Customer Presentation - Introduction DHL OCEAN SECURE
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Transcript of Customer Presentation - Introduction DHL OCEAN SECURE
DHL Global Forwarding Global Ocean Freight
Introduction to DHL OCEAN SECURE
Customer Presentation
Feb 2010
2Deutsche Post DHL | PageCONFIDENTIALDHL OCEAN SECURE: Customer Presentation | Feb 2010
Agenda
Key Challenges faced by ‘Higher Value’ Customers
DHL OCEAN SECURE - The Premium Value Proposition
CSD Technology by Savi Networks
5 Building Blocks for the Solution & Operational Execution
Conclusion
3Deutsche Post DHL | PageCONFIDENTIALDHL OCEAN SECURE: Customer Presentation | Feb 2010
Key Challenges faced by many “Higher Value” Customers
transporting their products via Ocean Freight
• Making sure “higher value” products are secure, both from theft & the elements
� Products in transit for longer period of time
� Not under as much direct supervision
� Greater value per container shipment
• Making sure you have visibility of the container within your supply chain
� Due to longer transit and larger quantities knowing where the product is at any point in time can help your inventory management and in meeting customer & market demands (e.g. Customs)
� Being confident the product within the container is in good condition upon arrival
• Combining the two above items means delivering a solution to your “higher value” products
which offers greater levels of reliability but still enjoys the benefit of shipping via ocean
4Deutsche Post DHL | PageCONFIDENTIALDHL OCEAN SECURE: Customer Presentation | Feb 2010
Addressing the Key Challenges faced by Our Customers
in Ocean Freight Transportation
DGF OFR offers a Premium Solution with Enhanced Benefits
Source: 1) Drewery report 4Q 2007; DNV Impact Assessment Report October 2005; 2) Money-back is 2 times of the additional service fee paid by customer, terms and conditions apply
Visibility – Near-to Real-time Monitoring with GPS fixes and Geo-fences
Reliability – Day Definite door-to-door Service
Security – Physical/Electronic Seal
• More stringent SLAs with all players in the chain to offer you
• A money-back guarantee2) on DHL’s OFR day-definite door-to-door service / selected lanes
• Shift from air to sea – Air freight customers switching to ocean freight are demanding greater reliability at lower cost
• Better reliability means lower inventory holding costs and better reaction to customer and market demands
• With a GPS container security device, you have the assurance of knowing real-time where and when your container was opened; with the option of a light intrusion sensor
• The mechanical bolt seal (LSb device) is ISO 17712 compliant pull strength
• Our Control Tower/Operations will initiate immediate corrective actions via the local security response team upon a security alert
• On-Time arrival - only 53% of on-time port arrivals for container shipping1)
• Pro-active monitoring of shipping lines’ performance vis-à-vis published sailing schedules (e.g. visibility of vessel’s ‘slow steaming’/’super-slow steaming’)
• Better planning – more visibility means faster corrective actions by DGF to meet end- to-end transportation commitments to meet your or your customers needs & execute additional downstream planning if required
5Deutsche Post DHL | PageCONFIDENTIALDHL OCEAN SECURE: Customer Presentation | Feb 2010
Agenda
Key Challenges faced by ‘Higher Value’ Customers
DHL OCEAN SECURE - The Premium Value Proposition
CSD Technology by Savi Networks
5 Building Blocks for the Solution & Operational Execution
Conclusion
6Deutsche Post DHL | PageCONFIDENTIALDHL OCEAN SECURE: Customer Presentation | Feb 2010
DHL OCEAN SECURE
Our value proposition - One Product with 3 Service Levels supported by
GPS-enabled container security devices (CSDs)
Key FeaturesService Level Service Description/Benefits
• Enhanced Visibility and Security: near real time and e2e GPS tracking via GPRS network comms
• Near real time exception alerts, e.g. milestone delays or security breach of container
• Pro-actively monitor and respond to exception
events along DTD milestones
In addition to the CLASSIC Service
