OVERVIEW, CHALLENGES AND FUTURE...

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CROSS BORDER E-COMMERCEOVERVIEW, CHALLENGES AND FUTURE TRENDS

Dr. Frank Josefiak | Senior Expert Global e-Commerce Services6.-7. June 2016 | “Forum Internationale Wissenschaft“ | Bonn, Germany

6th International Cold Chain Management Congress 2016

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AGENDA & TODAYS CONTENT

e-Commerce & Cold chain logistics and their mutual influences

Dr. Frank Josefiak | 6th international „Cold Chain Management Congress“ | 6.-7. June 2016 | Bonn, Germany | Slide

E-COMMERCEDeutsche Post DHLD

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COLD CHAINS

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PHARMA

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SMART SENSOR

VISIBILITY

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SAME DAY DELIVERY

CROSS

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MOBILE-COMMERCE

MULTICHANNEL

CROWD DELIVERY

CUSTOMS CLEARANCE

DELIVERY TIME EXPECTATIONS

COSTS

LANGUAGE BARRIERS

CU

RR

EN

CY

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NV

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PROHIBITED ITEMS

FRAUD

FRESH FOOD

ECOMMERCE

TRACKING

TEMPERATURE MONITORING

PACKAGING

SOLUTIONS

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GIS

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TAX & DUTY

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LIFE SCIENCE SECTOR

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CLINICAL TRAILS

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US PHARMA SELECT

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SHOPPING BUTLERS

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INTRODUCTION & BACKGROUND I/II

Key Facts on Deutsche Post DHL Group

1) Financial year 2015 ; 2) based on date 31.12.2015; 3) TEU = Twenty-foot equivalent unit


• More than 500,000 employees in more than

220 countries/territories (including nearly 60%

outside Germany)

• 61m letters/3.9m parcels each workday in

Germany/more than 28,000 sales outlets in

Germany

• Group revenues1): EUR 59.2bn /Group EBIT1):

EUR 2.41bn / Market capitalization2):

EUR 31.483bn

• ~ 753,000 international express shipments per

day (2015) (Time Definite International)

(+8.7% vs. previous year)

• 2.3m tons of air freight/2.9m TEU3) of ocean

freight in 2014. No. 2 European road freight

• 13.7m square meters of warehouse space in

contract logistics

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INTRODUCTION & BACKGROUND II/II

DHL eCommerce & DHL CSI Life Sciences at Deutsche Post DHL Group


Global Business Services

DHL Customer Solutions & Innovation

Corporate Center

Express

Global

Forwarding -

Freight

Post - eCommerce - Parcel (PeP) Supply Chain

Engineering & ManufacturingTechnology Energy Life Sciences Automotive

Source: Deutsche Post DHL Corporate Presentation 2016.

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DHL eCOMMERCE INTRODUCTION

Enabling the world of e-commerce

Source: DHL eCommerce Web Trailer 2014


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End-to-End Global

eCommerce Solutions

DHL eCOMMERCE INTRODUCTION

Product and Service Portfolio


eFulfillment eCommerce Services

Domestic

B2C Delivery

Cross-Border

B2C Delivery

Key Enabling Services

Core Logistics Products

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E-COMMERCE: EXPECTATIONS & CHALLENGES FACED

Merchants deal with various challenges not only from logistic perspective


Omni-Commerce

Anything, anytime, anywhere

24/7 customer support

E2E Ecosystems & Simplification

Expecting simple, fast, easy, self explaining

shopping experiences that safe time and effort

Social Net Commerce

Maximum personalisation &

crystal clear customer preferences

X-Border

On familiar- & unfamiliar markets,

foreign legal systems, regulations

customer expectations, languages…

Demography & New touch points

Technologies as in smart homes or via IOT

enable new customer touch points

“Smart” Data & Security

Big data use & “abuse”

Payment & personal data / anonymous shopping

FAIR & RE-Commerce

“Buy local” & sustainable

Reuse concepts & sharing economies.

Enhanced Logistics

Fully flexible pick up & delivery times/–locations,

Simple return solutions & all variable delivery times

Source: Excerpt from 2015 internal meta study of DHL eCommerce.

