Understanding of Logistics- Inbound & Outbound Activities

7/27/2019 Understanding of Logistics- Inbound & Outbound Activities

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A PROJECT REPORT ON

"Understanding of Logistics- Inbound & Outbound Activities."

Submitted for the Partial fulfilmentOf

Master of International Business

(MIB)

To

DHL LogisticsSession 2012-14

Submitted by:

Md. Nademul Haque

12-MIB-0028

Under The Supervision Of

Mr. Akhilesh Sharma

CENTRE FOR MANAGEMENT STUDIES

JAMIA MILLIA ISLAMIA

New Delhi-110025


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DECLARATION

I Md Nademul Haque, a bonafide student of MIB (full time) Programme at the Centre

for Management studies, Jamia Millia Islamia , New Delhi, declare that I have

undergone the summer training at DHL LOGISTICS Under the supervision of Mr.

Akhilesh Sharma .

I also declare that the present report is based on the above summer training and is

my original work. The content of this project report has not been submitted to any

other university or institute either in part or in full for the award of any degree,

diploma or fellowship.

Further, I assign the right to the university, subject to the permission from the

organization concerned, use the information and contents of this project to develop

cases, case lets, case leads, and courses for publication and/or for use in teaching.

Place- New Delhi Md Nademul Haque

Date - 30-07-13 12-MIB-0028


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ACKNOWLEDGEMENT

The success of this project would be incomplete if I dont acknowledge those peoplewho have really put their effort to make my project successful and worthwhile.

I take it as my pleasure and honour to express my sincere gratitude to Mr. AkhileshSharma, Manager of Fatehpur warehouse of DHL Logistics who not only gave meopportunity to do my project in their company but also helped me a lot.Again I wouldlike to thank Mr. Akhilesh Sharma , site manager for the tremendous support givenby him to successfully complete my project.

I wouldnt miss this opportunity to thank the person behind the curtain Prof.Veeramani whose guidance has made me to learn something valuable and gainsome experience and learning about the subject and its practicality.

I am very indebted and grateful to my internal guide, Mr. Chandarmohan Painauli,for his valuable guidance, support and suggestion without which this project workreport would not have been possible.Finally I am thankful to my parents and friendswho have silently inspired me to successfully complete this project work.

Place- New Delhi Md Nademul Haque

Date - 30-07-13 12-MIB-0028


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EXECUTIVE SUMMARY

International supply chains are an ever more prominent feature of global commerce.The production of manufactured goods is organized increasingly through global

value or supply chains, with goods being processed (value being added) in multiplecountries that are part of the chain. Plants in each country specialize in specificprocessing activities that make up a final product. Economists call the processvertical specialization. One implication is that more than half of world trade todaycomprises intermediate inputs. For the world as a whole, the import content of exports has been estimated to be about 30% (Daudin, Rifflart and Schweisguth,2011).

Freight Mode share:

In the world as a whole the supply chain industry the major players included areDHL, FEDEX, BLUE DART, TNT, GATI, and many more. Major Indian logisticcompanies are DTDC, PACKERS & MOVERS, OM LOGISTICS, CONCOR etc.

In 2010 Deustche Post was Indias top logistics firm claiming a market share of 40%was estimated at $100 billion.

According to a Cushman & Wakefield report, Indias logistics industry is expected togrow at 15-20% per annum, reaching revenues of US$ 385 billion by 2015. Demandfor focused supply chain services has been fuelled by industries with a highpropensity to outsource: including the automobile, consumer packaged goods, hi-tech, telecom and retail industries. The movement of basic commodities, for


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domestic consumption and export/import, has led to an increase in multimodal andbulk transportation and the emergence of many new ports and port-related serviceproviders.

Road network in India

Now coming to the overview of DHL, it was incorporated in 1969 by its foundingmembers, Dalsey, Hilblom, and Lyn which is based in Bonn Germany. It is one suchcompany which is renowned for its initiative in the social upliftment througheducation and has received many awards for its commitment towards greener solution internally and externally.

Going through the financial performance of the company that it is a constant profitgenerating company. With the results achieved in financial year 2012.Deutsche Post DHL increased both revenue and margin. EBIT improved by nearly10 % despite the negative impact of the additional VAT payment. Thanks to our presence in the worlds growth markets, the DHL divisions performed particularlydynamically. In the MAIL division, revenues were up significantly in the parcelbusiness, which helped to compensate for moderate volume declines in the mail

business. In the fourth quarter, the Groups earnings grew even more decidedly at arate of nearly 40 %. Although operating cash flow was negatively impacted byextraordinary effects from the continued funding of pension liabilities, the Groupsfinancial position remains very solid in the opinion of the Board of Management.


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Selected indicators for results of operations

2011 2012 Revenue m 52,829 55,512 Profit from operating activities (EBIT) m 2,436 2,665 Return on sales 1 % 4.6 4.8Consolidated net profit for the period 2 m 1,163 1,658 Earnings per share 3 0.96 1.37 Dividend per share 0.70 0.70 4

1 EBIT / revenue.2 After deduction of non-controlling interests.3 B asic earnings per share.4 Proposal.Changes


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TABLE OF CONTENTS

Section I

1.1 HISTORY- COMPANY PROFILE

1.2 VISION AND MISSION

1.3 OBJECTIVES

1.4 FORM OF ORGANIZATION

1.5 MAIN ACTIVITES

1.6 MARKET SHARE

1.7 ORGANISATION STRUCTURE

1.8 ANALYSIS OF FINANCIAL STATEMENT


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1.9 SPECIAL MANAGERIAL CONCERNS AND ISSUES

2.0 RECENT MANEGMENT INITIATIVE IN THE AREASOF MARKETING,

FINANCE, HR, TECHNOLOGY AND STRETEGY.

2.1 RETENTION POLICES

Section II

2.2 DESCRIPTION OF THE ASSIGNED TASK AND RESPONSBILITIES

2.3 NATURE OF WORK, WORKING HOURS, WORK EXPECTATION

2.4 PROCEDURE AND METHODOLOGY

2.5 OUTCOME AND RESULT.

2.6 LEARNING AND EXPERIENCE

Section-III

2.7 TOPIC OF THE RESEARCH

2.8 DATA COLLECTION METHODOLOGY

2.9 ANALYSIS AND INTERPRETATION OF DATA

3.0 FINDINGS AND CONCLUSION

3.1 BIBLIOGRAPHY


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HISTORY OF DHL

1969 Founding of DHL

Just a few months after Neil Armstrong took the first step on the moon, AdrianDalsey, Larry Hillblom and Robert Lynn in San Francisco take a step destined toalter the global economy: In 1969, they founded the company DHL the three lettersstand for the initials of their last names.

1971 DHL expands its networkDHL expands its network at high speed. Following expansion in the Far East and inthe Pacific Rim (1971), DHL also begins offering services in Japan, Hong Kong,Singapore and Australia (1972) and later in Europe (1974), Latin America (1977),the Middle East and Africa (1978).

1979 DHL offers parcel deliveryDHL adds parcel delivery to its list of services. Until this time, the company offereddelivery of documents only .

1986 DHL in ChinaDHL enters into a joint venture with the Peoples Republic of China, making it thefirst express company to operate inside of China .

1989 Deutsche BundespostPostdienst, DBP Postbank and DBPTelekom are established under the first postal reformThe Law concerning the Structure of Posts and Telecommunications of July 1,1989, stipulates the restructuring of the former Deutsche Bundespost (Postalreform I). The new structure brings about the following organizational andregulatory changes:Separation of Deutsche Bundespost into three sectors DeutscheBundespostPostdienst, Deutsche Bundespost Postbank and Deutsche BundespostTelekomSeparation of the regulatory/political area from the managerial/operational areaEstablishment of management and supervisory boards for the public companiesCreation of a Board of Directors to which the management board chairpersons of the three companies belong.