• Environment Sensors: near real time exception alerts of temperature, humidity, shock and/or light variations (options are device specific)
• Dry van Containers
• Reefer Containers (future)
In addition to the PREMIUM Service
• Provide day definite service
• Offers 2-times money back guarantee (selected
lanes & strict terms and conditions apply) in case promised date of delivery not fulfilled
PREMIUM
CLASSIC
TIMESURE
Humidity Monitoring
Temperature Monitoring
Container Security –Door Open Alert
Shock/Light Exposures
Global Positioning (GPS)
Day Definite DTD Reliability
Near real time corrective action
7Deutsche Post DHL | PageCONFIDENTIALDHL OCEAN SECURE: Customer Presentation | Feb 2010
Terms and Conditions
• Valid for Danmar Lines controlled business only
• Service applicable to FCL dry van containers (require on-deck stowage)
• Service will be applicable to FCL Reefer containers in the near future
• Valid for all transport legs, e.g. D-T-D, D-T-P, P-T-D
• If central monitoring/reporting is required, the DHL OCEAN SECURE services must be supported by an existing DGF control tower or Central Ops team
• If central monitoring/reporting is not required, the DHL OCEAN SECURE services will be supported by individual DGF stations
Service Factsheet: CLASSIC and PREMIUM Services
1) E.g. temperature, humidity or shock sensitive
8Deutsche Post DHL | PageCONFIDENTIALDHL OCEAN SECURE: Customer Presentation | Feb 2010
Terms and Conditions
• Valid for Danmar Lines controlled business only
• Danmar controlled business (shipping with DGF selected carriers only, including customs brokerage)
• FCL containers only (on-deck stowage)
• Valid for transport legs: D-T-D, P-T-D � NOT x-T-P, i.e. D-T-P or P-T-P
• Selected lanes only and subject to detailed analysis of the entire transportation lane
• The Timesure service must be carried out via an existing DGF control tower or a dedicated operations personnel/team of an individual DGF station
• Subject to the operational terms and rates of existing OFR “named-account” contracts with specific carriers
• Money back guarantee (2 times the additional service fee1) paid) if the DTD/PTD committed transit time is not fulfilled
• Top-load on vessel is not guaranteed
• Exclusions: Force majeure and other extenuating events beyond DGF’s control
Service Factsheet: TIMESURE Service
1) Service Fee = a fee per container paid in addition to the contracted/agreed OFR transportation rate.
9Deutsche Post DHL | PageCONFIDENTIALDHL OCEAN SECURE: Customer Presentation | Feb 2010
Agenda
Key Challenges faced by ‘Higher Value’ Customers
DHL OCEAN SECURE - The Premium Value Proposition
CSD Technology by Savi Networks
5 Building Blocks for the Solution & Operational Execution
Conclusion
10Deutsche Post DHL | PageCONFIDENTIALDHL OCEAN SECURE: Customer Presentation | Feb 2010
2 types of GPS devices are available for standard dry van Containers
Tag
• Global GPS coverage (on-deck stowage)
• GPS location fix frequency is configurable (default: 30 mins)
• Cellular communication (GPRS) with back-haul frequency configurable (default: 4 hours)
• Battery Capacity: 90 days ‘all weather’
• Security: mechanical barrier seal (ISO compliant pull strength)
• Alerts: immediately upon security events
• GPS accuracy:
– 85% of time within +/- 50 meters
– 98% of time within +/- 150 meters
Features
• Same as LS devices
• Environmental sensors (inside)
– Temperature (resolution of 2 deg)
– Humidity (resolution of 2%)
– Shock/Vibration (resolution equal to a 1 inch drop)
– Alerts: immediately upon environmental events
• Optional: light intrusion sensor
• Mounting: “C-clamp” on left door
Container Security Device Technology (1/2)
LS (Location + Security) LSE (Location, Security + Environment)
3
11Deutsche Post DHL | PageCONFIDENTIALDHL OCEAN SECURE: Customer Presentation | Feb 2010
Lock-Bar Mounting solution for reefer containers (under test)
Container Security Device Technology (2/2)3
12Deutsche Post DHL | PageCONFIDENTIALDHL OCEAN SECURE: Customer Presentation | Feb 2010
Agenda
Key Challenges faced by ‘Higher Value’ Customers
DHL OCEAN SECURE - The Premium Value Proposition
CSD Technology by Savi Networks
5 Building Blocks for the Solution & Operational Execution
Conclusion
