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Sponsored by the new Supply Chain Management Center.
So thank you so much for being here.
We're very fortunate to have with us tonight.
And I think I've know Caitlin maybe since she was a student here.
So k1 is supply chain is an operations supervisor and Columbus, Ohio.
And after supporting peak seasons, multiple Scarlet.
Caitlin, college recruiting team is a recruiter IN january OF 2016, then in April of 2018, he was promoted to take responsibility for managing three recruiters and a recruiting coordinator.
So since that time, Caitlin has supported the team in growing their intern program and full-time hires [SPEAKER] Exceeding over 500 higher.
During your time at DHS supplied to handling this found a passion for developing young talent and providing innovative solutions to meet business needs.
And the good news for us is she really likes Miami.
And he graduated from Miami university.
With a bachelor of arts and science focused on organizational communication.
And Supply Chain Management.
So I'm going to turn it over to Caitlin, who's going to introduce Scott for us.
Thank you for being here today.
[SPEAKER] Thank you so much for having us.
Evening everyone [SPEAKER] We are thrilled to be part of the session.
This evening, where tonight.
You'll get to hear more about DHL supply chain.
And the never normal supply chain management in a pandemic.
Tonight, I have the privilege of introducing our speaker for the evening, Scott [inaudible].
Scott has responsibility for leading the life sciences and health care business unit in strategy.
Their growth agenda throughout the Americas region.
And direct operating responsibility in the US and Canada.
Scott joined DHL at the time excel in 2001 as the director of operations.
And has held a number of positions and operation since with over 30 years in the industry and supply chain.
Scott is a member of the consumer health care products Association.
The health care Distribution Management Association, as well as on the advisory board for record Supply Chain Management MBA program.
[SPEAKER] So please help me in virtually welcoming Scott, super hard.
Hi carried.
Lynn italy SO thank YOU very much FOR inviting ME.
I always love doing these types of things and getting a chance to talk to college kids.
The future I like to say and so I appreciate you extending the invitation.
Maybe before we get started, Lisa, you could help me kind of understand who our audience is today I, mean do we have is it all supply chain people as undergrads, grad students maybe helped me understand a little.
Oh, I think you're on mute.
As sort of the job these days.
Other participants with us today, we mainly have undergraduate students and group are the students who are taking the introduction to supply chain management class.
So there's about close to 300 people that intro to supply chain.
Management classes required for all students.
So they're really getting an overview some of those horse you can help us enlighten them so they'll become supply chain majors.
But some of them will not be and then all of the other major classes they're all invited.
So we have a really good group of supply chain.
Probably most of the supply chain majors are in attendance today.
We've got some professors we've got some people from other classes, some accounting classes.
So a mix of people you want people.
Well, thank you for having me and when we just jump right in, you want to hit the first slide?
I don't see a slide.
Is it up there it goes okay.
Go ahead and hit the next slide.
So this is our quick agenda for today.
We've kind of gotten through the introductions already.
I'm going to do a quick overview of dp DHL.
The pretty broad overview because it's a very big company and then I'm going to talk specifically about the group that I work for, which is within DEP DHL.
Work in the DHL supply chain group.
We're gonna talk about the supply chain during a pandemic, which is a first for me, I did just did the math when Caitlin said I started in 2001 with DHL and that's 20 years and this was my first time trying to navigate a panda.
Pandemic and it was quite the challenge, but quite the learning opportunity as well.
And then I'm going to talk about vaccines and what the pandemic has really meant to the life sciences and health care supply chain.
And then hopefully we'll have plenty of time at the end for questions and hopefully everybody feels comfortable asking as many questions, nothing is off the table.
So go ahead.
[SPEAKER] Caitlin.
Go to the next one.
So, [inaudible] DHL is one of the biggest companies in the world that a lot of people have never heard of.
Everybody knows DHL.
But EPI DHL is the Deutsche Post DHL group.
We're based in Bonn, Germany.
We're in over 200 countries around the world.
And we have over 500 thousand employees, making us one of the top ten largest employers in the world.
There are a couple of big business units within DP DHL.
