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Logistics System in DHL


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Logistics System in DHL
PROJECT REPORT
ON
LOGISTCS SYSTEM IN DHL
Bachelor of Management Studies
Semester V
Submitted
In Partial Fulfillment of the requirements
For the Award of Degree of Bachelor of Management Studies\
B
!"#$P I
VPM s Joshi Bedekar DEGREE COLLEGE OF B.M.S.
College road, TH!E"#$
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Logistics System in DHL
DECLARATION
%e& !"#$P'I the student(s of VPM s Joshi Bedekar
DEGREE COLLEGE OF B.M.S. hereb assure that& we had
com)leted this )ro*ect on +ogistic Sstem In D,+ in
the academic ear -./-'-./0& the information
submitted is true to the best of our 1nowledge 2 belief3
R. no. Name Signature
01. Shahish Gawde
05. Abdul Sattar
06. Abizer Bombaywala
31. Amar rai
3!. Ramesh zurale
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Logistics System in DHL
A"#N$%&'(G')'N*
A +om,endium is neer the wor- o. one
indiidual / more a +ombination o. ideas0
suggestion and +ontribution inoling many
hands.
$ur debts are too numerous to be
a+-nowledge indiidually. A large number o.
indiiduals hae +ontributed dire+tly and
indire+tly in the +om,letion o. this ,ro1e+t.
%e are e2tremely than-.ul to )rs. Ra-hi B.
3t is ,leasure to e2,ress my
gratitude .or the assistan+e re+eied .rom
them. 4en+e we would li-e to ta-e this
o,,ortunity to than- them wholehearted .or
hel,ing us in ,re,aring this ,ro1e+t.
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Logistics System in DHL
OBJECTIVE O THE ST!DY
4he ob*ecti5es of the Pro*ect are6
P"IMA"7 #B89:4IV9S
4o 1now the effecti5eness of logistics management of
D,+ and to bench mar1 the organi;ation with res)ect to
the industr3
4o ha5e a thorough understanding of how logistics sstem
wor1s in D,+
S9:#<DA"7 #B89:4IV9
4o 1now about +ogistics Industries
4o understand the 5alue of each organi;ation
4o 1now whether the customers are satisfied with the
e=isting range of ser5ice )attern3
SCOPE O THE ST!DY"
In order to understand the conce)ts of logistics in terms of
)ractical usage and to glim)se into the how a real com)an or
organi;ation uses logistics as a formidable tool to gain customer
satisfaction& reduce o5erall cost and increase efficienc we
selected >D,+? the world(s leading courier Ser5ice :om)an3
4he stud is done onl how Dhl use logistics sstem effecti5el3
4here are following strength and wea1ness of D,+
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Logistics System in DHL
COMP#NY STRENGTHS
St$ong B$%n& Im%ge" In /@@7& D,+ became the global
e=)ress trans)ortation com)an to obtain simultaneous
sstem'wide IS# @../ certification in international qualit
standards3 D,+ has also de5elo)ed their own qualit sstem
that matches their customer(s standards3
G'o(%'ism" D,+ o)erates on a global scale3 4he o)erate
in more than --. countries3 4he )ro5ide ser5ices that a))eal
to most of the world3 4he ha5e such a large mar1et in which
to o)erate& and thus reali;e tremendous re5enues3 4he can
also achie5e global economies of scale3
Se$)ices %n& Tec*no'ogy" D,+ uses and continues to
search for new technolog3 4he s)end nearl /.A of total
re5enues& for information technolog3 D,+ also has e=cellent
eSer5ices that )ro5ide access to sstems that ensure customers
ha5e control and 5isibilit of their su))l chains at all times3
Products can be trac1ed& queried and ordered online3
Co$+o$%te sym(iosis"D,+ has de5elo)ed its own
organi;ational structure to ser5e the global mar1et& which it
has called >cor)orate smbiosis3? 4his a))roach encom)asses
the em)owerment of the D,+ )ersonnel at a local le5el& at the
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Logistics System in DHL
same time recogni;ing the interde)endence of the )arts of
D,+ as a cor)orate whole3
Sm%$t,T$-c. P$o/ect6 It is the )rogramme which allows
D,+ to deli5er faster3 4he data are transmitted directl to the
dnamic route )lanning sstem& which recalculates the routes&
de)ending on the current order situation and 5olume of traffic3
COMP#NY 0E#1NESS"
Hig* P$ices6 D,+(s )rices are abo5e their com)etitors3
4his can be a wea1ness if their customers do not )ercei5e a
difference between D,+ and its com)etitors( ser5ices3
Mist%.es in M%$.et,S*%$e Estim%te" 4he biggest
wea1ness is D,+(s mar1et'share estimate3 It is difficult to
estimate e5en when the mar1et is stagnant and contains few
com)etitors& and all mar1et'share estimates should be 5iewed
with circums)ection3
0e%. Visi(i'ity6 It has wea1 5isibilit in the communit
com)ared with its )otential
Not 0e'',.no2n in !S# %s !PS %n& e&e3
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Logistics System in DHL
4able of contents
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Logistics System in DHL
/ INTOD!CTION TO LOGISTICS444444 56
/3/ Meaning of logisticsBBBBBBBBBBB/.
/3- #rigin and Definition of +ogisticsBBBBBBB33/-
/30 Im)ortance of logistic managementBBBBBB/0
/3C +ogistics Management and Su))l chain BBBB33/D
- B#C1GRO!ND O DHL4444444444758
-3/ ,istor of D,+ BBBBBBBBBBBBBBB33/@
-3- 4he worldEs largest e=)ress and logistics <etwor1 BB-.
-30 4he D,+ Indian Profile BBBBBBBBBBBB3-/
-3C Product and ser5ices of D,+ BBBBBBBBBB3-0
97 INTEG#TED LOGISTICS SYSTEM444444:;
03/ In5entor Flow BBBBBBBBBBBBBBBB-F
03- Information Flow BBBBBBBBBBBBBBB3-7
Coordi%a&io% Flo#''''''''''''''''.-G
O(era&i%g )lo#''''''''''''''''''-@
<7 S!PPLY CH#IN M#N#GEMENT444444496
C3/ D,+ International Su))l chainBBBBBBBBBB0-
Re*erse Logis&i+s'''''''''''''''''..00
Ser*i+es Logis&i+s'''''''''''''''''..0C
,%-o.%d &o Ma%.)a+&.ri%g'''''''''''''..0D
Medi+al de*i+e Dis&ri-.&io%'''''''''''.......0F
Dis&ri-.&io% &o s&ore Ma%age/e%&'''''''''....0F
E%gi%eeri%g res(o%se''''''...................................0F
C3- Extended Supply Chain ServicesBBBBBBBB 07
C30 Implementation Services BBBBBB 0G
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Logistics System in DHL
C3C Performance Management BBBBBBBBBBBB0@
C3D Outsourcing Projects BBBBBBBB 0@
C3F Inno5ation of Su))l :hain de5elo)ment BBBBBBC.
C37 Solution for :ustomi;e end to end logistic worldwide BC-
; TR#NSPORT#TION 444444444444 <;
D3/ 4rans)ortation functionalit BBBBBBBBB333333BCF
D3- Princi)les BBBBBBBBBBBBBBBBB33B3C7
D30 4rans)ortation Infrastructure BBBBBBBBBB3BC@
D3C #P4IMIHA4I#< #F +#!IS4I:S %I4, D,+"#AD A<D "AI+3
S#+$4I#<S BBBBBBBBBBBBBBBBBD0
D3D Air and ocean freight solutions BBBBBBBBBB33DC
= INVENTORY M#N#GEMENT > 0#REHO!SG ;=
F3/ %arehouse Infrastructure <etwor1BBBBBBBB333D7
M.l&i 0ser Ce%&ers ''''''''''''' '.D7
S&ra&egi+ Par& Ce%&ers "SPC$ ''''''''''DG
E1(ress Logis&i+s Ce%&ers "ELC$ ''''''''.DG
F3- %arehouse Management Solution BBBBBBB33D@
2areho.se Ma%age/e%& S3s&e/s'''''''..'D@
S&ra&egi+ ,%*e%&or3 Ma%age/e%& '''..3333333333333333D@
Dire+& E1(ress ,%*e%&or3 Ma%age/e%&BBB3BB3D@
Re(air Re&.r% ,%*e%&or3 Ma%age/e%& '''''F.
Cross Do+ki%g '''''''''''''..''F.
F30 In5entor #)timi;ation BBBBBBBB33BB33F/
F3C S)ecial %arehouse solution BBBBBBBBB F0
F3D #utsourcing Pro*ects3 BBBBBBBBBBBBFC
? V#L!E,#DDED SERVICES 444444477477=;
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Logistics System in DHL
73/ :o'Pac1aging BBBBBBBBBBBBBB33BFD
73- Product Assembl BBBBBBBBBBB333BF7
730 #ther'Value added Ser5ice BBBBBBBB33333FG
73C 9=ternal Performance Measurement BBBB33BF@
73D :ustomer Perce)tion Measurement BBBBBBF@
G %orldwide Parcel 9=)ress BBBBBBBB333B7.
