A PROJECT REPORT ON

"Understanding of Logistics- Inbound & Outbound Activities."

Submitted for the Partial fulfilment Of Master of International Business (MIB) To

DHL Logistics
Session 2012-14 Submitted by: Md. Nademul Haque
12-MIB-0028

Under The Supervision Of Mr. Akhilesh Sharma

CENTRE FOR MANAGEMENT STUDIES JAMIA MILLIA ISLAMIA New Delhi-110025

DECLARATION

I Md Nademul Haque, a bonafide student of MIB (full time) Programme at the Centre for Management studies, Jamia Millia Islamia , New Delhi, declare that I have undergone the summer training at DHL LOGISTICS Under the supervision of Mr. Akhilesh Sharma . I also declare that the present report is based on the above summer training and is my original work. The content of this project report has not been submitted to any other university or institute either in part or in full for the award of any degree, diploma or fellowship. Further, I assign the right to the university, subject to the permission from the organization concerned, use the information and contents of this project to develop cases, case lets, case leads, and courses for publication and/or for use in teaching.

Place- New Delhi Date - 30-07-13

Md Nademul Haque 12-MIB-0028

ACKNOWLEDGEMENT

The success of this project would be incomplete if I dont acknowledge those people who have really put their effort to make my project successful and worthwhile. I take it as my pleasure and honour to express my sincere gratitude to Mr. Akhilesh Sharma, Manager of Fatehpur warehouse of DHL Logistics who not only gave me opportunity to do my project in their company but also helped me a lot.Again I would like to thank Mr. Akhilesh Sharma , site manager for the tremendous support given by him to successfully complete my project. I wouldnt miss this opportunity to thank the person behind the curtain Prof. Veeramani whose guidance has made me to learn something valuable and gain some experience and learning about the subject and its practicality. I am very indebted and grateful to my internal guide, Mr. Chandarmohan Painauli, for his valuable guidance, support and suggestion without which this project work report would not have been possible.Finally I am thankful to my parents and friends who have silently inspired me to successfully complete this project work.

Place- New Delhi Date - 30-07-13

Md Nademul Haque 12-MIB-0028

EXECUTIVE SUMMARY
International supply chains are an ever more prominent feature of global commerce. The production of manufactured goods is organized increasingly through global value or supply chains, with goods being processed (value being added) in multiple countries that are part of the chain. Plants in each country specialize in specific processing activities that make up a final product. Economists call the process vertical specialization. One implication is that more than half of world trade today comprises intermediate inputs. For the world as a whole, the import content of exports has been estimated to be about 30% (Daudin, Rifflart and Schweisguth, 2011). Freight Mode share:

In the world as a whole the supply chain industry the major players included are DHL, FEDEX, BLUE DART, TNT, GATI, and many more. Major Indian logistic companies are DTDC, PACKERS & MOVERS, OM LOGISTICS, CONCOR etc. In 2010 Deustche Post was Indias top logistics firm claiming a market share of 40% was estimated at $100 billion. According to a Cushman & Wakefield report, Indias logistics industry is expected to grow at 15-20% per annum, reaching revenues of US$ 385 billion by 2015. Demand for focused supply chain services has been fuelled by industries with a high propensity to outsource: including the automobile, consumer packaged goods, hitech, telecom and retail industries. The movement of basic commodities, for

domestic consumption and export/import, has led to an increase in multimodal and bulk transportation and the emergence of many new ports and port-related service providers. Road network in India

Now coming to the overview of DHL, it was incorporated in 1969 by its founding members, Dalsey, Hilblom, and Lyn which is based in Bonn Germany. It is one such company which is renowned for its initiative in the social upliftment through education and has received many awards for its commitment towards greener solution internally and externally. Going through the financial performance of the company that it is a constant profit generating company. With the results achieved in financial year 2012. Deutsche Post DHL increased both revenue and margin. EBIT improved by nearly 10 % despite the negative impact of the additional VAT payment. Thanks to our presence in the worlds growth markets, the DHL divisions performed particularly dynamically. In the MAIL division, revenues were up significantly in the parcel business, which helped to compensate for moderate volume declines in the mail business. In the fourth quarter, the Groups earnings grew even more decidedly at a rate of nearly 40 %. Although operating cash flow was negatively impacted by extraordinary effects from the continued funding of pension liabilities, the Groups financial position remains very solid in the opinion of the Board of Management.

Selected indicators for results of operations 2011 2012 Revenue Profit from operating activities (EBIT) Return on sales Consolidated net profit for the period Earnings per share Dividend per share
1 EBIT / revenue. 2 After deduction of non-controlling interests. 3 B asic earnings per share. 4 Proposal. Changes

m m 1% 2m 3

52,829 2,436 4.6 1,163 0.96 0.70

55,512 2,665 4.8 1,658 1.37 0.70 4

TABLE OF CONTENTS

Section I 1.1 HISTORY- COMPANY PROFILE 1.2 VISION AND MISSION 1.3 OBJECTIVES 1.4 FORM OF ORGANIZATION 1.5 MAIN ACTIVITES 1.6 MARKET SHARE 1.7 ORGANISATION STRUCTURE 1.8 ANALYSIS OF FINANCIAL STATEMENT

1.9 SPECIAL MANAGERIAL CONCERNS AND ISSUES 2.0 RECENT MANEGMENT INITIATIVE IN THE AREASOF MARKETING, FINANCE, HR, TECHNOLOGY AND STRETEGY. 2.1 RETENTION POLICES

Section II 2.2 DESCRIPTION OF THE ASSIGNED TASK AND RESPONSBILITIES 2.3 NATURE OF WORK, WORKING HOURS, WORK EXPECTATION 2.4 PROCEDURE AND METHODOLOGY 2.5 OUTCOME AND RESULT. 2.6 LEARNING AND EXPERIENCE Section-III 2.7 TOPIC OF THE RESEARCH 2.8 DATA COLLECTION METHODOLOGY 2.9 ANALYSIS AND INTERPRETATION OF DATA 3.0 FINDINGS AND CONCLUSION 3.1 BIBLIOGRAPHY

HISTORY OF DHL
1969 Founding of DHL
Just a few months after Neil Armstrong took the first step on the moon, Adrian Dalsey, Larry Hillblom and Robert Lynn in San Francisco take a step destined to alter the global economy: In 1969, they founded the company DHL the three letters stand for the initials of their last names.

1971 DHL expands its network

DHL expands its network at high speed. Following expansion in the Far East and in the Pacific Rim (1971), DHL also begins offering services in Japan, Hong Kong, Singapore and Australia (1972) and later in Europe (1974), Latin America (1977), the Middle East and Africa (1978).

1979 DHL offers parcel delivery

DHL adds parcel delivery to its list of services. Until this time, the company offered delivery of documents only.

1986 DHL in China

DHL enters into a joint venture with the Peoples Republic of China, making it the first express company to operate inside of China.

1989 Deutsche BundespostPostdienst, DBP Postbank and DBP Telekom are established under the first postal reform
The Law concerning the Structure of Posts and Telecommunications of July 1, 1989, stipulates the restructuring of the former Deutsche Bundespost (Postal reform I). The new structure brings about the following organizational and regulatory changes: Separation of Deutsche Bundespost into three sectors Deutsche BundespostPostdienst, Deutsche Bundespost Postbank and Deutsche Bundespost Telekom Separation of the regulatory/political area from the managerial/operational area Establishment of management and supervisory boards for the public companies Creation of a Board of Directors to which the management board chairpersons of the three companies belong.

1990 Reunification also with the Post

The East German Deutsche Post is incorporated into Deutsche Bundespost.

1995 Deutsche Post AG, Deutsche Postbank AG and Deutsche Telekom AG are established under the second postal reform
The second postal reform, primarily administrative in nature, goes into effect in early 1995 based on the Posts and Telecommunications Reorganization Act. The three companies that emerged from Deutsche Bundespost are converted into stock companies under private law. Although the federal government initially retained all shares, they were gradually offered for sale to private shareholders, with the federal government retaining the majority stake for at least five years. The Federal Posts and Telecommunications Agency was founded at the same time. It represents the federal governments interests as a shareholder in the three stock corporations and performs supervisory and coordinating tasks. The federal regulatory tasks that were still necessary were initially assumed by a department in the Federal Posts and Telecommunications Agency (dissolved in 1997).

1996 Fast parcel delivery thanks to extensive investment

Massive investments in state-of-the-art logistics technology pave the way for faster delivery of letters and parcels throughout Germany. Thanks to reorganization and modernization of production at 33 parcel centers, Deutsche Post is able to significantly speed up the distribution process. Another comprehensive, large-scale investment program was aimed at modernizing the infrastructure of the mail centers. When investment was completed in 1998, the network consisted of 83 high-tech production centers. A high level of automation and standardization improves service quality and boosts productivity. Mail is one example. While less than 25 percent of letters were sorted by machine in the early 1990s, 90 percent of all items at mail centers are now processed fully automatically. Ninety-five percent of letters posted in Germany before final collection reach their recipient in just one day.

1997 The age of globalization dawns at Deutsche Post

Following the successful domestic restructuring of the company, Deutsche Post AG begins setting the course for global expansion. Globalization of business activities comes in response to the growing number of customers seeking a single service provider for their national and international shipping needs. The strategy is to establish Deutsche Post internationally with targeted acquisitions, investments and partnering agreements as well as to steadily expand the market position through integrated services.