13Deutsche Post DHL | PageCONFIDENTIALDHL OCEAN SECURE: Customer Presentation | Feb 2010
DHL OCEAN SECURE: Building Blocks of the SolutionE
lem
en
ts o
f In
no
va
tive
OF
R S
erv
ices
End-to-end
SC1) mapping
Pro-active
monitoring
& response
Device-pool
management
& logistics
Pick-upHub-Handling
GroundHandling
Customs clearance
PortHandling
Ocean Freight
PortHandling
Customsclearance
GroundHandling
HubHandling
Delivery
Processes
1) Supply Chain
Tools
GPS Device and Communications via GPRS/GSM networks Information System
– GeoView and web access
The overall solution comprises a combination of processes (E2E supply chain
mapping, pro-active monitoring) and tools (GPS device, Information system)
1
2
3
4 5
Via existing DGF Control Towers or Central Operations teams in OFR Stations
Full device-pool management and maintenance with market-leading technology provider
14Deutsche Post DHL | PageCONFIDENTIALDHL OCEAN SECURE: Customer Presentation | Feb 2010
Full Shipment Transparency: Standard Milestones
11 standard milestones defined: Expected timings are mapped and monitored against
near-to real time information from GPS security devices
Standard Milestone Events
Container loading @ customers warehouse
A
Actual customs declaration (update by operations)
BActual arrival @ origin ocean terminal
CActual vessel departure @ port of origin
D
Actual vessel arrival @ stopover/trans-shipment port
E
Actual vessel departure @ stopover/trans-shipment port
FActual arrival in 20 miles area @ destination port
GActual vessel arrival @ destination
H
Container discharged of vessel
I
Customs clearance @ destination (update by operations)
J Actual PODK
Source: DHL Global Forwarding
1
15Deutsche Post DHL | PageCONFIDENTIALDHL OCEAN SECURE: Customer Presentation | Feb 2010
Regular Status Report (Sample) by Savi’s Program Management
6.5 7 8 10 13(A) 15(A) 13(B) 15(B) 19 20 21 24
Container ID Status
Timestamp
Type
Container Departed
Origin Location
Container Arrived at
Port-of-Loading
Export
Customs Cleared
Vessel Departed
Port-of-Loading
Vessel Arrived
at Port-of-Call(Aqaba)
Vessel
Departed Port-of-Call
Vessel Arrived
at Port-of-Call(Jebel Ali)
Vessel
Departed Port-of-Call
Vessel has
Neared Port-of-Discharge
Vessel Arrived at
Port-of-Discharge
Container Discharged
Import
Customs Cleared
Estimated 30-Jul 4-Aug 6-Aug 22-Aug 25-Aug 26-Aug
Actual 30-Jul 3-Aug 5-Aug 15-Aug 21-Aug 24-Aug 26-Aug 26-Aug 26-AugEstimated
Actual 26-Aug 31-Aug 1-SepEstimated
Actual 28-Aug 31-Aug 31-Aug 12-Sep 13-SepEstimated
Actual
MSKU0569081 ||||||||||
MSKU6846049 |||
|||||MRKU0420795
1 E2E Transportation Chain Mapping and Monitoring
The regular status report is distributed through emails.
16Deutsche Post DHL | PageCONFIDENTIALDHL OCEAN SECURE: Customer Presentation | Feb 2010
Pro-active Monitoring of Alerts & Timely Response
DGF Control Tower or Central Operations teams are enabled with GPS
container tracking technology
2
1) For data upload into the web server
Web Server
� Configures devices and geo-fences
� Collects data from all devices
� Raises alerts in case of exceptions
GPS Devices with GPRS
Communications
• Determine position via GPS• Sends data back via GPRS (mobile phone
network) when in reach• Monitors environment (e.g. temperature)
Pro-active Tracking and Exception Management
� Consist of existing DGF Control Towers or origin and destination personnel
� Receives exception notification and determines corrective actions
� Interacts with customer if necessary
DestinationOrigin
Current Limitations
• Container needs to be stowed on deck to keep GPS contact
• GPRS (GSM) connection1)
only available in vicinity of shore (no CDMA: JP/KR)
TECHNOLOGY BACKBONE
• All services are supported with GPS devices for near-to real-time tracking
• Containers will be mounted with device on door for entire DTD journey
• Status updates incl. security alerts, location, environmental events will be transmitted via the GPRS (GSM) global communications network
17Deutsche Post DHL | PageCONFIDENTIALDHL OCEAN SECURE: Customer Presentation | Feb 2010
Actual collected data shows that GPRS coverage, shown below in purple and green, has been excellent on land and has extended up to 20 miles (30 km) offshore.