@3 "ecommendation BBBBBBBBBBBBB337-
/. :onclusions BBBBBBBBBBBBBBB3370
// Bibliogra)hies BBBBBBBBBBBBBB337C
INTRODUCTION
ME#NING O LOGISTICS"
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Logistics System in DHL
+ogistics is concerned with getting the )roducts and ser5ices where the
are needed and when the are desired3 It is difficult to accom)lish an
mar1eting or manufacturing without logistical su))ort3 It in5ol5es the
integration of information& trans)ortation& in5entor& warehousing&
material handling& and )ac1aging3
4he o)erating res)onsibilit of logistics is the geogra)hical
re)ositioning of raw materials& wor1 in )rocess& and finished in5entories
where required at the lowest cost )ossible3+ogistics is )racticed for ages
since organi;ed acti5it began3 %ithout logistics su))ort no acti5it can
be )erformed to meet defined goal3 4he current
challenge is to )erform logistics scientificall in
order to o)timi;e benefits to the organi;ation3
+ogistics is a )lanning function of management3
+ogistics function is concerned with ta1ing
)roducts and ser5ices where the are needed and
when the are needed3
LOGISTICS M#N#GEMENTS"
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+ogistics management is that )art of the su))l chain which )lans&
im)lements and controls the efficient& effecti5e& forward and bac1ward
Ire5erseJ flow and storage of goods& ser5ices and information between
the )oint of origin and the )oint of consum)tion in order to meet
customersE requirements rather to the customers( delight3 A )rofessional
wor1ing in the field of logistics management is called a logistician3
+ogistics& as a business conce)t& e5ol5ed onl in the /@D.s3 4his was
mainl due to the increasing com)le=it of su))ling oneEs business
with materials& and shi))ing out )roducts in an increasingl globali;e
su))l chain& calling for e=)erts in the field who are called Su))l
:hain +ogisticians3 4his can be defined as ha5ing the right item in the
right quantit at the right time at the right )lace for the right )rice and to
the right target customers IconsumerJKand it is the science of )rocess
ha5ing its )resence in all sectors of the industr3 4he goal of logistics
wor1 is to manage the fruition of )ro*ect life ccles& su))l chains and
resultant efficiencies3 +ogistics is :oncerned with getting Ior
transmittingJ the )roducts and ser5ices where the are needed or when
the are desired3 It is difficult to accom)lish an mar1eting or
manufacturing without logistical su))ort3 It in5ol5es the integration of
information& trans)ortation& in5entor& warehousing& material handling&
and )ac1aging3 4he o)erating res)onsibilit of logistics is the
geogra)hical re)ositioning of raw materials& wor1 in )rocess& and
finished in5entories where required at the lowest cost )ossible3
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ORIGIN & DEFINITION OF LOGISTICS:
4he term LlogisticsL originates from the ancient !ree1 LMNOPQL
ILlogosLRLratio& word& calculation& reason& s)eech& orationLJ3 +ogistics
is considered to ha5e originated in the militarEs need to su))l
themsel5es with arms& ammunition and rations as the mo5ed from their
base to a forward )osition3 In ancient !ree1& "oman and B;antine
em)ires& there were militar officers with the title S+ogisti1as( who
were res)onsible for financial and distribution of su))lies3
4he O3@o$& Eng'is* &iction%$y defines logistics as4 5The -ra%+h o)
/ili&ar3 s+ie%+e ha*i%g to do with )rocuring& maintaining and
trans)orting material& )ersonnel and facilities3?
4he #me$ic%n Co-nci' o@ Logistics M%n%gement defines logistics as?
&he (ro+ess o) (la%%i%g, i/(le/e%&i%g a%d +o%&rolli%g &he e))i+ie%& a%d
e))e+&i*e )lo#, a%d s&orage o) goods, ser*i+es a%d rela&ed i%)or/a&io%
)ro/ &he (oi%& o) origi% &o &he (oi%& o) +o%s./(&io% )or &he P.r(ose o)
+o%)or/i%g &o +.s&o/er re6.ire/e%&s.7
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Logistics System in DHL
Importance of logistics managements:

57 Logistics is t*e (e& $oc. o@ t$%&e %n& (-siness7
%ithout selling and or buing there can be no trade and business3
Buing and or selling ta1es )lace onl when goods are )hsicall
mo5ed into and or awa from the mar1et3
4a1e awa logistical su))ort trade and business will colla)se
:7 Integ$%tes 'ogistic%' %cti)ities
In con5entional management en5ironment& 5arious acti5ities of logistics
wor1 in isolation under different management functions3 9ach )oc1et
tring to sub o)timi;es its ob*ecti5es at the cost of o5erall
organi;ational ob*ecti5es3 Purchasing tring to )urchase at minimum
)rice at the cost of what is needed b o)erations3 #)erations )roduce
large quantities at minimum )roduction cost ignoring demand leading to
doom in5entor3 +ogistics function of management brings all such
functions under one umbrella )ulling down inter de)artmental barriers3
97 Com+etiti)e e&ge6
In the fiercel com)etiti5e en5ironment logistics )ro5ides the edge3 Due
to technological re5olution most of the )roducts are mo5ing into
commo&ity m%$.ets3 In a commodit mar1et where )rice is controlled
b com)etition& where there is no )roduct differentiation in terms of
qualit )arameters li1e +e$@o$m%nce 2 $e'i%(i'ity& where brands are
almost irrele5ant& com)etiti5e edge is that of %)%i'%(i'ity of )roduct and
ser5ice in terms of timeA +'%ce and B-%ntity7
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<7 Le%&s to c-stome$ s%tis@%ction
4hrough su)erior customer ser5ice3 #rgani;ational ob*ecti5es of P
TProducti5itU&V TVualitU&: T:ostU&D TDeli5erU&9 T9m)loee
MoraleU&F TFle=ibilitU&S TSafetU&, T,ealthU&9 T9n5ironmentU are set to
meet customer e=)ectations3
;7 S-++o$ts c$itic%' @-nctions 'i.e o+e$%tions %n& m%$.eting
Strong logistics su))ort enables a com)an to mo5e towards 8$S4 I<
4IM9 )roduction sstem for sur5i5al in a highl com)etiti5e mar1et
=7 Logistics 2ins o$ 'oses 2%$s
British lost American war of inde)endence due to )oor logistics
"ommel was beaten in the desert b su)erior logistics of Allies
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Logistics Managements an S!ppl" C#ain:
S:M and logistics management& the definitions made b the :ouncil of
Su))l :hain Management Professionals& :S:MP Iformer :ouncil of
+ogistics Management& :+MJ S:M is defined as >S.((l3 +hai%
/a%age/e%& e%+o/(asses &he (la%%i%g a%d /a%age/e%& o) all
a+&i*i&ies i%*ol*ed i% so.r+i%g a%d (ro+.re/e%&, +o%*ersio%, a%d all
Logis&i+s Ma%age/e%& a+&i*i&ies. ,/(or&a%&l3, i& also i%+l.ded
+oordi%a&io% a%d +olla-ora&io% #i&h +ha%%el (ar&%ers, #hi+h +a% -e
s.((liers, i%&er/ediaries, &hird8(ar&3 ser*i+e (ro*iders, a%d +.s&o/ers.
,% esse%+e, S.((l3 Chai% Ma%age/e%& i%&egra&es s.((l3 a%d de/a%d
/a%age/e%& #i&hi% a%d a+ross +o/(a%ies >S.((l3 chains encom)ass
the com)anies and the business acti5ities needed to design "FDn&
ma1e& deli5er& and use a )roduct or ser5ice3 Businesses de)end on their
su))l chains to )ro5ide them with what the need to sur5i5e and
thri5e3 95er business fits into one or more su))l chains and has a role
to )la in each of them3 4he )ace of change and the uncertaint about
how mar1ets will e5ol5e has made it increasingl im)ortant for
com)anies to be aware of the su))l chains the )artici)ate in and to
understand the roles that the )la3 4hose com)anies that learn how to
build and )artici)ate in strong su))l chains will ha5e a substantial
com)etiti5e ad5antage in their mar1ets3 Su))l chain management is
the coordination of )roduction& in5entor& location& and trans)ortation
among the )artici)ants in a su))l chain to achie5e the best mi= of
res)onsi5eness and efficienc for the mar1et being ser5ed3 4here is a
difference between the conce)t of su))l chain management and the
traditional conce)t of logistics3 +ogistics t)icall refers to acti5ities
that occur within the boundaries of a single organi;ation and su))l
chains refer to networ1s of com)anies that wor1 together and coordinate
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their actions to deli5er a )roduct to mar1et3 Also traditional logistics
focuses its attention on acti5ities such as )rocurement& distribution&
maintenance& and in5entor management3 Su))l chain management
ac1nowledges all of traditional logistics and also includes acti5ities
such as mar1eting& new )roduct de5elo)ment& finance& and customer
ser5ice3 In the wider 5iew of su))l chain thin1ing& these additional
acti5ities are now seen as )art of the wor1 needed to fulfill customer
requests3 9ffecti5e su))l chain management requires simultaneous
im)ro5ements in both customer ser5ice le5els and the internal o)erating
efficiencies of the com)anies in the su))l chain3 :ustomer ser5ice at
its most basic le5el means consistentl high order fill rates& high on'
time deli5er rates& and a 5er low rate of )roducts returned b
customers for whate5er reason3 Internal efficienc for organi;ations in a
su))l chain means that these organi;ations get an attracti5e rate of
return on their in5estments in in5entor and other assets and those the
find was to lower their o)erating and sales e=)enses3
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Com+%ny P$o@i'e
INFORM$TION
D,+ is the global leader in logistics ' with more highl e=)erienced
)rofessionals at more locations in more countries than an other )ro5ider3
,is goal is to build strong& long'term )artnershi)s with customers b
)ro5iding world class ser5ices& across all our o)erations3 In India&
the ha5e formed a new *oint 5enture ' D,+ +emuir +ogistics& which
consolidates their )osition as the leader in International Freight
Forwarding& Su))l :hain Management& Pro*ect 4rans)ort and :ustoms
Bro1erage3 4he are the first choice for com)anies loo1ing for end
to end logistics solutions and high qualit ser5icing ca)abilities3 After
*oining forces with 9=cel in -..D& the are now also the sectorEs leading
inno5ator ' )ro5iding the e=traordinar range of cutting'edge solutions3
,is logistics customers include o5er 7DA of the worlds largest quoted
non'financial enter)rises3 4hese organi;ations trust us with their brands
and re)utations not sim)l because the are the worldwide mar1et leader&
but because the stri5e to deli5er globall consistent ser5ices of the
highest qualit&
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%istor" an &ac'gro!n of D%L
D,+ are the first letters of the last names of the three com)an
founders& Adrian Dalse& +arr ,illblom and "obert +nn3
In /@F@& *ust months after the world had mar5eled at <eil ArmstrongEs
first ste)s on the moon& the three )artners too1 another small ste) that
would ha5e a )rofound im)act on the wa the world does business3
4he founders began to )ersonall shi) )a)ers b air)lane from San
Francisco to ,onolulu& beginning customs clearance of the shi)Es cargo
before the actual arri5al of the shi) and dramaticall reducing waiting
time in the harbour3 :ustomers stood to sa5e a fortune3 %ith this
conce)t& a new industr was born6 international air e=)ress& the ra)id
deli5er of documents and shi)ments b air)lane3
4he D,+ <etwor1 continued to grow at an incredible )ace3 4he
com)an e=)anded westward from ,awaii into the Far 9ast and Pacific
"im& then the Middle 9ast& Africa and 9uro)e3 B /@GG& D,+ was
alread )resent in /7. countries and had /F&... em)loees3
At the beginning of -..-& Deutsche Post %orld <et became the ma*or
shareholder in D,+3 B the end of -..-& D,+ was /..A owned b
Deutsche Post %orld <et3 In -..0& Deutsche Post %orld <et
consolidated all of its e=)ress and logistics acti5ities into one single
brand& D,+
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T#e (orl)s largest e*press an logistics Net(or'
D,+ is a global e=)ertise in e=)ress& air and ocean freight& o5erland
trans)ort and logistics solutionsK D,+ combines worldwide co5erage
with an in'de)th understanding of local mar1ets3
Below are the global facts and figures that show ou the scale of the
worldEs largest e=)ress and logistics networ13

D%L E*press (orl(ie
9m)loees more than /-C&...