First of all, we are Europe's largest Postal Service, so much like we have the US posts.
Here in the United States.
Dp DHL runs Deutsche Post and number of helps out with a number of post offices.
Where that has been privatized [SPEAKER] In Europe, were also the number one international express delivery.
So in, in, in the US, we hear a lot about FedEx and UPS.
And the rest of the world.
Dhl for express delivery is.
Number one and it's a very big part of our business.
We also are the leader in the global freight business, which is all of those big ships moving those containers across the oceans and the things that they do.
You know, we're a leader in that space and then where I work is in contract logistics and we are by far the largest contracts logistics player.
So what that means is companies hire DHL.
So they typically they make the product the handed to us.
We wear how.
House it we store it, we, we transport it wheat.
We get it delivered to where it's going to be sold.
Either it's to the customer or a retail store, or a wholesaler [SPEAKER] That's our contract logistics business and that's where I work.
And as Caitlin mentioned I run our Life Sciences and Healthcare business.
So we are organized and we go to market by a number OF industry verticals.
Six of them and I run the life sciences and health care.
So anybody anywhere house in North America with metal.
Medical devices, pharmaceuticals, anything that you get in the CVS or Walgreens, anything that requires regulation and licenses, things like that.
I would be responsible for.
So that's a brief overview of DPDK.
Go to the next slide.
One of the things I always like to bring up when I'm talking to college kids cause because frankly, one of the things that we are learning as old people in this business is that we can learn a lot from the newer generation and as people have come up into the business, it's become increasingly clear that our responsibility around sustainability has never been more important when we talk about sustainability.
It's across a number of key metrics.
For us, right?
So we do have the organized under these three buckets of GO green, go help and go teach.
We do a number of social socially responsible things that help our communities.
And so with go green, for instance, we are to be carbon neutral by 2025 or by 2050.
I'm sorry.
And right now we get about 20 of our business is tied to go green or sustainability initiatives.
Go help is a big part of what we do because we are, we have lots of assets all around the world.
Our ability to help with disasters.
We are typically in a very unique position.
So whether it's helping after a tsunami or helping.
Get relief into earthquake areas.
Really any significant disaster.
Dhl is typically there with under the go help initiative.
And then go teach is another one where we ask our work force to be active and go help in the community.
This can range from anything in the United States, right now, for instance, in this bucket, we have a partnership with the Girl Scouts.
And we're always looking for those type of partnerships about how we can help so.
Very recently we helped Girl Scouts deliver their cookies, which was a lot of fun.
And I think also educational for the girls that were involved as well.
So our social programs at DHL are very robust it's a key part of what we do.
It's not just some throwaway type of initiative.
So Caitlin, who I hit the next slide.
Now within the supply chain group, which is where I sit and I run the life sciences sector.
Within that group.
[SPEAKER] We have.
A number of different solutions that we offer to our customers and it can be the entire gam.
We typically don't actually manufacturer of the product, but once the manufacturing is done, everything after that to the point of delivery to where it's going to be sold.
Were we can take responsibility for so that would include handling, referring turns, handling of the warehousing, the inventory management of that.
We obviously we fill orders.
We also have what's called value-added services.
So we do.
So for life sciences, when you walk into a CVS, you could see these big display where maybe they're doing a bake sale on bare aspirin and they build the.
These big display units to help sell their products.
So we do a lot of those type of packaging.
It could be a two for one.
Or they're selling products together.
We do a lot of that.
That's what we refer to as value-added services.
We also help with transportation whether that's about to manufacturing or from the manufacturing into our distribution centers or actually delivery out to the end unit and most recently within the life sciences space and in our e-commerce space, what we refer to as last mile transportation services is becoming an increasingly important part of what we do.
Another big part of what we do that is just increasing is information management, right?
So we are providing increased they are being asked to provide increasingly amount of information, right?
So information about their orders that they can use to make their product better, make it more efficient.
Increasingly, our ability to provide information back to the manufacturers about there.
Products where it's being sold, how it's being sold, who the end-user is is, is new, but a very exciting part of what we are providing.