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1990 Reunification also with the PostThe East German Deutsche Post is incorporated into DeutscheBundespost.

1995 Deutsche Post AG, Deutsche Postbank AG and DeutscheTelekom AG are established under the second postal reformThe second postal reform, primarily administrative in nature, goes into effect in early1995 based on the Posts and Telecommunications Reorganization Act. The threecompanies that emerged from Deutsche Bundespost are converted into stockcompanies under private law. Although the federal government initially retained allshares, they were gradually offered for sale to private shareholders, with the federalgovernment retaining the majority stake for at least five years. The Federal Postsand Telecommunications Agency was founded at the same time. It represents thefederal governments interests as a shareholder in the three stock corporations and

performs supervisory and coordinating tasks. The federal regulatory tasks that werestill necessary were initially assumed by a department in the Federal Posts andTelecommunications Agency (dissolved in 1997).

1996 Fast parcel delivery thanks to extensive investmentMassive investments in state-of-the-art logistics technology pave the way for faster delivery of letters and parcels throughout Germany. Thanks to reorganization andmodernization of production at 33 parcel centers, Deutsche Post is able tosignificantly speed up the distribution process.

Another comprehensive, large-scale investment program was aimed at modernizingthe infrastructure of the mail centers. When investment was completed in 1998, thenetwork consisted of 83 high-tech production centers.

A high level of automation and standardization improves service quality and boostsproductivity. Mail is one example. While less than 25 percent of letters were sorted bymachine in the early 1990s, 90 percent of all items at mail centers are nowprocessed fully automatically. Ninety-five percent of letters posted in Germany beforefinal collection reach their recipient in just one day.

1997 The age of globalization dawns at Deutsche PostFollowing the successful domestic restructuring of the company, Deutsche Post AGbegins setting the course for global expansion. Globalization of business activitiescomes in response to the growing number of customers seeking a single serviceprovider for their national and international shipping needs. The strategy is toestablish Deutsche Post internationally with targeted acquisitions, investments andpartnering agreements as well as to steadily expand the market position throughintegrated services.


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1998 Letter 2000 concept becomes realityThe last of 83 mail centers throughout Germany is opened in Regensburg onDecember 4, 1998, giving Deutsche Post one of the most modern mail transportnetworks in the world. Customers benefit from the substantial improvements in mailtransit times: 95 out of 100 letters in Germany reach their recipient in just one day(day of posting + 1), more than 99 percent reach their destination within two days.The new mail centers replace approximately 1,000 mail processing offices whereletters were sorted for the most part manually until the early 1990s. Over 85 percentof all letters are now processed by machine. The modern mail sorting systems canautomatically scan and sort up to 36,000 letters per hour. Deutsche Posts largestmail centers are located in the urban centers of Berlin, Hamburg, Munich, Frankfurtand Dsseldorf.

1999 Acquisition of Danzas and AEI

The acquisition of the Swiss logistics provider Danzas and the largest Americanservice provider in the field of international airfreight, Air Express International (AEI),attracts attention. Founded in 1815, the prestigious Danzas group is regarded as oneof the worlds leading logistics companies. With approximately 29,000 employees atthe time of acquisition, Danzas has a strong logistics network on all continents. Theacquisition of AEI is similar. AEI has a network of branches in 135 countries. Inaddition to integrated logistics and multi-modal transport, it offers warehousing,distribution, customs processing and IT-based logistics services. AEI is integratedinto the Intercontinental division of Danzas. As a full-service provider, the mergedcompanies provide Deutsche Post with a dense transport network as well as animpressive portfolio of value-added services.

2000 Deutsche Post AG goes publicOn November 20, 2000, Deutsche Post AG goes public. The largest IPO of the year in Germany and the third-largest worldwide proves a resounding success. An initialtotal of 29 percent of the share capital of Deutsche Post AG is sold. The immensedemand, as evidenced by an eight-fold oversubscription to the shares offered in theIPO, clearly demonstrate that the Groups strategy has convinced investors and thecapital market alike.

2001 Deutsche Post AGs first Annual General Meeting after theIPOOne June 27, 2001, Deutsche Post AG holds its first Annual General Meeting after the IPO in the Klnarena with approximately 6,000 shareholders. The Chairman of the Board of Management, Klaus Zumwinkel, confirms to the shareholders theGroups goal of consistently expanding in the coming years to become the number one global player in logistics based on comprehensive logistics and financialservices for our customers worldwide.


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2002 Deutsche Post acquires DHLThe partnership with DHL International, which began with the acquisition of a minorityinterest in 1998, is expanded and intensified in 2000. Negotiations were thenconcluded allowing Deutsche Post to establish a majority interest from January 1,2002. In July 2002, DPWN acquires a 25-percent share in DHL from Lufthansa Cargoand increases its majority stake to 75 percent. At the time, DHL Worldwide Expresshad more than 71,000 employees worldwide. A pioneer in global express shipping,DHLs international n etwork links over 220 countries and territories. DHL becomes awholly owned subsidiary of the Group in December 2002 after Deutsche Post AGacquires the remaining shares from two investment funds and Japan Airlines.

2003 DHL in a new design: A new brand for the worldwide express andlogistics business

Deutsche Post bundles its entire express and logistics business under the DHLbrand. On April 1, 2003, the Group begins re-branding some 20,000 parcel deliveryvans throughout Germany in the new DHL design. Deutsche Post AG had increasedits share in the global market leader in the courier and express business to 100percent in December 2002.The new, internationally renowned DHL brand underscores the Groups evolutioninto a global player. Synonymous with speed and modernity, the express and courier brand DHL is one of the best-known logistics brands around the globe.The consolidation of the worldwide parcel and logistics business under the DHLbrand is the result of the consistent implementation of the Groups global one -stopshopping concept, offering the whole range of services from a single source.

Around the world, the courier and express business (formerly DHL), the parcelsbusiness (formerly Euro Express) and the logistics business (formerly Danzas) arebrought together under the new brand.

2004 Postbank goes publicPostbanks IPO is the largest new issue in Germany since Deutsche Post AGs IPOin November 2000 and is also one of the largest issues ever on the German capitalmarket. Postbank stock (symbol DPB) has been freely traded on the FrankfurtStock Exchange and all German regional stock exchanges since June 2004. Thestock was more than two and a half times oversubscribed.

2005 The Group acquires Exel In December 2005, Deutsche Post acquires the British logistics company Exel for 5.5 billion euros. At that time, approximately 111,000 employees work for Exel in135 countries. Exel specializes in providing transport and logistics solutions for keycustomers. The company concludes the first half of 2005 with a 55 percent leap inprofits to 172 million pounds (251 million euros).


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2006 First Choice service campaignThe Group, with its brands DHL, Deutsche Post and Postbank, seeks to becomethe first choice for all customers with the First Choice service campaign.Consistent, comprehensive employee orientation to customer satisfaction is thekey to reaching this goal.

A total of over 1,000 individual projects worldwide will be initiated within the scopeof First Choice. The focus is on increasing customer satisfaction among bothprivate and business customers.

2007 Opening of the DHL Innovation Center The Group further expands its role as an innovation leader in worldwide logisticswith the opening of the DHL Innovation Center in Troisdorf near Bonn. The missionof this state-of-the-art research and development center is to develop new, highlyinnovative and marketable products from the logistics trends of the future. Theprojects carried out in the DHL Innovation Center are realized together withinnovation partners from the business world such as IBM, Intel and SAP. Inaddition, the DHL Innovation Center maintains research partnerships with thelogistics institutes of the Massachusetts Institute of Technology (MIT) in Boston andSaragossa as well as the German Fraunhofer institutes. The showrooms attachedto the center provide customers, business partners and interested visitors with acloser look at the latest technologies in the logistics industry.