:ountries and territories more than --.
,ubs 0F
Bases C7..
Vehicles 7-&...
Aircraft 0D.
Pac1 stations Ionl !ermanJ @..

D%L Logistics in fig!res
DHL 'ogistics 2o$'&2i&e
9m)loees W more than /F-&D..
DHL G'o(%' o$2%$&ing
:ountries and territories /D.
4erminals& warehouses& offices G/0
Air freight 5olume C&C.@&... tones
#cean freight 5olume 49$ WW -&7FC&...
DHL E3ce' S-++'y C*%in
:ountries and territories D@
:enters& warehouses& terminals -D..
Storage area sqm -0&...&...
DHL $eig*t
:ountries and territories more than 0.
Full truc1load mo5ements )3a3 -&...&...
4erminals more than /F.
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D%L INDI$ COR+OR$TE +ROFILE
D,+ %orldwide 9=)ress IIndiaJ P5t +td is the <o3/ international air
e=)ress ser5ices )ro5ider in India& a )osition it has held since it began
its India o)erations in /@7@3 4oda& D,+ offers its customers the entire
s)ectrum of e=)ress ser5ices from international air e=)ress to high end
logistics solutions including re)air and return& strategic in5entor
management and direct e=)ress in5entor3 D,+ India has o5er D.&...
customers ser5iced through D,+Es national networ1 with its /&...
strong ground staff& fleet of C.. 5ehicles and dedicated ser5ice centers
in Ahmadabad& Bangalore& :hennai& :ochin& 8ai)ur& ,derabad&
Xol1ata& Mumbai& <ew Delhi& Pune and 4ri)ura3 Ac1nowledged for its
inno5ati5e solutions and )ioneering initiati5es& D,+ India has man
firsts to its credit including IndiaEs first and onl -C'hour customer
ser5ice call center& the first to introduce customi;ed solutions such as
8umbo Bo=& 8unior 8umbo& Im)ort 9=)ress and Fashion First for
customers in the air e=)ress industr& as well as the first to )ro5ide trac1
and trace ser5ices in India 5ia email& 5ia SMS or 5ia the Internet and
%AP )hones3
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%ci'ities"
D,+ India has an outstanding re)utation in the mar1et for )ro5iding a
reliable& fast and eas'to'use ser5ice3 D,+ offers'
,ighl trained and )rofessional staff& committed to being res)onsi5e to
all customers( needs
:ustomer Ser5ice Agents& a5ailable round'the'cloc1& 0FD das of the
ear& to ser5e customers whene5er and where5er the need them
9lectronic )re'clearance of shi)ments through :ustoms
Fi5e international gatewas )ro5iding direct'to'air networ1s and
faster sorting of inbound and outbound shi)ments
D,+ India is a )ro5en facilitator of trade& across the globe3 ,is strength
lies in our global networ1 and the 1now'how of our )eo)le3 Bac1ed b
strategic alliances with world'class )artners and the inno5ati5e use of
technolog& the stri5e to continuousl im)ro5e the qualit of our
ser5ice3 #ur ser5ices range from fast& res)onsi5e and cost effecti5e
e=)ress deli5eries toe'commerce fulfillment and intelligent logistics
solutions3 D,+ :ore Ser5ices consist of door'to'door air e=)ress
deli5er of documents and )arcels of all si;es Iand weightJ& both into
and out of the countr3
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P$o&-cts %n& se$)ices o@ DHL"
D%L Doc!ment E*press ,DO-."
4his ser5ice is ideal for shi)ments that are not sub*ected to :ustoms
declaration at destinations& or ha5e no commercial 5alue or do not
require a license3
D%L E*press /orl(ie +ac'age ,/+-.
4his ser5ice is used for shi)ments with commercial 5alue or those&
which must be declared for :ustoms e5aluation3 4he ma be sub*ected
to :ustoms ins)ection at destinations and ma be ta=able or dutiable3
0!m&o +ac' an 0!m&o 0!nior:
4his ser5ice ma1es e=)orting eas3 #ne bo= dis)atched for one flat fee&
anwhere in the world3 D,+ 8umbo Bo= is for shi)ments under -D1g
and 8umbo 8unior for shi)ments less than /.1g3
Import E*press:
4his ser5ice is a single window solution for all im)orting needs3 D,+
Im)ort 9=)ress is a one window& one rate& and one account& one
currenc ser5ice that enables a shi)ment )ic1ed u) from the su))lierEs
doorste) o5erseas and deli5ered directl to the customer anwhere in
the world3 And whatEs more& it allows the customer to maintain total
control of our im)orting costs3
7
Logistics System in DHL
Fas#ion First:
Fast Forward is the re5olutionar new ser5ice of D,+ for mo5ing
hea5 goods that brings increased efficienc and deli5ers greater cost
sa5ings for Indian im)orters and e=)orters3 It facilitates the im)ort and
e=)ort of shi)ments weighing -.1g and abo5e b )ro5iding significant
sa5ings with a wide range of inno5ati5e and fle=ible door'to'door
solutions3 Another feature of Fast Forward is 4rade Automated Ser5ices
I4ASJ& an online )latform that )ro5ides com)rehensi5e trade and
customs information in D. 1e countries worldwide& calculates total
landed costs of a shi)ment Iincluding dut& ta= and other customs
related chargesJ& generates im)ort and e=)ort documentation& screens
senders and recei5ers against go5ernment lists )ertaining to embargoes
and sanctions& and com)ares an itemEs e=)ort and im)ort clearance costs
and regulations to enable qualifing sourcing decision3 Fast Forward is
s)eciall de5elo)ed after e=tensi5e research and designed to meet the
unique needs of industries such as Automobiles& 9lectronics& ,ea5
9ngineering& Publishing and 4e=tiles3
7
Logistics System in DHL
INTEGR#TED LOGISTICS
+ogistics is 5iewed as the com)etenc that lin1s an enter)rise with its
customers and su))liers3 Information from and about customer(s flows
through the enter)rise in the form of sales acti5it& forecasts and orders3
As )roducts and materials are )rocured& a 5alue added in5entor flow is
initiated that ultimatel results in ownershi) transfer of finished
)roducts to customers3 4hus the )rocess is 5iewed in terms of two inter'
related efforts& in5entor flow and information flow3
In5entor flow
Information flow
Suppliers Physical
distribution
Manufacturing
support
Customers
7
Logistics System in DHL
In1entor" Flo(
4he management of logistics is concerned with the mo5ement and
storage of materials and finished )roducts3 From the initial )urchase of
a material or com)onent& the logistical )rocess adds 5alue3 B mo5ing
in5entor when and where needed3 4hus the material gains 5alue at
each ste)3 For a large manufacturer& logistical o)erations ma consist of
thousands of mo5ements& which ultimatel culminate in the deli5er of
the )roduct to an industrial user& wholesaler& dealer or customer3
In order to understand logistics it is useful to di5ide it into three areas6
Phsical distribution
Manufacturing su))ort
Procurement
o$ DHL"
D,+ is com)letel ser5ice oriented therefore it does not ha5e its own
material mo5ement but that of the customers the sender& the recei5er
and also the intermediateries3 4hat means it onl in5ol5es )hsical
distribution and )rocurement3 Procurement also includes the material
needed for )ac1aging such as )a)er& moulded tras and bo=es& wooden
crates& standard containers wra)s& )lastic inlas etc3 4he materials or the
goods collected from the senders Iincluding )a)ers& documents&
)hsical goods li1e clothing& household good& chemicals& e=otic animals
etcJ are weighed& chec1ed for condition& and de)ending u)on its 5arious
characteristics it is )ac1ed3 4he goods are then dis)atched to their
destinations3 4here is no 5alue addition to the material itself but it is
done to the ser5ice which is )ro5ided Ie3g3 if there has to be a certain
)ac1age deli5ered from India to $X the normal ser5ices would ta1e
7
Logistics System in DHL
about - das whereas as a su)er fast deli5er would be done in about @
hoursJ
Information flo(
Information flow identifies s)ecific locations within a logistical sstem
that ha5e requirements3 Information also integrates the three o)erating
areas3 4he )rimar ob*ecti5e of de5elo)ing and s)ecifing requirements
is to )lan and e=ecute integrated logistical o)erations7
Logistical information in1ol1es t(o ma2or t"pes of flo(s:
/3 :oordination flows
-3 #)eration flows
57 P'%nning %n& coo$&in%tion @'o2s
Coordination is the backbone of the overall information system.
