DSV’s Consolidation Concept

1. DSV’s Consolidation Concept

2. Definition of DSV’s Buyers Consolidation Concept in Asia “Loading a container with multiple shipments from various suppliers for direct delivery to a single buyer overseas”

3. Traditional Shipping Concept from India Common Challenges • Order purchase per container basis • Insufficient supplier communication • Poor timing of order arrivals • Poor match between supply & demand • Expensive cargo flow • Risk for leftovers • Container utilization not optimized • Higher number of containers than necessary • Overflow shipped as LCL • Too many resources

4. DSV’s Buyers Consolidation Concept • Order purchase per stock basis • Better supplier control through DSV in Asia • Significant transport cost savings • Eliminate number of LCL shipments • Multiple suppliers / one consignee • Lower distribution costs at destination • Optimized container utilization • Faster delivery at destination • Visibility though DSV P.O. Management • Reduced risk for damage and delay • Reduced customs inspections • Bonded and non-bonded CFS solution in Asia

5. DSV’s Buyer’s Consolidation concept • Scenario: • A company is acting as a central purchase organization for several different brands. • Logistically they have various warehouses in Europe • Currently 80 suppliers from India are shipping their shipments into to one of the EU warehouses. Upon arrival in EU, the warehouse will split up and distribute the cargo to various warehouses depending on end user location • DSVProposal: • All suppliers send their cargo into DSV Warehouse in India. • DSV monitor and arrange the shipments depending on end user location. • DSV plan according to total CBM to load FCL to the dedicated warehouse for the end user. • DSV offer the client full visibility from the time cargo is received at our warehouse till it’s delivered at destination • Benefits: • Cost savings • Better container utilization • Lower Warehouse cost in China • No/less distribution costs in Europe • Supplier control • Minimize cargo handling

6. Optimized loading procedure Breakeven program • < 27 CBM = Direct loading at the supplier with a 20‘dc • 32 – 55 CBM = Move to DSV’s Consolidation Centre at origin • > 55 CBM = Direct loading at the supplier with a 40‘dc or 40‘hc Prioritize equipment • 40‘hc as 1st priority • 40‘dc as 2nd priority • 20‘dc as 3rd priority • LCL as the last option (through DSV own FAK Consolidation service)

7. The Milestones EXPORT CUSTOMS CLEARANCE ARRANGED BY DSV GOODS DELIVERED INTO DSV CONSOLIDATION CENTER AND LOADED INTO THE CONTAINER (FCL) FULL CONTAINER DELIVERY AT DESTINATION ARRANGED BY DSV OCEAN TRANSPORT ARRANGED BY DSV IMPORT CUSTOMS CLEARANCE ARRANGED BY DSV GOODS PICK UP FROM ALL THE SUPPLIERS ARRANGED BY DSV

8. Full control of the supply chain with DSV’s Buyer’s Consolidation Program Vendor Management • DSV to perform as consignee’s representative at origin • Vendor education to ensure good compliance PO Management • Ensure shipment to be moved out within shipping window • Exception alert/management Reduce LCL ratio • More cost effective • Less cargo damage Full Visibility to Buyer • Information flow • Physical flow Container Utilization Improvement • Reduce overall cost on supply chain

9. Value Added Services at DSV’s CFS in India • Quality Control • Palletization • Shrink wrapping • Slip sheeting • Pick and pack (down to item level) • Repackaging • Labeling • Bar code printing and scanning • Kitting • Garment on Hangers (GOH)

10. Contact Us at DSV India DSV Air & Sea Pvt. Ltd. The Qube B-201, B-204, M.V. Road, Off International Airport Approach Road, Marol, Andheri East, Mumbai – 400059 India  +91 22 71 99 90 00 Tel. +91 22 71 99 90 01 Fax www.dsv.com/in