2008 Leipzig/Halle air hub opens

DHL has officially opened its new European air freight hub at Leipzig/Halle Airport inGermany. The hub, one of Europe's largest construction sites, expands DHL'sinternational network, providing greater connectivity to global growth markets andenabling DHL to improve its overall customer service.The decisive criteria for the choice of location were the position of the airport, itsproximity to growth markets in Eastern Europe, the long-term planning security withcomprehensive authorization for night-time flights, the wealth of motivated and highlyqualified locally-based personnel, and impressive infrastructure which allows for afuture-oriented combination of the carriers air, road and rail.Leipzig is the first DHL facility able to meet its needs for electricity, heating andcooling energy, to a large extent self-sufficiently. This is ensured by a cogeneration

unit for combined heat and power generation, together with 1,000 square meters of solar cells on the roof of the hangar workshop for the generation of electricity fromsolar energy. In addition, two underground cisterns, with a capacity of 300 cubicmeters each collecting around 3,000 cubic meters of rain water each year, will beused instead of drinking water to wash the aircraft.


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2010 Deutsche Post offers confidential letters on the InternetBy launching its digital letter the E-Postbrief, Deutsche Post has ushered in anew era in communication by mail. Using this modern technology privateindividual, businesses and administrative bodies can use the internet tocommunicate with one another safely and securely. The E-Postbrief is asbinding, confidential and reliable as a letter and as fast as an e-mail.

2011 - First Sustainability Day of Deutsche Post DHLFor the first time, Deutsche Post DHL invites the public to take part in itsSustainability Day. At the head office in Bonn, representatives from the fields of politics, industry and social welfare take part in a dialog on issues such as: corporateresponsibility in the 21 st century, the changing demands of the workplace onemployers and employees, and the investors' expectations for sustainable corporatemanagement. "As a global company, we want to help shape the dialog on sustainable

business", says Frank Appel, CEO of Deutsche Post DHL.

OUR MISSION AND VISION

Our company, our vision emphasizes that we want to be The Logistics Company for the World. This goes beyond the simple fact that, as a global company, we arepresent in over 220 countries and territories, or that we are often the very first

logistics company to enter new markets. Our vision stresses that we want to be thelogistics provider people turn to their first choice not only for all their shippingneeds, but also as an employee or investor.

In 2009, we laid out our goals for the future in our Strategy 2015, including our visionand mission for This is further underlined in our mission statement, which has four main elements:1) We want to simplify the lives of our customers

2) We make our customers, employees and investors more successful3) We make a positive contribution to the world4) We always demonstrate respect when achieving our results

We are successful when you are

We strongly believe that pursuing all of these goals is in our interest and in theinterest of all of our stakeholders: customers, employees, investors and the planet asa whole. We add value to peoples interaction with us, whether with excellentservices or products, by engaging our employees and nurturing their talents, or by


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being a solid, long-term investment on the stock market. And, we show concern for our world and our communities with our various corporate responsibility programsunder the motto of Living responsibility

Our Purpose

A company with a purpose We are deeply proud of the contribution we can make in our daily work. Everythingthat is moved from one place to another needs the aid of logistics but behind thissimple truth one finds millions of stories. As the logistics company for the world, we

form the backbone of trade, ensuring that whatever needs to be delivered, getsdelivered. A shipment placed in our trust may include life-saving medicines, or abirthday present from a friend, or hold a companys entire existenc e in the form of aprototype. We not only deliver parcels and packages, and make sure containersarrive at ports: we deliver prosperity, we transport health, we power growth, Wedeliver joy. Every day we connect people, improving their lives.

Deutsche Post DHL - the Group at a glance

The Deutsche Post and DHL corporate brands offer a one-of-a-kind portfolio of

logistics and communications services. The Group provides its customers with both

easy to use standardized products as well as innovative and tailored solutions

ranging from dialog marketing to industrial supply chains. About 475,000 employees

in more than 220 countries and territories form a global network focused on service,

quality and sustainability. With programs in the areas of climate protection, disaster

relief and education, the Group is committed to social responsibility.


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OUR OBJECTIVE

Our strength in numbers:

We do business in more than 220 countries and territories. We employ about 475,000 employees worldwide, making us one of the top 10

largest employers in the world. We manage more than 1 million customer contacts per hour. In 2012, Deutsche Post DHL generated revenues of more than 55 billion

euros.

We want to stay th e postal service for Germany and to become th e logisticscompany for the world. We commit ourselves to making our customers, employeesand shareholders more successful without compromising on results. At the center of this is a two-pillar approach focused on mail and logistics services.The MAIL division will set its focus on service quality and introducing new productsfor electronic communications. For DHL, the focus is on creating tighter linksbetween the DHL divisions in order to better address customer needs. The unit "DHLCustomer Solutions & Innovation" will help drive the development of innovative ideasinto marketable solutions. We will also be turning our attention to creating moreindustry-specific solutions for sectors such as life sciences and technology.

Two powerful brands

Corporate divisions:MAILEXPRESSGLOBAL FORWARDING, FREIGHTSUPPLY CHAIN
http://www.dp-dhl.com/en/about_us/corporate_divisions/mail.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/express.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/global_forwarding_freight.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/supply_chain.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/supply_chain.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/supply_chain.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/global_forwarding_freight.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/express.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/mail.html


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Deutsche Post DHL brings two powerful brands to the marketplace.

The Deutsche Post brand stands for personal proximity, reliable quality andgroundbreaking services. Its success is built on the unique infrastructure in

Germany, consistently high quality in the mail business and innovativeservices in the area of dialog marketing.

The DHL brand stands for personal commitment, proactive solutions and localstrength in the parcel business as well as in international express, logisticsand mail operations. Our employees, who focus on customers needs andprovide them with individually customized solutions, help secure our success.

The first choice for customers and shareholders As part of our Strategy 2015 we want to be the provider of choice for customers, anattractive investment for shareholders and the employer of choice for our staff.

The Group's global program First Choice is designed to intensify our focus and our business processes on our customers' needs. We are committed to strengtheningcustomer loyalty and expanding our business using our existing customer base. Wealso aim to change the corporate culture of Deutsche Post DHL. We are doing moreto promote collaboration among employees across the Group in an effort to enhancevalue for our customers.
http://www.dp-dhl.com/en/about_us/strategy.htmlhttp://www.dp-dhl.com/en/about_us/strategy.htmlhttp://www.dp-dhl.com/en/about_us/strategy.htmlhttp://www.dp-dhl.com/en/about_us/first_choice.htmlhttp://www.dp-dhl.com/en/about_us/first_choice.htmlhttp://www.dp-dhl.com/en/about_us/first_choice.htmlhttp://www.dp-dhl.com/en/about_us/first_choice.htmlhttp://www.dp-dhl.com/en/about_us/strategy.html