1998 Letter 2000 concept becomes reality

The last of 83 mail centers throughout Germany is opened in Regensburg on December 4, 1998, giving Deutsche Post one of the most modern mail transport networks in the world. Customers benefit from the substantial improvements in mail transit times: 95 out of 100 letters in Germany reach their recipient in just one day (day of posting + 1), more than 99 percent reach their destination within two days. The new mail centers replace approximately 1,000 mail processing offices where letters were sorted for the most part manually until the early 1990s. Over 85 percent of all letters are now processed by machine. The modern mail sorting systems can automatically scan and sort up to 36,000 letters per hour. Deutsche Posts largest mail centers are located in the urban centers of Berlin, Hamburg, Munich, Frankfurt and Dsseldorf.

1999 Acquisition of Danzas and AEI

The acquisition of the Swiss logistics provider Danzas and the largest American service provider in the field of international airfreight, Air Express International (AEI), attracts attention. Founded in 1815, the prestigious Danzas group is regarded as one of the worlds leading logistics companies. With approximately 29,000 employees at the time of acquisition, Danzas has a strong logistics network on all continents. The acquisition of AEI is similar. AEI has a network of branches in 135 countries. In addition to integrated logistics and multi-modal transport, it offers warehousing, distribution, customs processing and IT-based logistics services. AEI is integrated into the Intercontinental division of Danzas. As a full-service provider, the merged companies provide Deutsche Post with a dense transport network as well as an impressive portfolio of value-added services.

2000 Deutsche Post AG goes public

On November 20, 2000, Deutsche Post AG goes public. The largest IPO of the year in Germany and the third-largest worldwide proves a resounding success. An initial total of 29 percent of the share capital of Deutsche Post AG is sold. The immense demand, as evidenced by an eight-fold oversubscription to the shares offered in the IPO, clearly demonstrate that the Groups strategy has convinced investors and the capital market alike.

2001 Deutsche Post AGs first Annual General Meeting after the IPO
One June 27, 2001, Deutsche Post AG holds its first Annual General Meeting after the IPO in the Klnarena with approximately 6,000 shareholders. The Chairman of the Board of Management, Klaus Zumwinkel, confirms to the shareholders the Groups goal of consistently expanding in the coming years to become the number one global player in logistics based on comprehensive logistics and financial services for our customers worldwide.

2002 Deutsche Post acquires DHL

The partnership with DHL International, which began with the acquisition of a minority interest in 1998, is expanded and intensified in 2000. Negotiations were then concluded allowing Deutsche Post to establish a majority interest from January 1, 2002. In July 2002, DPWN acquires a 25-percent share in DHL from Lufthansa Cargo and increases its majority stake to 75 percent. At the time, DHL Worldwide Express had more than 71,000 employees worldwide. A pioneer in global express shipping, DHLs international network links over 220 countries and territories. DHL becomes a wholly owned subsidiary of the Group in December 2002 after Deutsche Post AG acquires the remaining shares from two investment funds and Japan Airlines.

2003 DHL in a new design: A new brand for the worldwide express and logistics business Deutsche Post bundles its entire express and logistics business under the DHL brand. On April 1, 2003, the Group begins re-branding some 20,000 parcel delivery vans throughout Germany in the new DHL design. Deutsche Post AG had increased its share in the global market leader in the courier and express business to 100 percent in December 2002. The new, internationally renowned DHL brand underscores the Groups evolution into a global player. Synonymous with speed and modernity, the express and courier brand DHL is one of the best-known logistics brands around the globe. The consolidation of the worldwide parcel and logistics business under the DHL brand is the result of the consistent implementation of the Groups global one-stop shopping concept, offering the whole range of services from a single source. Around the world, the courier and express business (formerly DHL), the parcels business (formerly Euro Express) and the logistics business (formerly Danzas) are brought together under the new brand. 2004 Postbank goes public Postbanks IPO is the largest new issue in Germany since Deutsche Post AGs IPO in November 2000 and is also one of the largest issues ever on the German capital market. Postbank stock (symbol DPB) has been freely traded on the Frankfurt Stock Exchange and all German regional stock exchanges since June 2004. The stock was more than two and a half times oversubscribed. 2005 The Group acquires Exel In December 2005, Deutsche Post acquires the British logistics company Exel for 5.5 billion euros. At that time, approximately 111,000 employees work for Exel in 135 countries. Exel specializes in providing transport and logistics solutions for key customers. The company concludes the first half of 2005 with a 55 percent leap in profits to 172 million pounds (251 million euros).

2006 First Choice service campaign The Group, with its brands DHL, Deutsche Post and Postbank, seeks to become the first choice for all customers with the First Choice service campaign. Consistent, comprehensive employee orientation to customer satisfaction is the key to reaching this goal. A total of over 1,000 individual projects worldwide will be initiated within the scope of First Choice. The focus is on increasing customer satisfaction among both private and business customers. 2007 Opening of the DHL Innovation Center The Group further expands its role as an innovation leader in worldwide logistics with the opening of the DHL Innovation Center in Troisdorf near Bonn. The mission of this state-of-the-art research and development center is to develop new, highly innovative and marketable products from the logistics trends of the future. The projects carried out in the DHL Innovation Center are realized together with innovation partners from the business world such as IBM, Intel and SAP. In addition, the DHL Innovation Center maintains research partnerships with the logistics institutes of the Massachusetts Institute of Technology (MIT) in Boston and Saragossa as well as the German Fraunhofer institutes. The showrooms attached to the center provide customers, business partners and interested visitors with a closer look at the latest technologies in the logistics industry.

2008 Leipzig/Halle air hub opens DHL has officially opened its new European air freight hub at Leipzig/Halle Airport in Germany. The hub, one of Europe's largest construction sites, expands DHL's international network, providing greater connectivity to global growth markets and enabling DHL to improve its overall customer service. The decisive criteria for the choice of location were the position of the airport, its proximity to growth markets in Eastern Europe, the long-term planning security with comprehensive authorization for night-time flights, the wealth of motivated and highly qualified locally-based personnel, and impressive infrastructure which allows for a future-oriented combination of the carriers air, road and rail. Leipzig is the first DHL facility able to meet its needs for electricity, heating and cooling energy, to a large extent self-sufficiently. This is ensured by a cogeneration unit for combined heat and power generation, together with 1,000 square meters of solar cells on the roof of the hangar workshop for the generation of electricity from solar energy. In addition, two underground cisterns, with a capacity of 300 cubic meters each collecting around 3,000 cubic meters of rain water each year, will be used instead of drinking water to wash the aircraft.

2010 Deutsche Post offers confidential letters on the Internet By launching its digital letter the E-Postbrief, Deutsche Post has ushered in a new era in communication by mail. Using this modern technology private individual, businesses and administrative bodies can use the internet to communicate with one another safely and securely. The E-Postbrief is as binding, confidential and reliable as a letter and as fast as an e-mail.

2011 - First Sustainability Day of Deutsche Post DHL For the first time, Deutsche Post DHL invites the public to take part in its Sustainability Day. At the head office in Bonn, representatives from the fields of politics, industry and social welfare take part in a dialog on issues such as: corporate responsibility in the 21st century, the changing demands of the workplace on employers and employees, and the investors' expectations for sustainable corporate management. "As a global company, we want to help shape the dialog on sustainable business", says Frank Appel, CEO of Deutsche Post DHL.

OUR MISSION AND VISION

Our company, our vision emphasizes that we want to be The Logistics Company for the World. This goes beyond the simple fact that, as a global company, we are present in over 220 countries and territories, or that we are often the very first logistics company to enter new markets. Our vision stresses that we want to be the logistics provider people turn to their first choice not only for all their shipping needs, but also as an employee or investor. In 2009, we laid out our goals for the future in our Strategy 2015, including our vision and mission for This is further underlined in our mission statement, which has four main elements: 1) We want to simplify the lives of our customers 2) We make our customers, employees and investors more successful 3) We make a positive contribution to the world 4) We always demonstrate respect when achieving our results

We are successful when you are We strongly believe that pursuing all of these goals is in our interest and in the interest of all of our stakeholders: customers, employees, investors and the planet as a whole. We add value to peoples interaction with us, whether with excellent services or products, by engaging our employees and nurturing their talents, or by

being a solid, long-term investment on the stock market. And, we show concern for our world and our communities with our various corporate responsibility programs under the motto of Living responsibility

Our Purpose

A company with a purpose

We are deeply proud of the contribution we can make in our daily work. Everything that is moved from one place to another needs the aid of logistics but behind this simple truth one finds millions of stories. As the logistics company for the world, we form the backbone of trade, ensuring that whatever needs to be delivered, gets delivered. A shipment placed in our trust may include life-saving medicines, or a birthday present from a friend, or hold a companys entire existence in the form of a prototype. We not only deliver parcels and packages, and make sure containers arrive at ports: we deliver prosperity, we transport health, we power growth, We deliver joy. Every day we connect people, improving their lives.