St$%tegic o(/ecti)es"
Strategic ob*ecti5es detail the nature and location of customers& which
are matched to the required )roducts and ser5ices to be )erformed.
o$ DHL
It im)lies estimating the time requires for collecting the goods from the
door ste) of the sender and then estimating the time for the goods to
reach the final customer.
7
Logistics System in DHL
Forecasting
Forecasting utili;es historical data& current acti5it le5els& and )lanning
assum)tions to )redict future acti5it le5els3 +ogistical forecasting is
generall concerned with relati5el short Yterm )redictions3
4he o5erall )ur)ose of information )lanningZcoordination flow is to
integrate s)ecific acti5ities within a firm and to facilitate o5erall
integrated )erformance3
o$ DHL
D,+(s whole business is de)endent on the 5ital )oint of timel
deli5er3 Based on the distance to the final recei5er& the accessibilit& the
documentations and )rocedures that need to be handled etc the ha5e
fine tuned the )rocess of deli5er3 4he can accuratel gauge how much
time it will ta1e for the goods to reach its end destination3
7
Logistics System in DHL
34 Operational flo(s
4he second as)ect of information requirements is concerned with
directing o)erations to recei5e& )rocess& and shi) in5entor as required
su))orting customer and )urchasing orders3 #)erational requirements
deal with
#rder management
#rder )rocessing
Distribution o)erations
In5entor management
4rans)ortation and shi))ing
Procurement
For DHL:
D,+ owns its success for the efficienc with which the o)erations are
carried out3 ,ere not onl the com)an but the sender and sometimes
the recei5er can trac1 the goods through their information center3 4he
are gi5en a certain )assword which the can use to trace 5ia online or
their customer ser5ice hel)line3
7
Logistics System in DHL
S!ppl" C#ain Management
Definition for s!ppl" c#ain management
>Su))l chain management is the management of u)stream and
downstream relationshi)s with su))liers and customers to deli5er
su)erior customer 5alue at less cost to the su))l chain as a whole3?
E3+'%n%tion"
4he su))l chain is the networ1 of organi;ations that are in5ol5ed
through u)stream and downstream lin1ages& in the different )rocesses
and acti5ities that )roduce 5alue in the form of )roducts and ser5ices in
the hands of ultimate consumer3I in detail mention abo5eJ
o$ DHL"
Su))l chain #)timi;ation
7
Logistics System in DHL
!ood design is at the heart of an effecti5e su))l chain solution3 D,+
has de5elo)ed a re)utation for consistentl de5elo)ing inno5ati5e
solutions that streamline o)erations and im)ro5e control3 4heir in'house
teams ha5e contributed to the solutions design of some of the worldEs
leading brands and enabled to win 1e contacts3
D,+ solutions design team offers a wide )ortfolio of e=)ertise and
ser5ices& from logistics networ1 strateg& trans)ort design& warehouse
design and simulation& through to o)erational im)ro5ement and
in5entor analsis
International Su))l :hain
9=tended Su))l :hain Ser5ices
Im)lementation Ser5ices
#utsourcing Pro*ects
7
Logistics System in DHL
54 International S!ppl" C#ain:
D,+(s international su))l chain management solutions are focused on
hel)ing customers ta1e increased control of international inbound
su))l chain to ma=imi;e the 5alue of international and global sourcing3
DHL *e'+s c-stome$s"
!i5e 5isibilit of the u)stream su))l chain& and enable earlier
decision ma1ing
:reate a more agile su))l chain& better able to res)ond to changes in
consumer demand
"educe lead times& in5entories& and associated storage costs
C-stome$,@oc-se& so'-tions %$e (-i't -+ @$om t*e @o''o2ing co$e
se$)ices"
#rigin management& including6 5endor managementK su))lier
collectionsK customs bro1erageK consolidation ser5ices and 5alue'added
ser5ices
!lobal forwarding& including6 airZoceanZroadZrail freight forwarding and
managementK 9uro)ean managed trans)ort
Destination management& including6 )ort and demurrage managementK
customs bro1erageK de'consolidation and )re'retail ser5icesK )ort to
distribution centre trans)ortationK direct store deli5er I$S onlJ
Su))l chain 5isibilit and management& including6 )urchase order
managementK "FID )roduct trac1ingK e=ce)tion managementK )lanning
and forecastingK in5entor management3
!lobal forwarding ser5ices are )ro5ided across all ma*or routes3
7
Logistics System in DHL
Logistic%' se$)ices t*%t %$e o@@e$e&7
"e5erse +ogistics
Ser5ices +ogistics
Inbound to Manufacturing
Medical de5ice distribution
Distribution to stores Management
9ngineering "es)onse
a. Re1erse Logistics
D,+(s re5erse logistics solutions hel) customers )lan& im)lement and
control flow of materials and manage related information& bac1 u) the
su))l chain to reca)ture 5alues and ensure the safe dis)osal of goods3
Items include the reco5er of obsolete or non'o)erational white goods
such as refrigerators& )lus the remo5al of old furniture on deli5er of new
or re)lacement )roducts3
Ser5ices include6
"oll in Management6 de'installation of finished goods at the
customerEs site
"eturns Management6 recei5ing& sorting& 5erifing and managing
returned )roducts
9=)ress Deli5er6 9=change of Dead #n Arri5al )roduct
7
Logistics System in DHL
a4.Ser1ice logistics
Ser5ice and re)lacement )arts D,+(s ser5ice and re)lacement )arts
ser5ice in5ol5es the management of manufacturersE re)lacement )arts
deli5ered to and from customers according to )re'defined ser5ice le5els
or warrant agreements on a one& two& four or eight'hour and ne=t'da
basis& -C hours a da& se5en das a wee13
D,+ wor1s closel with customers to o5ercome common issues such
as6
Poor )arts a5ailabilit
,igh in5entor in5estment
+ong lead times& accentuated b global sourcing
,igh le5els of customer returns
Poor 5isibilit& re)orting and control
:ost control of the demand chain
1ey se$)ices inc'-&e"
International freight forwarding
Domestic and regional inbound deli5eries
In5entor )lanning& forecasting& )rocurement and analsis
Distribution centre o)erations
#utbound deli5er
4he entire )rocess is under)inned b a web'enabled electronic order
)rocessing and order monitoring tool3
7
Logistics System in DHL
&4. In&o!n to Man!fact!ring
Inbound to manufacturing is the com)lete end'to'end logistics
management of in5entories& facilities and labour associated with the
inbound flow of materials from 5endors and su))lier origins to
consum)tion )oints in manufacturers )roduction lines3
4he ser5ice encom)asses6
<etwor1& trans)ortation and facilit design
In5entor o)timi;ation
Su))lier management
4rans)ortation management
In')lant ser5ices
Xe to the ser5ice is integrating manufacturersE forecasting& order
management and su))l chain e=ecution )rocesses with their com)onent
su))liers3 D,+ im)lements warehouse management and su))l chain
e5ent management sstems to manage *ust'in'time deli5eries and allow
su))l chain )artici)ants to e=change forecast requirements in real time
V%'-e is c$e%te& @o$ m%n-@%ct-$e$s %n& com+onent s-++'ie$s
t*$o-g*o-t t*e 2o$'& (y"
9nabling a robust and cost'effecti5e su))l chain
Pro5iding the necessar 5isibilit so that the location of all
com)onents within the su))l chain is 1nown to all su))l chain
)artici)ants
"educe in5entor and in5estment costs
Im)ro5e deli5er times
:o'ordinate multi)le com)onents more efficientl
7
Logistics System in DHL
c4. Meical De1ice Distri&!tion
D,+ countr'based warehouses for a number of manufacturers to ser5ice
a local customer base3 4his includes the recei)t of )roduct from local or
global manufacturing sites and downstream distribution to hos)itals3
&7C Dist$i(-tion to sto$es m%n%gement
D,+ distributions to store ser5ices are focused on hel)ing retailers create
efficient and fle=ible su))l chains to deli5er )roduct to retail outlets at
high le5els of ser5ice3 4hese solutions are built from se5eral core
ser5ices6 re5erse logistics collectionsK sortationK )rocessingK
re)airZrefurbishmentK 5alue reco5erK dis)osal and com)liance3
e7C Enginee$ing Res+onse
4hrough our 9ngineering "es)onse ser5ices& we manage the materials
su))l chain from wor1s )lanning and inbound goods through to on'site
wor1s& deli5ering stoc1 out to engineers& builders and construction
wor1ers in the field3
7
Logistics System in DHL
-3 E*tene s!ppl" c#ain ser1ices
D,+ not onl )ro5ides )hsical logistics ser5ices but also manages
other enhanced su))l chain ser5ices& im)ro5ing efficiencies and
reducing costs3
a4. Orer Management
"ecei)t& management& e=ecution& sequencing and dis)atch of orders in a
timel manner3
b3J Call Center Management
A :all :entre manages orders& monitors sales acti5ities& )ro5ides
customer ser5ices and functions as a ,el)'des13
c4. Glo&al In1entor" Management
D,+ gi5es the customer a global 5iew of in5entor& thus enabling
informed decisions regarding the dis)osition of stoc13
4. Consoliate 6illing Ser1ices
4he creation of a consolidated and categori;ed in5oice& based on all
ser5ices )erformed in a s)ecific time')eriod b more than one ser5ice
)ro5ider& made a5ailable in an agreed format3
e. Freig#t & C!stoms Sol!tions
D,+Es man ears of e=)erience with international trade requirements
and formalities& combined with the 9uro)ean :om)etence :entre and
countr e=)ertise& gi5es customers the leading edge in ser5ice& qualit
and management in cross border transactions3
7
Logistics System in DHL
34 Implementation Ser1ices:
%7 Im+'ement%tion %n& P$o/ect M%n%gement
Im)lementation starts b defining )ro*ect aims& setting the targets and
describing the deli5erables in detail3 4he ma*or to)ics in
im)lementation include business )rocesses& engineering& real estate& I4
sstems& migration& ,"& finance and legal considerations3
(7 D-%'ity M%n%gement
4otal Vualit Management is a management strateg that integrates
qualit orientation into the whole structure and wor1flow of a com)an
b using methods and techniques of qualit management
Co$+o$%te Po'icy @o$ D-%'ityA En)i$onmentA He%'t* %n& S%@ety
EDEHSC is (%se& on @i)e co$+o$%te )%'-es"
C-stome$ s%tis@%ction6 Pro5iding our customers and their
customers with e=cellent& high 5alue logistics solutions
Em+'oyee moti)%tion6 Building on the 1now'how and stimulation
of indi5idual )otential in multi'cultural teams
O+e$%tion%' e3ce''ence6 :ontinuous im)ro5ement of )rocesses and
ser5ices to fulfill or e=ceed e=)ectations
Co$+o$%te citiFens*i+6 Acting as a res)onsible cor)orate citi;en in all
countries
S*%$e*o'&e$ $e2%$&6 De5elo)ing a sustainable business to )ro5ide
increasing shareholder 5alue
Glo-all3, DHL /a%age/e%& s3s&e/s are +er&i)ied a++ordi%g &o &he i%&er%a&io%al
s&a%dard )or 6.ali&3 /a%age/e%& s3s&e/s ,SO 9::: i% al/os& e*er3 o(era&i%g .%i&.