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Our commitment

Our ability to perform as a Group rests on the shoulders of our many employees. Our guiding principle "Respect & Results" strengthens the collaboration among our employees and demonstrates our respect for human rights within our sphere of influence. True to the motto "Living Responsibility", our programs focus on the areasof environmental protection (GoGreen), disaster management (GoHelp)

and education (GoTeach), and support the volunteer work of our employees .
http://www.dp-dhl.com/en/responsibility/environmental-protection.htmlhttp://www.dp-dhl.com/en/responsibility/environmental-protection.htmlhttp://www.dp-dhl.com/en/responsibility/environmental-protection.htmlhttp://www.dp-dhl.com/en/responsibility/disaster-management.htmlhttp://www.dp-dhl.com/en/responsibility/disaster-management.htmlhttp://www.dp-dhl.com/en/responsibility/disaster-management.htmlhttp://www.dp-dhl.com/en/responsibility/championing-education.htmlhttp://www.dp-dhl.com/en/responsibility/championing-education.htmlhttp://www.dp-dhl.com/en/responsibility/championing-education.htmlhttp://www.dp-dhl.com/en/responsibility/our_employees.htmlhttp://www.dp-dhl.com/en/responsibility/our_employees.htmlhttp://www.dp-dhl.com/en/responsibility/our_employees.htmlhttp://www.dp-dhl.com/en/responsibility/our_employees.htmlhttp://www.dp-dhl.com/en/responsibility/championing-education.htmlhttp://www.dp-dhl.com/en/responsibility/disaster-management.htmlhttp://www.dp-dhl.com/en/responsibility/environmental-protection.html


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FORM ORGANISATION

DHL - t h e Logistics company for the world

The core brand positioning elements of DHL.

The DHL success story started with a revolutionary entrepreneurial idea. In 1969, Adrian Dalsey, Larry Hillblom and Robert Lynn were the first to fly freight bills aheadof ships and their cargo, dramatically speeding up customs clearance. Their pioneering spirit and focus on customer needs created a whole new industry andthese are still among the most important features of our DHL brand.

In recent years, DHL has grown into the global umbrella brand for our global mail,express, freight, forwarding and supply chain solutions. We have substantiallyincreased brand awareness across all regions. Today we are the world's No. 1 in our industry. Now our challenge is to stay in this position. We have to ensure we deliver excellent performance at all concrete touch points. Consistency is the name of thegame.

Personal commitmentWe aim for strong customer relationships to ensure a harmonious workingatmosphere. A strong relationship is also a prerequisite for collecting insights into the

customer's business, enabling us to better compose and adapt our services to their needs and to provide easy processes. Our can-do attitude is the basis for makingthings happen when our customers ask for our support.

Acting as likeable and dependable partners emphasizes our personal approach,which is very important to differentiate our brand from our competitors. We are astrong team of dedicated DHL people working for the success of our customers. Wealso form a strong team together with our customers, closely cooperating to providethem with optimal service.


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When we act this way we generate a feeling of trust and confidence in our customers. They know they can rely on us and feel good working together with avery accessible and easy-to-use provider which makes life simpler for them.

Proactive solutions

The high quality of our products and processes and our sector-specific know-howensure we always come up with the best possible solution, keeping our promises.

We are focused on making our customers successful. Combining our sector-specificknow-how and our broad portfolio, we provide the appropriate solutions for our customers' particular business needs. Our customers like the fact that we take theinitiative both on a personal and organizational level. We communicate regularly with

our customers, seeking their opinion, and thereby constantly enhancing our services.We make our customers' supply chains more efficient by offering the flexibility theydemand. We develop integrated tailor-made solutions, combining mail, express,freight, forwarding and supply chain services. Our reliability is underlined by the waywe understand our customers' industries, anticipating and covering all relevantneeds. Providing this proactive attitude greatly enhances our customers' perceptionthat we are the right choice.

Local strength worldwide

We provide a wide-ranging service and product portfolio, integrated in a worldwidenetwork. We even connect countries where our competitors are unrepresented - areal worldwide service.

Our customers know that we are a truly global player, acting all over the world withunderstanding and respect for different cultures. Whenever our customers need uswe provide the right solution, whatever the industry, wherever the market. They

appreciate the fact that we offer strong local presence based on a global network - just around the corner from wherever they are, and in markets where they want todeliver.

Our customers enjoy the fact that we are close to their business and cover thecomplete process for all their mail, express and logistics needs, from letters to largecontainers, across all continents and countries.


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MAIN ACTIVITIES

(A range of unique services across the globe)

Deutsche Post DHL offers integrated services and tailored, customer-focused

solutions for managing and transporting letters, goods and information.

MAIL

A broad spectrum of mail and parcel services. In addition, we are an expert in dialog

marketing. MAIL Division

GLOBAL FORWARDING, FREIGHT

International air and ocean freight as well as European overland transportationservices.

GLOBAL FORWARDING, FREIGHT Division

EXPRESS

Your partner for courier, express and parcel services by road, rail and in the air.

EXPRESS Division
http://www.dp-dhl.com/en/about_us/corporate_divisions/mail.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/mail.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/global_forwarding_freight.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/global_forwarding_freight.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/express.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/express.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/supply_chain.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/express.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/global_forwarding_freight.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/mail.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/supply_chain.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/express.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/global_forwarding_freight.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/mail.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/supply_chain.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/express.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/global_forwarding_freight.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/mail.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/supply_chain.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/express.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/global_forwarding_freight.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/mail.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/express.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/global_forwarding_freight.htmlhttp://www.dp-dhl.com/en/about_us/corporate_divisions/mail.html


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SUPPLY CHAIN:

Tailor-made contract logistics services and Corporate Information Solutions .

MAIL Division

MAIL in figures: Households: 40 million Business customers: 3 million Retail outlet customers: 2 million per working day Domestic letters: More than 64 million per working day Domestic parcels: More than 3 million per working day Packstations: Approx. 2,500 Paketboxes: Approx. 1,000 Mail centres: 82 Parcel centres: 33

Deutsche Post delivers mail and parcels in Germany. It is an expert provider of

dialogue marketing and press distribution services as well as corporatecommunications solutions. We operate a nationwide transport and delivery networkin Germany.

We also deliver mail across borders, serve the domestic markets of countries outsideof Germany and also provide special services beyond mail transport. We servebusiness customers in key domestic mail markets, including the USA, theNetherlands, the UK, Spain.

EXPRESS DivisionWorld market leader for international express services


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EXPRESS in figures Countries and territories: 220 Main global hubs: 3 Servicepoints: 36,750 Vehicles: approx. 31,500 Customers: approx. 2.6 million

In the EXPRESS division, we transport urgent documents and goods reliably and ontime from door to door. Our network spans more than 220 countries and territories, inwhich some 100,000 employees provide services for more than 2.6 millioncustomers. As a global network operator that applies standardised processes, weare well aware that the quality of our services and the satisfaction of our customers

are crucial in determining our success. That is why we are constantly optimising our service to keep our customer commitments and respond specifically to customers'wishes. It is not by accident that DHL is the world market leader in internationalexpress services.

Portfolio of time-definite products simplified and strengthened

International time-definite courier and express shipments are our core business. Our main product, Time Definite, offers delivery as fast as possible. Our premium Time

Definite product with guaranteed pre-12 delivery and money-back guarantee wassubstantially expanded in 75 destination countries, creating more than a millionadditional postcode combinations where our customers benefit from our improvedrange of services.

Our portfolio is complemented by special industry-specific services such as Collectand Return and Medical Express. Customers in high-tech industries in particular useCollect and Return, in which critical goods in need of repair are collected from theend user, taken in for repair and then returned to the user.

DHL has also increased activities for customers in the Life Sciences & Healthcaresector. In the year under review, we began offering various types of thermalpackaging for temperature-controlled, chilled and frozen contents. These types of packaging are easy to order from our regional supply centres.

In addition, we have extended our network. For example, the number of our ServicePoints increased to the current 36,750,1,000 were added in emerging markets and in

Africa alone. At these Service Points, customers paying directly can purchase our Express Easy product even if they do not have a customer account. This simple

product with its transparent price and weight categories and recyclable packaging isgaining steadily in popularity.


