3. 3 Agenda Market Overview – we are in a new economic paradigm Supply Chain & Customer Collaboration Cost Pressure Sustainability Technology End-Consumer Satisfaction Partnership Approach
4.
5. 68% of the top 20 countries (relative to the number of households) are in Asia
6. 24% of the world’s countries exceeding 7% GDP growth are in Asia
7. Over a third of the top 20 manufacturing output countries are in Asia
8. 14 Asian countries are above the global average consumer confidence indexSource: AC Neilson
9.
10. Asia may escape the worst of this crisis but it is still early days; China is the key player to determine regional confidence and growth
11. In this century we are witnessing the rise of the East and a shift of power (especially economic) to the developing world; not since the Industrial Revolution has such evocative change taken place
12. These economic challenges emphasize a greater need for collaboration5 Source: Nielsen Global Consumer Confidence Index, 1st Half, 2008
13. 6 Agenda Market Overview – we are in a new economic paradigm! Supply Chain & Customer Collaboration Cost Pressure Sustainability Technology End-Consumer Satisfaction Partnership Approach
14. 7 Supply Chain & Customer Collaboration Collaboration Cost pressure Customers continue to come under cost pressure due to the volatile price of fuel and general commodities End-Consumer Satisfaction Growth of modern trade in Asia will drive need for better supply chain performance; on shelf availability will drive customer satisfaction and thus increased brand loyalty Sustainability An increasing international and regional focus on sustainability and vehicle utilisation Technology Technology is and will continue to grow as the key driver for efficiency, collaboration and customer satisfaction Logistics companies are acting as the centre of collaborative efforts to reduce costs, increase sustainable supply chain footprints and aggregate efficiency, with the aim to increase customer satisfaction Partnership approachIncreased complexity of global supply chains create a greater need for strong partnerships and joint investment in people, systems and solutions
20. Many successful companies continue to address cost pressures by outsourcing supply chain activities / processes to third-party logistics companies, allowing them to:
26. Cost savings can be realized through network re-configuration, further collaborative initiatives in consolidation, fronthaul, backhaul and inventory optimization and utilization of more efficient vehicles Source: AC Neilson; Global Logistics Outsourcing trends: Challenges in managing 3PL relationship
27.
28. Millions of Asians could face poverty, disease and hunger caused by rising temperatures and increased rainfall2
31. Globally, sulfur dioxide (SO2) has decreased but its concentrations remain above the WHO threshold in many cities in developing countries
32. If global emissions continue on a ‘business as usual’ path for the rest of the century, Earth will warm by 14˚C by 21004Source: 1. 2008 Sustainability Yearbook; 2. World Health Organization; 2008; 3. CSR Asia Weekly 2008; 4. Washington Post, March 2008
33.
34. DPWN, parent company of DHL, is spearheading the sustainable supply chain approach, having made a commitment to reduce its carbon footprint by 10% by 2012, and by 30% by 2020
81. 16 DHL Smart Shelf SolutionTemperature Tracking, Clinical Trials, Cool Chain Solutions Med Device Med Device Stock Stock Med Device Med Device Med Device RFID Smart Shelf Solution: consignment of pharmaceutical products Singapore Local Delivery Inbound Outbound Pharma Med Device Return Smart Shelf Hospitals EU Suppliers Med Device Healthcare Hub Med Device US Suppliers Return Smart Shelf Medical Devices Tag with RFID Tags Legend Order Fulfillment, DHL Information Flow
84. METRO Group is a new partner of the DHL Innovation Initiative, this partnership will jointly advance technology projects and turn them into business successes
95. Consolidation goods at collection hubOrder placed by telephone, fax or e-mail Collection of goods by closest hub to point of origin Local distribution by closest hub to point of destination Scheduled vehicles running daily between hubs Cross-dock operations onto delivery vehicles
96. 21 Agenda Market Overview – we are in a new economic paradigm! Supply Chain & Customer Collaboration Cost Pressure Sustainability Technology End-Consumer Satisfaction Partnership Approach
103. Customer access to partner 3PL’s information systems will provide them with visibility of available warehouse and trucking space, trucking destinations, etc., from point of supply to point of sale
104.
105. We will see a growing trend of customers looking to outsource more and more of their supply chain activities – replenishment, manufacturing, data and financial management – increasing the need for closer economic and strategic ties between 3PL’s and their customers
106. Many of today’s companies will become pure ‘brand’ entities and will hand over the arms and legs of their physical operations to supply chain entities; a growing combination of strategic partnerships from sourcing to end-delivery will allow the ‘brand’ to focus purely on brand development and R&D
107. Asia will, in many ways, be a leader due to its long term growth, early adoption of new business models and huge tide of new consumers who will drive supply chain execution, excellence and excitement