7
Logistics System in DHL
+erformance Management:
Performance management is a 1e )art of the su))l chain3 Measured
elements are re5iewed as a sstem& as each com)onent interacts with all
the other )arts around it3 Performance measuring not onl records
historical )erformance but also )ro5ides earl indication of an ser5ice
sli))age3 In this second role& the measures )ro5ide a 5aluable
contribution to D,+Es :ontinuous Im)ro5ement Programme3
O-tso-$cing P$o/ects
#utsourcing in5ol5es D,+ ta1ing o5er and managing )re5ious in'house
logistics o)erations& including6
Distribution centers
4rans)ort o)erations
Bac1'office functions
Su))l chain management functions
After sales ser5ices
7
Logistics System in DHL
Inno1ati1e S!ppl" C#ain De1elopment
Su))l :hain Management ser5ices are deli5ered across industr
sectors and )ro5ide e=)ertise& 1nowledge and resources in terms of
)ersonnel and su))l chain tools3 All ser5ices are targeted at o)timi;ing
logistical o)erations in both )rocess and strateg& and are aligned to the
clientEs commercial e=)ectations3
4he ser5ices are as follows6
Strategic +ogistics :onsulting
+ead +ogistics Pro5ider
:onsulting and )ro5iding 4rans)ort o)timi;ation6 "oute'Pro and
4rans'Pro
:onsulting and )ro5iding Su))l :hain Design
:onsulting and )ro5iding 4rans)ortation
9ngineering& o)timi;ation and re'engineering
Im)lementation and Pro*ect Management
Process Management
#utsourcing
D,+(s consulting ser5ices also offer re'organi;ation of customer
facilities& )ro*ect management for customers& im)lementation of new I4
Sstems& creation of tender documents and tender )rocessing3
7
Logistics System in DHL
S-++'y C*%in Re,enginee$ing
D,+ wor1s with customers to re5iew su))l chain efficiencies3 #ne of
the main tas1s is to e5aluate cost efficienc to ensure that costs are
being dri5en down throughout the contract duration3 Data analsis
allows D,+ to )ro5ide customers with Ewhat if modelingE or the im)act
of changing the business rules3
#@te$ S%'es O+timiF%tion
#)timi;ing return logistics and s)are )arts logistics as well as
maintenance and re)air ser5ices3
Ve *ic'e M%n%gement Se$)ices
#ur 5ehicle management ser5ices focus on the management of sales and
mar1eting su))ort )rogrammes for automoti5e manufacturers3
:ombining a range of ser5ices and sstems to deli5er a global res)onse&
the hel) ou o5ercome challenges at the end of the automoti5e su))l
chain3
Dist$i(-tion to Sto$es M%n%gement
D,+(s distribution to store solutions are focused on hel)ing retailers
create efficient and fle=ible su))l chains to deli5er )roduct to retail
outlets at high le5els of ser5ices
4hese solutions are built from se5eral core ser5ices including re5erse
logistics6
logistics networ1 strateg
warehouse design and simulation
4rans)ort modeling3
7
Logistics System in DHL
D%L Sol!tion

Solution for customized
End-to-end logistics
worldwide.
Solution for customized
End-to-end logistics
worldwide.
7
Logistics System in DHL


Best-in-class solutions that deliver
Value to your supply chain.
Customized Logistics
Solutions.
Supply Chain
Management
Warehousing
Value Added
Services
Distribution
Outsourcing
Analsis& design and engineering3 +ead
+ogistics Pro5ider I++PJ and +ead
Ser5ice Pro5ider I+SPJ ser5ices.
9ngineering& design and management3
Vendor management& *ust in time3
#rder management& qualit control&
outbound fulfillment& re5erse and return
logistics and other ser5ices.
Industr's)ecific local and
transnational3 <etwor1 and fleet
)lanning and o)timi;ation
4a1e'o5er and management of in'house
logistics including distribution&
trans)ort& bac1'office& su))l chain and
after sales3
DHL Solutions offers customized logistics solutions for your
entire supply chain. Our complete overview from
manufacturer/supplier to retailer to consumer enables you
to achieve operational ecellence at every stage. Services
range from consulting and design to management and
eecution. !hey provide industry"specific epertise and
long"term eperience that add value to your business. DHL
Solutions sets the pace in Supply #hain $anagement with
state"of"the"art technologies% delivering customized
business solutions. Leading edge &! systems ensure
seamless integration and guarantee full transparency and
control throughout the entire supply chain.
7
Logistics System in DHL
D,+ Su))l :hain& :or)orate Information Solutions
4his di5ision consists of contract logistics ser5ices
and :or)orate Information Solutions I%illiams +eaJ3
Both business units focus on tailor'made customer
solutions3
4he business unit Su))l :hain )ro5ides
warehousing and trans)ortation ser5ices as well as
5alue'added
solutions along the entire su))l chain for customers from 5arious
sectors of industr& including the 1e automoti5e& life sciences&
technolog& fast'mo5ing consumer goods& retail& and fashion sectors3 4he
subsidiar %illiams +ea is the heart of the business unit :or)orate
Information Solutions3 4he e=)ert for document'based outsourcing
solutions gathers& digitali;es& )rints& stores& sorts& addresses& en5elo)s&
dis)atches and archi5es documents of all t)es3 %illiams +ea is also the
right )oint of call for electronic in5oicing and mar1eting ser5ices3
TR$NS+ORT$TION
7
Logistics System in DHL
4rans)ortation is the most 5isible of all functions of logistics and high
contributor to logistics cost3 %e can see truc1s& containers and
wagonloads of material being mo5ed from )lace to )lace as an acti5it
directl associated with trade and business3 %e should also a))reciate
that this is an acti5it that adds highest amount of cost to the acti5it of
ma1ing in)uts and out)uts a5ailable to consumers3 4rans)ortation
function mo5es the )roducts to meet customer e=)ectations at minimum
cost3 4rans)ortation is one of the most 5isible elements of logistics
o)erations3 4rans)ortation )ro5ides - ma*or functions6 +$o&-ct
mo)ement > +$o&-ct sto$%ge7
+ro!ct Mo1ement
%hether the )roduct is in the form of materials& com)onents&
assemblies& wor1'in')rocess& or finished goods& trans)ortation is
necessar to mo5e it to the ne=t stage of the manufacturing )rocess or
)hsicall closer to the ultimate consumer3 A )rimar trans)ortation
function of )roduct mo5ement is mo5ing u) and down the 5alue chain3
Since trans)ortation utili;es tem+o$%'& @in%nci%'& and en)i$onment%'
resources& it is im)ortant that items be mo5ed onl when it trul
enhances the )roduct 5alue3 4rans)ortation in5ol5es the use of tem)oral
resources because )roduct is inaccessible during the trans)ortation
)rocess3 Such )roduct& commonl referred to as in'transit in5entor& is
becoming a significant consideration as a 5ariet of su))l chain
strategies such as *ust Y in Y time and quic1 res)onse )ractices reduce
manufacturing and distribution center in5entories3
4rans)ortation uses financial resources because internal e=)enditures
are necessar for )ri5ate fleets or e=ternal e=)enditures are required for
commercial or )ublic trans)ortation3
7
Logistics System in DHL
4he m%/o$ o(/ecti)e is to mo5e )roduct from an origin location to a
)rescribed destination while minimi;ing tem)oral& financial and
en5ironmental resource costs3 +oss and damage e=)enses must also be
minimi;ed3 At the same time the mo5ement must ta1e )lace in such a
manner that meets customer demands regarding deli5er )erformance
and shi)ment information a5ailabilit3
+ro!ct Storage:
Tem+o$%$y sto$%ge in st%tion%$y )e*ic'es or Ve*ic'es .e+t mo)ing
on % ci$c-ito-s $o-te , Product storage is e=)ensi5e in a trans)ort
5ehicle3 But sometimes 1ee)ing o5erall cost in mind this is ado)ted3
A3 %hen unloading and loading is more e=)ensi5e than storage
B3 %hen storage s)ace is limited3 TSituation when in5entor le5els are
5er highU
7
Logistics System in DHL
+rinciples
4here are t2o @-n&%ment%' +$inci+'es g-i&ing t$%ns+o$t%tion
m%n%gement %n& o+e$%tions7 4he are econom of scale and econom
of distance3
Econom" of scale refers to the characteristic that trans)ortation cost
)er unit of weight decreases when the si;e of the shi)ment increases3
93g3 truc1load shi)ments cost less )er )ound than less'than'truc1load
shi)ments3 It is also generall true that larger ca)acit trans)ortation
5ehicles such as rail or water are less e=)ensi5e )er unit of weight than
smaller ca)acit 5ehicles li1e motor or air3 4rans)ortation economies of
scale e=ist because fi=ed e=)enses associated with mo5ing a load can be
s)read o5er the load(s weight3 4he fi=ed e=)enses include
administrati5e costs of ta1ing the orderK time to )osition the 5ehicle for
loading or unloading& in5oicing and equi)ment cost3 4hese costs are
fi=ed because the do not 5ar with shi)ment 5olume3
E.g. s.((ose &he +os& &o ad/i%is&er a shi(/e%& is ; <:.::. The% &he <8
(o.%d shi(/e%& has a (er .%i& o) #eigh& +os& o) ;<:.::, #hile &he <,:::
(o.%d shi(/e%& has a (er .%i& o) #eigh& +os& o) ;:.:<. Th.s, i& +a% -e
said &ha& a% e+o%o/3 o) s+ale e1is&s )or &he <:::8(o.%d shi(/e%&.