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To allow us to concentrate on our core business of international time-criticalshipments, we are offering our Economy Select product in the Day Definite area infewer markets than before.

GLOBAL FORWARDING, FREIGHT Division

The air, ocean and road freight forwarder

DHL Global Forwarding in figures Countries and territories: >150 Locations: approx. 850 branches

DHL Freight in figures Countries: >50 Locations: >160 branches

With its business units Global Forwarding and Freight, DHL is the Group's air, oceanand road freight forwarder. Our services extend from standardised container transport to highly specialised end-to-end solutions for industrial projects, andsolutions tailored to specific sectors. A team of approximately 42,000 employeesaround the world strives to continuously improve our services in order to meet our customers' needs.

Our business model is very asset-light, as it is based on the brokerage of transportservices between our customers and freight carriers. This allows us to consolidateshipments to achieve higher volumes, purchase cargo space at better conditions and

optimise our network utilisation. Thanks to our global presence, we are able to offer a variety of routing options and meet our customers' increasing demand for multimodal shipments.


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SUPPLY CHAIN Division

Customer-centred solutions in two business units

The SUPPLY CHAIN division comprises the two business units of Supply Chain andWilliams Lea, in which we offer customer-focused outsourcing solutions worldwide.

Market sharesBRIEF

Mail Communication


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Dialog Marketing

Press Services

Parcel Germany


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Global Mail

MAIL: Market shares

Our market position in each business unit within the MAIL division is presentedbelow. This information was taken from the 2010 Annual Report.

Mail Communication Dialogue Marketing Press Services

Parcel Germany Global Mail

Mail CommunicationOur mail business focuses on Germany, where the mail market has been fullyliberalised since the beginning of 2008. Competition has become more intense sincethen and the increasing use of electronic forms of communication has resulted indomestic mail market shrinkage. In 2010, the market decreased by 4.8% to around

6.0 billion (previous year: 6.3 billion). Our share fell slightly to 86.6%.
http://www.dp-dhl.com/en/investors/the_group/divisions/mail/market_shares.html#t1http://www.dp-dhl.com/en/investors/the_group/divisions/mail/market_shares.html#t1http://www.dp-dhl.com/en/investors/the_group/divisions/mail/market_shares.html#t2http://www.dp-dhl.com/en/investors/the_group/divisions/mail/market_shares.html#t2http://www.dp-dhl.com/en/investors/the_group/divisions/mail/market_shares.html#t3http://www.dp-dhl.com/en/investors/the_group/divisions/mail/market_shares.html#t3http://www.dp-dhl.com/en/investors/the_group/divisions/mail/market_shares.html#t4http://www.dp-dhl.com/en/investors/the_group/divisions/mail/market_shares.html#t4http://www.dp-dhl.com/en/investors/the_group/divisions/mail/market_shares.html#t5http://www.dp-dhl.com/en/investors/the_group/divisions/mail/market_shares.html#t5http://www.dp-dhl.com/en/investors/the_group/divisions/mail/market_shares.html#t5http://www.dp-dhl.com/en/investors/the_group/divisions/mail/market_shares.html#t4http://www.dp-dhl.com/en/investors/the_group/divisions/mail/market_shares.html#t3http://www.dp-dhl.com/en/investors/the_group/divisions/mail/market_shares.html#t2http://www.dp-dhl.com/en/investors/the_group/divisions/mail/market_shares.html#t1


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Dialogue Marketing

The German dialogue marketing market comprises advertising mail along withtelephone and e-mail marketing. In 2010, this market shrank by 3.1% year-on-year toa volume of 18.7 billion. Many companies, especially mail -order companies andfinancial service providers, have sharply reduced advertising expenditure. We havemaintained our share of 13.4% in this highly fragmented market.


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Global Mail

The global market volume for outbound international mail was approximately 6.4billion in 2010. Our business environment was shaped by lingering economicweakness and tougher competition. However, we braved this difficult market andmanaged to win back market share. We expect our market share for 2010 to be16.5%.


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EXPRESSAmericas

Europe


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Asia Pacific


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SUPPLY CHAIN


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Organisational Structure

The Organisational Structure of Deustche Post and its divisions

Deustche Post DHL

Corporate Center Divisions

Board Department

Chairman of the Boardof Management

Finance, Global BusinessServices

Personnel

Board member

Dr.Frank Appel

Board member

Dr. Frank Appel

Functions:

- Board Services,CorporateDevelopment

- CorporateCommunications &

responsibilities

- Corporate FirstChoice , Corporatelegal and Office

- Corporate PublicPolicy & RegulationManagement

-

Board member

Lawrence Rosen

Functions:

- Corporate Controlling

- Corporate Accounting& Reporting

- Investor Relations &

Corporate Finance- Corporate InternalAudit/Security

- Taxes

- Global BusinessServices

Board member

Angela Titzrath

Functions:

- HR Mail

- HR Standards &Guidelines

- HR DHL

International- CorporateExecutives


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Organisational Structure

The Organisational Structure of Deustche Post DHL and its divisions

Deustche Post DHL

Corporate Center Divisions

Board Department

MAIL EXPRESS GLOBAL FORWARDINGAND FREIGHT

SUPPLYCHAIN

Board member:Jurgen Gerdes

Board member:

Ken Allen Board member:Roger Crook

Board member:Bruce Edwards

Brands:1.Deustche Post

.Businessunits/regions -- Mailcommunication- Dialoguemarketing -Press services-Retail outlets-Pension service

2.DHL.Business units:-Global mail -Parcel Germany

Brand:DHL

.Businessunits/regions:-Europe-Americas-Asia Pacific-MEA(MiddleEast and Africa)

Brand:DHL

.Businessunits/regions:-Global Forwarding-Freight

Brand:DHL

.Businessunits/regions:-Supply Chain-Williams Lea


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FINANCIAL STATEMENT OF DHL LOGIDTICS

Income statement

Statement of comprehensive income

Balance sheet

Cash flow statement

Multi year review

INCOME STATEMENT1 January to 31 December

M Note 2011 2012

Revenue 10 52,829 55,512

Other operating income 11 2,050 2,168

Total operating income 54,879 57,680

Materials expense 12 30,544 31,863

Staff costs 13 16,730 17,770

Depreciation, amortisation and impairment losse14 1,274 1,339

Other operating expenses 15 3,895 4,043

Total operating expenses 52,443 55,015

Profit from operating activities (EBIT) 2,436 2,665

Net income from associates 16 60 2

Other financial income 590 657

Other finance costs 1,391 1,049

Foreign currency result 36 37

Net other finance costs 17 837 429

Net finance costs 777 427

Profit before income taxes 1,659 2,238


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Income taxes 18 393 458

Consolidated net profit for the period 19 1,266 1,780

attributable to Deutsche Post AG shareholders 1,163 1,658

attributable to non-controlling interests 20 103 122

Statement of Comprehensive Income

1 January to 31 December

m Note 2011 2012

Consolidated net profit for the period 1,266 1,780

Currency translation reserveChanges from unrealised gains and losses 193 7Changes from realised gains and losses 26 3

Other changes in retained earnings

Changes from unrealised gains and losses 1 2Changes from realised gains and losses 0 0

IAS 39 hedging reserve

Changes from unrealised gains and los 5 23Changes from realised gains and losses 2 59

IAS 39 revaluation reserve

Changes from unrealised gains and losses 7 12Changes from realised gains and losses 0 0

