Presentation on theme: "Slide 1 TRAINING. Slide 2 What is the Global Heavyweight Express about? How? nTarget the right customers and decision makers nUnderstand where DHL can."— Presentation transcript:
Slide 2 What is the Global Heavyweight Express about? How? nTarget the right customers and decision makers nUnderstand where DHL can beat Freight Forwarders nReinforce DHL Express value proposition to customers in the heavier weight category nGood margin nBig market opportunities nDHL price advantage Why? nOperational capabilities nExisting customers shipping in this weight nSuperior product What? An International Program designed to: nIncrease international outbound and inbound shipments in the 40 – 150 lbs. range nAttract traditional users of freight forwarders
Slide 3 Global Heavyweight Business Case Market analysis proved that the Market Opportunity is large in the US Source: Colography Group / $ 3.6B worth of shipments less than 150 lbs. Forwarders carry instead of DHL 3000+ freight forwarders
Slide 4 Business Objectives Why Can DHL Succeed Against Freight Forwarders? Price Reliability Speed Ease of use
Slide 5 DHL vs. Freight Forwarders Comparison of Strengths & Weaknesses - PRICE Speed Strengths and Benefits Customer Requirement Freight Forwarders Weakness and disadvantages Single Price quoteEnd Price not always clear One shipment chargeMultiple Charges Local and Single Currency Various shipping charges in multiple currencies Single InvoiceMultiple Invoices Single Price all yearPremium Peak Prices at busy times Wide range of free packaging materials provide cost savings to customers Packaging is chargeable for all sizes, weights and shapes Price Visibility Easy invoice reconciliation Control of Costs PRICE Reliability Mgt Control Packaging Materials No Hidden Cost
Slide 6 DHL vs. Freight Forwarders Comparison of Strengths & Weaknesses - RELIABILITY Price RELIABILITY Speed Strengths and Benefits Customer Requirement Freight Forwarders Weakness and disadvantages Reliable and well established worldwide infrastructure for international, express shipping Use of multiple sub contractors leading to inefficient, complex and slower international shipments. Door-to-DoorDoor-to-Airport Airport-to-Door Airport-to Airport Global Track and Trace system with real time information Not available/ track and trace limited to Airline systems DHL trained staff from pick-up @ origin to delivery at destination Use of sub contractors at all or most steps Choice of automated solutions for shipment administration and management Shipment documentation is chargeable DHL Customs brokers in 170+ countriesExtensive use of third part brokers and clearance agents Higher security for peace of mind with trained DHL personnel – no 3 rd party Security is undermined by use of multiple agents Delivery Service Closed Loop System Shipment Visibility Customs Expertise Security Mgt Control
Slide 7 DHL vs. Freight Forwarders Comparison of Strengths & Weaknesses - SPEED Price Strengths and Benefits Customer Requirement Freight Forwarders Weakness and disadvantages Seamless, speedy door-to-door deliveriesLonger delivery cycle for door to door Guaranteed uplift on daily commercial and owned flights Shipment consolidation Uplift on alternate days Priority loading and off-loading service with premium payment for guaranteed cargo space Cargo space secured @ normal/lower rates hence, no guarantee/priority on cargo handling 93% of shipments cleared in the air into the USA. We have direct links Government Customs systems Only some freight forwarders are capable of Clearance in air To Door Service commitmentTo port service commitment DHL Customs brokers in 170+ countries – no need to outsource clearance of shipments to external brokers Extensive use of third part brokers and clearance agents 20+ years relationship with Customs. Government Customs Staff on site at our gateways to speed clearance of shipments Do not have the relationship DHL has built with Customs Delivery Service Closed Loop System Guaranteed Space Customs Expertise Clearance in Air Seamless transportation Reliability SPEED Customs relationship
Slide 8 Cost comparison DHL V Freight Forwarders Straight forward Competitive Pricing DHL Express is price competitive up to 150 lbs, depending on the direction of trade and trade lane.
Slide 9 Freight Forwarder Invoice In this one Freight Forwarder invoice there are 14 Charges in two Currencies
Slide 10 Generally, Forwarders quote only the Air Freight portion, making DHL look expensive. 1 Pick up 2 Export Documentation 3 Outbound Airport Handling 4 Air Freight 5 Inbound Airport Handling 6 Customs Clearance 7 Delivery 466 $ 541 $ 70 $ 146 $ 60 $ 115 $ 95 $ 20 $ 35 $ Freight Forwarders One priceMultiple Costs Price Reliability Speed A 50 kg Shipment of toy kites from Chicago to Singapore OB Airport Handling: Handling ($35) + Airport Transfer ($25) + Terminal Charges ($35) Air Freight: Air Freight ($60) + Fuel Surcharge ($30) + Security Surcharge ($25) Customs Clearance: Customs Brokerage ($51) + Documentation ($38) + Customs Examination ($32) + EDI ($25) DHL Price: Considers a customer that ships 3-4 p/mth with RSD discount (24%) Generally, Forwarders quote only the Air Freight portion, making DHL look expensive.
Slide 11 Global Heavyweight Tool Enables you to compare DHL prices against a forwarder. Pre–Loaded forwarder rates for specific countries. Ability to enter in specific forwarder rates that you may have obtained from a customer. Easy to print of Comparison charts and graphs. To obtain instructions on the Global Heavyweight Pricing Tool please download instructions from the GHWE micro site.
Slide 12 Global Heavyweight Tool Tips Show a Typical example from your region to gain customer interest. Gather all the information you need. Make sure that you have included all the extra charges. Ask the customer if you think they have not included all Extra Charges. Use standard charges if they do not know all of their Forwarder charges.
Slide 13 You are now the key: Target the right customers Find the decision makers Determine if they want express or deferred Use your sales approach accordingly You have the tools: Pricing Tool Portfolio Optimiser COMET DHL has what it takes: Price Reliability Speed Customers prefer to use us! Big opportunities: Big Forwarder market Big Revenue Fragmented Competition FTB/SPD Summary: Selling Heavier Weights DHL carries 2 Million Packages over 20 kg every year.