHL Air Freight team of Ingo Rahn, Stephen Smith, and John Lake revealed that a new air freight product was in development to support direct distribution from manufacturing to end consumer.

For Lenovo’s Mick Jones, volatility will remain a fact of life in supply chain management. Therefore, a segmented ap-

“Very nice speeches, it allows me in fact to think out of the box”Marie Holubova, CommScope

Thorsten Neumann, Nokia

“It’s quite interesting when our customers and the customers of

our customers sit down and talk about supply chain issues.

We just have to introduce some issue and let them go. It’s marvelous!”

Scott Allison, DHL GCS

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Marcel Visser, NXP

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proach, flexibility to allow for unplanned events, end-to-end optimization, full visibility at shipment level, and customer responsiveness were key ingredients to a successful and best-fit supply chain design, he suggested.

Electronics retailing has a particular set of challenges and requirements, according to Media-Saturn’s Sven Hermann, including establishing in new markets, the emergence of multichannel distribution options, and setting up an end-to-end supply chain for own-manufactured goods. A key step in working to overcome these challenges for his company was to take stronger central control of inbound supply and reduce the number of partners to better manage the complexity in many of its markets.

SegMenTaTIon for SUcceSS

Understanding the fundamental needs and differences in customer buying behaviors allows targeted alignment of service levels and is the blueprint for a new business model for enterprise supply chains, was the key message from supply chain thought-leader John Gattorna. Segmenting customers according to their needs drives specific value propositions,

which in turn must be supported by appropriate internal capabilities and leadership styles, if they are to succeed, he emphasized.

Generally, companies’ supply chain priorities can be classified as Continuous Replenishment, Lean, Agile or Full Flexibility, explained Gattorna, and logistics service provid-ers needed to be more responsive to these distinct patterns of customer demand.

coLLaBoraTIve fUTUre

“Even though it’s a highly competitive sector, we hope this conference will give you a chance to share ideas,” said Scott Allison, DHL SVP GCS Technology and conference mod-erator. While technology manufacturers are only starting to think about collaboration as a way to cut costs, customers talked openly during the two days of presentations and lively workshops about their business challenges.

“What counts is what happens next,” added Rita O’Sullivan from Microsoft. To this end, DHL’s technology sector team and experts have been addressing feedback and looking at shaping solutions to meet the customers’ needs going forward.

“The challenges for them are really the increasing volatility

of the market place”John Gattorna, Gattorna Alignment

Sven Herrmann, Media Saturn

John Gattorna, Gattorna Alignment

Mick Jones, Lenovo

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ScoTT aLLISon coMpUTIng & prInTIng – LeSS rISk, More InnovaTIonPC/laptop and printer manufacturers sat down together to hash out supply chain challenges and opportunities facing their sector.

De-rISkIng THe SUppLy cHaIn

With external events over which no one has control seeming to happen ever-more frequently – from fuel price fluctuations to volcanic eruptions, and from unrest in the Middle East to the Japanese earthquake/tsunami disaster – workshop partici-pants looked at a number of questions surrounding de-risking the supply chain and how 3PLs could help.

Participants discussed whether it was time to consider bringing operations back from China, for instance, to Europe or North America – closer to customers, with less risk of dis-ruptions in the supply chain. What would be the tipping point to consider such a move?

The biggest issue was the risk of disruption to supply – materials or finished goods – and companies were looking to spread that risk. They still wanted the cost benefit of off-shor-ing, while spreading the risk more and increasing flexibility by holding some inventory in the region of consumption.

A supply chain risk/robustness tool was called for, which could measure the level of risk to the supply chain in a par-ticular region, depending on the type of products, their value and destination. The DHL team will continue to work with these customers to determine what should go into such a tool and explore its feasibility further.

ServIce parTS LogISTIcS – SpL

Companies look to maximize return on the product in after-sales support and service parts, but does this require small inventory closer to the customer, or can it be held on a central basis? What is the balance between transport cost, inventory cost, customer service agreements and product differentia-tion?

The discussion on various model types has confirmed the need for multi-tiered service provisions that are easily imple-mented based on customer and product type.

An intriguing point raised was the impact that cloud computing may have on this equation. If a company no longer maintained servers at all of its branches or locations, for in-stance, thanks to a cloud computing solution, then that would have big implications for SPL.