IFRS 3 revaluation reserve

Changes from unrealised gains and losses 1 2Changes from realised gains and losses 0 0Income taxes relating to components of other comprehensive income 18 1 7Share of other comprehensive income of associates (after tax) 10 37

Other comprehensive income (after tax) 166 10


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Total comprehensive income 1,432 1,770

attributable to Deutsche Post AG shareholders 1,331 1,650attributable to non-controlling interests 101 120

Balance Sheet

m Note 31 Dec. 2011 31 Dec. 2012

ASSETS

Intangible assets 23 12,196 12,151Property, plant and equipment 24 6,493 6,663Investment property 25 40 43Investments in associates 26 44 46Non-current financial assets 27 729 1,039Other non-current assets 28 570 633Deferred tax assets 29 1,153 1,257

Non-current assets 21,225 21,832

Inventories 30 273 322Income tax assets 31 239 127Receivables and other current assets 32 9,089 9,112Current financial assets 33 2,498 252Cash and cash equivalents 34 3,123 2,400

Assets held for sale 35 1,961 76

Current assets 17,183 12,289

Total ASSETS 38,408 34,121

EQUITY AND LIABILITIES

Issued capital 36 1,209 1,209Other reserves 37 1,714 1,786Retained earnings 38 8,086 8,956Equity attributable to Deutsche Post AG shareholders 39 11,009 11,951Non-controlling interests 40 190 213

Equity 11,199 12,164

Provisions for pensions and similar obligations 41 4,445 2,442Deferred tax liabilities 29 255 229


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Other non-current provisions 42 2,174 1,972Non-current provisions 6,874 4,643Non-current financial liabilities 43 1,366 4,413Other non-current liabilities 44 347 276Non-current liabilities 1,713 4,689

Non-current provisions and liabilities 8,587 9,332

Current provisions 42 2,134 1,663Current financial liabilities 43 5,644 403Trade payables 45 6,168 5,991Income tax liabilities 31 570 534Other current liabilities 44 4,106 4,004Liabilities associated with assets held for sale 35 0 30Current liabilities 16,488 962

Current provisions and liabilities 18,622 12,625

Total EQUITY AND LIABILITIES 38,408 34,121

Cash Flow Statement1 January to 31 December

mNote 2011 2012Consolidated net profit for the period attributable toDeutsche Post AG shareholders 1,163 1,658

Consolidated net profit for the period attributable tonon-controlling interests 103 122

Income taxes 393 458

Net other finance costs 837 429

Net income from associates 60 2

Profit from operating activities (EBIT) 2,436 2,665

Depreciation, amortisation and impairment losses 1,274 1,339

Net income from disposal of non-current assets 5 74

Non-cash income and expense 7 97


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Change in provisions 897 3,034

Change in other non-current assets and liabilities 63 53

Income taxes paid 455 527

Net cash from operating activities before changes inworking capital 2,234 219

Changes in working capitatInventories 37 51

Receivables and other current assets 406 221

Liabilities and other items 580 150

Net cash from / used in operating activities 46.1 2,371 203

Subsidiaries and other business units 58

Property, plant and equipment and intangible assets 211 225

Other non-current financial assets 16 35

Proceeds from disposal of non-current assets 285 299

Subsidiaries and other business units 84 57Property, plant and equipment and intangible assets 1,716 1,639

Other non-current financial assets 80 336

Cash paid to acquire non-current assets 1,880 2,032

Interest received 72 46

Dividend received 0 0

Current financial assets 394 10

Net cash used in investing activities 46.2 1,129 1,697

Proceeds from issuance of non-current financial liabilities 18 3,176

Repayments of non-current financial liabilities 338 773

Change in current financial liabilities 97 50

Other financing activities 60 31


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Proceeds from transactions with non-controlling interests and venturers 0 49

Cash paid for transactions with non-controlling interests 1 62

Dividend paid to Deutsche Post AG shareholders 786 846

Dividend paid to non-controlling interest holders 99 78

Purchase of treasury shares 21 26

Proceeds from issuing shares or other equity instruments 0 74

Interest paid 163 296

Net cash used in / from financing activities 46.3 1,547 1,199

Net change in cash and cash equivalents 305 701

Effect of changes in exchange rates on cash and cash equivalents 13 15

Changes in cash and cash equivalents associated withassets held for sale 0 7

Changes in cash and cash equivalents due tochanges in consolidated group 0 0

Cash and cash equivalents at beginning of reporting period 3,415 3,123

Cash and cash equivalents at end of reporting period 46.4 3123 2400

Multi-Year Review

Key figures 2005 to 2012

m 2010 2011 2012Adjusted Adjusted

Revenue

MAIL 13,913 13,973 13,972

EXPRESS 11,111 11,691 12,778

LOGISTICS


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GLOBAL FORWARDING, FREIGHT 14,341 15,118 15,666

SUPPLY CHAIN 13,061 13,223 14,340

FINANCIAL SERVICES

SERVICES

Divisions total 52,426 54,005 56,756

Corporate Center / Other (until 2006: Consolidation;until 2007: Corporate Center / Other and Consolidation) 1,302 1,260 1,203

Consolidation 2,340 2,436 2,447

Total (continuing operations) 51,388 52,829 55,512

Discontinued operations

Profit / loss from operating activities (EBIT)

MAIL 1,120 1,107 1,051

EXPRESS 497 916 1,108

LOGISTICS GLOBAL FORWARDING, FREIGHT 383 440 512

SUPPLY CHAIN 231 362 416

FINANCIAL SERVICES

SERVICES

Divisions total 2,231 2,825 3,087

Corporate Center / Other (until 2006: Consolidation;

until 2007: Corporate Center / Other and Consolidation) 395 389 420

Consolidatio 1 0 2

Total (continuing operations) 1,835 2,436 2,665

Discontinued operations

Consolidated net profit / loss for the period 2,630 1,266 1,780


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Cash flow / investments / depreciation, amortisationand impairment losses

Total cash flow from operating activities 1,927 2,371 203

Total cash flow from investing activities 2,710 1,129 1,697

Total cash flow from financing activities 1,651 1,547 1,199

Investments 1,276 1,880 2,032

Depreciation, amortisation and impairment losses 1,296 1,274 1,339

Assets and capital structure

Non-current assets 24,493 21,225 21,832

Current assets 13,270 17,183 12,289

Equity (excluding non-controlling interests) 10,511 11,009 11,951

Non-controlling interests 185 190 213

Current and non-current provisions 9,427 9,008 6,306

Current and non-current liabilities 17,640 18,201 15,651Total asset 37,763 38,408 34,121

Special Managerial Concerns and Issues

Deutsche Post DHL expands its worldwide efforts to promote educationalopportunities through extended partnership with Teach for All:

Contract with the Teach For All global network extended for an additional threeyears

Plans to secure three new country partnerships by 2015 Frank Appel: "The investment in education for young people is an investment

in the future."


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Since 2010, Deutsche Post DHL has directly supported the global network andTeach for all network partners in India, Argentina, Chile, Peru and Spain.Deutsche Post DHL has renewed its contract through 2015 with the global networkTeach for All. The enhanced collaboration between Deutsche Post DHL and Teachfor All will help establish three new country partnerships, including one with Teachfor The Philippines starting in 2013. Since 2010, Deutsche Post DHL has directly

supported the global network and Teach For All network partners in India, Argentina, Chile, Peru and Spain. Since 2009, the company has also been thelargest sponsor of the German partner, Teach First Deutschland.The shared goal of each program is to promote educational opportunities andincrease employability for young people, regardless of their background. In additionto financial support, individual DHL employees get involved in their respectivepartner countries. Through meaningful volunteer activities, company employeessupport their local organizations. Last year, more than 800 Deutsche Post DHLemployees engaged directly with students and teachers through internships, career

planning sessions, mentoring, and donation drives.