Deutsche Post DHL - the Group at a glance

The Deutsche Post and DHL corporate brands offer a one-of-a-kind portfolio of logistics and communications services. The Group provides its customers with both easy to use standardized products as well as innovative and tailored solutions ranging from dialog marketing to industrial supply chains. About 475,000 employees in more than 220 countries and territories form a global network focused on service, quality and sustainability. With programs in the areas of climate protection, disaster relief and education, the Group is committed to social responsibility.

OUR OBJECTIVE
Our strength in numbers:

We do business in more than 220 countries and territories. We employ about 475,000 employees worldwide, making us one of the top 10 largest employers in the world. We manage more than 1 million customer contacts per hour. In 2012, Deutsche Post DHL generated revenues of more than 55 billion euros.

We want to stay the postal service for Germany and to become the logistics company for the world. We commit ourselves to making our customers, employees and shareholders more successful without compromising on results. At the center of this is a two-pillar approach focused on mail and logistics services. The MAIL division will set its focus on service quality and introducing new products for electronic communications. For DHL, the focus is on creating tighter links between the DHL divisions in order to better address customer needs. The unit "DHL Customer Solutions & Innovation" will help drive the development of innovative ideas into marketable solutions. We will also be turning our attention to creating more industry-specific solutions for sectors such as life sciences and technology.

Two powerful brands

Corporate divisions: MAIL EXPRESS GLOBAL FORWARDING, FREIGHT SUPPLY CHAIN

Deutsche Post DHL brings two powerful brands to the marketplace.

The Deutsche Post brand stands for personal proximity, reliable quality and groundbreaking services. Its success is built on the unique infrastructure in Germany, consistently high quality in the mail business and innovative services in the area of dialog marketing. The DHL brand stands for personal commitment, proactive solutions and local strength in the parcel business as well as in international express, logistics and mail operations. Our employees, who focus on customers needs and provide them with individually customized solutions, help secure our success.

The first choice for customers and shareholders

As part of our Strategy 2015 we want to be the provider of choice for customers, an attractive investment for shareholders and the employer of choice for our staff. The Group's global program First Choice is designed to intensify our focus and our business processes on our customers' needs. We are committed to strengthening customer loyalty and expanding our business using our existing customer base. We also aim to change the corporate culture of Deutsche Post DHL. We are doing more to promote collaboration among employees across the Group in an effort to enhance value for our customers.

Our commitment Our ability to perform as a Group rests on the shoulders of our many employees. Our guiding principle "Respect & Results" strengthens the collaboration among our employees and demonstrates our respect for human rights within our sphere of influence. True to the motto "Living Responsibility", our programs focus on the areas of environmental protection (GoGreen), disaster management (GoHelp) and education (GoTeach), and support the volunteer work of our employees.

FORM ORGANISATION
DHL - the Logistics company for the world

The core brand positioning elements of DHL. The DHL success story started with a revolutionary entrepreneurial idea. In 1969, Adrian Dalsey, Larry Hillblom and Robert Lynn were the first to fly freight bills ahead of ships and their cargo, dramatically speeding up customs clearance. Their pioneering spirit and focus on customer needs created a whole new industry and these are still among the most important features of our DHL brand. In recent years, DHL has grown into the global umbrella brand for our global mail, express, freight, forwarding and supply chain solutions. We have substantially increased brand awareness across all regions. Today we are the world's No. 1 in our industry. Now our challenge is to stay in this position. We have to ensure we deliver excellent performance at all concrete touch points. Consistency is the name of the game. Personal commitment We aim for strong customer relationships to ensure a harmonious working atmosphere. A strong relationship is also a prerequisite for collecting insights into the customer's business, enabling us to better compose and adapt our services to their needs and to provide easy processes. Our can-do attitude is the basis for making things happen when our customers ask for our support. Acting as likeable and dependable partners emphasizes our personal approach, which is very important to differentiate our brand from our competitors. We are a strong team of dedicated DHL people working for the success of our customers. We also form a strong team together with our customers, closely cooperating to provide them with optimal service.

When we act this way we generate a feeling of trust and confidence in our customers. They know they can rely on us and feel good working together with a very accessible and easy-to-use provider which makes life simpler for them.

Proactive solutions The high quality of our products and processes and our sector-specific know-how ensure we always come up with the best possible solution, keeping our promises. We are focused on making our customers successful. Combining our sector-specific know-how and our broad portfolio, we provide the appropriate solutions for our customers' particular business needs. Our customers like the fact that we take the initiative both on a personal and organizational level. We communicate regularly with our customers, seeking their opinion, and thereby constantly enhancing our services. We make our customers' supply chains more efficient by offering the flexibility they demand. We develop integrated tailor-made solutions, combining mail, express, freight, forwarding and supply chain services. Our reliability is underlined by the way we understand our customers' industries, anticipating and covering all relevant needs. Providing this proactive attitude greatly enhances our customers' perception that we are the right choice.

Local strength worldwide We provide a wide-ranging service and product portfolio, integrated in a worldwide network. We even connect countries where our competitors are unrepresented - a real worldwide service. Our customers know that we are a truly global player, acting all over the world with understanding and respect for different cultures. Whenever our customers need us we provide the right solution, whatever the industry, wherever the market. They appreciate the fact that we offer strong local presence based on a global network just around the corner from wherever they are, and in markets where they want to deliver. Our customers enjoy the fact that we are close to their business and cover the complete process for all their mail, express and logistics needs, from letters to large containers, across all continents and countries.

MAIN ACTIVITIES (A range of unique services across the globe) Deutsche Post DHL offers integrated services and tailored, customer-focused solutions for managing and transporting letters, goods and information.

MAIL A broad spectrum of mail and parcel services. In addition, we are an expert in dialog marketing.
MAIL Division

GLOBAL FORWARDING, FREIGHT International air and ocean freight as well as European overland transportation services.
GLOBAL FORWARDING, FREIGHT Division

EXPRESS Your partner for courier, express and parcel services by road, rail and in the air. EXPRESS Division

SUPPLY CHAIN: Tailor-made contract logistics services and Corporate Information Solutions.

MAIL Division

MAIL in figures: Households: 40 million Business customers: 3 million Retail outlet customers: 2 million per working day Domestic letters: More than 64 million per working day Domestic parcels: More than 3 million per working day Packstations: Approx. 2,500 Paketboxes: Approx. 1,000 Mail centres: 82 Parcel centres: 33

Deutsche Post delivers mail and parcels in Germany. It is an expert provider of dialogue marketing and press distribution services as well as corporate communications solutions. We operate a nationwide transport and delivery network in Germany. We also deliver mail across borders, serve the domestic markets of countries outside of Germany and also provide special services beyond mail transport. We serve business customers in key domestic mail markets, including the USA, the Netherlands, the UK, Spain.

EXPRESS Division
World market leader for international express services

EXPRESS in figures Countries and territories: 220 Main global hubs: 3 Servicepoints: 36,750 Vehicles: approx. 31,500 Customers: approx. 2.6 million

In the EXPRESS division, we transport urgent documents and goods reliably and on time from door to door. Our network spans more than 220 countries and territories, in which some 100,000 employees provide services for more than 2.6 million customers. As a global network operator that applies standardised processes, we are well aware that the quality of our services and the satisfaction of our customers are crucial in determining our success. That is why we are constantly optimising our service to keep our customer commitments and respond specifically to customers' wishes. It is not by accident that DHL is the world market leader in international express services.

Portfolio of time-definite products simplified and strengthened International time-definite courier and express shipments are our core business. Our main product, Time Definite, offers delivery as fast as possible. Our premium Time Definite product with guaranteed pre-12 delivery and money-back guarantee was substantially expanded in 75 destination countries, creating more than a million additional postcode combinations where our customers benefit from our improved range of services. Our portfolio is complemented by special industry-specific services such as Collect and Return and Medical Express. Customers in high-tech industries in particular use Collect and Return, in which critical goods in need of repair are collected from the end user, taken in for repair and then returned to the user. DHL has also increased activities for customers in the Life Sciences & Healthcare sector. In the year under review, we began offering various types of thermal packaging for temperature-controlled, chilled and frozen contents. These types of packaging are easy to order from our regional supply centres. In addition, we have extended our network. For example, the number of our Service Points increased to the current 36,750,1,000 were added in emerging markets and in Africa alone. At these Service Points, customers paying directly can purchase our Express Easy product even if they do not have a customer account. This simple product with its transparent price and weight categories and recyclable packaging is gaining steadily in popularity.

To allow us to concentrate on our core business of international time-critical shipments, we are offering our Economy Select product in the Day Definite area in fewer markets than before.

GLOBAL FORWARDING, FREIGHT Division

The air, ocean and road freight forwarder

DHL Global Forwarding in figures

Countries and territories: >150 Locations: approx. 850 branches

DHL Freight in figures Countries: >50 Locations: >160 branches

With its business units Global Forwarding and Freight, DHL is the Group's air, ocean and road freight forwarder. Our services extend from standardised container transport to highly specialised end-to-end solutions for industrial projects, and solutions tailored to specific sectors. A team of approximately 42,000 employees around the world strives to continuously improve our services in order to meet our customers' needs. Our business model is very asset-light, as it is based on the brokerage of transport services between our customers and freight carriers. This allows us to consolidate shipments to achieve higher volumes, purchase cargo space at better conditions and optimise our network utilisation. Thanks to our global presence, we are able to offer a variety of routing options and meet our customers' increasing demand for multimodal shipments.