[SPEAKER] You want to hit the next Caitlin.
When you take a look, you know, really just about every type of customer you can think of, DHL serves in one way or another.
But within the warehousing piece or the supply chain piece of our business.
As I mentioned previously, we are organized by industry verticals.
So you can see on the left-hand side, the consume.
We have a consumer sector.
We have a retail and e-commerce sector.
We have an automotive engineering and manufacturing sector.
We have a technology sector.
I sit in the life sciences and health care sector, and then we have the chemical energy sector, each of those indice indices.
Industry verticals have very unique supply chain challenges.
So for us in the life sciences sector for instance, our buildings have to be licensed.
They are regulated, we have to follow certain cleanliness requirement's temperature control requirements, things like that.
The transportation of our products has to be tip, typically temperature monitored at the least, but often delivered refrigerated trucks.
[SPEAKER] So there's a lot of specifics around the life science sector and that's why.
We organize them that way and you can take a look at who are, who some of our bigger customers are.
As I said, pretty much all of the big companies that are out there use DHL services in one way or another.
At least one of those components, either they use this for express deliveries, they may use us to get their products overseas or from manufacturing into the United States, or they use this for warehousing, worked for transportation, for some different type of component.
Just about every big menu.
Manufacturer out there, uses in one form or another.
Within the life sciences sector, we have a couple here, Johnson and Johnson, Pfizer, dentsupply, which is a medical device specifically to dentists.
So a lot of dental products bear Zimmer.
For which is a medical device company.
So we are organized within the life sciences sector of pharmaceutical.
So companies like Merck and GlaxoSmithKline.
And [inaudible] has a pharmaceutical component, Johnson and Johnson.
And [inaudible] Pfizer and then we have another group is the medical devices, which would be companies like Siemens, Johnson and Johnson has a medical device companies that supply and then we also have what we refer to as over the counter.
So when you go into the grocery store or Walmart, things that you buy that or medical related, but don't require a prescription.
[SPEAKER] So things like [inaudible] or aspirin or Tylenol, those types of things.
It's our responsibility to make sure we are getting those products into those pharmacies are.
And those grocery stores.
And make sure they're available.
So if you ever go to the grocery store and it's not there when you need it, it's probably one of my sites faults that made a mistake somewhere along the lines, but hopefully that never happens, FOR YOU caitlin, you want to hit the next slide.
This is just a quick look to so that you can understand kind of the magnitude we do tend to operate around campuses.
So I am sitting in our [inaudible] campus as we speak, which is right outside of Harrisburg, Pennsylvania.
We do have campuses in Lana Dallas, method Southern California, Northern California, Toronto.
We do have opportunities number of campus locations.
We try to put as many of our facilities together as possible it allows us to share resources.
Allows us to share labor.
It allows us to combine transportation costs, which is helpful for a lot of our customers.
[SPEAKER] And you can kind of see across the US, we have over 400 customers in North America today.
And they're operating out of something like 480 sites.
We have roughly 50 thousand employees in North America across all of those sectors within the life sciences sector, we run about 50 different facilities across the country and we have somewhere in the neighborhood of about 2 thousand associates handling all of our Life Sciences products.
But you can see our ability to get products into customer hands very quickly is easy to do base.
Solve for the network we're able to offer to our customers.
So that's a quick overview of and who we are.
I now want to talk about supply chain in a pandemic, which is really what.
I was asked to come talk to you guys about.
So Caitlin, if you hit the next slide, I think it's interesting.
[SPEAKER] If we think back to where we were literally it was about a year ago this week, I believe that the first COVID death happened in the US.
And I think back just how much has changed since that time.
And where we've been over the course of that 12 months.
It seems simultaneously like a lifetime ago and like it just happened yesterday.
Calendar year of my supply chain career.
And it's largely because literally everything changed.
We had a number of our associates.
That were frankly scared.
They were they didn't know where what was what's going to happen.
They were scared to come to work where they gotta get sick, where they've got to get their parent's sick or where their kid's gonna get sick.
What were we going to do?
Our kids go to go to school or we gotta be able to go out.