US SnapshotSource: Savi Networks
GPRS Coverage – Container Movement4
18Deutsche Post DHL | PageCONFIDENTIALDHL OCEAN SECURE: Customer Presentation | Feb 2010
GeoView of GPS Locations and Heartbeat Data5
19Deutsche Post DHL | PageCONFIDENTIALDHL OCEAN SECURE: Customer Presentation | Feb 2010
• New data points are added for changes greater that 2ºC or 2% (not at a regular interval)
• Alerts are triggered when measurements exceed pre-set thresholds
• Full sensor histories are available in Excel format after shipment conclusion
Example:Temperature Graph Depiction
Source: Team, Savi
20Deutsche Post DHL | PageCONFIDENTIALDHL OCEAN SECURE: Customer Presentation | Feb 2010
Agenda
Key Challenges faced by ‘Higher Value’ Customers
DHL OCEAN SECURE - The Premium Value Proposition
CSD Technology by Savi Networks
5 Building Blocks for the Solution & Operational Execution
Conclusion
21Deutsche Post DHL | PageCONFIDENTIALDHL OCEAN SECURE: Customer Presentation | Feb 2010
OFR FCL is ready to perform (further) Proof of Concept trials with our
existing customers to demonstrate benefits of new services
DHL OCEAN SECURE - Introductory Offer
Offer valid until Q1 2010 – Extended!
• Free customer trials (1st 20 customers) for up to 6container security devices each
• Money back guarantee is not part of introductory offer
Key Criteria for Offer
• DANMAR controlled OFR business
• Minimum volume of 15 FCL containers per month
• D-T-D or P-T-D lanes only
• Existing control tower, central operations team or supply chain coordinators monitoring OFR shipments
• High value and/or highly sensitive cargo
�Subject to final approval by OFR Global FCL
22Deutsche Post DHL | PageCONFIDENTIALDHL OCEAN SECURE: Customer Presentation | Feb 2010
BACKUP
23Deutsche Post DHL | PageCONFIDENTIALDHL OCEAN SECURE: Customer Presentation | Feb 2010
540
ALL FIGURESARE ESTIMATES
Source: DP DHL Inhouse Consulting; Based on study from Prof. Hau Lee – Study for SST (Smart and Secure Tradelanes); 1) Effect distribution to Transparency, Reliability and Transit time estimated
Independent studies have shown if customer can address
transparency, reliability & lead time, savings can be achieved
Savings Potential from each Service for Customer
Assumptions
• Average value per
container is $100,000
• Transportation cost on
trans continental route is
$ 2,000
• Variability of lead time
reduced +/-4 to +/-2
days and transparency
increased
• Lead time reduced from
47 to 42 days
– in $ per container –
Transparency1)
239
Reliability1)
237
Transit time1)
250
130
80
40
40
Total savings
64
Value proposition for Customers’ E2E Supply Chain
EXAMPLE STUDY
Safety stock
Pipeline inventory
Pilferage & loss
Admin labor
Service charges
24
Shock Alerts
Extreme*>120 G>153
3.9 ms5 in.117 G149
4.3 ms4 in.98 G130
4.7 ms3 in.81 G112
5.5 ms2 in.55 G86
6.8 ms1 in.32 G63
Insignificant*<25 G<55
Impact DurationDrop HeightImpact ForceRaw Data
*sensor accuracy decreases beyond this point
• The shock sensor reports a 0 unless it measures a force greater than 25x gravity (equivalent to a drop of ~3cm)
• SaviTrak displays shock measurements in the raw data sent from the sensor module
• Any shock reported by an LSE tag will add an environmental alert
– This will send an email to users configured to receive them
– Alerts are also displayed in the Container Visibility & Event Management pages