InTegraTeD TecHnIcaL repaIr

There is a paradigm shift towards an integrated logistics and repair management model. Whilst there has been a huge focus on driving towards globalised service providers in the logistics space, the repair operations have not gone through the same process. For most companies, the existing repair service pro-viders are relatively fragmented across the globe. This presents

“We’re manufacturing 1 million hard disks a day, and getting that shipped all over the world is really a big challenge”

Ronald Dek, Western Digital

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cenTer of exceLLence – enD of rUnway In LeIpzIg

In fact, DHL will have an integrated repair solution avail-able at its Express hub in Leipzig by Q2 next year and the value proposition for customers is very promising, especially since it links into the DHL Express COLLECT & RETURN product. It is based on a single platform interface for bookings of multiple leg repair and return scenarios and also provides industry packaging solutions for laptops and smart phones. The currently EU-focused solution is offered in 14 countries with the aim to become a truly global solution.

Customers agreed that having the supply chain and ware-housing capability integrated with repair, sitting right next door to DHL’s Express hub, is an exciting proposition and some concrete levels of interest were shown in terms of leads.

foLLow-Up

“Overall feedback for the day was very positive, and some further in depth discussions have been suggested,” says Scott Allison, DHL SVP GCS Technology. “We will be following up on necessary actions indicated during the workshop as well as expressions of interest in the innovative services that will soon be available.”

an opportunity for companies to further streamline their supply chain and drive economies of scale for their repair operations.

DHL has come up with an integrated service that incor-porates the repair into the logistics process, which reduces transportation costs, minimizes inventory levels and supports faster repair cycles with lower number of repair partners. Cus-tomers have been queried about their level of interest in such a service and what their criteria would be to choose DHL over a repair vendor. The feedback has been that DHL was on the right track, but it needed to build the right level of credibility – either through acquisition or partnering.

How a company handles returns, repairs and recalls is often criti-

cal to its success. While superior after sales service can be a huge

competitive advantage, it can also be a major burden and cost

sink for a company. This is why more and more Technology com-

panies are turning to DHL to make their lives easier in managing

their reverse logistics.

Panasonic, for instance, needed an express partner to help

them provide premium warranty service with a very tight turn-

around time. According to a company representative, “Through

DHL COLLECT & RETURN we can provide our wide European

customer base with a rapid turnaround time for repairs and a

world class service within agreed service levels. By using a trusted

logistics expert like DHL, we can be sure that we receive custom-

ers’ electronic items safely, and most importantly, on time.”

Acer, too, has signed up with DHL for one-stop service and repairs

in five centers across India, in Delhi, Mumbai, Kolkata, Bangalore and

Hyderabad. “With this arrangement, we expect to save considerable

time in the servicing and repairs of PCs,” says an Acer representa-

tive. According to Acer, this model, which merges the warehousing

and servicing functions for the company, has demonstrated encourag-

ing results and the two partners are considering taking it global.

companies opt for Simpler aftermarket Logistics Solutions

“The size of the company (DHL) has always been a real issue.

If they can crack that at one point of commercial relationship with customers, they will be great”

Mick Jones, Lenovo

Discussions carry on during the break DHL Express Hub Leipzig

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“Some 15 customers from across the consumer electron-ics sector sat down together with DHL industry experts to look at potential areas of collaboration in the supply chain, connecting the dots between the OEMs, retailers and DHL as a logistics supplier,” says David Langford, DHL VP GCS Consumer Electronics.

cHIna go weST

With 40% of global manufacturing still in China, there was great interest in the room in China’s push to encourage manu-facturers to move away from the traditional developed zones towards the west of the country. Questions were raised over

the cost implications, skills of the available labor pool, carrier capacity, and the legislative and regulatory environment, and there was a consensus that companies would need to conduct a thorough cost/benefit analysis and monitor the situation with their respective suppliers/partners.

MULTI-coUnTry conSoLIDaTIon

DHL presented a high-level solution for managing small volume LCL movements via ocean freight, from multiple vendors, in one country or across a region in Asia Pacific, utilizing a central hub to build a cost-optimized full container load – with a guaranteed transit time and level of visibility.

Customers raised points about regulatory and customs impli-cations in China and Hong Kong, and how multiple suppliers were managed across a country or region.

regIonaL DISTrIBUTIon MoDeLS

In a session with Accenture, customers voted on their top three trends shaping supply chains and discussed these in-depth. In discussing inventory management and centralized or de-centralized stock holdings, they recognized that meet-ing customer service demands was the key factor in determin-ing where stock is held.

Late configuration in the supply chain was also discussed, and there was consensus that regional and national custom-ization is unavoidable, and that time to market is a factor in determining what is configured where. Participants showed great interest in learning more about how DHL can add value in this context.