Largely did not know what to expect and easily at a very big part of our associates were literally scared to come to work.
And then you also had the other half of the population who felt like this was being overblown and it's not a big deal.
We should just get go go on with what we were doing.
So [SPEAKER] We literally were trying to on the fly manage the fact that our workforce really was two polar opposites of, of, of their feelings about how, how we should.
Respond to the crisis COVID.
So as you can see on the fourth bullet point there, associate safety was number one.
But getting orders out was essential, especially in our life sciences space.
We absolutely wanted to take care of our associates we did not want them to come to work if there was a risk.
And we also knew we had to get these.
We have life-saving drugs at our facilities.
They have to go out.
There are surgeries scheduled that that we have to get medical devices to.
There are pain medicines in our warehouses.
Thank cancer drugs in our warehouses.
They have to get out.
So we had to figure out very quickly how we were going to balance that.
And we had to rewrite the rules on everything.
We had to come up with new attendance policies because frankly, some people couldn't come.
To work because they didn't have childcare or because they were dealing with a sick family member.
We had to come up with new safety rules.
We had to come up with how we were going to in a warehouse, HOW WE were going to ensure social distancing, and how are we going to spread our groups out where we gotta recall.
Higher masks or are we not going to require masks?
We had to set up temperature taking in our facilities to make sure that we weren't bringing any bringing sick or infected people into our workforce where they could potentially expose more so sheets to the virus.
We had to figure out how to take keep our facilities clean at a whole new level and how we were going to bring in people to disinfect in-between it between shifts, we had to separate our shifts.
[SPEAKER] We took 30 minutes in between, whereas before maybe shifts were out would over.
Overlap lab, we had to figure out new scheduling.
So that we had time 30 minutes to bring people in to clean all the common areas.
We had to figure out search pay, and how were we going to handle the fact that we were asking people to come to work in the middle of a pandemic to get these essential products out to our customers.
So all of that changed and all of that had to be decided extremely quickly.
We had to come up with new rules of engagement on all of these topics.
Now, one of the things that really helped.
Helped us is the fact that we were a big global company and frankly, the challenge, the the pandemic really hit in Asia first and then it went to Europe and by the time it got to us, we had about a six week head start.
We could see what was coming.
We could see the issues that are our partners in Asia we're dealing with.
We'd learned from them quite a bit.
And that really helped us to respond much more quickly.
Which was it turned out to be a tremendous benefit.
All of that was being done on the fly.
I will tell you, I have never been more proud of working for DHL though, during this time.
Every conversation that we had started and ended with a discussion about how can we make it safe for our associates?
How can we make.
Them comfortable coming into work?
And it was never a question about jeez, well, we can't spend the money for this or we can't spend the money for that.
[SPEAKER] It was always the right conversations by all the right people at all the right time.
So that was really important.
The next real lesson that we learned was how communication was.
And we had not only were our associates afraid and scared and uncertain about their future and what was going on.
Our customer.
First customers I really wanted to be reassured that we have this in hand, that we weren't going to be able to get their products out into the hands of patients.
And again, if you think about, you know, in the life sciences space companies like Johnson and Johnson and Pfizer and all the companies that we partner with.
They know they are dealing with life-saving drugs and very important, it's not like a canopy, beans or something like that.
It's medicine.
And there are.
People relying on it to live.
So they really wanted to know that they had a partner that was going to help them through this crisis.
So our ability to kind of communicate.
And so we did set up.
A lot of communication tools.
We literally communicated daily with our associates at daily with our customers.
We really bent over backwards to make sure they understood things that we were struggling with that we didn't have answers for but.
I our associates and our customers were were all extremely comforted by our ability ability to proactively communicate to them.
That was probably the most important thing.
[SPEAKER] We didn't necessarily have all the answers immediately.
But we were able to tell them we're working on it and as soon as we had an answer we were able raised to let them know where where things stood AND WE DID move incredibly aggressively to try to get them answers as quickly as we possibly could.
So, Kayla if you go to the next slide so how do you measure a success during pandemic?
