Understanding Your Supply Chain & Reducing
The Risk of Supply Chain Disruptions
8th March 2012
Contents
 DHL Supply Chain - Overview
 What Does Your Supply Chain Really Look Like?
 What Can Cause Supply Chain Disruptions? – DHL Examples
 How Far Down / Up The Supply Chain Do You Need To Go?
 What Key Information Needs To Be Derived From Your BIA?
 What Best Practice Can We Draw Upon?
Page
2
DHL Supply Chain
WHAT DOES DHL
SUPPLY CHAIN
DO?
Page
3
Deutsche Post DHL - Corporate Structure
Page
4
DHL Supply Chain - Global Scale and Coverage
DHL Supply Chain
DHL Supply Chain operations
Other DP DHL operations
(DP DHL operates everywhere except the
Paracel and Spratly Islands)
Operates in
Over 60 countries
Facilities in
2,500 locations
Employees
Over 140,000
Managed Warehouse space
22.8 million square meters
Transportation management
Over € 5 BN
Page
55
DHL Supply Chain – Europe, Middle East & Africa (EMEA)
DHL Supply Chain EMEA Countries
Page
6
DHL Supply Chain - Products & Sectors
INTEGRATED SUPPLY CHAIN SOLUTIONS
Manufacturer & Raw
Materials
Export / Import
Activities
Sector Solutions
Automotive &
Industrial
Primary Movement
Distribution Centers
Healthcare
Inbound to
manufacturing

Service and
replacement
parts

Kitting & Rework
Hospital Logistics
Technical distribution
Infrastructure
Logistics




Temperature assured

Technical services

In-Plant services

Direct to pharmacy

Service parts logistics

Patient transport

Reverse logistics

Environmental
Compliance
After-sales and
Reverse Logistics
Services
B2B & B2C
Distribution
Retail &
Fashion
Consumer
Technology