The session then looked at the question of outsourcing the design, execution and optimization of the supply chain. Concerns were raised about cost-effectiveness, neutrality of

DavID LangforD conSUMer eLecTronIcS – cHaLLengeS anD opporTUnITIeS for ManUfacTUrerS anD reTaILerS

“The conference is definitely not a sales pitch from DHL;

they make it clear that they do understand our business”

Maurits Matthijsse, Samsung

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reTaILIng SUppLy cHaIn InTerface

With Europe’s three biggest electronic retailers present in the room, in the form of Dixons, Amazon and Saturn Media, the focus was on the interface between manufacturers and retailers. Aligning their supply chain planning to support both store and web sales channels was a challenge for retailers. Some areas for further discussion and potential better col-laboration include deliveries into the retailers and optimized or shared back haul capability; managing returns; forecasting and managing supplies from OEMs into retailers; and value added services and cost sharing opportunities.

foLLow-Up

“The workshop was very active in terms of participation and served as a useful foundation for future dialogue in promoting a higher level of collaboration among all parties concerned,” says David Langford in wrapping up. “We will need to focus on some specific actions that came out of this, especially around the retail supply chain, and will follow up individually with customers on appropriate areas.”

4PL/3PLs, and becoming too dependent on the outsourced partner. The DHL team assured customers that this is an area for more focus to address their concerns.

recaLL SoLUTIonS

DHL presented its experience in managing recalls and intro-duced a new product being developed to meet the challenges that recalls present. Some 25% of the customer group indicat-ed they had experience in managing such situations and there was a consensus that speed of action was paramount, but with a focused and well-prepared action plan. The DHL customer team will keep their respective customers updated on how it can help them in event of a recall.

With 48% of GDP, 75% of FDI, and 84% of international trade

concentrated in the coastal regions, the development of China’s

western regions has become a pressing objective of the Chinese

government. The government is thus providing incentives to

business to set up operations further inland, as well as invest-

ing almost RMB 1 trillion in infrastructure spending to upgrade

transportation networks. In response, companies like Intel, Fox-

conn, Dell, HP, and Lenovo are moving facilities into the western

regions of Chengdu and Chongqing.

Thanks to DHL’s strong regional coverage and local supply chain

expertise in China, it can offer a competitive range of products

and services, especially addressing the different supply chain

needs of Technology companies moving inland. DHL is also

investing in logistics infrastructure upgrades in Western areas,

including solutions based on road, rail, barge and air links.

Please contact your account manager to learn more about DHL’s

solutions for companies in inland China.

china’s push west

“We found some real synergies on how we can better work

together with our key suppliers in the Supply Chain”Tim Allinson, Dixons Retail

Debating trends in consumer electronics Considering supply chain alignment with retailers Infrastructure project, province of Chongqing

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The semiconductor sub-sector workshop was the second such meeting of the semiconductor community coordinated by DHL in the last 12 months, building on the momentum created in Singapore last year. The semiconductor commu-nity is open to ongoing collaboration and keeping the mo-mentum going for these types of meetings. DHL is looking at ways to deal with common challenges, to improve service to customers and make their lives easier.

DISTrIBUTorS

Future Electronics, representing the distributor’s point of view, generated discussion around the room about the distributor’s role in the distribution channel for the industry. Several ideas have been openly discussed about working better together

due to current customs regulations. There is the possibility to move from one bonded facility to another, but this must be approved on a case-by-case basis. DHL will continue to inves-tigate the requirements needed to setup bond to bond moves on a permanent basis.

zero DefecTS

Zero Defects has become an important area of focus within the Semiconductor Industry, at least partly driven by the strict requirements placed on it by the automotive industry. For DHL, this will require a change in mindset to better under-stand what services the semiconductor industry has sold to their customers. In NXP’s words, it means: “mandate culture – no deviation, no compromise.” DHL has launched a First Choice 6-Sigma initiative in cooperation with some customers on this topic and will report back in one of the next Semicon-ductor workshops.

coLLaBoraTIve SoLUTIonS

Speaking of collaboration, in a follow-on from the Singapore meeting, there was an update on a collaborative initiative re-

craIg corry SeMIconDUcTor – coLLaBoraTIon IS key

with manufacturers, which will be further worked out in one of the next Semiconductor workshops.