7
Logistics System in DHL
Econom" of istance refers to the characteristic that trans)ortation
cost )er unit of distance decreases as distance increases3
93g3 a shi)ment of G.. miles will cost less than two shi)ments Iof the
same combined weightJ of C.. miles3 4rans)ortation econom of
distance is also referred to a se ta)ering )rinci)le since rates or charges
ta)er with distance3 4he rationale of distance economies is similar to
that for economies of scale3
+onger distances allow the fi=ed e=)enses to be s)read o5er more miles&
resulting in lower o5erall )er mile charge3 4hese )rinci)les are
im)ortant considerations when e5aluating alternati5e trans)ortation
strategies or o)erating )ractices3 4he ob*ecti5e is to ma=imi;e the si;e
of the load and the distance that is shi))ed while still meeting customer
ser5ice e=)ectations3
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Logistics System in DHL
Transport Infrastr!ct!re
4rans)ortation infrastructure consists of the rights'of'was& 5ehicles&
and carrier organi;ations that offer trans)ortation ser5ices on a for'hire
or internal basis3 4he nature of the infrastructure also determines a
5ariet of legal and economic characteristics for each mode or
multimodal sstem3 A mode identifies the basic trans)ortation method
or form3
R#IL NET0OR1
Since olden times& railroads ha5e handled the largest number of ton'
miles3 As a result of the earl establishment of a com)rehensi5e rail
networ1 connecting almost all the cities and towns& railwas dominated
the intercit freight tonnage till %orld %ar II and in some cases of
9uro)e& Asia and Africa the e5en connected the countries3 4his earl
su)eriorit enabled railwas to trans)ort large shi)ments 5er
economicall3
MOTOR C#RRIERS
,ighwa trans)ortation has increased ra)idl since the end of %orld
%ar II3 4his is because Motor carrier industr results from door'to'door
o)erating fle=ibilit and s)eed of intercit mo5ement3 4he are e5en
fle=ible because the can o)erate on each and e5er 1ind of roadwas3
In com)arison to railroads& motor carriers ha5e relati5el small fi=ed
in5estments in terminal facilities and o)erate on )ublicl maintained
highwas3 Although the cost of license fees& user fees& and tolls are
considerable& these e=)enses are directl related to the number of o5er'
the'road units and miles o)erated3 4he 5ariable cost )er mile for motor
carriers is high because a se)arate )ower unit and dri5er are required for
each trailer or combination of tandem trailers3 +abor requirements are
7
Logistics System in DHL
also high because of dri5er safet restrictions and the need for
substantial doc1 labor3 Motor carriers are best suited to handle small
shi)ments mo5ing short distances3
0#TER TR#NSPORT
It is the oldest mode of trans)ortation3 First it was the sailing 5essels&
which was re)laced b steamboats in earl /G..(s and b diesel )ower
in the /@-.(s3 Domestic water trans)ortation Y in5ol5es the !reat
+a1es& canals& and na5igable ri5ers3 In e5er countr& fewer sstem
miles e=ist for inland water than an other trans)ortation mode3
4he main ad5antage of water trans)ortation is the ca)acit to mo5e
e=tremel large shi)ments3 %ater trans)ort em)los - t)es of 5essels3
Dee)'water 5essels& which are generall designed for #cean and !reat
+a1es use& 2 are restricted to dee)'water )orts for access3 In contrast&
diesel'towed barges& which generall o)erate on ri5ers and canals& ha5e
considerabl more fle=ibilit3 %ater trans)ort ran1s between rail and
motor carrier in the fi=ed cost as)ect3 Although water carriers must
de5elo) and o)erate their own terminals& the right'of'wa is de5elo)ed
and maintained b the go5ernment and results in moderate fi=ed costs
as com)ared to railwas and highwas3
4he main disad5antage of water trans)ort is the limited range of
o)eration and s)eed3 $nless the origin and destination are ad*acent&
su))lement haul b rail or truc1 is required3 4he ca)abilit to carr 5er
high cargo at an e=tremel low 5ariable cost )laces this mode of
trans)ort in demand when low freight rates are desired and s)eed of
transit is a secondar consideration3
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Logistics System in DHL
#IR TR#NSPORT
Air trans)ort is the newest and the least utili;ed mode of trans)ort3 Its
ma*or ad5antage being its s)eed& which is accom)anied b high costs3 A
coast'to'coast shi)ment 5ia air requires onl a few hours contrast to
das ta1en b other mean of trans)ortation3 4he high cost of trans)ort
can be traded off for high s)eed& which allows other elements of
logistical design& such as warehousing& in5entor to be reduced or
eliminated3 But still air trans)ort remains more of a )otential
o))ortunit than a realit because it is 5er much underutili;ed3
4he high cost of *et aircraft& cou)led with erratic nature of freight
demand& has limited the assignment of dedicated )lanes to all'freight
o)erations3 ,owe5er )remium carriers )ro5ide )lanes dedicated for
freight o)erations3 4his )remium ser5ice started off with documents and
has mo5ed onto large )arcels& which is an ideal ser5ice for firms with a
large number of high'5alue )roducts and time'sensiti5e ser5ice
requirements3
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Logistics System in DHL
OR DHL"
D,+ uses all the modes of trans)ortations that is
Airwas
roadwas
waterwas
rail freight
D,+ has its own fleet of air)lanes and motor 5ans3 De)ending u)on the
final destination where the goods ha5e to finall reach and the t)e of
)ac1age the customer has )aid for& D,+ uses the indi5idual modes of
trans)ort or a combination of either of these or all3 #nce again the
geogra)hical location and how fast the goods ha5e to be deli5ered are
the factors for the final selection of modes of trans)ortation3 4he
conce)t of economies of scale and economies of distance are both ta1en
into consideration in case of larger consignments where D,+ )ro5ides
an a))ro)riate logistical solution which hel)s in reducing the o5erall
cost for the customers3
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Logistics System in DHL

OPTIMIG#TION O LOGISTICS 0ITH DHLRO#D #ND
R#IL SOL!TIONS7
D,+ Freight is a leader in 9uro)ean o5erland trans)ort3 #ur continent'
wide networ1 and com)rehensi5e range of )roducts and ser5ices
guarantee reliable trans)ort3 D,+ Freight offers ou regular ser5ices for
grou) age and a full range of trans)ort ser5ices for )art' and full'load
shi)ments b road& rail and intermodal trans)ortation3 4he )ro5ide
s)ecial handling and trans)ortation for )erishables& furniture& trade fair
or e5ent equi)ment& as well as tailored customs clearance ser5ices in
more than 0D. offices across 9uro)e3 State'of'the'art I4 sstems gi5e
ou totals shi)ment 5isibilit and higher deli5er efficienc3 #ur
industr's)ecific e=)ertise and long'term e=)erience can im)ro5e our
)roducti5it and streamline our o)erations3 A successful& high'caliber
)artnershi) with D,+ Freight gi5es ou all the ad5antages ou need to
o)timi;e our logistics3

7
Logistics System in DHL

ir and ocean frei!ht solutions for a
competitive advanta!e
2he&her 3o. %eed &o )or#ard door8&o8door,
air(or&8&o8air(or& or (or&8&o8(or& )reigh&, DHL
Da%=as ir > O+ea% o))ers a +o/(rehe%si*e
ra%ge o) ser*i+es %o /a&&er &he si=e, #eigh& or
di/e%sio%s o) 3o.r goods.
Co/-i%ed #i&h a% e1&e%si*e &ool ki& o)
i%)or/a&io% /a%age/e%& s3s&e/s a%d a glo-al
%e&#ork o) dedi+a&ed +o%&rol &o#ers, o.r
e1(erie%+ed &ea/s aro.%d &he #orld +a% +rea&e
&he righ& logis&i+s sol.&io% )or 3o.r -.si%ess.
DHL Da%=as ir > O+ea% is i% (ole (osi&io% &o
lead &he ).&.re o) air a%d o+ea% )reigh& logis&i+s
a%d se&s high s&a%dards i% 6.ali&3 a%d se+.ri&3
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Logistics System in DHL
Air Freight
D,+ Dan;as Air 2 #cean offers a range of fast and cost'effecti5e
airfreight ser5ices for our most time'sensiti5e freight with door'to'door
or air)ort'to'air)ort ser5ices& fi=ed schedules on all main routes and
reliable connections to all other destinations3


DL Air !reight products include"
Air !irst
Air #remier
Air Value
:ombine the s)eed of airfreight and the lower
cost of ocean freight Y and ou(ll benefit from
our strength and e=)erience in both3 Plus&
real'time trac1ing at e5er ste) of the wa3
#art and !ull
Charter
Sea$Air
:reati5e routing solutions 5ia ma*or gatewas
can sa5e ou e5en more mone while adding
onl /'- das o5er our Air Premier Ser5ice.
