MODE MANAGEMENT: EMBRACING THE BEST FIT

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MODE MANAGEMENT: EMBRACING THE BEST FIT

Global Energy Conference | Houston | 13 October 2015

Becky Ayotte, DHL Customer Solutions & Innovation

Thiago Aracema, DHL Global Forwarding /Industrial Projects

Matt Morrow, DHL Express

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Mode Management is designed to provide cost-optimal

solutions for our customers while leveraging the full

range of transport services and products

Mode Management: At a glance


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Mode Management: A diverse solution

High Transportation Costs

Excess Inventory & Overstock

Stock outs & Loss Sales

Lost & Stolen Cargo

Damaged Products

Increased Carbon Footprint

Volatile Supply Chain Symptoms

Misalignment between

shipments & services

Optimize shipment frequency

and consolidation

Optimize freight shipment

weights and cube

Dynamic mode shift

Opportunities for Mode Management


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Mode Management: The concept applied

Optimizing shipment frequency and consolidation

Container Utilization Analysis identified

opportunity for 11% reduction in containers shipped

Optimizing freight shipment weights and cube

Best Fit Analysis identified 7% cost savings

Dynamic mode shift

Transportation Modeling Analysis used to identify

optimal cost and transit time


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MODE MANAGEMENT FOR OPTIMIZATION – WHAT IS THE WEIGHT BREAK?


Matt Morrow, DHL Express

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Transport

speed /

Service Level

Weight / Consolidation Mode

1kg 30-75kg 1,500kg 8,000kg >100 tons

Express Air

Same day

Time-

definite

Day-

defnite

Some day

Air Cargo Forwarding

Potential area where shipments

are reviewed for Best Fit

Mode Management concept

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Typical Supply Chain Manufacturing, Projects

Project Lifecycle

International

Suppliers

Consolidation

Hubs Customs

Clearance

Worksite Site

Store

Consolidation

Centre or

X-Dock

Domestic

Suppliers

Projects, Manufacturing

Supply Chain

Planning

In-bound

On-Site

Materials

Management

Warehousing

&

Consolidation International

Supply

Chain

Procurement,

Expediting &

Supplier

Management

Distribution

Reverse

Logistics

Functional

Physical

Start-Up

Operations

(MRO &

Turnarounds)

Hand-Over Commissioning Planning Construction


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Barriers & Benefits

• Historic practice & precedence

• Procurement approach

Local Sourcing

Weight Break Mystery

Consolidation

• Perceived Risk

Customs Brokerage Requirements

Added Work Load

• Logistics

Consolidation vs Single Shipments

Carrier Options

Ease of Use

• Shipment Visibility

• Same Day Uplift

• Resource Dedication

• Quote Turn Time

• Supply chain optimization (E2E)

Cost / Inventory

• Customs Brokerage Flexibility

• Cost Savings 30%+

Barriers Benefits


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• Options needed for Rig

Down and non-oversize

freight

• Projects with tight deadlines

• Support growth aspirations

• Customs Clearance time

too long

• Utilization of Express

provider in bids in addition

to approved freight

forwarders

• Airbill Preparation

• Export Declaration

Preparation

• Same Day Uplift

• Control tower

• Proactive Tracking of

shipments

• A carrier that is awarded 70%

of rig down shipments

tendered

• Single Point of Contact to

handle all communication

• Service Level performance

+98% on time

• Cost Savings

Case Study – Service Company - US

Geography United States

Industry Energy

Customer Benefits Customer Challenge Customer Challenge DHL Solution

Delivering cost savings through global Maintenance, Repair & Operations

Customer Facts


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• Wide Variety of shipment

sizes

• TMS that rate shops Freight

Forwarders for international

shipments

• Cost Reduction Mode

• Mystery in Ideal Weight

Break

• Data Set Provided for

Solutions Design team to

model ideal weight break

• Data set included normal

Freight Forwarder Fees as

well as freight/fuel/security

• Solution Design Team

analyzed all weight breaks,

with solution as 29 kg

• Brokerage Not Factored

• Cost Savings 30%+

compared to air consol

• Transit Time Improvement

• Defined Business Rules for

optimized routing

• Exceptions in certain lanes

could yield further savings

• Customs Brokerage already

being performed in 80% of

destinations, further savings

Case Study – Service Company - US

Geography United States

Industry Energy

Customer Benefits Customer Challenge Customer Challenge

Customer Facts

DHL Solution


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RIG MOVES: EMBRACING THE BEST FIT


Thiago Aracema, DHL Global Forwarding /Industrial Projects

12 Global Energy Conference | Houston | 13 October 2015

Agenda

1 Loading Sequence: Rig-Down to Rig-Up

• Managing loading sequence to Rig up

2 Rig Data Management

• Best practice to keep a Rig data up to date

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LOADING SEQUENCE FROM RIG DOWN TO RIG UP


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Loading sequence Rig down to Rig up

RIG DOWN

RIG UP

TRANSPORTATION ORIGIN

COUNTRY

DESTINATION

COUNTRY

PACKING &

ON LOADING

SHIP’S LOADING

AND DISCHARGE

PRE CARRIAGE &

PORT HANDLING OFF LOADING

PORT HANDLING &

ON CARRIAGE

CUSTOMS CUSTOMS

Rig Passport Rig Passport

Physical move

Planning



The Vessel stowage plan can be adjusted

considering final delivery sequence in

the rig-up operation

The cargo is distributed within the ship’s holds to

facilitate as most as possible the delivery

sequence at the destination port.

It is also considered the cargo requirement for on

or under deck stow (i.e.: electrical components,

etc.)



The on carriage to the final site is determined based on the delivery ‘priority

list’ from the drilling operator

Here is an example of a land rig packing list with the truck load sequence (sample only)

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RIG INVENTORY & DATA MANAGEMENT



Rig inventory and data management

The Rig Passport will capture the

equipment data, considering:

Rig number

Equipment name

Asset number

Country of Origin

Package type

All weights/dimensions information in

different scales if required

Additional comments

Photographs


Rig inventory and data management

The Rig Passport will keep track of

the rig data and eventual changes considering:

Replacement of parts with up-dated

description (serial numbers, etc.)

Up-dated photograph with most

current packing condition (for

shipment)

The most up dated inventory of the

rig to be used for the re-export

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Mode Management: A strategic solution

Driving Customer Satisfaction

Not just a “cost savings”

Understanding Market Impacts

Starting with the “Network Optimization”

Looking beyond the shift from airfreight to express


Documents

MODE MANAGEMENT: EMBRACING THE BEST FIT