This is kind of interesting because I don't think we really knew how successful we were until, maybe six months into it that did we feel like we are actually doing a good job with this.
So, you know, we.
Excuse me of all of our sites, we only shut down two sites to the pandemic.
I said we have over 450 some odd sites that were we manage.
Only TWO OF them.
Did we shut down.
And I think wonder.
Not both of them were automotive sites, sites that supported automotive lines that had shut down.
But we had many, many sites that had tremendous volume swings.
Some of our facilities with really you know, you think about Clorox, right?
Clorox is one of our big customers in the consumer sector, right?
The ability to get antibacterial wipes out was, was tremendously important.
So some of our consumer sites, a lot of our e-commerce sites, a lot of our health like sciences sites really got very busy.
They prop probably had three or four times the amount of volumes they were designed for.
Some of our sites really.
Did cut back.
I know we have some medical device sites that we're for elective surgeries and a lot of those surgeries were scaled way back, so [SPEAKER] They're volume was way down.
But we were able to move like over 5600 associates from one site to another.
We kept people working.
We kept people getting their hours, which during this period of uncertain.
What's really important to our associates, they wanted to feel like they had job security and they want it to feel like we were going to take care of them and make sure that their paychecks were not affected.
Same with customers.
Our ability to grant up labor in those very busy sites.
And ramp down labor at the sites where there wasn't much activity going on.
What's really important to our customers in the height of the pandemic, would we weren't allowed to travel or do anything.
We completed 20 startups, 20 new facilities that we either built the buildings and we staff them and we got them up and running like during the peak of the pandemic, I mean those first three months when we were starting these up over zoom calls and calls like this certainly not, ideal but every one of those startups was success.
And started up on time.
That was amazing.
If I had to place a bet at the time, I would have been concerned about those 20 startups because they are incredibly complicated.
There's a lot of people involved and everything has to work like clock work for them to be.
You successful and to start on time.
[SPEAKER] All of them did very proud of DHL during that time.
So HOW else DO WE measure success?
One of the things we do is every year, we do an employee opinion survey.
We ask about 30 questions and we ask them to rate.
Us AS Right the company and they're mad and a management team on how well we do, how, how how was our strategy?
How is our Workplace How is our communication?
All of those things?
And it's something we do every year.
Did it in September this year, and we received the highest EOS scores from our associates than ever before.
And that really says a lot at that time of uncertainty with so much going on our associates responded that they very much appreciated.
The work that DHL did to try to make the facility as safe as possible and that's another I think a really important measure of how we handled the pandemic.
We also do a quarterly Cx m, which not sure what that stands for, but it's a every quarter we we do a survey with 90 plus percent of our customers.
[SPEAKER] And our customer scores throughout the entire 2020, we're at record levels.
We've never see customers scores like we did last year.
I think customers really appreciated our our ability to kind of flex for them to be responsive to them.
I think they very much enjoyed the communication.
And then there a number of stories out there, I'll just kinda give you one we had there was a pharmaceutical company that had a warehouse in New Jersey and they called us, they weren't even a customer of ours.
They called us and express concern.
They were right in the middle of the height of the pandemic.
Over 70% of their workforce got COVID co-funded at the same time, they just had a big outbreak at their facility.
They had medicines that had to go out and they didn't have the workforce to be able to ship their product.
We literally sent about 40 DHL associates that were forklift trined that were trade didn't handle pharmaceuticals.
And we set them to New Jersey.
They worked there for about four weeks.
And they were able to get those shipments out for somebody that wasn't even a customer of ours.
That level of cooperate.
That level of working together, pulling together to try to get through a pandemic.
As painful as the pandemic could be.
Those are the kind of stories that make you feel good.
Makes you feel like you are doing the right things.
We also set up a number of PPE depots around the country.
We worked with companies like the Red Cross to get pp PPE, equipment, masks, gloves, sanitizing, towels, things like that out across the country and to make sure that we were helpful in getting that PPE personal protective equipment into as many people's hands as possible.
That was a real challenge early on.
So [SPEAKER] There's a number of those really good stories.