:hartering additional airfreight ca)acit is
)art of e5erda business Y es)eciall if there
is limited commercial lift& for new )roduct
launches& during )ea1 seasons or for
o5ersi;ed cargo3 #ur s)ecialists create
solutions to get our goods through on time3
%hether door'to'door or air)ort'to'air)ort&
Air First guarantees )riorit on the first flight
out and forwarding within two das Y -C'
hours a da& 7'das a wee1& and 0FD'das a
:ombines )rice and time considerations for
both door'to'door and air)ort'to'air)ort
ser5ice3 7our shi)ment will arri5e at the
air)ort of an ma*or mar1et)lace around the
world within only three days.
7
Logistics System in DHL
In1entor" Management an /are#o!sing4
In5entor is an unused asset& which lies in stoc1 without )artici)ating in
5alue adding )rocess3 $nused equi)ment& raw material& %IP and
Finished goods& consumables& s)are )arts& bought out )arts& tools and
tac1les& gauge and fi=tures etc3 In India @ to /- months of sales
quantit lies in the form of In5entor T"ZM& %IP& Bought out )arts and
Finished goodsU as against a few das in 8a)an and a month in the $S
and 9uro)e3 In our countr in5entor is alwas 5iewed as asset
Twor1ing ca)italU& in fact& though it is called an asset& it is a big liabilit
%arehousing was a customer(s function con5entionall anwhere in the
world3 :ustomer to )rotect himself from shortages at the time of
inclement weather alwas used to store )ro5isions and other utilities in
his house3 :onsumer(s own stores were underground cellars& smo1e
houses to store 5ariet of items3 Poor communication infrastructure
was mainl the cause for this storage b customer3 Producers and
tradesmen con5enientl shrugged off their res)onsibilit for storage and
)assed it on to the customer who was left with no o)tion3 4raditional
conce)t of warehouse as store or godown has undergone ma*or change
now3 %arehouse is considered a 5alue adding facilit now& )laing a
remar1able role as a function of logistical management3
%arehouse Infrastructure <etwor1
%arehouse Management Solution
In5entor #)timi;ation
S)ecial warehouse solution
#utsourcing Pro*ects
7
Logistics System in DHL
54 0%$e*o-se In@$%st$-ct-$e Net2o$.s
D,+ warehouse ser5ice su))orts inbound logistics& distribution and
aftermar1et ser5ices in a wa that im)ro5es in5entor management&
reduces total o)erating costs and im)ro5es ccle times3
D,+ facilities offer our customers warehousing that is full integrated
into the wider su))l chain and meets demanding ser5ice le5els3 4his
encom)asses the design im)lementation and o)eration for both
dedicated and multi user sites3
Benefits include im)ro5ements in6
:ustomer ser5ice le5els
Stoc1 accurac
+ead times
"edundant stoc1 costs
Producti5it res)onsi5eness to a com)anEs strategic needs
a4 M!lti User Centers
%e )ro5ide a networ1 of multi'user warehouses& enabling
manufacturers to hold in5entor at local le5el& whilst a5oiding
e=)ensi5e& dedicated storage solutions3 4hese facilities can recei5e
)roducts from both local and global manufacturing sites& )ro5iding
downstream distribution3
7
Logistics System in DHL
&4 Strategic +art Centers ,S+C.
#ur Strategic Part :enters ISP:sJ are in'countr facilities offering6
/& - and C hour order fulfillment
Stoc1 o)timi;ation across the com)lete networ1 of SP:s
!uaranteed )erformance against agreed business rules
c4 E*press Logistics Centers ,ELC.
#ur 9=)ress +ogistics :enters I9+:sJ are regional centrali;ed facilities
offering6
order )rocessing
outsourced re)air facilities
custom final assembl
1itting ser5ices
7
Logistics System in DHL
34 /are#o!se Management Sol!tions :
%C 0%$e*o-se M%n%gement Systems
4he %arehouse Management Sstem I%MSJ records all e5ents and
actions in the recei)t& handling and storage of )roducts and orders in a
warehouse en5ironment3 4he %MS also accuratel records the location
of in5entor whilst stored in the warehouse3
#ur Prologs %MS manages all critical )rocesses in the warehouse& and is
also an im)ortant su))ort for 5aried trans)ort and distribution conce)ts
I)lanning& time controlling& boo1ing of trans)ort ca)acit&
communication with customs and other authoritiesJ3
b5 Strategic In1entor" Management
Strategic In5entor Management ISIMJ has been created to deli5er
urgent shi)ments to main business areas within a - to C hour time
frame& usuall time critical s)are )arts with a high 5alue and high
im)act on business3
+5 Direct E*press In1entor" Management
Direct 9=)ress In5entor ID9IJ allows customers to centrali;e stoc1 in
one warehouse and use e=)ress distribution to deli5er com)onents the
ne=t da3 9ntire management is done b D,+3
7
Logistics System in DHL
d5 Repair Ret!rn In1entor" Management
"eturn 2 "e)air In5entor I""IJ manages the )hsical flows for
"eturn material authori;ation3 In this case& D,+ will be res)onsible for
)ic1ing u) the bro1en )art& sending a new one& bringing the bro1en )art
to a re)air centre and mo5ing re)aired )arts bac1 into stoc13
e5 Cross Doc'ing
:ross'doc1 o)erations are facilities where shi)ments are recei5ed from
one mode of trans)ort and transferred to another mode& or where
shi)ments com)lete one leg of a *ourne )rior to commencement of
another *ourne3 Shi)ments are consolidated or deconsolidated3 Product
recei5ed into the facilit is not ta1en into in5entor3
7
Logistics System in DHL
97 In)ento$y O+timiF%tion"
4hrough effecti5e in5entor management& inefficiencies can be dri5en
out of the su))l chain& o5erall costs reduced and high ser5ice le5els
achie5ed3 4he o)timi;e in5entor at a line'item le5el at e5er stage of
the su))l chain3
D,+ focuses on dri5ing results in6
Su))lier management
9=)editing
#rder re)lenishment
Demand forecasting
Safet stoc1 setting
#rder )i)eline monitoring
9=cess stoc1 management
In5entor o)timi;ation is su))orted b in5entor management
software that calculates Eline item ris1 )rofilesE that measure the
5ariabilit of demand and su))l for each line item within a customer(s
in5entor3
D,+ offers6
A5erage of -.A in5entor reduction and GA im)ro5ement in )roduct
a5ailabilit
"educed in5entor and o5erhead costs
Im)ro5ed sales& )rofitabilit and return on in5estment
,igh ser5ice standards
Better matching of su))l with demand
7
Logistics System in DHL
More streamlined and res)onsi5e su))l chain
S*%$e&,-se$ 0%$e*o-sing
#ur shared'user facilities are designed to meet the needs of
organi;ations of an si;e3 :urrentl& we )ro5ide shared'user ser5ices to
leading manufacturers and retailers of medical su))lies& consumer
)roducts& industrial equi)ment& chemicals and technolog3
4hrough sharing of D,+Es resources& such as s)ace& labour& equi)ment
and trans)ortation& customers benefit from snergies that considerabl
reduce su))l chain costs3 4his en5ironment returns significant 5alue to
a small business requiring distribution o)erations without long term
lease or ca)ital commitments& or a large enter)rise handling a new
acquisition& )roduct launches or seasonal o5erflow3
C%m+-s So'-tions
%e )ioneered the cam)us model to )ro5ide regional customers with a
fle=ible solution designed to ca)itali;e on similar distribution channels&
minimi;e labour costs& and increase s)eciali;ed equi)ment utili;ation3
:am)uses are strategicall located at 1e distribution )oints in <orth
and South America& 9uro)e and select locations in Asia& allowing for
e=)edited transit times to large concentrations of consumers3
7
Logistics System in DHL
:7 S+eci%' 0%$e*o-se So'-tions
Ven&o$ H-(s
warehousing and deli5er of ser5ice )arts& based on demand )ull3
Vendor hubs are usuall located in close )ro=imit to the manufacturing
facilit3
Re)e$se Cente$s
s)eciall designated facilities for the recei)t and handling of returned
)arts for re)air& reccling or dis)osal3
Bon&e& 0%$e*o-sing
Bonded warehouses )ro5ide secure en5ironments in which customersE
)roducts can be held without immediate )ament of local duties and
ta=es3
S*%$e&,-se$ 0%$e*o-sing
#ur shared'user facilities are designed to meet the needs of
organi;ations of an si;e3 :urrentl& we )ro5ide shared'user ser5ices to
leading manufacturers and retailers of medical su))lies& consumer
)roducts& industrial equi)ment& chemicals and technolog3
4hrough sharing of D,+Es resources& such as s)ace& labour& equi)ment
and trans)ortation& customers benefit from snergies that considerabl
reduce su))l chain costs3 :onsequentl& the customer can increase
efficiencies throughout their distribution networ1 and maintain a higher
le5el of ser5ice to their customers3
7
Logistics System in DHL
O-tso-$cing P$o/ects
#utsourcing in5ol5es D,+ ta1ing o5er and managing )re5ious in'house
logistics o)erations& including6
Distribution centers
4rans)ort o)erations
Bac1'office functions
Su))l chain management functions
After sales ser5ices
7
Logistics System in DHL
V%'-e #&&e& Se$)ices
:o )ac1ing
Product assembl
#ther 5alue added ser5ices
57 Co,+%c.ing
%e offer a com)rehensi5e selection of manufacturing and )ac1aging
ser5ices through Power Pac1aging a D,+ :om)an3
B integrating manufacturing and )ac1aging o)erations within their
su))l chains& our customers can6
Add fle=ibilit
Im)ro5e ser5ice le5els
"educe costs
Accelerate time to mar1
Increase asset utili;ation
In addition to these core )ac1aging ser5ices& Power Pac1aging brings a
unique set of ser5ices and ca)abilities for customers that include6
7