SUPPLY CHAIN Division

Customer-centred solutions in two business units

The SUPPLY CHAIN division comprises the two business units of Supply Chain and Williams Lea, in which we offer customer-focused outsourcing solutions worldwide.

Market shares
BRIEF

Mail Communication

Dialog Marketing

Press Services

Parcel Germany

Global Mail

MAIL: Market shares Our market position in each business unit within the MAIL division is presented below. This information was taken from the 2010 Annual Report. Mail Communication Dialogue Marketing Press Services Parcel Germany Global Mail Mail Communication Our mail business focuses on Germany, where the mail market has been fully liberalised since the beginning of 2008. Competition has become more intense since then and the increasing use of electronic forms of communication has resulted in domestic mail market shrinkage. In 2010, the market decreased by 4.8% to around 6.0 billion (previous year: 6.3 billion). Our share fell slightly to 86.6%.

Dialogue Marketing The German dialogue marketing market comprises advertising mail along with telephone and e-mail marketing. In 2010, this market shrank by 3.1% year-on-year to a volume of 18.7 billion. Many companies, especially mail-order companies and financial service providers, have sharply reduced advertising expenditure. We have maintained our share of 13.4% in this highly fragmented market.

Press Services
According to company estimates, the German press services market had a total volume of 16.4 billion items in 2010, a decline of 3.5% on the prior year. Newspaper and magazine circulation has decreased although weights have remained the same. Our competitors are mainly companies that deliver regional daily newspapers. In a market shrinking overall, we held our share at 11.4%.

Parcel Germany
The German parcel market volume totalled around 6.8 billion in 2010, some 7.9% more than the prior year. An increasing number of Germans are shopping online and consumer confidence has risen of late, resulting in another year of double-digit growth in e-commerce. The business-to-business market also benefited from the economic upswing. At around 39%, our overall market share in 2010 remained at the prior-year level.

Global Mail
The global market volume for outbound international mail was approximately 6.4 billion in 2010. Our business environment was shaped by lingering economic weakness and tougher competition. However, we braved this difficult market and managed to win back market share. We expect our market share for 2010 to be 16.5%.

EXPRESS
Americas

Europe

Asia Pacific

SUPPLY CHAIN

Organisational Structure
The Organisational Structure of Deustche Post and its divisions
Deustche Post DHL

Corporate Center

Divisions

Board Department Chairman of the Board of Management Finance, Global Business Services Personnel

Board member

Board member Dr. Frank Appel Dr.Frank Appel Functions: - Board Services, Corporate Development - Corporate Communications & responsibilities - Corporate First Choice , Corporate legal and Office - Corporate Public Policy & Regulation Management - Corporate Solutions & Innovations

Board member Lawrence Rosen Functions: - Corporate Controlling - Corporate Accounting & Reporting - Investor Relations & Corporate Finance - Corporate Internal Audit/Security - Taxes - Global Business Services

Board member Angela Titzrath Functions: - HR Mail - HR Standards & Guidelines - HR DHL International - Corporate Executives

Organisational Structure
The Organisational Structure of Deustche Post DHL and its divisions

Deustche Post DHL

Corporate Center

Divisions

Board Department

MAIL

EXPRESS

GLOBAL FORWARDING AND FREIGHT

SUPPLY CHAIN

Board member: Jurgen Gerdes Brands: 1.Deustche Post

Board member:

Ken Allen Brand: DHL

Board member: Roger Crook Brand: DHL

Board member: Bruce Edwards Brand: DHL

.Business units/regions - Mail communication - Dialogue marketing Press services -Retail outlets -Pension service 2.DHL .Business units: -Global mail -Parcel Germany

.Business units/regions: -Europe -Americas -Asia Pacific -MEA(Middle East and Africa)

.Business units/regions: -Global Forwarding -Freight

.Business units/regions: -Supply Chain -Williams Lea

FINANCIAL STATEMENT OF DHL LOGIDTICS

Income statement Statement of comprehensive income Balance sheet Cash flow statement Multi year review

INCOME STATEMENT 1 January to 31 December M

Note

2011

2012 10 11 52,829 2,050 54,879 12 13 30,544 16,730 55,512 2,168 57,680 31,863 17,770 1,274 4,043 55,015 2,665 60 590 1,391 36 17 837 777 1,659 2 657 1,049 37 429 427 2,238 1,339

Revenue Other operating income Total operating income Materials expense Staff costs

Depreciation, amortisation and impairment losse14 Other operating expenses Total operating expenses Profit from operating activities (EBIT) Net income from associates Other financial income Other finance costs Foreign currency result Net other finance costs Net finance costs Profit before income taxes 16 15 3,895 52,443 2,436

Income taxes

18 19

393

458 1,266 1,658 122 1,780

Consolidated net profit for the period attributable to Deutsche Post AG shareholders attributable to non-controlling interests 20

1,163 103

Statement of Comprehensive Income 1 January to 31 December m Note

2011

2012 1,266 1,780

Consolidated net profit for the period Currency translation reserve Changes from unrealised gains and losses Changes from realised gains and losses Other changes in retained earnings Changes from unrealised gains and losses Changes from realised gains and losses IAS 39 hedging reserve Changes from unrealised gains and los Changes from realised gains and losses IAS 39 revaluation reserve Changes from unrealised gains and losses Changes from realised gains and losses 0 0 IFRS 3 revaluation reserve

193 26

7 3

1 0

2 0

5 2 59

23

12

Changes from unrealised gains and losses 1 2 Changes from realised gains and losses 0 0 Income taxes relating to components of other comprehensive income 18 1 7 Share of other comprehensive income of associates (after tax) 10 Other comprehensive income (after tax) 166 10

37

Total comprehensive income attributable to Deutsche Post AG shareholders attributable to non-controlling interests 1,331 101

1,432 1,650 120

1,770

Balance Sheet
m Note ASSETS Intangible assets 23 Property, plant and equipment Investment property 25 Investments in associates Non-current financial assets Other non-current assets Deferred tax assets 29 Non-current assets Inventories 30 Income tax assets 31 Receivables and other current assets Current financial assets 33 Cash and cash equivalents Assets held for sale 35 Current assets Total ASSETS EQUITY AND LIABILITIES Issued capital 36 Other reserves 37 Retained earnings 38 Equity attributable to Deutsche Post AG shareholders 39 11,009 Non-controlling interests Equity 1,209 1,714 8,086 11,951 40 11,199 1,209 1,786 8,956 12,196 24 40 26 27 28 1,153 21,225 273 239 32 2,498 34 1,961 17,183 38,408 44 729 570 1,257 21,832 322 127 9,089 252 3,123 76 12,289 34,121 12,151 6,493 43 46 1,039 633

31 Dec. 2011

31 Dec. 2012

6,663

9,112 2,400

190 12,164 4,445 255

213

Provisions for pensions and similar obligations 41 Deferred tax liabilities 29

2,442 229

Other non-current provisions Non-current provisions Non-current financial liabilities Other non-current liabilities Non-current liabilities Non-current provisions and liabilities Current provisions Current financial liabilities Trade payables Income tax liabilities Other current liabilities Liabilities associated with assets held for sale Current liabilities Current provisions and liabilities Total EQUITY AND LIABILITIES

42 43 44

2,174 1,972 6,874 4,643 1,366 4,413 347 276 1,713 4,689 8,587 9,332 1,663 403 5,991 534 4,004 30 962 12,625 34,121

42 43 45 31 44 35

2,134 5,644 6,168 570 4,106 0 16,488 18,622 38,408

Cash Flow Statement 1 January to 31 December

m Note 2011 2012 Consolidated net profit for the period attributable to Deutsche Post AG shareholders Consolidated net profit for the period attributable to non-controlling interests Income taxes Net other finance costs Net income from associates Profit from operating activities (EBIT) Depreciation, amortisation and impairment losses Net income from disposal of non-current assets Non-cash income and expense

1,163

1,658

103 393 837 60 2 2,436 1,274 5 74 7 97

122 458 429

2,665 1,339

Change in provisions Change in other non-current assets and liabilities Income taxes paid

8973,034 63 455 53 527

Net cash from operating activities before changes in working capital 2,234 219 Changes in working capitat Inventories Receivables and other current assets Liabilities and other items Net cash from / used in operating activities Subsidiaries and other business units Property, plant and equipment and intangible assets Other non-current financial assets Proceeds from disposal of non-current assets Subsidiaries and other business units Property, plant and equipment and intangible assets Other non-current financial assets Cash paid to acquire non-current assets Interest received Dividend received Current financial assets Net cash used in investing activities 46.2 80 1,880 336 2,032 72 0 394 1,129 18 773 50 31 46 0 10 1,697 3,176 211 16 285 84 225 35 299 57 1,716 1,639 37 406 580 51 221 150 46.1 2,371 203 58

Proceeds from issuance of non-current financial liabilities Repayments of non-current financial liabilities Change in current financial liabilities Other financing activities 338 97 60

