DHL SUPPLY CHAIN WRITE-UP
DHL Customer Solutions and Innovations is a division of the German logistics company Deutsche Post. DHL
provides international courier, parcel, and express mail services. Deutsche Post DHL is the world's largest
logistics company operating around the world particularly in sea and air mail.
From 2015 to 2019, global healthcare spending is expected to increase by 4.3% annually.1 Along with
growth, the sector is going through significant transformation of its operating models and supply chains.
There is a sense of urgency to transform now; and supply chains play a crucial role in this transformation.
So derived from the Logistics Trend Radar DHL dives into six key trends and technologies that play the
biggest role in transforming the Life Sciences & Healthcare (LSHC) supply chains.
Advancing Data
Analytics
•Internet of
Things
On-Demand
Models
•Robotics and
Animations
•Addititve
Manufacturing
Augmented
Reality
DHL Developments on Upcoming Technology:
Advancing Data Analytics:
With DHL Resilience360 degree, the company has acquired end-to-end visibility of global pharmaceutical
companies’ complex drug supply chain, from manufacturing to distribution. Along with this came the
DHL SUPPLY CHAIN WRITE-UP
advantage of not only anticipating, but assessing and responding to risks for shipments in transit. As a
result, the company reduced manual effort in risk monitoring while increasing its ability to respond to
risks in real time. It also leveraged the tool to support business partner compliance audits and gap analysis.
Increasing Visibility through IoT:
DHL Thermonet, an air freight product, employs Smart Sensor RFID technology that tracks the ambient
temperature of each shipment while in transit. The data is transmitted to an online portal called LifeTrack.
It is supported by a global network of more than 100 Certified Life Sciences stations, providing monitoring,
intervention, and storage services that meet the international medical community’s Good Distribution
Practices standards
On-Demand Delivery:
The beauty product manufacturer had ample experience selling its premium skincare products via a direct
selling model. Stretched to meet growing demands through a legacy supply chain structure, the company
partnered with DHL for end-to-end logistics solutions, including fulfillment services and direct-to-
consumer deliveries. It integrated with DHL’s e-Commerce parcel delivery network. With this the company
was able to increase shipments to about 1.3 million orders for 3.1 million products within a year.
Robotics and Automation:
Accurate labeling and quality checks of medicines are critical to ensuring the wellbeing of patients. A
biopharmaceuticals leader in Netherlands was experiencing growing demand for one of its new drugs for
treatment of an uncommon chronic illness. To do so, the DHL site team “hired” a new helper for its
production line: ABB’s “YuMi” robot. Instead of printing each injector pen manually, DHL warehouse
associates place it on a tray; YuMi then picks up the pen with one of its two robotic arms, passes it by the
printer head, and sends the printer the necessary information to be printed. Each YuMi robot can process
up to 6 pens per minute with a single robotic arm – significantly more than even the most adroit of human
workers
Augmented Reality:
Picking accuracy is a crucial metric for pharmaceutical warehouses, which are subjected to strict
regulation laws to prevent error in delivery of controlled substances, DHL recently piloted Vision Picking
in partnership with wearable computing solutions experts, Ubimax. Through their Vuzix glasses, users
received visual instructions on items to pick per order. By scanning the QR or barcodes per physical item,
they received a visual display on how to place items in the pick trolley and complete the order. Bringing
automation with the AR glasses, the handling staff were able to achieve a hands-free approach for order
picking and eliminate errors common with pen and paper checklists.
Leveraging Additive Manufacturing:
With on-demand printing, issues of expiry of stock and wastage due to surplus inventory are minimized.
On-demand manufacturing improves services level with items being printed closer to the end delivery
point.
Thus, these are the major technology that DHL is implementing to enhance customer value.
