Consumer Products Solutions

DSV Consumer Products solutions:

Key Figures
• +200 warehouses worldwide handling consumer products
ranging from fashion, footwear, sports and leisure to consumer
electronics, DIY and personal care

• Flagship consumer products sites at strategic locations worldwide

Dear supply chain professional, Do you recognise
Today more than ever, manufacturers of consumer products face a myriad of challenges. An estimated 70 million
any of these
new consumers are predicted to join the new global middle class each year, with the majority of them in emerging
markets. These industry-reshaping developments demand an outstanding, agile supply chain that is fully tailored to
challenges?
your customers’ requirements and expectations. And that’s exactly where DSV can support you.

To secure competitive advantage within your sales channels, whether brick-and-mortar or e-commerce, we offer
you the flexibility to cope with seasonal peaks. Moreover, our supply chain IT system ensures full visibility and Multi-channel shopping
control right across your operations.

DSV strives to deliver an all-encompassing solution for the fast-paced market of consumer products. We serve a Short product life cycles
wide range of companies, each with their own unique set of requirements. With the right processes and technology
in place, we design best-in-class supply chain solutions with your clients’ needs at their core.

We are ready for you. Welcome to DSV!

Consumers’ environmental
awareness
Best regards,

Home deliveries and returns

Meinderdjan Botman
Vice President, Business Development & Engineering
DSV Solutions
meinderdjan.botman@dsv.com
+31 (0) 168 413 000
A consistent brand image
Sports and Leisure
from retailer to webshop
Nowadays our clients recognise that a quality sports and leisure experience inevitably
includes an online presence, and are aware of its significant contribution to the success
of their brand. Websites are evolving into webshops, and single brands are challenging
the multi-brand e-retailers. 30% of consumers always check prices online before
purchasing and 18% use their mobile phones to research prices and product reviews.
This online shift has reduced barriers to entry and intensified competition between
channels. It is presenting companies with various hurdles in terms of order fulfilment,
profit contributions, service expectations and return policies.

DSV Solutions helps you win the race. Able to cope with both the highs and lows in your
seasonal patterns, our operations deliver consistent performance levels all year round. We also
offer a range of value-added services including quality inspection, price tagging, packaging up
to client-specific product assemblies, and kitting. Furthermore, we provide you the insight and
visibility needed to provide your customers with the service they expect – irrespective of the sales
channel. You can rely on our motivated and knowledgeable employees to make the difference.

“DSV Solutions was able to adapt to the

dynamics of our industry and continues to
offer the level of flexibility which our volatile
business requires, at competitive costs.”

Martijn van Paradijs

Operations Manager EMEA
K-Swiss
Consumer Electronics 33% of consumer electronics
products still work perfectly
Of the thousands of new consumer electronics products launched onto the
market each year, only 4-7% are successful. A product’s life cycle is increasingly
when they are discarded
determined by the introduction of the next model: from the moment a product is
launched, the clock is ticking until the unique features have been copied and price
erosion has wiped out the margin. Average ‘Out of Stock’ (OOS) rates of consumer
electronics can be as high as 8.5%. Taking into account that, when faced with
OOS products, 50-70% of consumers either buy a competitive product or leave
the store empty-handed, the efficiency of the supply chain is key to profit
maximisation.

DSV has considerable experience in facilitating new product launches as well as reverse
logistics programmes for major consumer electronics manufacturers. Thanks to our extensive
global network, we can guarantee inbound freight capacity at scheduled lines. Meanwhile,
the economies of scale offered by our specialist TAPA-A Distribution Centres for industry-
leading consumer electronics manufacturers enable you to minimise the logistics burden
on your margin. Furthermore, DSV has the distribution network required to assure timely
delivery, whether to a large retail chain’s DC or a consumer’s home.

“We have realized some successful outsourcing projects

for finished goods with DSV within Europe and we will
go on investigating the options for cooperation in other
countries for sure.”

Roland Fahrmeier
Vice President Logistics Management
Kärcher
Retailers are calling the shots Home Improvement / DIY
Despite the recent slow-down in revenue growth in the traditional geographies, both retailers
and manufacturers of home improvement and DIY products have recognised the vast potential
in emerging markets such as Eastern Europe and Russia. Keen to enter such new markets in the
slipstream of large retail chains, manufacturers generally leverage the established network of
a Logistics Service Provider (LSP). However, with major retailers making increasingly stringent
quality and flexibility demands – and accounting for an ever-more significant share of home
improvement/DIY product sales – the choice for the right LSP is critical. After all, requirements
such as ASNs, delivery slot planning, product labelling, packaging and palletising are all
susceptible to potentially costly errors.

DSV Solutions has a strong presence worldwide with a particularly dense network in Europe and Americas.
We manage regional distribution centres with European ‘control towers’ – some of them managing over
1,000 shipments a day. Our services include packaging or re-packaging, palletising or re-palletising, labelling
or re-labelling and kitting. We manage waste, returns, stock levels and co-packing programmes. Our fleet
of 20,000 trailers delivers to most large retail chains with high frequency. For our customers in the home
improvement / DIY segment, DSV Solutions assures on-shelf availability of their products both at the right
time and at the agreed cost.

