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DHL SUPPLY CHAIN TAIWAN

DHL SUPPLY CHAIN TAIWAN. 自由貿易港區的發展與案例. Cynthia Wu , General Manager, Commercial, DSC Taiwan. Deutsche Post DHL . The logistics company for the world. a global company with a unique portfolio. No. 1 in international express delivery. Europe’s largest postal service.

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DHL SUPPLY CHAIN TAIWAN

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  1. DHL SUPPLY CHAIN TAIWAN 自由貿易港區的發展與案例 Cynthia Wu, General Manager, Commercial, DSC Taiwan

  2. Deutsche Post DHL The logistics company for the world Corporate Presentation | July 2014

  3. a global company with a unique portfolio • No. 1 in international express delivery Europe’s largest postal service • Leader in the forwarding business Partner for eCommerceanda pioneer in secure digitalcommunications • No. 1 in contract logistics Corporate Presentation | July 2014

  4. examples Key facts about Deutsche Post DHL • Approximately 480,000 employees in more than 220 countries/territories (including nearly 60% outside Germany) • 64m letters/3.4m parcels each workday inGermany/more than 27,000 sales outlets in Germany • Group revenues1): EUR 55.1bn/Group EBIT1): EUR 2.86bn/Market capitalization2): EUR 32.039bn • ~ 650,000 international express shipments per day (2013) (Time Definite International) (+8% vs. previous year) • 3.9m tons of air freight/2.8m TEU3) of ocean freight in 2013 • 23m square meters of warehouse space in contract logistics • 1) Financial year 2013; 2) As of 12/31/2013; 3) TEU = Twenty-foot equivalent unit Corporate Presentation | July 2014

  5. Keelung Taipei Taoyuan Hsinchu Yilan Miaoli Taichung Changhua Nantou Hualien Yunlin Chiayi Tainan DSC Warehouse Site Taitung Kaohsiung Pingtung FOOTPRINT OF BRANCH OPERATIONS • DSC HQ & TPDC • Square Meter: 6000 Taipei Nei Hu Square Meter: 4000 • LKDC • Square Meter: 6500 • ACE/FTZ • Square Meter: 2740 • HCDC & Clean Room • Square Meter: 7000 • HCU bonded (CTW) • Square Meter: 229 • HcuPei • Square Meter: 1000 • TYDC (JvanAn) • Square Meter: 5135 • Chung Li In house • Square Meter: 259 • DYDC • Square Meter: 3500 • TNN • Square Meter: 1251 • KHH In house • Square Meter: 1066.9 • Semi TXG • Square Meter: 1667 • I2M warehouse • Square Meter: 3,305.7 DSC HQ

  6. INTEGRATED SUPPLY CHAIN SOLUTIONS Manufacturer & raw materials Export/Import activities Primary movement Distribution centers Secondary movement B2B & B2C distribution After-sales services Freight Management Contract Logistics Reverse Logistics Specialist Services Information Services IT Products & Services Service Parts Logistics • Systems integration • Customer order management • Global Visibility • Information management • Transport Management Center (TMC) • Call Center (LCSC) • FMCG Warehousing • Order fulfillment • VMI • Co-packing • Product assembly • Cross-docking • Postponement • Customization • Service parts logistics solutions • Service parts logistics centres • Strategic parts centres • Multi-lingual regional call centres • Global systems infrastructure • Repair & refurbish • Returns processing • Inventory control • RMA • Spare Parts management • Disposal management • Supply chain consultancy • IOR/EOR • Inventory optimization • Bonded/Non-bonded facility • Project Implementation • Program management • Warehouse Management System • Transport Management System • Supply Chain Event Management • Order & Document Management • Air freight • Sea freight • Road freight • Consolidation • Compliance & custom management • Breakbulk • Express CoreServices Integrated supply chain service Lead Logistics Provider (LLP) 6