Proceeds from transactions with non-controlling interests and venturers 0 Cash paid for transactions with non-controlling interests Dividend paid to Deutsche Post AG shareholders Dividend paid to non-controlling interest holders Purchase of treasury shares 786 99 21 846 78 26 0 296 1,547 701 13 1

49 62

Proceeds from issuing shares or other equity instruments Interest paid Net cash used in / from financing activities Net change in cash and cash equivalents 163 46.3 305

74

1,199

Effect of changes in exchange rates on cash and cash equivalents Changes in cash and cash equivalents associated with assets held for sale 0 7 Changes in cash and cash equivalents due to changes in consolidated group 0 0 Cash and cash equivalents at beginning of reporting period Cash and cash equivalents at end of reporting period 46.4

15

3,415 3123

3,123 2400

Multi-Year Review

Key figures 2005 to 2012 m 2010 Adjusted Revenue MAIL EXPRESS LOGISTICS 13,913 11,111 13,973 11,691 13,972 12,778 2011 Adjusted 2012

GLOBAL FORWARDING, FREIGHT SUPPLY CHAIN FINANCIAL SERVICES SERVICES Divisions total

14,341 13,061 52,426

15,118 13,223 54,005

15,666 14,340 56,756

Corporate Center / Other (until 2006: Consolidation; until 2007: Corporate Center / Other and Consolidation) 1,302 Consolidation Total (continuing operations) Discontinued operations Profit / loss from operating activities (EBIT) MAIL EXPRESS LOGISTICS GLOBAL FORWARDING, FREIGHT SUPPLY CHAIN FINANCIAL SERVICES SERVICES Divisions total 1,120 497 383 231 2,231 2,340 51,388

1,260 2,436 52,829

1,203 2,447 55,512

1,107 916 440 362 2,825

1,051 1,108 512 416 3,087

Corporate Center / Other (until 2006: Consolidation; until 2007: Corporate Center / Other and Consolidation)395 Consolidatio Total (continuing operations) Discontinued operations Consolidated net profit / loss for the period 1 1,835 2,630 389 0 2,436 1,266 420 2 2,665 1,780

Cash flow / investments / depreciation, amortisation and impairment losses Total cash flow from operating activities Total cash flow from investing activities Total cash flow from financing activities Investments Depreciation, amortisation and impairment losses Assets and capital structure Non-current assets Current assets Equity (excluding non-controlling interests) Non-controlling interests Current and non-current provisions Current and non-current liabilities 17,640 Total asset 24,493 13,270 10,511 185 9,427 18,201 37,763 21,225 21,832 17,183 12,289 11,009 190 9,008 15,651 38,408 34,121 11,951 213 6,306 1,927 2,710 1,651 1,276 1,296 2,371 1,129 1,547 1,880 1,274 203 1,697 1,199 2,032 1,339

Special Managerial Concerns and Issues

Deutsche Post DHL expands its worldwide efforts to promote educational opportunities through extended partnership with Teach for All:

Contract with the Teach For All global network extended for an additional three years Plans to secure three new country partnerships by 2015 Frank Appel: "The investment in education for young people is an investment in the future."

Since 2010, Deutsche Post DHL has directly supported the global network and Teach for all network partners in India, Argentina, Chile, Peru and Spain. Deutsche Post DHL has renewed its contract through 2015 with the global network Teach for All. The enhanced collaboration between Deutsche Post DHL and Teach for All will help establish three new country partnerships, including one with Teach for The Philippines starting in 2013. Since 2010, Deutsche Post DHL has directly supported the global network and Teach For All network partners in India, Argentina, Chile, Peru and Spain. Since 2009, the company has also been the largest sponsor of the German partner, Teach First Deutschland. The shared goal of each program is to promote educational opportunities and increase employability for young people, regardless of their background. In addition to financial support, individual DHL employees get involved in their respective partner countries. Through meaningful volunteer activities, company employees support their local organizations. Last year, more than 800 Deutsche Post DHL employees engaged directly with students and teachers through internships, career planning sessions, mentoring, and donation drives.

An investment in the education is an investment in the future "The long-term success, sustainability and innovative power of the economy and society depend on a strong educational system and targeted professional development. Therefore, an investment in the education and training of young people is an investment in the future," says Frank Appel, CEO of Deutsche Post DHL. "If we help Teach for all succeed and support young people around the world, then our company, with its worldwide operations, clearly benefits. The volunteer work of our employees is a key aspect of the support we provide, as it gives the young people some very practical - and useful - insight into working life." "Around the world, where children are born largely determines their educational outcomes and as a result, their opportunities in life. Teach for All's partners are working to channel the energy of their nations' most promising future leaders against this problem in pursuit of a vision of educational opportunity for all. By asking these leaders to commit two years to teach in high-need communities, our partners are providing an additional source of talented, committed teachers; at the same time, they are shaping the priorities and career trajectories of these teachers, forming a

leadership force of individuals who will ultimately work at every level of the education system, at every level of policy, and across sectors for the systemic changes we need to see to ensure opportunity for all. We're grateful that Deutsche Post DHL is so committed to investing in tomorrow's future and helping our network grow. Their long term collaboration has helped us to build a strong foundation for our entire network, and their increased support will strengthen and scale new partnerships in new places, "explains Wendy Kopp, CEO and co-founder of Teach For All. Commitment to education is part of corporate strategy Deutsche Post DHL has made - and continues to make - a lasting contribution to promoting educational opportunities and employability around the world. Its commitment to education is part of Deutsche Post DHL's corporate strategy. "Living Responsibility" is the motto for Corporate Responsibility at Deutsche Post DHL, which focuses on environmental protection (GoGreen), disaster management (GoHelp) and education (GoTeach). With its GoTeach program, Deutsche Post DHL works with partners like Teach For All and SOS Children's Villages to improve educational opportunity and employability. As the largest corporate supporter of Teach For All, Deutsche Post DHL has made a long-term commitment to Teach For All's development and growth of the global network. The Group also works closely with Teach For All partner organizations in Germany (Teach First Deutschland), India (Teach For India), Argentina (Ensepor Argentina), Chile (Ensea Chile), Peru (Ensea Peru) and Spain (EmpiezaporEducar). The signing ceremony will take place at KIPP Academy In aiming to grow a global force of leaders who will ensure all children can fulfill their true potential, Teach for All partners share a commitment to a common vision and mission, as well as a set of unifying principles and core values. Building on the record of success of experienced partners like Teach For America (US) and Teach First (UK), each organization recruits students and professionals with a diverse range of academic interests and career experiences to commit two years to teach in high-need schools and to work throughout their lives as educational advocates. The Teach For All network currently comprises 27 national partner organizations in Europe, Asia, the Americas and the Middle East.

DHL Life Sciences & Healthcare Life sciences and healthcare is one of the most demanding industries we serve, and is one of our strategic focus sectors at DHL. Learn more about this exciting sector and how DHL works closely with pharmaceutical and medical devices manufacturers to come up with smarter solutions to meet their supply chain needs.

Sector Week Find out about key trends and interesting facts and figures in the Life Sciences & Healthcare sector.

Working fast for a healthy tomorrow Angelos Orfanos, President and Global Head of DHL Life Sciences & Healthcare, on growing of the life sciences sector.

More information Background information and material for download regarding DHL Life Sciences and Healthcare.

The GoGreen program a five-year success story Exactly five years ago officially launched its GoGreen program and became the first logistics company in the world to set a measureable climate protection target. By 2020, the Group intends to improve its CO2 emissions by 30 percent compared with the base level from 2007. The GoGreen environmental program is a permanent component of the companys strategy, and the results of this work are reflected in such areas as the reduction of energy, paper and fuel consumption as well as in investments in innovative technologies.

Carbon neutral delivery in Bonn Deutsche Post will begin to deploy electric delivery vehicles in Bonn and the surrounding region.

Stoves for Lesotho As part of the GoGreen program 'Save80 Stoves' sees us deliver high-efficiency wood-burning stoves to villages in Lesotho.

GoGreen - a success story

Recent Management Initiatives

HR planning and recruitment In many countries throughout the world, demographic changes have become an important factor in our personnel planning. In Europe, the aging workforce is the main demographic challenge for HR managers. In the highly populated emerging economies of Asia or South America, on the other hand, the challenge is to promote the development of young talents by way of education and training. Targeted HR marketing and efficient recruitment around the world are of great strategic importance to our future. Strategic workforce management allows us to manage age-related and capacity risks, address additional training needs, identify transfer opportunities, and effectively implement long-term succession planning. Following the successful completion of three pilot projects in Germany and Mexico, the methodology will now be transferred to additional countries and divisions. Age structure of our workforce in Germany as at 31 Dec. 2012 Men 2,519 12,189 15,067 33,036 25,941 2,375 43.8 Women 1,229 6,342 12,727 33,624 25,667 1,543 45.5

up to 20 21 to 30 31 to 40 41 to 50 51 to 60 61+ Average age More training opportunities within the Group

The range of traineeships we offer is as diverse as the Group itself. Secondary school graduates in Germany can choose from over 20 different vocational training

and study opportunities, depending on their level of education and individual interests. We also offer young people attractive career training opportunities outside Germany. When hiring interns, we comply with the quality standards established by the "Fair Company" initiative. This includes appropriate compensation, a focus on full-time jobs rather than internships, and avoiding vague promises of future employment. In 2012, Deutsche Post DHL employed approximately 4,900 trainees and students worldwide. In Germany alone, 2,106 young people began a vocational training program or an integrated degree program (DualeHochschule) within the Group. We offered nearly 80 % of our trainees continued employment and, with that, a valuable career opportunity.