An investment in the education is an investment in the future

"The long-term success, sustainability and innovative power of the economy andsociety depend on a strong educational system and targeted professionaldevelopment. Therefore, an investment in the education and training of youngpeople is an investment in the future," says Frank Appel , CEO of Deutsche PostDHL. "If we help Teach for all succeed and support young people around the world,

then our company, with its worldwide operations, clearly benefits. The volunteer workof our employees is a key aspect of the support we provide, as it gives the youngpeople some very practical - and useful - insight into working life.""Around the world, where children are born largely determines their educationaloutcomes and as a result, their opportunities in life. Teach for All's partners areworking to channel the energy of their nations' most promising future leaders againstthis problem in pursuit of a vision of educational opportunity for all. By asking theseleaders to commit two years to teach in high-need communities, our partners areproviding an additional source of talented, committed teachers; at the same time,they are shaping the priorities and career trajectories of these teachers, forming a
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leadership force of individuals who will ultimately work at every level of the educationsystem, at every level of policy, and across sectors for the systemic changes weneed to see to ensure opportunity for all. We're grateful that Deutsche Post DHL isso committed to investing in tomorrow's future and helping our network grow. Their long term collaboration has helped us to build a strong foundation for our entirenetwork, and their increased support will strengthen and scale new partnerships innew places, "explains Wendy Kopp, CEO and co-founder of Teach For All.

Commitment to education is part of corporate strategy

Deutsche Post DHL has made - and continues to make - a lasting contribution topromoting educational opportunities and employability around the world. Itscommitment to education is part of Deutsche Post DHL's corporate strategy. "LivingResponsibility" is the motto for Corporate Responsibility at Deutsche Post DHL,

which focuses on environmental protection (GoGreen) , disaster management(GoHelp) and education (GoTeach) .With its GoTeach program, Deutsche Post DHL works with partners like Teach For

All and SOS Children's Villages to improve educational opportunity andemployability. As the largest corporate supporter of Teach For All, Deutsche PostDHL has made a long-term commitment to Teach For All's development and growthof the global network. The Group also works closely with Teach For All partner organizations in Germany (Teach First Deutschland), India (Teach For India), Argentina (Ensepor Argentina), Chile (Ensea Chile), Peru (Ensea Peru)and Spain (EmpiezaporEducar).

The signing ceremony will take place at KIPP Academy

In aiming to grow a global force of leaders who will ensure all children can fulfill their true potential, Teach for All partners share a commitment to a common vision andmission, as well as a set of unifying principles and core values. Building on therecord of success of experienced partners like Teach For America (US) and TeachFirst (UK), each organization recruits students and professionals with a diverserange of academic interests and career experiences to commit two years to teach inhigh-need schools and to work throughout their lives as educational advocates. TheTeach For All network currently comprises 27 national partner organizations inEurope, Asia, the Americas and the Middle East.
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DHL Life Sciences & Healthcare

Life sciences and healthcare is one of the most demanding industries we serve, and

is one of our strategic focus sectors at DHL. Learn more about this exciting sector

and how DHL works closely with pharmaceutical and medical devices manufacturers

to come up with smarter solutions to meet their supply chain needs.

Sector Week

Find out about key trends and interesting facts and figures in the Life Sciences &Healthcare sector.

Working fast for a healthy tomorrow

Angelos Orfanos, President and Global Head of DHL Life Sciences & Healthcare, ongrowing of the life sciences sector.

More information

Background information and material for download regarding DHL Life Sciences andHealthcare.
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The GoGreen program a five-year success story

Exactly five years ago officially launched its GoGreen program and became the first

logistics company in the world to set a measureable climate protection target. By

2020, the Group intends to improve its CO 2 emissions by 30 percent compared with

the base level from 2007. The GoGreen environmental program is a permanent

component of the companys strategy, and the results of this work are reflected in

such areas as the reduction of energy, paper and fuel consumption as well as in

investments in innovative technologies.

Carbon neutral delivery in Bonn

Deutsche Post will begin to deploy electric delivery vehicles in Bonn and thesurrounding region.

Stoves for Lesotho

As part of the GoGreen program 'Save80 Stoves' sees us deliver high-efficiencywood-burning stoves to villages in Lesotho.
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GoGreen - a success story

Recent Management Initiatives

HR planning and recruitment

In many countries throughout the world, demographic changes have become an

important factor in our personnel planning. In Europe, the aging workforce is the

main demographic challenge for HR managers. In the highly populated emerging

economies of Asia or South America, on the other hand, the challenge is to promote

the development of young talents by way of education and training. Targeted HR

marketing and efficient recruitment around the world are of great strategicimportance to our future.Strategic workforce management allows us to manage age-related and capacityrisks, address additional training needs, identify transfer opportunities, andeffectively implement long-term succession planning. Following the successfulcompletion of three pilot projects in Germany and Mexico, the methodology will nowbe transferred to additional countries and divisions.

Age structure of our workforce in Germany as at 31 Dec. 2012

Men Women up to 20 2,519 1,22921 to 30 12,189 6,34231 to 40 15,067 12,72741 to 50 33,036 33,62451 to 60 25,941 25,66761+ 2,375 1,543Average age 43.8 45.5

More training opportunities within the Group

The range of traineeships we offer is as diverse as the Group itself. Secondaryschool graduates in Germany can choose from over 20 different vocational training
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and study opportunities, depending on their level of education and individualinterests. We also offer young people attractive career training opportunities outsideGermany.

When hiring interns, we comply with the quality standards established by the "Fair Company" initiative. This includes appropriate compensation, a focus on full-time

jobs rather than internships, and avoiding vague promises of future employment.In 2012, Deutsche Post DHL employed approximately 4,900 trainees and studentsworldwide. In Germany alone, 2,106 young people began a vocational trainingprogram or an integrated degree program (DualeHochschule ) within the Group. Weoffered nearly 80 % of our trainees continued employment and, with that, avaluable career opportunity .

Second chance for young people still seeking vocational training positions

In 2012, our "Perspektive Gelb" job entrance program provided approximately 450internship positions in the MAILdivision to young people who had not yet beenaccepted into a vocational training program. These internships last at least sixmonths. They are designed to prepare participants for the formal Courier, Expressand Postal Services Specialist vocational training program. So far, Deutsche Posthas offered vocational training positions to 75 % of these interns.
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Scholarship program for employee children

Our "UPstairs" program provides scholarships to the children of Deutsche Post DHLemployees in several regions throughout the world. As a general rule, the programsupports scholarship holders over a period of three years. Participants receive anindividualized scholarship package including school/university tuition fees, mentoringsupport and internship opportunities.

Additional support includes further training, such as language or IT courses. In 2012,the program was successfully implemented in 87 countries and today providessupport to approximately 600 children. Several examples are featured on our website.

STRATEGY

Whether it is customers, employees, investors, national governments, institutions or other segments of society, more and more stakeholders around the world aredemanding that companies make a positive contribution to society and act

responsibly in their ongoing pursuit of value creation and business growth. Wewillingly take on this responsibility and apply our core competencies, the know-howof our people as well as our global presence for the good of both society and theenvironment. For years now, corporate responsibility has been an integralcomponent of our Corporate Strategy .
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Balancing economic and social interestsOur corporate responsibility activities are designed to make a positive contribution tothe environment and society while providing a benefit to the Group. We concentrate

our CR on environmental protection (GoGreen), disaster management (GoHelp) andeducation (GoTeach). We also support the volunteer work of our employees withour Global Volunteer Day and the Living Responsibility Fund . Our success rests on the shoulders of our employees. Our guiding principle"Respect & Results" strengthens the collaboration among our employees anddemonstrates our respect for human rights within our scope of influence.

