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MMMm Resilience 360 DHL Global Forwarding CENAM & Caribbean January 17, 2019 Using technology and data to mitigate supply chain risks MAY 22, 2019 Nick Wildgoose, Senior Consultant RESILIENCE360 Resilience as a competitive advantage
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Page 1: 08 DHL Breaking the chain-FINAL - Swiss Re52afa659-6f4d-47e8-8233... · 2019-06-04 · Supply Chain 4 No. 1 in contract logistics million tons AFR 3.25 million TEU OFR ~300 m International

• MMMm

Resilience 360

DHL Global Forwarding CENAM & Caribbean

January 17, 2019

Using technology and data to

mitigate supply chain risksMAY 22, 2019

Nick Wildgoose, Senior Consultant RESILIENCE360

Resilience as a competitive advantage

Page 2: 08 DHL Breaking the chain-FINAL - Swiss Re52afa659-6f4d-47e8-8233... · 2019-06-04 · Supply Chain 4 No. 1 in contract logistics million tons AFR 3.25 million TEU OFR ~300 m International

53%

41%

33%

30%

27%

23%

19%

19%

15%

15%

14%

14%

13%

13%

11%

10%

9%

9%

8%

7%

5%

2%

Unplanned IT or telecommunications outage

Adverse weather

Cyber attacks and data breach

Loss of talent/skills

Transport network disruption

New laws or regulations

Outsourcer failure

Health & Safety incident

Currency exchange rate volatility

Fire

Human illness

Energy scarcity

Insolvency in the supply chain

Civil unrest/conflict

Business ethics incident

Act of terrorism

Environmental incident

Intellectual Property violation

Earthquake/tsunami

Industrial dispute

Lack of credit

Animal disease

2018 Ranking of High-Impact Supply Chain Disruptions

Source: BCI Supply Chain Resilience Report 2018

Page 3: 08 DHL Breaking the chain-FINAL - Swiss Re52afa659-6f4d-47e8-8233... · 2019-06-04 · Supply Chain 4 No. 1 in contract logistics million tons AFR 3.25 million TEU OFR ~300 m International

Global Forwarding, Freight

Leader in the forwarding business

Express

No. 1 in international express delivery220Countries &

Territories

Post – eCommerce – Parcel (PeP)

Europe’s largest postal service

Supply Chain

No. 1 in contract logistics4million tons

AFR

3.25million TEU

OFR

~300 m International Express

Shipments per year

13.2 sqmsquare meters of

warehouse space

520,000Employees Worldwide

59 mLetters per workday in

Germany

Deutsche Post DHL Group, a Data Rich Company<

Page 4: 08 DHL Breaking the chain-FINAL - Swiss Re52afa659-6f4d-47e8-8233... · 2019-06-04 · Supply Chain 4 No. 1 in contract logistics million tons AFR 3.25 million TEU OFR ~300 m International

4

Disruptions Come in All Forms

May 2, 2018 FORD supplier fire shuts down

F-150 production for 19 days

Sept 22, 2017: Hurricane Maria shuts down

nearly 50 pharma plants in Puerto Rico

June 27, 2017: Maersk global IT breakdown

caused by cyber-attack

!

!

!

LOCAL

NEWS

Page 5: 08 DHL Breaking the chain-FINAL - Swiss Re52afa659-6f4d-47e8-8233... · 2019-06-04 · Supply Chain 4 No. 1 in contract logistics million tons AFR 3.25 million TEU OFR ~300 m International

Global Trade Disruptions

United States

25% import tariffs on

Chinese industrial

equipment & chemicals

United States

25% duties on 800+ Chinese

products including

semiconductors, low-tech

machinery & medical equipment

United States

Enacts tariffs on foreign

imports of steel (25%) &

aluminum (10%)