Second chance for young people still seeking vocational training positions In 2012, our "Perspektive Gelb" job entrance program provided approximately 450 internship positions in the MAILdivision to young people who had not yet been accepted into a vocational training program. These internships last at least six months. They are designed to prepare participants for the formal Courier, Express and Postal Services Specialist vocational training program. So far, Deutsche Post has offered vocational training positions to 75 % of these interns.

Scholarship program for employee children

Our "UPstairs" program provides scholarships to the children of Deutsche Post DHL employees in several regions throughout the world. As a general rule, the program supports scholarship holders over a period of three years. Participants receive an individualized scholarship package including school/university tuition fees, mentoring support and internship opportunities. Additional support includes further training, such as language or IT courses. In 2012, the program was successfully implemented in 87 countries and today provides support to approximately 600 children. Several examples are featured on our website.

STRATEGY
Whether it is customers, employees, investors, national governments, institutions or other segments of society, more and more stakeholders around the world are demanding that companies make a positive contribution to society and act responsibly in their ongoing pursuit of value creation and business growth. We willingly take on this responsibility and apply our core competencies, the know-how of our people as well as our global presence for the good of both society and the environment. For years now, corporate responsibility has been an integral component of our Corporate Strategy.

Balancing economic and social interests Our corporate responsibility activities are designed to make a positive contribution to the environment and society while providing a benefit to the Group. We concentrate our CR on environmental protection (GoGreen), disaster management (GoHelp) and education (GoTeach). We also support the volunteer work of our employees with our Global Volunteer Day and the Living Responsibility Fund. Our success rests on the shoulders of our employees. Our guiding principle "Respect & Results" strengthens the collaboration among our employees and demonstrates our respect for human rights within our scope of influence. Our Group-wide GoGreen program helps minimize the impact of our business operations on the environment. We donate our logistics expertise, our global network and the dedication of our employees to support the UN in its worldwide relief efforts through our Group-wide GoHelp program. And with GoTeach, we are helping to improve educational opportunity and the employability of young. Strategy 2015: Supporting success since 2009

In March 2009 CEO Frank Appel unveiled Strategy 2015 that aims at making the company fit for the future. Its goal then and today is to unlock the potential of Deutsche Post DHL. Deutsche Post DHL operates in over 220 countries and territories around the world. We offer our customers comprehensive services that extend to all modes of transport and links in the supply chain. Our vision: The postal provider for Germany, The logistics company for the world Our company's growth is founded on two strong pillars: DHL, which offers integrated international logistics with a strong focus on quality and customer service, and Deutsche Post, our mail business with its clear commitment to providing universal postal services in Germany and new value-adding electronic services for the digital age. This commitment to both pillars is summed up in our vision: We want to remainThe postal provider for Germany and become The logistics company for the world.

Our mission: your success As the universal postal provider in Germany and a world leader in logistics we understand that we have a responsibility. We connect people and improve their lives. This is true whether we deliver a letter to a mailbox, an express shipment to a company office or a container to a warehouse. We are proud of the role we can play in making people more successful. Strategy 2015 lays out three chief goals: We want to be Provider of Choice for our customers, Employer of Choice for our current and future employees, and Investment of Choice for investors. We strongly believe we will only be successful if we make all three of these groups more successful. We can do this by giving customers the best possible service at competitive prices and with solutions that make their lives easier. We will make employees more successful by providing them with an interesting and exciting place to work. We will ensure our investors' success by being a solid, long term investment and by offering an attractive total shareholder return.

Retention Policies
GROW Graduate Program Anyone who has done exceptionally well in college and during diverse internships deserves an exceptional career start. Our international graduate program GROW is perfectly suited for such a professional career start: 18 months in which we will prepare you to assume responsibility-filled positions at Deutsche Post DHL including assignments to foreign countries. 1. Requirements 2. Program schedule 3. Functional areas 4. Mentoring 5. Experiences 6. Application

In selecting participants for the GROW Program, we focus on academic performance, professional experience and, of course, personality. We want to obtain the most complete and clear picture of your strengths and your growth potential as possible, and thus select the right candidates for our program and our divisions. This page provides you with an overview of all participation requirements.

College

Above average grades Graduation before Oct. 1 of the year the program starts

Professional experience

Internships, apprenticeships or initial professional experience National program: very good German skills International program: very good English skills International program: international experience of staying abroad

Personality

Communication and social skills Flexible and open-minded for new challenges Analytical skills and conceptual abilities, strategic thinking

Description of assign task and responsibilities Basically the work assigned in warehouse is categorised into three categories 1. Inbound activities 2. Inventory management 3. Outbound activities Inbound activities Inbound activities includes the inventory being brought and kept in the warehouse on vendor demand or to meet the supply. Inbound activities includes receipting, scanning and recording data of the inventory brought. Inventory and management It includes placing and picking of inventory according to type of inventory and designed place for it. Outbound activities After picking the inventories brought to be packed and later being shipped to the retailer or the customer. In outbound activities after picking and packaging a defined inventory no is being placed on the inventory and the record is being stored about the material. As the inventory is been packed, it is placed at its designed transporter docket later to be shipped. Following things should be kept in mind at the time of handing the boxes to the transporter:

1. Availability of the road permit. 2. Sending of goods according to delivery wise. 3. Submission of form no.38 if the valve of goods exceeds above Rs 25,000.

Task and responsibilities in warehouse In the warehouse task assigned were mainly as follows: Supervision of Box clearance Management of boxes Scanning of boxes Invoicing

Procedure and methodology

Warehouse Layout Locations in a warehouse are grouped into Location Types based on the operational function being satisfied by the location. A typical warehouse layout may consist of Location Types such as: Receiving, Quarantine, Reserve, Picking, Work In Process and Finished Goods. Each Location Type typically contains multiple locations. Products, customer orders and bill of material work orders flow in and out of Location Types during their life cycle. Inbound/Outbound Modules Inbound modules process items coming into the warehouse (purchase orders, receiving, put away, replenishment, physical inventory control, finished goods and inventory movements). Outbound modules process items going out of the warehouse (customer orders, bill of material work orders, work in process, picking, packing and shipping). General Product Flow Products are received into a staging location in the Receiving Area. They are then moved from the Receiving Area into locations in the Reserve Stock Area. Next, Picking Area locations that have been depleted are replenished by moving inventory from Reserve Stock locations into Picking Locations. As orders and work orders are processed through Picking, Verification Packing and Shipping, product inventory is reduced.

General Order Flow Purchase Orders and Pending Invoices are imported from the host accounting or order entry system. Inventory items are allocated to the orders through a selection process. The inventory location containing the items to be picked is identified and selected in logical picking order. Pick sheets are printed for each order and the order items are picked, packed and shipped Products Within a warehouse, a unique product number identifies each product. This product number is typically referred to as an SKU (Stock Keeping Unit) and can also be referred to as an Item Number or Item Id. Perpetual Inventory Perpetual inventory is the term used to describe the continuous real-time tracking of quantities of a product. Perpetual quantities must take into account any activity that increases or decreases inventory from a specific location / bin. This includes receiving, put-away, replenishment, order picking, bill of material picking, inventory movements and inventory adjustments. Individual quantities must be maintained for every bin that contains the product. As product is moved from one bin to another, or from a bin to customer order or bill of material, quantities must be balanced and Units of Measure (see below) must be taken into account. The sum of the quantities of all the bins containing the product is known as the Warehouse, Facility or Logistic Center Total. Units of Measure (UOMs) The way a product is physically packaged can vary. A product may be purchased in a Pallet, stored in inventory as Cases and sold by the each. These physically different packages of the same product are known as Units of Measure (UOMs). A product sold as an each that has 12 items in a case and 12 cases on a pallet will have the following UOM configuration: an Each contains a quantity of 1, a Case contains a quantity of 12 and a Pallet contains a quantity of 144. A product has the same SKU number for all Units of Measure. Locations Locations (also known as bins) allow products to be organized within Location Types within a warehouse and have static location names such as Area A - Rack 2 - Shelf A - Bin 3. They may contain one specific product or multiple products. If a location contains multiple products, it is known as SKU Mixing. As product is assigned to a Picking bin, an ROP (Re-Order Point) quantity is set for the product. This number is used to automatically identify when a bin needs to be replenished.