DHL and Future Electronics are already laying the ground for testing a specific “Semiconductor Consolidated Direct Ship Distribution” model based on a flat kg/rating scheme. There was also great interest in whether DHL can offer a “Day Specific Delivery,” which DHL will investigate further.

cHIna MarkeT UpDaTe

Discussion revolved around China Customs, China Bonded Facilities and the “Move West” by Chinese based companies as they look to lower their costs. The semiconductor com-munity is focused more on industry solutions relevant to moving product within China, which proves difficult today

“The best part was the discussion on collaboration opportunities which

were presented by DHL”Steven M. Conroy, ON Semiconductor

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garding transportation flows. The voice of the customer from the Semiconductor industry states they are moving more and more into direct ship programs, globally. They are seeking partners that can help optimize their supply chains and sim-plify the rate structure, while reducing the end to end costs – yet are still able to provide the VAT deferment required in some countries.

The objective is to develop a solution that can be imple-mented quickly to demonstrate collaboration and its benefits to all involved. The immediate project DHL is working on – which focuses on a consolidated direct ship program whereby Asia (origin) countries ship to the EU, with Germany being the focal point – is on target and deployment to the customers involved will be implemented within the next 90 days.

foLLow-Up

“Customers appreciated the opportunity to come together in this forum and that, rather than trying to sell them some-thing, DHL was facilitating the open discussion and building the informal network,” says Craig Corry, DHL SVP GCS Technology. “The customers find value in this and want to keep collaborating,” he continues.

“We are working on a number of short-term solutions with the aim to go to market by the time a third semiconduc-tor session is held still in 2011,” adds Corry. “Our hope is to continue to hold two sessions a year with the semiconductor community, going forward.”

The movement of capital equipment for the semiconductor

industry is a highly complex supply chain challenge, often requir-

ing the handling of special one-of-a-kind tools that may require

temperature and shock-controlled transportation. Full visibility on

any single step in the supply chain and no tolerance for delays

are paramount to be successful in this business.

DHL has used its own “First Choice” 6-Sigma-based meth-

odology to establish a best-in-class supply chain process and

competency center with dedicated, highly qualified resources. This

solution set combines premium customer service with expertise

in air, ocean, road, rail and customs formalities, global reach and

online, realtime visibility of critical shipment touch points.

Already operational since early 2011 for a major semiconduc-

tor customer, the next phase will be to make the advantages of

the CECC available to other semiconductor customers wishing to

harness this unique, industry-leading solution for capital equip-

ment shipments.

For additional information, please contact:

[email protected] or [email protected]

Semiconductor capital equipment competency center (cecc)

“Very interesting to see how different companies are trying to build in flexibility in their supply chains

in a different way”Joost Riemslag, Rockwell Automation

DHL’s Kelvin Leung shares insights into China

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discussed how they could work more closely with the end customer from a logistics point of view to iron out some of these problems.

“Real” emerging markets will be a key driver for growth and participants talked a lot about the last-mile solution that they would like from DHL in emerging markets – especially in Africa – where DHL has a strong presence. A clear mes-sage to DHL was that it should link its capabilities better – “connecting the dots” – for end-to-end solutions. As a follow up, DHL’s action will be to update customers on development of new solutions to address the challenges discussed, while also taking the lead in creating a project forum to deep dive into the key challenges.

forecaSTIng anD capacITy ManageMenT

As volatility will likely continue to increase and forecast-ing accuracy will decrease, the processes around shipment

JULIan roLLey, JoHan MeSSIng

TeLecoMS – fLexIBILITy In THe SUppLy cHaIn“The aim of the Telecommunications sub-sector workshop was to encourage openness and discussion between the customers,” explains Julian Rolley, DHL VP GCS Mobile Devices and Network. “As DHL, we were facilitating the discussion, not dictating it.” Another objective was to build momentum that could be continued, perhaps in smaller forums or meetings with customers. “We also wanted to establish whether we are adequately aligned to the logistic demands of the Telecommunications industry and to drive developments to close gaps,” adds Johan Messing, DHL Technology Sector Management.