EU, Mexico, Canada

Tariffs on US imports worth

21 billion USD, including

manufacturing goods

China

Tariffs of 25% on over 545

US products including cars

& agricultural products

China

Retaliatory tariffs on US

medical equipment, steel,

cars & chemical products

March-June 2018 July 2018 August 2018 September 2018

United States

10% tariffs on additional

200 billion USD of

Chinese imports

(up to 25% in 2019)

China

60 billion USD in

retaliatory tariffs on

US imports

Page 6: 08 DHL Breaking the chain-FINAL - Swiss Re52afa659-6f4d-47e8-8233... · 2019-06-04 · Supply Chain 4 No. 1 in contract logistics million tons AFR 3.25 million TEU OFR ~300 m International

6

2010: Eruption of Eyjafjallajökull: Total

airline industry loss of ~ €1.3 billion.

2011: Japan earthquake & tsunami: Total

economic loss over €275 billion.

The Origin of Resilience360

Page 7: 08 DHL Breaking the chain-FINAL - Swiss Re52afa659-6f4d-47e8-8233... · 2019-06-04 · Supply Chain 4 No. 1 in contract logistics million tons AFR 3.25 million TEU OFR ~300 m International

7

Resilience360: Module Overview

Where are

we?

Supply Chain

Visibility

How prepared

am I?

Risk & Impact

Assessment

How prepared

are they?

Transparency

Portal

Are my

partners OK?

Supply Watch

How to enable

manage.?

Analytics

What’s going

on?

Risk & Incident

Monitoring

Where is our

stuff?

Shipment

tracking

Page 8: 08 DHL Breaking the chain-FINAL - Swiss Re52afa659-6f4d-47e8-8233... · 2019-06-04 · Supply Chain 4 No. 1 in contract logistics million tons AFR 3.25 million TEU OFR ~300 m International

8

Resilience360: Tool Demonstration

Page 9: 08 DHL Breaking the chain-FINAL - Swiss Re52afa659-6f4d-47e8-8233... · 2019-06-04 · Supply Chain 4 No. 1 in contract logistics million tons AFR 3.25 million TEU OFR ~300 m International

Where Is Your Risk Accumulating?

Fin

an

cia

l R

isk

Su

sta

ina

bil

itiy

Pe

rfo

rma

nc

e

Ca

pa

bil

itie

s

So

urc

ing

Re

lati

on

sh

ip

Etc

...

15% 7% 7% 8% 10% 10%

Risk Exposure Index

Customer-Specific

Risk Index *

Ea

rth

qu

ak

e

To

rna

do

Ha

il

Flo

od

Natural

Disaster

Wa

r

Te

rro

ris

m

Civ

il U

nre

st

Political

Violence E

tc..

.

Co

rru

pti

on

La

w E

nfo

rce

me

nt

Co

un

terf

eit

Th

rea

t

La

bo

r S

trik

e

Socio

Political

Avia

tio

n

Gro

un

d

Cu

sto

ms

Eff

icie

nc

y

Ma

rin

e

Operational

Ca

rgo

Th

eft

Pe

rso

na

l F

ree

do

m

Wo

rke

rs R

igh

ts

En

vir

on

me

nt

Ch

ild

La

bo

r

Sustainability

De

ath

& I

nju

ry

De

ten

tio

n &

Dis

cri

min

ati

on

Kid

na

p &

Ra

ns

om

Risk to

Individuals

12% 12% 82% 9%Etc... Etc...

Overall

Index

Category

Index

Exposure

Scores

* Weightings shown above are representative. Actual weightings determined

in collaboration with customer.12% Weighting based on Loss Expectation/Expert Analysis

Page 10: 08 DHL Breaking the chain-FINAL - Swiss Re52afa659-6f4d-47e8-8233... · 2019-06-04 · Supply Chain 4 No. 1 in contract logistics million tons AFR 3.25 million TEU OFR ~300 m International

12

Nick Wildgoose

Senior Consultant, Resilience360

[email protected]

“It is difficult to make

predictions, especially

about the future.”


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