“We rate the agility of our Supply Chain as a key deliverable,

we are a new product driven company and speed to market
is a critical success factor for our business. DSV Solutions
demonstrate to us day after day their ability to respond
to ever changing market dynamics. Our customers expect
operational excellence as a given, delivered continuous im-
provement and innovation distinguishes DSV Solutions from
its competition.”
Tom Simons
VP Supply Chain
TTI (AEG Power Tools, Milwaukee, Ryobi)
Green is the way to go Personal Care
Brand integrity goes hand in hand with environmental responsibility. 87% of global consumers
indicate that sustainability factors influence their buying behaviour. Manufacturers of
personal care products are especially attuned to a ‘green’ image; not only do they take a
critical view of their raw material sources, but they also carefully consider how they produce,
package and distribute their products. With more and more value propositions being built
around sustainable sourcing and production, the supply chain should carry the same message.
In order to ensure their share of the green consumer, increasing numbers of manufacturers
are exploring logistics-sharing models with third parties, supply chain consolidation, city
hubs and green delivery options.

At DSV, green and Corporate Social Responsibility (CSR) initiatives are embedded in our operational
processes. We participate in the United Nations Global Compact, which aims to promote and practice
greater environmental responsibility along with the use of green technologies. Since 2006, despite
our double-digit growth, we have succeeded in reducing our carbon dioxide emissions by over 6%.
Medical Products & Personal Care Because sustainability is also about ‘doing things right first time’, we have embraced this approach
and have adopted principles of the ‘Lean Programme’ to ensure that continuous improvement is being
implemented, maintained and measured throughout our organisation.

“DSV’s modern, RF-enabled, multi-user warehouse is an

ideal base location for distributing our products across
Northern Europe, and it provides a solid platform for
HoMedics to grow its business. DSV provides HoMedics
with a broad set of services, combining warehousing
activities with DSV’s own transport network as well as
in close integration with third-party parcel carriers and
customs for both inbound and outbound movements.”
Keith Allison
Operations Director
HoMedics
e-Commerce is becoming business as usual
The future of online shopping
Picture this: Anna takes inspiration both from what she sees online and from her visits to stores. After choosing a handbag in a shop, she scans
the product, uploading a 3D image of the handbag to her personal avatar. That evening, she receives feedback on her choice from some of her
Facebook friends. She compares prices and selects a reliable retailer on the web, makes the purchase and picks up her new handbag the next day
after work at the parcel drop-off located in her local supermarket. A week later, she is trying on the ´virtual´ matching sunglasses and boots that
were sent to her avatar. She decides to go and check them out in the store.

In some ten years from now, consumers like Anna will be the norm and their expectations in terms of the ‘shopping experience’ will
affect consumer products supply chains right across the board, from handbags to hi-fi and groceries to gadgets. Consumers are
increasingly expecting greater channel mobility, better personalisation and more delivery models. Market analysis has proven that
retention rates rise significantly when the logistics requirements are met – with online visibility of stock availability, for instance,
and a choice between different delivery options.

DSV Solutions fully integrates its IT systems with your e-commerce platform as well as with all major parcel distributors. This offers your
customers insights into inventory, order status and track and trace data, thus enabling your website to host real-time stock and delivery data.
Furthermore, we also manage return flows including quality controls on returns and swift repacking to enable the goods to be transferred back
into sellable stock.

“Our 20% annual growth requires a professional “Oakley has enjoyed over eight successful years with DSV
logistics partner. It was DSV’s staff who gave us and we have been impressed with its ability to constantly
the right gut feeling. We trust DSV to be our adapt to the ever-changing market trends and logistics
representative and take care of our products and needs. DSV’s ‘Lean Programme’ is going to be instrumental
our customers as if they were its own, and that in the coming years as businesses (including Oakley) learn
they it can resolve the challenges as they arise. to adapt to the transition from a mainly pre-book AFA
DSV is the right partner for Patagonia for business to also supporting the more dynamic demands of
the years to come.” the end consumers switching to the web.”
Holger Bismann Jim Tennyson
Managing Director European Operations Director
Patagonia Oakley
About DSV
We are a global transport and logistics provider determined to be your preferred partner. Whatever Our strong local management structure allows us to act with the flexibility of a small business,
you need to transport, we have probably done it before – and with the care and professionalism and with our own staff on site all around the world you also benefit from our local knowledge
that is second nature for us. Our decades of experience in global transport and logistics and a wherever you need it. We can manage your entire logistics process from pick-up, consolidation
worldwide network of hundreds of offices and hubs combine to make DSV a successful, growing, and shipment up to distribution to the final destination, as well as provide you with our full range of
global transport and logistics business. supply chain services. These include inbound logistics, warehouse/inventory management, order
fulfilment, value-added services, customs activities and acting as your agent for cross-border VAT
We have countless daily departures by air, sea and road as well as rail to get your cargo to anywhere and tax issues.
in the world to the timescale you choose. Very large or unusual cargo is no problem for our expe-
rienced teams, who are also familiar with operating in regions without infrastructure and in many With air and sea transport we can offer you numerous different routings, and together with our
of the world’s conflict zones. flexible scheduling we can meet your most demanding logistical require¬ments to and from all
parts of the world. With staff in more than 80 countries, we look after more than 1,300,000
If you have warehousing or supply chain management needs, our experts have extensive experi- TEUs of sea freight and 600,000 tons of air freight a year. When it comes to road transport, we
ence of tailoring solutions for many different industries. We operate warehouses with a total floor have more than 20,000 trucks available for you, which in Europe puts us in the top three transport
space of over 5 million square metres. providers.

Worldwide, DSV has more than 44,000 employees and is in the top 5 global freight forwarder.
 + 44,000 employees
+ 80 countries
+ 350 warehouses
+ 5,000,000 m2 warehousing facilities
+ 600,000 tons air freight annually
+ 20,000 trucks on the road every day
+ 1,300,000 TEUs sea freight annually

Logistics facilities
DSV Consumer Products Solutions
consumerproducts@dsv.com
http://www.dsv.com/consumerproducts