SUppLy cHaIn cHaLLengeS

Nokia Siemens Networks presented an overview of their daily demands and why they put pressure on logistics service providers. The end customer clearly drives the supply chain challenges and cost, while extreme demand volatility is a reality, as competition is fierce and product availability often influences last-minute decisions by consumers. Customers

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planning and execution become more important. This was a lively session, with many questioning the value and benefit of forecasting and calling for alternative methods to be found. There was also a big discussion around fuel surcharges and DHL’s continuing efforts to put pressure on the carriers to control these. The group recognized that, due to the volatility of the industry, a fresh, collaborative approach was needed to address the challenges of capacity and fuel surcharge manage-ment, coupled with improved communication.

eMergIng MarkeTS

Telecom customers are expanding into emerging markets, and how DHL can support customers entering Africa was a par-ticular focus. Powertech presented an overview of their own

current challenges in the market, which opened discussions on how DHL could provide improved end-to-end solutions – “connecting the dots,” again – for example, as importer of record in certain African countries. It was also suggested that DHL share more of its vast expertise in operating in Africa, leading to proposals for DHL to create an expertise portal ac-cessible to customers.

afTerMarkeT

Some of the discussion points were around reduced turn-around time for the repair cycle; how to avoid repair through better information and diagnostics; product recycling; and, where and how to manage repair centers and by whom?

The industry needs to work harder to fully understand the changing market and adapt its solutions to address those requirements. Flexibility, scalability and agility are key. DHL, as a leader in this service arena, will continue to invest in capabilities to serve the aftermarket and will keep customers updated on developments through the various account teams and sales channels.

foLLow-Up

“We are aligned and want to continue the momentum – in-cluding bringing customers together in smaller groups – and focus more in-depth on some of these key areas and chal-lenges,” says Johan.

“The input and way the customers participated was excel-lent and it was more open than I dared hope,” adds Julian. “The overall feedback from customers after the workshop was that the day exceeded expectations.”

When talk turns to emerging markets, the BRIC countries tend to

get all the attention. But Africa is increasingly considered to be

the “real” emerging market. While the economy is still dominated

by extractive industries, consumer and commodity sectors are

developing fast – especially the Telecoms industry. Mobile phone

subscribers doubled from 2008 to 2010, to more than 500 million.

By 2015, this number is expected to increase to about 850 m, of

which about 250 m will have mobile broadband subscriptions – up

from 12 m in 2010.

What is more, Africa is no longer only seen as a secondary mar-

ket for older or refurbished product versions, with dedicated, low

cost products being developed to address the specific requirements

of African users, such as the Nokia X1-00. There are still challenges

to doing business in Africa, with high currency fluctuations, weak in-

frastructure, political unrest and corruption, as well as complex and

capricious customs regulations. DHL, however, has been operating

in Africa longer than any other express and logistics company, and

has built up a unique level of market presence and local expertise,

with an industry-leading air and road network across the continent.

“We can help mitigate the associated risks of entering the Afri-

can market,” says Dirk van Doorn, DHL Express Head of Solutions

EEMEA. “While the business on a per country basis may not be

significant, the sum of the markets makes for an attractive revenue

and profit proposition.”

“I would like to work closer to a service provider, by that know that I actually

receive the best services”Lars Jarmander, Sony Ericsson

opportunity in africa

Lars Jarmander, Sony Ericsson

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How DID yoU LIke THe conference forMaT?

61% liked the balance of speakers from DHL,

Customers and Industry experts. 25% voted for

more Industry experts, 14% would appreciate more

customer presentations.

73% like the two day format with

plenary and breakout sessions. About 19%

would have even preferred more breakouts.

DHL HaS aSkeD for DeTaILeD feeDBack To geT SoMe gUIDance for fUTUre conferenceS feeDBack HIgHLIgHTS froM onLIne cUSToMer SUrvey

Have yoUr expecTaTIonS Been MeT?

How Do yoU raTe LocaTIon, SeTTIng anD execUTIon?

Does not meet

1 low

Partially meets

2

Fully meets

3medium

Exceeds

4

FullyExceeds

5high

4.6

How Do yoU raTe THe pLenary preSenTaTIonS?

All presentations were rated highly, with some

scoring slightly better.

1 low

2 3medium

4 5high

Ocean Secure 3.5

Airfreight 3.8

Panel 3.8

Retailing 3.8

Sector Management 3.9

Strategy 2015 3.9

Dynamic Supply Chain 4.0

Semiconductor 4.1

PC & Notebooks 4.1

Security 4.4

How Do yoU raTe THe BreakoUT SeSSIonS?

1 2 3 4 5

Computing & Printing | Top-rated: De-Risking Supply Chain

1 2 3 4 5

Semiconductor | Top-rated: Industry Challenge “Zero Defects”

1 2 3 4 5

Consumer Electronics | Top-rated: China Go West Manufacturing

1 low

2 3medium

4 5high

Telecommunications | Top-rated: Dynamic Supply Chains

Average evaluation Range of evaluations of single topics

page 14 | 142011 DHL GLOBAL TECHNOLOGY CONFERENCE | July 2011 | © Deutsche Post AG