  7. Energy & Chemicals Life Sciences & Healthcare Sector focus approach Dedicated solutions are engineered for different sectors to address their service needs and maximize their business potentials Automotive Consumer Retail Technology

  8. DSC Key services Lead Logistics Provider Procurement services In-plant logistics Inbound to Manufacture Transport and Distribution Warehousing Technical services

  9. Dsctaiwan FEPZ Service introduction

  10. Growing demand of dynamic logistics services in taiwan Key reasons choosing Taiwan FEPZ: • Central location of trade lane • High volume of high-tech industry • Competitive cost • Portal of duty and tax free • Close to international air port • DHL resource synergy • Rapid in/out customs clearance • Motivation on RDC build-up for manufacturers and OEMs in Taiwan and AP countries

  11. DHL FEPZ Facility Strategic Partnership is formed with Farglory to provide comprehensive and dynamic services to customers DHL singed off MOU with Farglory in 2010, which helped fulfill bonded facility and guarantee space to build up logistics center near by CKS airport, aiming to fit customers’ requirement s Available compartments Occupied compartments Flexibility for Expansion 4th floor 3,100 M2 3rd floor 2,000 M2 Existing operation 2nd floor 450 M2 A/C: 1 space: 450 M2 2nd floor A/C: 2 space:1,800 M2 Ground floor

  12. Goods flow overview IN FEPZ Seamless Goods flow between Air terminal and FEPZ warehouse facility offers highest flexibility in cargo / shipments cut-off time Move cargo up to DHL warehouse Cargo is transferred from air port Terminal to FTZ Terminal thru dolly 1 4 Shipment stay in FTZ Terminal to wait for customs clearance 3 2 Cargo is shifted to B1 with same W/H building after released by customs

  13. Local Repair Field part support and Good return Local Rework and defect return Oversea replenishment External repair Incoming material flow 6 5 4 3 2 1 FEPZ Operations Model Overseas FEPZ Taiwan • Main Benefits for customers: • Better Cash flow • Duty Benefit 4 Factory Worldwide Supplier 1 5 2 Worldwide Repair Vendor Field customer side • `` Characteristics for utilizing FEPZ Services: • Local rework with Duty free for 6months • Local Repair • Good part Return w/out Duty from Field • VAT Deferment • Regional Hub operation 6 Local Repair Vendor 3 Global Distribution Center Description:

  14. Dsctaiwan FEPZCustomer Reference

  15. CASE REFERENCE 1– SEMICONDUCTOR MANUFACTURER Act as regional hub to source products from local Taiwan manufacturers and speed up sales to worldwide market Customer Challenge Customer Challenge DHL Solution Customer Benefits • Improve the lead time on product distribution • Minimize total cost of operation and transportation • Increase process efficiency • Hire and train flexible labor workforce • Engage splitting, repacking of shipping order • Customer’s system and bonded inventory maintenance in place • Optimized operational cost • Increased visibility of inventory and reduced working capital • Speed up product cycle and mitigate inventory volume • Duty/tax free

  16. CASE REFERENCE 2 – HI-TECH EQUIPMENT MANUFACTURER Provide capital investment and tax saving in high-tech equipment manufacturing and repairing Customer Challenge Customer Challenge DHL Solution Customer Benefits • Heavy duty on equipment purchase . • Long transportation from airport to factory. • High inventory cost for various countries stock • Resource pool for repair and refurnishing center. • Global in/out bound solution from factory to client in oversea. • Inventory management and reconciliation • Import duty avoidance • Terminal right next to airport, high turnover capability. • Flexibility on cash flow • Quick response on goods declaration.

  17. Thank you! For Enquiries, please feel free to contact: Cynthia WuGeneral Manager Commercial, Taiwan DHL Supply Chain                             Phone: +886 (2) 6626 1688                 Fax: +886 (0) 6626 5889                     Mobile: +886 (0) 939 666 585 cynthia.wu@dhl.com www.dhl.com

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