Secondary
Movement

Clinical trials logistics



Pharmaceutical grade
logistics
Inbound to
manufacturing
Contract
manufacturing

Assembly and
configuration

Co-packing



International
supply chain
management
Shared-user and
campus solutions

Distribution to stores

In store logistics
Ambient and
temperature controlled

Home delivery
Consultancy services, Lead Logistics Partner services, Procurement services, Sustainability services
Page
7
Contents
 DHL Supply Chain - Overview
 What Does Your Supply Chain Really Look Like?
 What Can Cause Supply Chain Disruptions? – DHL Examples
 How Far Down / Up The Supply Chain Do You Need To Go?
 What Key Information Needs To Be Derived From Your BIA?
 What Best Practice Can We Draw Upon?
Page
8
DHL Supply Chain – Example
AIRSIDE
REGIONAL DC
NETWORK
AND/OR
OUTBASES
UK
MANUFACTURER /
SUPPLIER
OPTIMISED
TRANSPORT
WAREHOUSING
& ORDER
FULFILMENT
REGIONAL DC
NETWORK
AND/OR
OUTBASES
OPTIMISED
TRANSPORT
MERCHANTS/
FRANCHISES
END CONSUMER
INTERNATIONAL SUPPLY CHAIN SERVICES
OVERSEAS
MANUFACTURER
NATIONAL DC
REGIONAL DC
NETWORK
AND/OR
OUTBASES
RETAIL STORE
REVERSE LOGISTICS
Page
9
Contents
 DHL Supply Chain - Overview
 What Does Your Supply Chain Really Look Like?
 What Can Cause Supply Chain Disruptions? – DHL Examples
 How Far Down / Up The Supply Chain Do You Need To Go?
 What Key Information Needs To Be Derived From Your BIA?
 What Best Practice Can We Draw Upon?
Page 10
BCM Backdrop - Recent Business Disruptions
Ash Cloud, April 2010
Moscow Heat Wave/Smog, Aug 2010
Swine Flu, 2009
UK Snow Coverage,
Nov 2010
UK Civil Unrest, Aug 2011
Example Site Incident, June 2011
UK Industrial Action,
Nov 2011
Unexploded Bomb Hungary, Dec 2011
Nigeria Fuel Strikes, Jan 2012
Page 11
Contents
 DHL Supply Chain - Overview
 What Does Your Supply Chain Really Look Like?
 What Can Cause Supply Chain Disruptions? – DHL Examples
 How Far Down / Up The Supply Chain Do You Need To Go?
 What Key Information Needs To Be Derived From Your BIA?
 What Best Practice Can We Draw Upon?
Page 12
DHL Supply Chain – Example
AIRSIDE
REGIONAL DC
NETWORK
AND/OR
OUTBASES
UK
MANUFACTURER /
SUPPLIER
OPTIMISED
TRANSPORT
WAREHOUSING
& ORDER
FULFILMENT
REGIONAL DC
NETWORK
AND/OR
OUTBASES
OPTIMISED
TRANSPORT
MERCHANTS/
FRANCHISES
END CONSUMER
INTERNATIONAL SUPPLY CHAIN SERVICES
OVERSEAS
MANUFACTURER
NATIONAL DC
REGIONAL DC
NETWORK
AND/OR
OUTBASES
RETAIL STORE
REVERSE LOGISTICS
Page 13
DHL Supply Chain EMEA – Warehouse & Transport
BCM fully in place across our Warehouse
& Transport operations
Page 14
DHL Supply Chain – Example End to End Business Resilience
AIRSIDE
REGIONALSuppliers
DC
Internal
UK
MANUFACTURER /
SUPPLIER
OPTIMISED
TRANSPORT
WAREHOUSING
& ORDER
FULFILMENT
NETWORK
Finance
Function
AND/OR
Fuel Centre
OUTBASES
IT Data Centre
HR Function
Regional Engineering
Fleet Compliance
Etc…
REGIONAL DC
NETWORK
AND/OR
OUTBASES
OPTIMISED
TRANSPORT
MERCHANTS/
FRANCHISES
END CONSUMER
INTERNATIONAL SUPPLY CHAIN SERVICES
NATIONAL DC
REGIONAL DC
NETWORK
AND/OR
OUTBASES
OVERSEAS
MANUFACTURER
External Suppliers
Agency Providers
MHE Suppliers
Vehicle Maintenance Providers
Caterers
Etc…
RETAIL STORE
REVERSE LOGISTICS
Tier 2
Suppliers
Tier 3
Suppliers
Page 15
DHL Supply Chain EMEA – Functions
Engineering & Fleet Services - UK & Ireland
EMEA Data Centre, Prague
BCM fully in place across our Functions
and Data Centres
EMEA HR People Service, UK
EMEA Finance
Page 16
Contents
 DHL Supply Chain - Overview
 What Does Your Supply Chain Really Look Like?
 What Can Cause Supply Chain Disruptions? – DHL Examples
 How Far Down / Up The Supply Chain Do You Need To Go?
 What Key Information Needs To Be Derived From Your BIA?
 What Best Practice Can We Draw Upon?
Page 17
What Key Information Needs To Be Derived From Your BIA?
You can’t protect what you don’t know!
The purpose of a BIA is to identify:
 Your critical activities and functions and their independencies
 The minimum acceptable level of service for those activities or functions
 The Recovery Time Objectives (RTO) and Maximum Tolerable Period of
Disruptions (MTPD) for those activities or functions
 What resources are needed to achieve these minimum levels of service
Page 18
Contents
 DHL Supply Chain – Overview
 What Does Your Supply Chain Really Look Like?
 What Can Cause Supply Chain Disruptions? – DHL Examples
 How Far Down / Up The Supply Chain Do You Need To Go?
 What Key Information Needs To Be Derived From Your BIA?
 What Best Practice Can We Draw Upon?
Page 19
DHL Supply Chain Aligned to BS25999 – British Standard for BCM
Page 20
EMEA BCM 10 Steps - Aligned to BS25999
BCM Policy
Site has clearly displayed the BCM Policy Statement and has communicated this to all collegues on site. Site
has created a Site BCM Scope and Strategy document
1
Provision of
Resource
IMT
2
Site has appointed a BCM Champion with appropriate seniority to be accountable for implementing BCM
3
BIA
Site has formed an Incident Management Team with deputies for all key functions
Site has completed the DSC approved BIA document and identified activities that support its key
products and services, the MTPD, RTO and its priorities for recovery of its critical activities
4
BIA Risk Assessment
Determining Choices
Site has completed the DSC approved BIA Risk Assessment document and has identified and
documented the site’s threats
5
Determining BCM
Strategy
BCP’s
Maintaining and Reviewing
Testing and Exercising
Using the DSC approved Risk Assessment document the site has, for each of its critical
activities, identified available risk solutions
6
Site has determined how it will recover each critical activity within its recovery time objective,
including the resources required for resumption
7
Site to create BCP‘s for all possible risks that could affect critical operations and the BCP‘s
are to detail how to manage the incident and how it will recover its activities
8
Site has ensured that it‘s BCM arrangements are reviewed and documented at
planned intervals
9
10
Site IMT has successfully carried out 3 table top exercises in the past 12 months
and any lessons learnt have been incorporated into future plans
Page 21
DHL Supply Chain BCM Tool – Currently Under Development
Improved Visibility
Communication
Improved Efficiency
Robustness
Improved Consistency
Simplicity
Page 22
BCM Contacts - EMEA
For more information about the DHL Supply Chain BCM
approach, please contact:
Graham Clark – Business Continuity Manager – EMEA
gr.clark@dhl.com
Page 23