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E-COMMERCE: CASE STUDY FC BAYERN MUNICH

Reaching all of your global customers offers huge growth potential


Source: DHL eCommerce internal FCB project documentation 2015.

9


Reaching global customers with local websites is very often not enough



• No Chinese language available (only English)

• No Alipay acceptance

• High shipping cost and long transit times to China

• No Chinese customer service

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Selling merchandize in China on the worlds biggest marketplace



• FCB flagship store on TmallGlobal

• Chinese customer service

• Payment with Alipay

• Fast transit times

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COLD CHAIN: EXPECTATIONS & CHALLENGES FACED

Life science & Healthcare customer issues vs. global logistic trends


Sources: 2015 post conference surveys, LSH Sector Strategy Team. Ranking based on occurrences of customer answers only.

VOICES OF OUR CUSTOMERS

1. Cold chain & Temp. control

2. Cost efficiency

3. Grow emerging markets

4. Regulation & Compliance

5. Network optimization & DC consolidation

6. Serialization

7. Transport mode

VOICES OF OUR TREND RESEARCH

Sources: Key Logistics Trends in Life Sciences 2020+- A DHL perspective on how to prepare for future growth 2013 & LOGISTICS TREND RADAR - DHL Trend Research Report 2016.

1. Differentiating supply chains

2. Empowering the consumer (e.g. direct-distribution channels)

3. Building local capabilities (e.g. via expanding to emerging markets)

4. Increasing supply-chain transparency & visibility (Security, Integrity, Optimization & Control)

5. Maintaining supply-chain adaptability

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COLD CHAIN: ADDRESSING NEEDS & FUTURE TRENDS

DHL products & services do cover many of current & future needs already


1. Cold chain & Temp. control

2. Cost efficiency

3. Empowering the consumer & Build local capabilities

4. Regulation & Compliance

5. Network optimization & DC consolidation

6. Grow Emerging markets

7. Transport mode Optimization

8. Differentiating supply chains

9. Increasing supply-chain transparency & visibility (Security, Integrity, Optimization & Control)

10.Maintaining supply-chain adaptabilityFR

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COLD CHAIN: CASE STUDY BLUEDART TCL

DHL products & services do cover many of current & future needs already


Temperature Controlled Logistics by Bluedart India

Special Packaging

Specialized infrastructure Dedicated Life sciences team

Validated Packaging Project Management

Customized

Solutions

Operations Expertise

• Facilitates all temperature ranges

Frozen : -80 to -20 oC

Chilled : +2 to +8 oC

Ambient : +15 to +25 oC

Cryotainers : -179 oC

• Door to door pickup and delivery

• Committed transit times

• Enhanced network connectivity (dom. & int.)

• Validated packaging solutions

• Track & trace & temperature loggers

• Specialized handling

• Dedicated and trained manpower

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E-COMMERCE & COLD CHAIN LOGISTICS OUTLOOK

Three exemplary trend combinations with implications & challenges

Source: Achim Dünnwald (CEO of DHL Paket) in Network 01/2016

Combining self supporting Cold Chain- with eCommerce Trends

OTC pharma manufacturer

starts direct distribution

channels to end-customers

via selling on four domestic

ecommerce marketplaces

Source: DHL (2013) - Trend study on key logistic trends in life sciences 2020+

EMPOWER THE CONSUMER

& OMNI COMMERCE

GROW EMERGING MARKETS

& X-BORDER SELLING

COLD CHAIN & TEMP CONT.

& SIMPLIFICATION

Nutrition seller wants to reach

global end-customers via two

foreign marketplaces (JD.com

in China & Flipkart in India)

“2016 will be the year of

groceries logistics”

Is this inline with

simplification and the

required cold chains?


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THANK YOU FOR YOUR INTEREST IN OUR SERVICES

Get in touch for any open questions!


Dr. Frank Josefiak

Cross Border Solutions

DHL eCommerce

[email protected]

+49 (0) 228 182 99614

Deutsche Post AG

Headquarters

Platz der Deutschen Post

53113 Bonn

OVERVIEW, CHALLENGES AND FUTURE...

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