Logistics System in DHL
%7 Be)e$%ge m%n-@%ct-$ing"
Blending& mi=ing and filling of hot and cold fill be5erages and
concentrates in the following t)es of containers6
Plastic bottles IP94J and glass containers I/. o; u) to /-G o;J
Shelf'stable containers I)a)erboard& )lastic cu) and bag'in'a'bo=J
(7 De&ic%te& @%ci'ity se$)ices"
4urn1e manufacturing solutions including6
Site selectionZde5elo)ment
Facilit and sstems design
<ew facilit start'u) and o)eration
c7 Ot*e$ se$)ices"
Pac1aging and raw material sourcing& )rocurement and assembl
BatchZqualit control trac1ing 5ia digital eas'to'trace coding sstem
Full range of secondar )ac1aging ser5ices
7
Logistics System in DHL
:7 P$o&-ct #ssem('y
Post)onement& quic1 res)onse and mass customi;ation are
brea1through business strategies enabled 5ia )ac1aging ser5ices3
Integrating )ac1aging o)erations into distribution centers streamlines
fulfillment reducing cost& enhancing )roduct 5isibilit and control& and
im)ro5ing s)eed'to'mar1et and fle=ibilit in the su))l chain3
Pac1aging ser5ices include6
Post)onement )ac1aging ' )rimar& secondar and s)ecialt
com)onents
:o')ac1ing& 1itting& assembl and re)ac1aging
"etail'read& )oint'of')urchase dis)las
+ot control 5ia 5ariable digital and laser )rinting
Machiner sstem engineering ' labeling& bagging& carton filling& club
store )ac1s& clamshells and )rinted and un)rinted film o5er'wra)s
Ma1e'to'order )allets
Product rewor1Zredress
7
Logistics System in DHL
97 Ot*e$ V%'-e #&&e& Se$)ices
%71ittingHP$e,#ssem('ing
Xitting is the addition of items such as accessories and batteries to the
)roduct )ac13 Pre'assembling is com)letion of a finished )roduct from
com)onent )arts or )re')rogramming of )roducts3
(7 Re,0o$.ingHRe,P%c.ing
"e)ac1ing for a s)ecific customer can include re)alletisation3
"ewor1ing is the modification of )roducts to suit a local mar1et3
c7 P%c.%gingHB-n&'ing
Pac1aging includes )ac1ing of )roducts into suitable media for
trans)ortation and retail dis)la3 Bundling is the assembl of a number
of )re')ac1aged )roducts to ma1e u) an integrated )roduct offering3
&7 D# Cont$o'
Vualit control ensures that )roduct is recei5ed into and dis)atched
from the warehouse in a suitable condition& free from faults and defects3
e7 L%(e'ingHMe$c*%n&ising
4he a))lication of labels either to the )roduct or to the )ac1aging3
Merchandising can include the addition of )rice stic1ers or )romotional
items read for retail dis)la3
7
Logistics System in DHL
E3te$n%' Pe$@o$m%nce Me%s-$ement
%hile internal measures are im)ortant for detailed organi;ational
monitoring& e=ternal )erformance measures are also necessar to
monitor& understand and maintain a focused customer )ers)ecti5e and to
gain inno5ati5e insights from other industries3 4he to)ics of customer
)erce)tion measurement and best )ractice benchmar1ing& which address
these requirements& are discussed and illustrated below3
C-stome$ Pe$ce+tion Me%s-$ement
4o succeed in an acti5ities of business one has to alwas cater to and
satisf the needs of the customer3 4o do so& it is essential for one to
1now how the customer thin1s in order to meet his needs in a more
satisfing manner3 4herefore& an im)ortant com)onent of leading edge
logistical )erformance is the regular measurement of customer
)erce)tions3 Such measures can be obtained through sur5es or b
sstematic order follow u)3 4hese sur5es can be com)an ' or industr
Y s)onsored3 Such sur5es as1 questions regarding the firm(s and the
com)etitor(s )erformance in general or for a s)ecific order in )articular3
Most of the sur5es incor)orates measurement of customer )erce)tions
regarding a5ailabilit& )erformance'ccle time& information a5ailabilit&
)roblem resolution and )roduct su))ort3 4he sur5e ma be de5elo)ed
and administered b the firm itself or b consultants& deli5er agents or
industr organi;ations3
7
Logistics System in DHL
International e=)ress door'to'door deli5er o5ernight or b the
end of the ne=t )ossible business da for goods sub*ect to
:ustoms clearance7
OneA $e'i%('e com+%ny m%.es inte$n%tion%' s*i++ing e%sy3
<eed to get )roducts& sam)les& or s)ares to someone fast[ 4hen trust
D,+(s %orldwide Parcel 9=)ress to e=)edite urgent shi)ments from
our door& through customs direct to the recei5er ' 5irtuall anwhere in
the world3 #ne com)an means ou eliminate all the hassles of
international shi))ing3 7ou ne5er lose sight of our shi)ments3 And
with D,+(s customs e=)ertise& ou get instant ad5ice regarding local
regulations and customs documentation& ensuring the smooth clearance
of our goods3 %hen it comes to deli5ering our com)an(s time'
critical shi)ments Y and our re)utation& rel on D,+(s %orldwide
Parcel 9=)ress3
Worldwide Parcel Express.
7
Logistics System in DHL



"ne company to keep your
business movin!.
When you need to get your goods
delivered %uic&ly' you don(t need the
hassle o) bro&ers or guessing the
ans*ers on customs )orms. With
World*ide #arcel e+press' international
shipping couldn,t be easier.
Beneft from the largest international express
networ and more in!house customs expertise
than anyone else Experienced "#$ personnel
ensure deli%ery o%ernight in most locations or by
the end of the next possible day
&ne price for door!to!door deli%ery eliminates
hidden costs so you can a%oid surprises for your
customers and your 'inance Manager. (e%er lose
sight of your goods. )ccess tracing and deli%ery
details from %irtually anywhere %ia the *nternet+
e!mail+ W)P+ SMS or phone
One company to handle your shipments
More efficient processes
Customs experience and advice to ensure
smooth clearance
Shorter lead times through direct
distribution
Ability to invoice uic!er and improve
-ain greater control over
your business.
7
Logistics System in DHL
RECOMMEND#TION

57 ENH#NCE THE SM#RT,TR!C1 PROJECT
Because of the stage of recession and high com)etition& the
com)anies need to ma1e difference to ha5e new customers and
increase their mar1et share3 4o in5ent com)letel new )roduct can be
5er e=)ensi5e and ta1e 5er much time3 So& ma1ing little difference
on the current )roduct or ser5ice can be better3 At this time& we need
to tal1 about inno5ation3
As a :9# of D,+ +ogistics& enhancing the Smart'4ruc1
Pro*ect is going to be m first strateg3 4his )ro*ect will allow our
com)an to deli5er faster and cut cost b using less fuel34o achie5e
this goal& we will follow some ste)s6
a3 Increase the budget of "2D /.A3
b3 Pre)are an office for a new inno5ation team and assign a leader to
wor1 on this )ro*ect3
c3 Also )a )remium for new and creati5e ideas whoe5er gi5es it
Ie5en *uniorsJ3 So this will )ro5ide us inno5ati5e atmos)here
:7 #D!IRE SM#LL , SIGE LOGISTICS COMP#NIES"
B acquiring small local com)anies in different countries li1e :hina&
India& $SA& will gi5e us )recense in that countries3 Also& this will
decrease the threat of restrictions in those com)anie3 95en the are small
com)anies& the can ha5e creati5e solutions to different )roblems3 So we
are acquiring new brains at the same time3 %e can get some ideas from
them to im)ro5e our s1ills3 I mean we are not firing )eo)le who were
wor1ing there actuall& we are hiring them to wor1 with us3
7
Logistics System in DHL
Conc'-sion
+ogistics is one the most im)ortant and integral )art of an organisations
strateg and function3 %hen the logistical )rocess is carried out
accuratel then not onl the com)an reduces the )roduction cost but
also im)ro5es the efficienc and customer satisfaction3 #5erall logistics
management is 5er im)ortant for toda(s highl com)etiti5e and cut'
throat cor)orate world3
D,+ has the world(s largest e=)ress and logistics <etwor13 #5er
the )ast decades it had turned deli5ering goods into a finel oiled
)rocess3 Be it a boo1& )en& %IP material& drugs& ha;ardous chemicals&
clothes& documents& wild animals and an other thing under the sun D,+
deli5ers it3 %ith a networ1 s)anning -.. countries and with its )ri5ate
fleet of air)lanes& mobile 5ans& cargo shi) carriers 2 e5en rail wa
automoti5es in some countries D,+ can handle an t)e of goods3 <ot
onl has that with international networ1 there come the hassle of
documentation and )a)erwor1& standard )ac1aging and other formalities
to adhere to3 But D,+ has its own de)artment which loo1s into the
international laws and other formalities3 In the end what matters is
deli5ering well in good condition at the door ste) of the customer3 A
ha)) and satisfied customer ma1es the business grow3 :om)etitors ha5e
come and gone but D,+ has been able to 1ee) its <o / )osition intact3
4his is because of its dnamic nature and attitude of maintaining good
customer relations3 +ogistics management is im)ortant for e5er
organi;ation but more so D,+3
%e ha5e tried to incor)orate all the facets of logistics which
)ro)el D,+ to be the best delie5er and carriage'ser5ice around the
7
Logistics System in DHL
world3 <o wonder that D,+ is head and shoulders abo5e all of its
com)etitors\
B*B$*&,-)P#.
aJ +ogistics and Su))l :hain Management' %ritten b Martin
:hristo)her
bJ Indian +ogistics Industr? I-..GJ )ublished b C-s*m%n >
0%.e@ie'&
cJ B$SI<9SS +#!IS4I:S Y B#RDI
dJ 9lements of +ogistics Management' S3D3AP,A+9
0e(sites"
/. www.google.com
0. www3logisticmanagement3com
1. www3about3com
2. www3dhl3com

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