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MANAGING DISASTER RESPONSE, THE DHL EXPERIENCE

MANAGING DISASTER RESPONSE, THE DHL EXPERIENCE. Agenda. About DPWN & DHL. DHL Corporate Sustainability. The formation of DHL Disaster Response Teams (DRT). DRT Operations. DRT In Action. Challenges in the Disaster Relief Environment. Our Commitment. 285,000 employees.

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MANAGING DISASTER RESPONSE, THE DHL EXPERIENCE

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  1. MANAGING DISASTER RESPONSE,THE DHL EXPERIENCE

  2. Agenda • About DPWN & DHL • DHL Corporate Sustainability • The formation of DHL Disaster Response Teams (DRT) • DRT Operations • DRT In Action • Challenges in the Disaster Relief Environment • Our Commitment

  3. 285,000 employees More than 400 aircraft * 76,000 vehicles 6,500 facilities across the globe, 35 mn sqm warehouse space Over 1.5 billion shipments per year € 26 bn in revenue (2005, excl. Exel) 120,000 destinations worldwide DHL Global * Operating for and on behalf of DHL

  4. Formation of DHL Disaster Response Teams In 2003, DHL experts saw how a flood of relief goods could shut down an airport Earthquake relief, Bam Airport, Iran, December 2003 • Airport apron and taxiways blocked with cargo, trucks and aircraft. • Unsafe airport operation.

  5. Formation of DHL Disaster Response Teams DHL has expertise in handling air cargo and managing airport operations • DHL has core competences in: • Airport operations. • Cargo handling. • Flight operations. • Warehousing. • Distribution. DHL can use its experience, network and employees’ talents to support humanitarian missions and reduce bottlenecks at airports receiving huge quantities of relief goods in the aftermath of major natural disasters.

  6. DRT Mission DRT provides expertlogistical supportandadviceto ensure an uninterrupted and effective supply chain at thedisaster site airportfor incoming shipments and relief goods.

  7. Disaster Management Global initiative: DHL Disaster Response Teams (DRT) In cooperation with the UN Office for the Coordination of Humanitarian Affairs (OCHA), we are building a global network of DRTs. The DRTs’ mission is to reduce congestion at airports receiving unsolicited humanitarian relief goods in the aftermath of major sudden-onset natural disasters. There are currently 3 DRTs:- DRT Asia Pacific - DRT Americas- DRT Middle East and Africa Each DRT is made up of 15 employee volunteers drawn from a pool of 80-100 people. The DRTs main tasks are: • Transfer incoming relief goods from aircraft pallets to wooden pallets. • Set up and manage a professional warehouse. • Arrange for the onward transportation of relief goods. Two DRTs were set up in 2006, a 3rd DRT 30th of Oct in 2007.

  8. x x    DRT Functions DRT provides core expertise at the airport DHL Disaster Response Team - Core Expertise - Warehousing Loading Onward transportation Unloading aircraft Handling • Sorting and stacking of goods. • Inventory management. • Goods are taken off aircraft pallets. • Supplies transferred to wooden pallets. • Handling with or without fork-lifts. • Assistance with customs processes. • Loading of aid on to trucks or helicopters.

  9. Corporate Disaster Response in Action Relief in Action

  10. 2004 – Indian Ocean Tsunami (Sri Lanka) 7,000 tonnes of relief supplies handled from 160 charter aircraft in 3 weeks with 35 volunteers. DHL DRT operated at Colombo Airport

  11. 2005 – South Asia Earthquake (Pakistan) 9,000 tonnes of relief supplies handled from 230 charter aircraft in 3 weeks by 30 DRT volunteers. DHL DRT operated at Chaklala Air Force Base, Islamabad

  12. 2005 – Hurricane Katrina (USA) Prototype DRT operated at Little Rock AFB after Hurricane Katrina in 2005 • Contract with United States Agency for International Development (USAID). • 2,370 tonnes of relief supplies handled from 35 charter aircraft in 2 weeks with 21 volunteers. • US Air Force provided extra manpower. • DHL contracted trucking services at cost.

  13. 2006 – Yogyakarta Earthquake (Indonesia) 200 tonnes of relief supplies handled from 8 charter aircraft in 1 week by 14 DRT volunteers. DHL DRT operated at Adisoemarmoe Airport

  14. 2006 – Typhoon Durian (Philippines) The DRT provided logistics management advise to the various government disaster management agencies after the November 2006, Typhoon ‘Durian’.

  15. 2007 – Pisco Earthquake (Peru) 2,740 tonnes of relief supplies handled from 98 charter aircraft in 10 days by 14 DRT volunteers. DHL DRT operated at Pisco Air Base, Southern Peru

  16. Challenges in the Disaster Relief Environment Going the ‘Last Mile’

  17. LSD LSD ICW LSD HRD HRD HRD HRD ICW ICW ‘Last Mile’ Transportation Emergency Supply Chain – Overview B E N E F I C I A R I ES Disaster Supply Chain – Unsolicited Aid Contracted/Scheduled AIR Tpt Tpt DRT I.O.M.Atlas Logistics Military Local L & T Military Government Charter Donators Air Lift Initial Point of Entry In-country Transportation In-country Warehouse (temporary) Local Distribution point • Pre-position emergency relief in disaster zones • Undertake and facilitate airlifts in coordinated way • Receive relieve, manage inventory, organize logistic solutions • Coordinate fleets, (prior) relationship building and contracting • Contract and manage warehouses • Sourcing and collecting supply, coordination of multi-modal logis-tics solutions Activities • Increase efficiency and improve geographical position • Reduce duplication of effort • Ensure onward sending of goods to warehouses or to the disaster zone • Reduce inflationary effects on truck leasing/hiring • Improve location of warehouse capacity • disaster prone zones • near airports • at 1st staging post • Enhance overall efficiency Objectives

  18. Challenges in the Disaster Relief Environment

  19. Innovation in Relief Logistics Distribution South Asia Earthquake - 2005

  20. Innovation in Relief Distribution • Problem: Delivering aid to remote and inaccessible areas • Cardboard boxes broke when dropped from helicopters. • Damaged goods. • Solution: DHL ‘Speedball’ • New use for DHL polypropylene shipping bags. • Easy to handle. • Does not break when dropped from 35 meters. • A ‘survival package’ (contains supplies for 7 people for 10 days.) 3. DHL shipping 3. DHL shipping 4. DHL 4. DHL 1. Unsorted relief 1. Unsorted relief 2. Relief supplies 2. Relief supplies 5. DHL 5. DHL ‘ ‘ Speedballs Speedballs ’ ’ bag filled with bag filled with supplies arrive supplies arrive ‘ ‘ Speedballs Speedballs ’ ’ dropped from dropped from are sorted and are sorted and supplies supplies loaded on loaded on stored stored helicopter helicopter

  21. Innovation in Relief Distribution

  22. Innovation through Collaboration Our Commitment

  23. MOU - PRC Government & DHL • On the 29th of November 2006, DHL signed a historic MOU with the Ministry of Civil Affairs. The first of its kind in China between the Government and a Corporate entity. This MOU recognizes the support that companies like DHL can provide during a National Disaster. Department of Social Relief, Ministry of Civil Affairs (PRC)

  24. Asia Pacific Disaster Response Team Summation: • Provide a capability that adds value. • Foster close relationships with stakeholders. • The National Government is the Controlling Authority. • Recognise the importance of speed & capacity. • Share the expertise. Matt Hemy DHL Express Asia Pacific +65 6216 6825 matt.hemy@dhl.com

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