Inventory Moves All inventory moves are "two sided" performed by removing a quantity of a product from one inventory location (source location) and moving it to another inventory location (destination location). COREflex automatically verifies that the quantities balance to maintain inventory accuracy. Inventory moves are used for putting away inventory after it has been received and for replenishing picking locations after order picking or bill of material work orders have depleted them. Inventory Adjustments All inventory adjustments are "one sided" performed by removing or adding a quantity of product to or from a specific location. COREflex automatically tracks and records inventory adjustments to maintain inventory accuracy and provide tracking reports. Inventory adjustments are used for receiving products, and adjusting quantities for reasons such as damaged goods, write offs, samples and physical inventory counts. Physical Inventory Physical inventory is the process of physically counting products to determine an accurate total for accounting and operations needs. It is typically performed once or twice a year during which time all order processing is stopped in order to get a "snap shot" of the totals. As products in a location are counted, Count Sheets are writtenup. These sheets are then used to compare the counted quantities to the system perpetual inventory quantities. Variance reports are used to assist in the comparison of differences between the perpetual quantities and the counted quantities. Cycle Counting Cycle Counting is the process of physically counting a limited number of products on a rolling cycle (day, week or month) until all products have been counted. It minimizes the labor required to perform complete inventories and provides for a more accurate inventory throughout the year. Cycle Counting allows for normal operations to continue while inventory is being counted and therefore eliminates shutdowns for complete Physical Inventories. Forecasting Utilizes history records, archived transaction data and customer projected purchase plans to arrive at a forecast stock level. A comparison of actual customer orders to purchasing plans enables immediate stock adjustments. Historical comparisons of just-prior activity to near-future application are used for increased accuracy rating. The stock advisory reporting monitors inventory levels against forecast algorithms. A safety stock level is forecasted by applying the accuracy measurement.

OOUTCOME AND RESULTS

Although all the targets were well known and well defined the warehouse is working good but there is a problem of variance in inventory. Means there is a variance in present physical quantity in warehouse and in SAP inventory record. Staffs and labour are very laborious. They do their work with great responsibility. There is a problem in a management means our site manager should be more active and effective that can handle the work and staffs more effectively. We should keep the guards more active, literate and have some basic computer knowledge as well. Stock counting should be complete within every 15 days. It will help to reduce variance in inventory. There is a lake of motivation in staffs and labour. So we should give a 5 minutes motivating lecture. We should keep a training program in a week that all staffs and labour can learn and understand the work properly.

LEARNING AND EXPERIENCE

I learnt the work procedure in warehouse especially in the field of inventory management, inbound and outbound activities .such as how we received the goods and how we dispatch the goods. I felt the most complicated work was inventory management. It is really a very tuff task because a simple mistake can destroy the goods or can give a great variance between physical goods available and the recorded already. There is some work whatever I learnt Gateman work Stock transfer Warehousemanagement Consumer delivery Cycle counting Consumer stock register Stockregister(SAP) Stock counting

GATEMAN WORKS
They keep some register 1:- visited register 2:- employee attendance register 3:-material outward register 4:- Material inward register Receiving: - when someone brings goods 0n truck or in van. They also bring some paper such as delivery challan, tax paper, docket and so on. Guard counts physical quantity of goods and tally from challan and notes every information on inbound register. They give a receiving paper copy to transporter that i have received goods. After that they give this receiving challan to office ant put received goods at inbound area. From that time warehouse work starts. Loading :- they receive a challan copy from office that these items will go. They count every goods and tally from challan and than gives order for loading. After that they return these challan to office Stock transfer They get order from regional office or from consumer for sending such items to other location. They also give order list and destination. After getting the order they make pick list. From pick list labour brings goods from inside the warehouse. They check and make some paper such as: 1:- 3 copy of STC, invoice. 2:- customer TIN and CST (if customer not registered with sale tax than declaration dally send by customer. 3:- cottony document, road permit.

WAREHOUSING MANEGMENT Its distributed in differ parts. Such as finished goods, spare parts, raw materials
and so on with specific code number for identity that which goods are situated at which place. After offloading on inbound area they write the unique code number on every received goods. This code provides by consumer. so they write the code number on goods and they put it in inside the warehouse with the match of code number and location code number in warehouse. Without code number they cannot inter the received goods in warehouse and can put any ware.

 there is a register in warehouse who tells that which product is situated at which place. Through product code no. And location code no. Consumer delivering They also dispatch goods directly to consumer not to other warehouse. They get a order from consumer for sending such to consumer. They also give a order list and delivering destination. Ofenlyits becomes in bulk quantity. After getting the order they make first pick list. In the direction of pick list products comes from the inside of warehouse. then he makes some paper such as. 1:- invoice (3 copy), with TIN and CST. 2:- Docket 3:- way bill (if is a required of road permit) 4:- declaration Then they give a challan list to guard for loading. After loading they keep a challan and give other paper to transporter. Cycle Counting Cycle Counting is the process of physically counting a limited number of products on a rolling cycle (day, week or month) until all products have been counted. It minimizes the labour required to perform complete inventories and provides for a more accurate inventory throughout the year. Cycle Counting allows for normal operations to continue while inventory is being counted and therefore eliminates shutdowns for complete Physical Inventories. CONSUMER STOCK REGISTER They collect all delivery challan, stock transfer challan, received challan whatever they dispatched and received last day. From this challan they make consumer stock register. In this register they write some information such as gate no., challan date, challan no. , delivery no., ship no. , address, material code and quantity, they update daily stock register. From this register they can find easily turnover of any date.

SAP ENTRY After making consumer stock register last date receiving and dispatching challan comes on the table of SAP. After sap entry we can find that which and how much goods come and gone last day from the warehouse and how much inventory is physically present in the warehouse.

TOPIC OF THE REASEARCH

Procedure of 4. Inventory management 5. Inbound activities 6. Outbound activities INVENTORY CONTROL / INVENTORY MANAGEMENT

NEED FOR INVENTORY Inventory is very vital to every company is that without no company would survive inventory is meant for protection and for economy in cost. There are the four major reasons for holding inventories:

1. TRANSACTION PURPOSE: Which emphasized the need to maintain inventories to smoothen production and sales operations, which is for the day-to-day use.

2. SAFETY PURPOSE: Which necessities holding of inventories to guard against the risk of unpredictable changes in the market.

3. SPECULATIVE PUROSE: There is a speculative element which influences the decision to increase or decrease Inventory levels to take advantage of price change.

2.1.2 DEFINITIONS Inventory control can be defined asDetermining and maintaining optimum investment in inventory given the significance of benefits and costs association with holding inventory . Inventory control relates to A set of policies and procedure by which an industries determine which materials it will hold in stock and quality of each that it will carry in stock . Therefore inventory control is known as STOCK.

STRUCTURE OF INVENTORY: For Mezzanine do not load top stock 50 Kg Safe workloads - Kg 800-Kg UDL Max -Level

800-Kg UDL Max -Level 50 Kg

3300/800 Kg UDL 50 Kg

The overall inventory was divided in such a way such that every items were placed in specific location with being remarketed with Alphabetical orders such as, Aggregate for Batteries location marked with A Mezzanine M Highway H Virtual B Heavy Canty lever

Stock keeping unit (SKU)

Definition Warehousing item that is unique because of some characteristic (such as brand, size, colourmodel) and must be stored and accounted for separate from other items. Every SKU is assigned a unique identification number (inventoryor stock number) which is often the same as (or is tied to) the item's EAN or UPC. Inbound activities Inbound activities include the inventory being brought and kept in the warehouse on vendor demand or to meet the supply. Inbound activities includes receipting, scanning and recording data of the inventory brought Freight: The container containing inventory is being brought by various transportation channels. Entries of the container: When the container enter the premises of the warehouse, the entry of the container is mandatory. Then the later entries are done at the inbound dock and the guard verifies the inventory according to the inventory brought by the container. Handover to inbound Supervisor: After the entries being done the inbound staff are being handed over, the inventory is being recorded in the computer (tat entry). Verification: To sort parts according to local and international goods being brought to the warehouse. LHMID is done for the inventory being brought by air.

Goods receipt: When sorting is done the goods received (GR) is done to place them in the bill. Mobile data entry (MDE): Basically GR is done by MDE. When GR is done the receipt is placed to the inventory then material is sent to be placed at its designed designation that is racks, mezzanine, shelves, heavy cantilevers etc. Outbound activities

After picking the inventories brought to be packed and later being shipped to the retailer or the customer. In outbound activities after picking and packaging a defined inventory no is being placed on the inventory and the record is being stored about the material.

As the inventory is been packed, it is placed at its designed transporter docket later to be shipped. Following things should be kept in mind at the time of handing the boxes to the transporter: 4. Availability of the road permit. 5. Sending of goods according to delivery wise. 6. Submission of form no.38 if the valve of goods exceeds above Rs 25,000.

Research objective

Our research focuses on decision support systems for value-based management of supply chains. Supply chain management aims at coordinating material, financial, and information flows to best fulfil customer demand by integrating different organizations along the value chain. Information systems play a vital role in supply chain management supporting managerial decision-making. Especially model-driven decision support systems implementing operations research methods are preeminent since the emergence of Advanced Planning Systems in the late 1990s. A value-based approach provides a comprehensive perspective on operational and financial performance and includes risk considerations for the design and operation of superior supply chains. We strive for both scientific rigor and managerial relevance in our research approach and build on state-of-the-art methods in operations research. Current information systems and emerging IT trends play a vital role in our research to improve decisionmaking in supply chain management

DATA COLLECTION METHODOLOGY While supply chain management has risen to great prominence in recent year, there are hardly related developments in research methodologies. Yet, as supply chains cover more than one company, one central issue is how to collect and analyses data along the whole or relevant part of the supply chain. I collected the data from two basic methodologies. 1. Primary data 2. Secondary data

PRIMARY DATA Primary data is important for all areas of research because it is unvarnished information about the results of an experiment or observation. It is like the

eyewitness testimony at a trial. No one has tarnished it or spun it by adding their own opinion or bias so it can form the basis of objective conclusions. Identification

Primary data is the specific information collected by the person who is doing the research. It can be obtained through clinical trials, case studies, true experiments and randomized controlled studies. This information can be analyzed by other experts who may decide to test the validity of the data by repeating the same experiments.