Our Group-wide GoGreen program helps minimize the impact of our businessoperations on the environment. We donate our logistics expertise, our global networkand the dedication of our employees to support the UN in its worldwide relief effortsthrough our Group-wide GoHelp program. And with GoTeach, we are helping toimprove educational opportunity and the employability of young.

Strategy 2015: Supporting success since 2009

In March 2009 CEO Frank Appel unveiled Strategy 2015 that aims at making thecompany fit for the future. Its goal then and today is to unlock the potential of Deutsche Post DHL.

Deutsche Post DHL operates in over 220 countries and territories around the world.

We offer our customers comprehensive services that extend to all modes of transport and links in the supply chain.

Our vision: Th e postal provider for Germany, Th e logistics company for theworldOur company's growth is founded on two strong pillars: DHL, which offers integratedinternational logistics with a strong focus on quality and customer service, andDeutsche Post, our mail business with its clear commitment to providing universalpostal services in Germany and new value-adding electronic services for the digitalage. This commitment to both pillars is summed up in our vision: We want to

remain The postal provider for Germany and become The logistics company for theworld.
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Our mission: your success As the universal postal provider in Germany and a world leader in logistics weunderstand that we have a responsibility. We connect people and improve their lives.This is true whether we deliver a letter to a mailbox, an express shipment to a

company office or a container to a warehouse. We are proud of the role we can playin making people more successful.

Strategy 2015 lays out three chief goals: We want to be Provider of Choice for our customers, Employer of Choice for our current and future employees, andInvestment of Choice for investors. We strongly believe we will only be successful if we make all three of these groups more successful. We can do this by givingcustomers the best possible service at competitive prices and with solutions thatmake their lives easier. We will make employees more successful by providing themwith an interesting and exciting place to work. We will ensure our investors' successby being a solid, long term investment and by offering an attractive total shareholder return.

Retention Policies

GROW Graduate Program

Anyone who has done exceptionally well in college and during diverse internshipsdeserves an exceptional career start. Our international graduate program GROW is

perfectly suited for such a professional career start: 18 months in which we willprepare you to assume responsibility-filled positions at Deutsche Post DHL including assignments to foreign countries .

1. Requirements

2. Program schedule

3. Functional areas

4. Mentoring5. Experiences

6. Application

In selecting participants for the GROW Program, we focus on academicperformance, professional experience and, of course, personality. We want to obtainthe most complete and clear picture of your strengths and your growth potential aspossible, and thus select the right candidates for our program and our divisions.

This page provides you with an overview of all participation requirements.


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College Above average grades Graduation before Oct. 1 of the year the program starts

Professional experience Internships, apprenticeships or initial professional experience National program: very good German skills International program: very good English skills International program: international experience of staying abroad

Personality Communication and social skills Flexible and open-minded for new challenges Analytical skills and conceptual abilities, strategic thinking

Description of assign task and responsibilities

Basically the work assigned in warehouse is categorised into threecategories

1. Inbound activities2. Inventory management

3. Outbound activities

Inbound activitiesInbound activities includes the inventory being brought and kept in the warehouse onvendor demand or to meet the supply. Inbound activities includes receipting,scanning and recording data of the inventory brought.

Inventory and managementIt includes placing and picking of inventory according to type of inventory anddesigned place for it.

Outbound activities After picking the inventories brought to be packed and later being shipped to theretailer or the customer.In outbound activities after picking and packaging a defined inventory no is beingplaced on the inventory and the record is being stored about the material.

As the inventory is been packed, it is placed at its designed transporter docket later to be shipped.Following things should be kept in mind at the time of handing the boxes to thetransporter:


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1. Availability of the road permit.2. Sending of goods according to delivery wise.3. Submission of form no.38 if the valve of goods exceeds above Rs 25,000.

Task and responsibilities in warehouse

In the warehouse task assigned were mainly as follows:

Supervision of Box clearance

Management of boxes

Scanning of boxes

Invoicing

Procedure and methodology

Warehouse Layout

Locations in a warehouse are grouped into Location Types based on the operationalfunction being satisfied by the location. A typical warehouse layout may consist of Location Types such as: Receiving, Quarantine, Reserve, Picking, Work In Processand Finished Goods. Each Location Type typically contains multiple locations.Products, customer orders and bill of material work orders flow in and out of LocationTypes during their life cycle .

Inbound/Outbound Modules

Inbound modules process items coming into the warehouse (purchase orders,receiving, put away, replenishment, physical inventory control, finished goods andinventory movements). Outbound modules process items going out of thewarehouse (customer orders, bill of material work orders, work in process, picking,packing and shipping).

General Product Flow

Products are received into a staging location in the Receiving Area. They are thenmoved from the Receiving Area into locations in the Reserve Stock Area. Next,Picking Area locations that have been depleted are replenished by moving inventoryfrom Reserve Stock locations into Picking Locations. As orders and work orders areprocessed through Picking, Verification Packing and Shipping, product inventory isreduced.


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General Order Flow

Purchase Orders and Pending Invoices are imported from the host accounting or order entry system. Inventory items are allocated to the orders through a selectionprocess. The inventory location containing the items to be picked is identified andselected in logical picking order. Pick sheets are printed for each order and the order items are picked, packed and shipped

Products

Within a warehouse, a unique product number identifies each product. This productnumber is typically referred to as an SKU (Stock Keeping Unit) and can also bereferred to as an Item Number or Item Id.

Perpetual Inventory

Perpetual inventory is the term used to describe the continuous real-time tracking of quantities of a product. Perpetual quantities must take into account any activity thatincreases or decreases inventory from a specific location / bin. This includesreceiving, put-away, replenishment, order picking, bill of material picking, inventorymovements and inventory adjustments. Individual quantities must be maintained for every bin that contains the product.

As product is moved from one bin to another, or from a bin to customer order or billof material, quantities must be balanced and Units of Measure (see below) must betaken into account. The sum of the quantities of all the bins containing the product is

known as the Warehouse, Facility or Logistic Center Total.Units of Measure (UOMs)

The way a product is physically packaged can vary. A product may be purchased ina Pallet, stored in inventory as Cases and sold by the each. These physicallydifferent packages of the same product are known as Units of Measure (UOMs). Aproduct sold as an each that has 12 items in a case and 12 cases on a pallet willhave the following UOM configuration: an Each contains a quantity of 1, a Casecontains a quantity of 12 and a Pallet contains a quantity of 144. A product has thesame SKU number for all Units of Measure.

Locations

Locations (also known as bins) allow products to be organized within Location Typeswithin a warehouse and have static location names such as Area A - Rack 2 - Shelf

A - Bin 3. They may contain one specific product or multiple products. If a locationcontains multiple products, it is known as SKU Mixing.

As product is assigned to a Picking bin, an ROP (Re-Order Point) quantity is set for the product. This number is used to automatically identify when a bin needs to bereplenished.


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Inventory Moves

All inventory moves are "two sided" performed by removing a quantity of a productfrom one inventory location (source location) and moving it to another inventorylocation (destination location). CORE flex automatically verifies that the quantitiesbalance to maintain inventory accuracy.

Inventory moves are used for putting away inventory after it has been received andfor replenishing picking locations after order picking or bill of material work ordershave depleted them.

Inventory Adjustments

All inventory adjustments are "one sided" performed by removing or adding aquantity of product to or from a specific location. CORE flex automatically tracksand records inventory adjust

Understanding of Logistics- Inbound & Outbound Activities

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