Tomorrow is Today The age of the digital supply chain is here Scott Allison Austin, September 2017

Frost & Sullivan | Austin | September 2017

I want to leave you with the idea that

starting on your digital supply chain

journey is not something for the

future, it is already here…today

1. How does DHL do Innovation?

2. Partnering for success

3. Some examples of innovations & disruptions we are

working on.

The biggest future revenue and profit impact of digitalization is set to occur through the digitalization of Supply Chains

- McKinsey

$1.9 Trillion value at stake through the deployment of IoT use cases in the Supply Chain & Logistics industry

- Cisco Consulting

Frost & Sullivan | Austin | September 2017

How do we drive innovation at DHL?

Handover to

Business

Initiate Global

Accelerators

Trend Radar

Trend Report

Customer /

Partner

Engagement PoC / Pilots

Source: DHL Trend Research (2016)

Frost & Sullivan | Austin | September 2017

Sources of trends & inspiration

Megatrends

Microtrends & Startups

Partners

Customers

Frost & Sullivan | Austin | September 2017

DHL Trend Research

NEW SOURCES OF INSPIRATION

2000 2015

Logistics Trend Radar

Source: DHL Trend Research (2016)

Frost & Sullivan | Austin | September 2017

DHL Trend Research

ALL OUR TREND REPORTS ARE AVAILABLE FOR DOWNLOAD WWW.DHL.COM/TRENDRESEARCH

DHL Trend Research

SHARING ECONOMY LOGISTICS, WHY NOW INSIGHTS ?

average

number of hours cars

spend parked daily

of all consumer goods are only used

once a month

of U.S. consumers have used expedited,

same day, or on-demand

delivery

23 Hours 80% 41%

DHL Trend Research

SHARING ECONOMY LOGISTICS USE CASES

Anytime, anywhere delivery

Source: DPDHL, August Smart Lock

Personal Parcel Lockers Smart Locks Car Trunk Delivery

Frost & Sullivan | Austin | September 2017

Augmented Reality Solution Vision Picking

Source: DHL Supply Chain (2017), Cisco (2017)

• Average 15% productivity gain due to increased speed

• Improved picking accuracy

• More satisfied and engaged employees

• Up to 50% reduction in training time for flexi / seasonal workers

Frost & Sullivan | Austin | September 2017

Internet of Things The connected warehouse

Source: DHL Supply Chain (2017), Cisco (2017)

Frost & Sullivan | Austin | September 2017

Robotics & Automation Dropping cost of automation unlocks new opportunities

Repeatability ±0.1mm

Reach of 1260mm

4kg payload

Small footprint

PROJECT MANAGEMENT

ROBOT

PERIPHERALS

SYSTEM ENGINEERING

ROBOT

PERIPHERALS

SYSTEM ENGINEERING

ROBOT

PERIPHERALS

INDUSTRIAL ROBOTS BASIC COLLABORATIVE ROBOTS

SMART COLLABORATIVE ROBOTS

$130+k

$80k

$40k

Source: Rethink Robotics (2016)

Frost & Sullivan | Austin | September 2017

Culture & Capabilities

Inside-out: DHL Incubator

www.dhlstartuplab.com

Outside-in: Innovation Challenge

www.dhlinnovationchallenge.com

Frost & Sullivan | Austin | September 2017

Reverse disruption – The Streetscooter family

Paving the way to leverage the growth of eCommerce in CO2-neutral way

17 Frost & Sullivan | Austin | September 2017

DHL Trend Research

COME AND VISIT US AT ONE OF OUR INNOVATION CENTERS

Global Flagship DHL Innovation Center

Near DPDHL headquarter, Germany Build in 2007, re-opened in 2015

DHL Asia Pacific Innovation Center

Singapore Open since December 2015

Americas Innovation Center opening in 2018 in Chicago

Let’s shape your digital supply

chain journey together….

Frost & Sullivan | Austin | September 2017