Industry Challenge
24 x 7 Visibility Of
High Value Cargo
DHL Overview
Global Market Leader
World's largest
airfreight forwarder
DGF world's largest
ocean freight
forwarder (in both
FCL & LCL1)
DHL Aviation has
~250 total dedicated
air fleet
Exel World’s largest
contract logistics
service provider
DHLE One of the
world’s leading
express parcel
providers
 Annual revenues: € 38 billion (2010– excludes Mail)
 More than 500,000 employees globally
 According to IATA – we are the largest cargo customer
3
M2M: To INNOVATE where we CAN’T SEE
When Tomorrow is Too Late
Specialized transportation solutions to satisfy
customers´ transportation needs focused on
the fastest transit time, the greatest care, and
maximum security.
DHL SAMEDAY solutions ensure:
On-demand services
Off-network capabilities
Dedicated resources
Constant shipment monitoring
Constant condition monitoring
Global Network
Visibility Gaps
DoVisibility
Exist Gaps
Closing
Technology Innovation is Important
DHL Innovation Center
Vendor Innovation Award
Do Exist
DHLVisibility
Real-TimeGaps
Innovation
Tracking Device for Air Freight
World-wide Communications: GSM
Full Sensor Suite: Fully built-in to the device
• Temperature
• Pressure
• Light / Dark
• Motion
• Speed
• Vibration
• Shock
• Orientation
• High-Accuracy GPS
7
Deployment Example: Wireless Devices in Air Freight
Unique Requirements for Global Distribution of Tracking Devices via Air Freight
Ease of Use
Global Footprint
All modes of transit
24 x 7 Visibility Center
Regulatory & Compliance
Commercial Aircraft
Partners
Cargo Aircraft Partners
Operator Acceptance
Regulatory & Compliance
Product Requirements
Low Training Costs
Distribution Requirements
Operations Requirements
Visibility Gaps
Do Exist
Deployment
Requirements
Multi-Sensor Capability
Application Diversity
Global Communications
Supply Chain Focused
Regulatory & Compliance
VisibilityServices
Gaps Do
ExistValue Critical Shipments
Optimizing
for High
• Certain kind of goods transported by Air Freight need to be
monitored to ensure that they are delivered
– on time
– securely
– in desired condition
– Examples:
– valuable and unique products
– perishable and sensitive goods
– dangerous goods
• Customers are very attentive and want to be informed about
shipment status of their goods at any time
Comprehensive Feature Sets for Complex Distribution
Key product categories that have unique condition requirements and flow through all
modes of travel in a global transit system but must be monitored by the same M2M
solution. . .
Wireless
GPS
Global
Arrival Time
Dwell Status
AOG Parts
x
x
Life Science
x
x
Medical Devices
x
x
Electronics
x
Technology
Temp.
Humidity
Pressure
Shock
Light
Condition
Condition
Condition
Condition
Intrusion
Detection
x
x
x
x
x
x
x
x
x
x
x
x
x
Entertainment
x
x
x
x
Perishables
x
x
x
x
x
x
x
x
Requirements for Deployment in Multi-Modal Global Distribution
There’s more to it than tracking a device on world wide network
• Regulatory & Compliance
•
•
•
•
FDA Rules for Perishables
FAA Rules for Air Transportation of Electronic Devices
IATA Regulations for International Air Transport
Customs
• Operations
• Training: Employees in Nations all Over the World
• Customer Requirements: Not all Products are Shipped The Same
• Process
• 24x7 Visibility Requires:
• New monitoring center process and personnel
• New operation procedures defined and accepted by clients
• New response protocols
Today’s View: Proactive Response and Risk Mitigation
24 x 7 Global Network
Air Freight Tracker
Risk Management
Peace of Mind & Assurance
Matt Groppe
Director of Global Business Development
DHL Same Day
matt.groppe@dhl.com
703-433-2806
Wally Devereaux
Southwest Airlines
Director of Cargo Sales and Marketing
September 13, 2011
Business Case:
Cellular Based Tracking of Cargo
on Commercial Passenger
Aircraft
Engineering Standards
Quality
Control
Central Publications
Ground Operations
Leadership
Engineering Systems
Safety and Security Dept
Hazardous Materials Acceptance Team
Engineering
Avionics
Southwest Airlines Pilots Union
Flight Operations Safety
NO
Fine!
Southwest Airlines:
• One of the world’s largest and most successful passenger
airlines
•Carried 130M Passengers in 2010
•692 Aircraft
•$12.1B in 2010 gross revenue
•Profitable 38 consecutive years
•Ranked fourth on Fortune's World's Most Admired
Company list
•87.6 Million Bags of Peanuts Served
Renown Air Cargo Service Provider:
• Express Delivery and Logistics Association’s Carrier of the Year
Award
•Airforwarders Association’s Carrier of the Year Award
•Air Cargo World Magazine’s Air Cargo Excellence Award (highest
rated carrier worldwide)
•Logistics Management’s Quest for Quality Award (highest rated
carrier worldwide)
The Business
Case:
•Customer
Demand
•Competitively
Essential
•Revenue
Implications
Thanks for your time!
Questions?