So, so all in all, I think it was, like I said, a very challenging year.
I feel really good about the performance that DHL DHL performed during this time, I think really we rose to the challenge and were very successful for our associates and for our customers.
So last slide, I promise Caitlin you, want to go that the last slide, so I want to talk a little bit about because it's all over the news about vaccine distribution.
We are involved in.
Getting back scenes distributed.
Transportation of vaccines, and it's interesting what you see, how the news kind of handles vaccine distribution.
Frankly, vaccine distribution is pretty easy.
It's kind of what we do.
So we are shipping large quantities, typically full pallets and full truckloads, that's the easiest for us to handle out to states.
How well the states handle it once they get it is kind of out of our control.
But obviously we have to match the level of urgency at the expectations everybody wants these vaccines and they want it now.
So we have to deal with that.
Some of these vaccines require us maintaining frozen temperatures.
Again, it's kind of.
What we do or facilities are built to handle that and it's not a problem [SPEAKER] Now, there are sub capacity constraints out there that we do have to work with.
Running out of dry ice, which we package these things, it with shipments, running out of dry ice is a serious challenge that we have to work with.
The trailers all have to be temperature control trailers.
There's only so many of those in the US, but so far we're managing that just fine.
And then cold room Warehousing.
So most of our life sites is facilities or temperature controlled but not frozen temperature control.
So we have to do a little bit of scrambling to make sure that we have the right amount of freezer.
Cold room warehousing available.
So finally, you know what I look at, what the new normal is kind of going forward.
I think what we're seeing from our customers, like I said earlier, there's a real heightened appreciation for companies like DHL and what we do.
They love our responsiveness, they love our flexibility.
They provide them.
As a result of the past year.
We are developing excuse me, deeper, more strategic relationships with our customers that we ever had before, which is.
Our new business is increase.
Significantly last year, we are life sciences sector had a record new business signings and I expect that will continue for this year.
[SPEAKER] But there's certainly going to be less reliant on inventory overseas there our customers, especially in life sciences and an e-commerce, are looking to bring that product here into the US.
And literally have it as close to their customers as possible.
Also, redundancy is a key topic.
These days.
You know, making sure.
Where if you have one warehouse for all of North America and that warehouse is in New Jersey.
And there's a pandemic and it's, or any natural disaster and that facility is unable to operate, then.
It's too hard to move products from overseas.
You just can't do it fast enough.
So increasingly, people are looking to set up two or three warehouses in North America as opposed to 12 to provide them with a little more redundancy of inventory.
So that's a really quick kind of what's next kind of lessons learned.
I hope you find that a little bit interesting.
Caitlin, and I think that's all I had if we want to open it up to questions now or Lisa you're on mute Lisa so.
[SPEAKER] You think I'd know BY NOW with ALL THE things that WE DO have some questions that people had submitted earlier.
Thank you very much.
There still is the opportunity to ask questions.
So on the question and comment box that you have, please be sure.
On to type so that we know you were here if your professor wanted a tablet, type, your name.
I'm sorry, take type your class.
[SPEAKER] So management for 31 here we have accounting 221 your, Professor, your own name and your email address.
So you can take common.
You can also type questions.
I'll sort through those and I'll pass them along to Caitlin.
And Caitlin is going to be asking Scott questions.
So she's going to be asking some questions that you submitted earlier before when you registered and she's also going to be asking.
That you have been submitting throughout the presentation and there's still an opportunity.
So go ahead and submit questions if you'd like to.
Caitlin and Scott have a conversation here.
[SPEAKER] Alright.
You Dr.
L [inaudible] So we have kind of some combined.
I'll try to get as many of these as I can.
So I guess first part of the question is, what drove your passion to pursue a career in the supply chain industry?
Did you always intend to work in supply chain or did the field kind of find you?
Yeah, it's it.
First thing I was telling JJ earlier that I actually am old enough that when I was in college, there were no supply chain management programs, like none.
[SPEAKER] So I never even knew what supply chain was.
I was an industrial engineer.
I graduated from the university of Pennsylvania and I started working in a management development program for a bi