Types Primary data can also be retrospective, interventional and observational in nature. Retrospective primary data gathers information about past conditions or behaviors. Interventional primary data may be gathered to see the effect of a new drug or therapy. Features Two strategies are commonly employed when researchers gather primary data: randomizing and blinding. Both of these strategies serve to keep the results objective. Both involve limiting the information given either to the researcher or the subject about which test group a subject has been assigned. The researcher is prevented from imposing her bias on the data so she may be a more careful observer. Potential Once the primary data has been gathered, analysts study it using other research methods. They look for relationships between factors that may suggest the designs for new studies. When they combine the primary data from more than one study, they are using integrative methods. Their findings present secondary data, a synthesis of several streams of primary data.

SECONDARY DATA Secondary data is the data that have been already collected by and readily available from other sources. Such data are cheaper and more quickly obtainable than the primary data and also may be available when primary data cannot be obtained at all. Advantages of Secondary data 1. It is economical. It saves efforts and expenses. 2. It is time saving. 3. It helps to make primary data collection more specific since with the help of secondary data, we are able to make out what are the gaps and deficiencies and what additional information needs to be collected. 4. It helps to improve the understanding of the problem. 5. It provides a basis for comparison for the data that is collected by the researcher. Disadvantages of Secondary Data 1. Secondary data is something that seldom fits in the framework of the marketing research factors. Reasons for its non-fitting are:a. Unit of secondary data collection-Suppose you want information on disposable income, but the data is available on gross income. The information may not be same as we require. b. Class Boundaries may be different when units are same.

Before 5 Years 2500-5000 5001-7500 7500-10000

After 5 Years 5000-6000 6001-7000 7001-10000

c. Thus the data collected earlier is of no use to you. 2. Accuracy of secondary data is not known. 3. Data may be outdated. Evaluation of Secondary Data Because of the above mentioned disadvantages of secondary data, we will lead to evaluation of secondary data. Evaluation means the following four requirements must be satisfied:-

1. Availability- It has to be seen that the kind of data you want is available or not. If it is not available then you have to go for primary data. 2. Relevance- It should be meeting the requirements of the problem. For this we have two criterion:a. Units of measurement should be the same. b. Concepts used must be same and currency of data should not be outdated. 3. Accuracy- In order to find how accurate the data is, the following points must be considered: a. Specification and methodology used; b. Margin of error should be examined; c. The dependability of the source must be seen. 4. Sufficiency- Adequate data should be available. Robert W Joselyn has classified the above discussion into eight steps. These eight steps are sub classified into three categories. He has given a detailed procedure for evaluating secondary data. 1. Applicability of research objective. 2. Cost of acquisition. 3. Accuracy of data.

DATA ANALYSIS AND INTERPRETATION Bose Badarpur WH Transaction Data Month Jan-13 Feb-13 Mar-13 Apr-13 Inbound 69011 70669 61675 49576 No of Invoice 131 88 138 110 SKU 305 470 402 325 Outbound 54091 70134 53302 37407 No of STN SKU 639 685 879 577 545 590 568 482

Bose Badarpur Warehouse Transaction Data Month Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Inbound 51867 50364 62554 64060 52673 67450 42475 26032 82814 51340 51632 46994 No of Invoice 128 142 205 122 114 152 87 124 199 211 177 185 SKU 277 269 402 254 289 287 170 165 463 428 301 335 Outbound 55202 44865 51470 61853 47526 49937 30152 50098 58750 47510 46498 47167 No of STN 623 661 720 641 638 682 682 565 806 871 830 783 SKU 456 475 538 505 473 446 490 444 512 550 569 512

Total

650255

1846

3640

591028

8502

5970

Comparision Between Inbound & Outbound

90000 80000 70000 60000 50000 40000 30000 20000 10000 0

Inbound

Outbound

Analysis: According to the figure, September 2012, showed the maximum inbound value having 82814 followed by June 2012. Whereas, Maximum outbound was in the month of April 2012 with a value of 61853 followed by September 2012. Lowest inbound and outbound value was in the month of August & July 2012. In 2013, February 2013 showed the Maximum inbound as well as highest outboundvalue as 70669 & 70134 followed by January. Lowest inbound and outbound value was in the month of April 2013.

Month Jan-12 Feb-12 Mar-12 Apr-12

Inbound 51867 50364 62554 64060

May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13

52673 67450 42475 26032 82814 51340 51632 46994 69011 70669 61675 49576

inbound
90000 80000 70000 60000 50000 40000 30000 20000 10000 0

Jan- Feb- Mar- Apr- May- JunAug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- AprJul-12 12 12 12 12 12 12 12 12 12 12 12 13 13 13 13 Inbound 51867 50364 62554 64060 52673 67450 42475 26032 82814 51340 51632 46994 69011 70669 61675 49576

ANALYSIS : According to the figures, august 2012 shows the maximum number of inbound with the value of 2603. wheres, the minimum number of inbound was in the month of September as 8281. in 2013, february shows the highest number of inbound as 7066 and the lowest number of inbound as 4957 in april. total number of inbound from January to December was 650225.

Month Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13

No of Invoice 128 142 205 122 114 152 87 124 199 211 177 185 131 88 138 110

250

No of Invoice

200

150 205 128 142 152 122 114 87 124 199 211

100

177 185 131 88 138 110

50

Analysis: The month wise analysis shows that October 2012 shows the maximum number of issued Invoices as 211 followed by March 2012. Whereas, July 2012 showed the lowest number of issued invoices. Similarly, In 2013, the month wise analysis shows that March 2013 is having highest number of issued invoices followed by January, however February depicts the lowest value. In 2012, from January to December total number of invoice was 1846.

Inbound SKU Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 277 269 402 254 289 287

Outbound SKU 456 475 538 505 473 446

Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13

170 165 463 428 301 335 305 470 402 325

490 444 512 550 569 512 545 590 568 482

600

Inbound & Outbound SKU

500

400

300

200

100

0 May-12 Apr-12 Mar-12 Dec-12 Mar-13 568 Aug-12 Nov-12 Feb-12 Sep-12 Feb-13 Apr-13 482 Jan-12 Jun-12 Oct-12 Jan-13 545 Jul-12 490

Inbound SKU

Jan- Feb- Mar- Apr- May- JunAug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- AprJul-12 12 12 12 12 12 12 12 12 12 12 12 13 13 13 13 277 269 402 254 289 287 170 165 463 428 301 335 305 470 402 325 475 538 505 473 446 444 512 550 569 512 590

Outbound SKU 456

Analysis:

The month wise analysis shows that September 2012 shows the maximum number of Inbound SKU as 463 whereas Outbound SKU as 569. Whereas, August 2012 showed the lowest number of Inbound SKU & Outbound SKU. Similarly, In 2013, the month wise analysis shows that February 2013 is having highest number of Inbound SKU followed by March, however January depicts the lowest Inbound SKU value & April as Outbound SKU.

In 2012, total number of inbound SKU was 3640 and outbound SKU was 5970.

Month Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13

Outbound 55202 44865 51470 61853 47526 49937 30152 50098 58750 47510 46498 47167 54091 70134 53302 37407

80000 70000 60000 50000 40000 30000 20000 10000 0 Apr-12 Mar-12

Outbound

Dec-12

May-12

ANALYSIS : According to the figures, April 2012 shows the maximum number of outbound with the value of around 60000. The minimum number of outbound was in the month of July around 30000. in 2013, Febraury shows the highest number of outbound around 70000 and lowest number of outbound was around 37000 in April. In 2012, total number of outbound from January to December was 591028.

Month Jan-12 Feb-12 Mar-12 Apr-12

No of STN 623 661 720 641

Mar-13

Aug-12

Nov-12

Feb-12

Sep-12

Feb-13

Apr-13

Jun-12

Oct-12

Jan-12

Jan-13

Jul-12

May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13

638 682 682 565 806 871 830 783 639 685 879 577

Analysis: According to the figures, October 2012 shows the maximum number of STN with a value of 871. Whereas, the minimum number of STN was in the month of August as 565. In 2013, March shows the highest number of STN as 879 and lowest number of STN as 577. In 2012, total number of outbound STN number from January to December was 8502.

BIBLIOGRAPHY AND REFERENCES

BOOKS Andre Martin, Jeff Harrop, and Mike Doherty, Logistics Valatie A. Zenithal, Mary Jo Bitner, Service Marketing, TMH, Ed. 2007. Gupta S. P. and Gupta, M. P., Business Statistics, Sultan Chand and Sons, New Delhi, 1997, Ed. 2007. Business research by C.R. Kothari, Delhi 1998, Ed. 29

INTERNET WEBSITE LINKS www.dhl.co.in www.wikipedia.org www.livemint.com www.alibaba.com

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Economic Times Mint 4Ps Business & Marketing Business World Business Outlook