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The GroupInvestor Relations
shanghai 23.November 2006

DHL sets industry benchmark for excellence in supply chain security and quality

Over 100 DHL facilities in Asia Pacific are now TAPA certified

DHL, the world’s leading express and logistics company, has set a new industry benchmark in its continuous drive to provide customers with superior security and service levels in end-to-end supply chain solutions. It is now able to offer over 100 TAPA (Technology Asset Protection Association) certified facilities in Asia Pacific, of which 20 are located throughout China. Around the region, DHL has invested substantially in state-of-the-art technology and infrastructure to meet the most stringent security and quality standards, highlighting and reaffirming its belief that superior security should not only be a core competence of the business, but also a key competitive advantage that differentiates DHL from its competitors.

TAPA is a highly sought-after industry security accreditation, which is awarded to facilities that meet the highest security standards for the handling of high-value technology goods in supply chains upon the successful completion of a rigorous and detailed audit conducted by independent TAPA-trained and accredited auditors.

“DHL’s customer-focused approach offers best-in-class quality services and products, and obtaining TAPA certification is a testament to our continuous commitment to provide services and facilities that are second-to-none,” said Scott Price, Chief Executive Officer, DHL Express – Asia Pacific. “It is our goal to give customers peace of mind and confidence that by partnering with DHL, they can be assured that their shipments/products are in very safe hands, thereby enabling them to concentrate on their core businesses.”

“TAPA FSR (freight security requirement) certification was established by security professionals from leading technology and transport companies to provide an industry security standard to assess the security level of warehouse premises belonging to TAPA suppliers' members. In doing so, TAPA supplier members with certified TAPA premises will benefit by a reduction in audits from their customers, allowing them to focus on their core business, and provide security assurance to TAPA buyer members. With the increasing pressure from businesses and governments to secure the global supply chain, we applaud DHL’s efforts for achieving over 100 TAPA-certified facilities – the highest to date in the Asia region -- and hope others will follow DHL's exemplary example,” said Jason Teo, Chairman, TAPA Asia Pacific.

DHL recognised the criticality of providing its customers with a secure supply chain at an early stage. The firm has led many initiatives in technological innovation covering security protocol and systems to ensure that it continually provides its customers with innovative, best-in-class services. Its commitment to security includes having a dedicated team of over 70 in-house security managers and specialists in Asia Pacific alone

The achievement in TAPA certification complements many other high-tech security and quality systems that have been implemented across its network in Asia Pacific. Central to this are the DHL Quality Control Centers (QCCs). The DHL QCCs are a network of regional and country quality control centers that proactively monitor all DHL shipments in the air and on the ground around the clock. In September 2006, the role of DHL’s QCCs was enhanced with the introduction of a groundbreaking global shipment management system – the Quality Shipment Monitoring System (QSMS) – in several markets across Asia Pacific. The system will be operational in all 41 countries and territories in Asia Pacific by the end of 2007.

A leap in DHL’s customer service-enhancing technology, the QSMS has the unique capability and feature to alert analysts based at Quality Control Centers (QCCs) in the countries when certain operational actions do not happen within a fixed set of timings. This real-time monitoring of individual shipments door-to-door allows better issue management as it enables DHL to identify potential problems, and recommend rectification strategies before the situation is magnified.

Moving forward, DHL is committed to ensuring that it continues to set the benchmark for security and quality excellence in the transportation and logistics business.

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