Understanding Your Supply Chain & Reducing The Risk of Supply Chain Disruptions

1. Understanding Your Supply Chain & Reducing The Risk of Supply Chain Disruptions 8th March 2012

2. 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?

3. DHL Supply Chain WHAT DOES DHL SUPPLY CHAIN DO?

4. Deutsche Post DHL - Corporate Structure

5. DHL Supply Chain - Global Scale and Coverage DHL Supply Chain operations Other DP DHL operations (DP DHL operates everywhere except the Paracel and Spratly Islands) 5

6. DHL Supply Chain EMEA Countries DHL Supply Chain – Europe, Middle East & Africa (EMEA)

7. DHL Supply Chain - Products & Sectors INTEGRATED SUPPLY CHAIN SOLUTIONS Manufacturer & Raw Materials Export / Import Activities Primary Movement B2B & B2C Distribution After-sales and Reverse Logistics Services Secondary Movement Distribution Centers Automotive & Industrial Consumer Healthcare Technology Retail & Fashion • Inbound tomanufacturing • Service andreplacementparts • Infrastructure Logistics • In-Plant services • Clinical trials logistics • Pharmaceutical grade logistics • Kitting & Rework • Hospital Logistics • Temperature assured • Direct to pharmacy • Patient transport • Inbound to manufacturing • Assembly and configuration • Technical distribution • Technical services • Service parts logistics • Reverse logistics • Environmental Compliance • International supply chainmanagement • Distribution to stores • In store logistics • Home delivery • Contract manufacturing • Co-packing • Shared-user and campus solutions • Ambient and temperature controlled Sector Solutions • Consultancy services, Lead Logistics Partner services, Procurement services, Sustainability services

8. 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?

9. AIRSIDE UK MANUFACTURER / SUPPLIER OPTIMISED TRANSPORT REGIONAL DC NETWORK AND/OR OUTBASES REGIONAL DC NETWORK AND/OR OUTBASES REGIONAL DC NETWORK AND/OR OUTBASES WAREHOUSING & ORDER FULFILMENT OPTIMISED TRANSPORT MERCHANTS/ FRANCHISES END CONSUMER NATIONAL DC INTERNATIONAL SUPPLY CHAIN SERVICES OVERSEAS MANUFACTURER RETAIL STORE DHL Supply Chain – Example REVERSE LOGISTICS

10. 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?

11. BCM Backdrop - Recent Business Disruptions DHL SUPPLY CHAIN MANAGING BUSINESS DISTRUPTIONS ACROSS OUR CUSTOMER BASE Ash Cloud, April 2010 Moscow Heat Wave/Smog, Aug 2010 Swine Flu, 2009 UK Snow Coverage, Nov 2010 Example Site Incident, June 2011 UK Civil Unrest, Aug 2011 UK Industrial Action, Nov 2011 Nigeria Fuel Strikes, Jan 2012 Unexploded Bomb Hungary, Dec 2011

12. 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?

13. AIRSIDE UK MANUFACTURER / SUPPLIER OPTIMISED TRANSPORT REGIONAL DC NETWORK AND/OR OUTBASES REGIONAL DC NETWORK AND/OR OUTBASES REGIONAL DC NETWORK AND/OR OUTBASES WAREHOUSING & ORDER FULFILMENT OPTIMISED TRANSPORT MERCHANTS/ FRANCHISES END CONSUMER NATIONAL DC INTERNATIONAL SUPPLY CHAIN SERVICES OVERSEAS MANUFACTURER RETAIL STORE DHL Supply Chain – Example REVERSE LOGISTICS

14. BCM fully in place across our Warehouse & Transport operations DHL Supply Chain EMEA – Warehouse & Transport

15. Internal Suppliers Finance Function Fuel Centre IT Data Centre HR Function Regional Engineering Fleet Compliance Etc… External Suppliers Agency Providers MHE Suppliers Vehicle Maintenance Providers Caterers Etc… AIRSIDE UK MANUFACTURER / SUPPLIER OPTIMISED TRANSPORT REGIONAL DC NETWORK AND/OR OUTBASES REGIONAL DC NETWORK AND/OR OUTBASES REGIONAL DC NETWORK AND/OR OUTBASES WAREHOUSING & ORDER FULFILMENT OPTIMISED TRANSPORT MERCHANTS/ FRANCHISES END CONSUMER NATIONAL DC INTERNATIONAL SUPPLY CHAIN SERVICES OVERSEAS MANUFACTURER RETAIL STORE REVERSE LOGISTICS Tier 2 Suppliers Tier 3 Suppliers DHL Supply Chain – Example End to End Business Resilience

16. DHL Supply Chain EMEA – Functions BCM fully in place across our Functions and Data Centres EMEA Data Centre, Prague Engineering & Fleet Services - UK & Ireland EMEA Finance EMEA HR People Service, UK

17. 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?

18. 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 What Key Information Needs To Be Derived From Your BIA?

19. 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?

20. DHL Supply Chain Aligned to BS25999 – British Standard for BCM

21. 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 • Site has appointed a BCM Champion with appropriate seniority to be accountable for implementing BCM 2 • IMT • Site has formed an Incident Management Team with deputies for all key functions 3 • BIA • 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 • Site has completed the DSC approved BIA Risk Assessment document and has identified and documented the site’s threats 5 • Determining Choices Using the DSC approved Risk Assessment document the site has, for each of its critical activities, identified available risk solutions 6 • Determining BCM Strategy • Site has determined how it will recover each critical activity within its recovery time objective, including the resources required for resumption 7 • BCP’s • 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 • Maintaining and Reviewing • Site has ensured that it‘s BCM arrangements are reviewed and documented at planned intervals 9 • Testing and Exercising • 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 10 EMEA BCM 10 Steps - Aligned to BS25999

22. DHL Supply Chain BCM Tool – Currently Under Development Improved Visibility Communication Improved Efficiency Robustness Improved Consistency Simplicity

23. For more information about the DHL Supply Chain BCM approach, please contact: Graham Clark – Business Continuity Manager – EMEA gr.clark@dhl.com BCM Contacts - EMEA