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12971481-Dhl-Project

12971481-Dhl-Project

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05/14/2013

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Sections

  • Executive summary
  • Objective of the project
  • Research methodology
  • Introduction To Logistics
  • History and background of DHL
  • The world's largest express and logistics Network
  • Project Management by DHL
  • INTEGRATED LOGISTICS
  • Inventory Flow
  • Information flow
  • Logistical information involves two major types of flows:
  • Forecasting
  • Purpose of DHL Web Shipping:
  • Supply Chain Management
  • Definition for supply chain management
  • Explanation:
  • International Supply Chain
  • Reverse Logistics
  • Service logistics
  • Inbound to Manufacturing
  • Medical Device Distribution
  • Distribution to stores management
  • Extended Supply Chain Services
  • Implementation Services
  • Performance Management :
  • Outsourcing Projects
  • TRANSPORTATION
  • Transport Functionality
  • Principles
  • Transport Infrastructure
  • RAIL NETWORK
  • Inventory Management and Warehousing
  • Warehouse Infrastructure Networks
  • Multi User Centres
  • Strategic Part Centres (SPC)
  • Express Logistics Centres (ELC)
  • Warehouse Management Solutions
  • Strategic Inventory Management
  • Direct Express Inventory Management
  • Repair Return Inventory Management
  • Cross Docking
  • Inventory Optimisation
  • Shared-user Warehousing
  • Special Warehouse Solutions
  • Technological Electronics/Telecom solutions
  • Value Added Services
  • Co-packing
  • Product Assembly
  • Other Value Added Services
  • External Performance Measurement
  • Conclusion
  • BIBLIOGRAPHY

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Tho TABLE OF CONTENT
Executive summary..........................................................................................................3 Objective of the project.....................................................................................................4 Research methodology.....................................................................................................5 Introduction To Logistics...................................................................................................6 History and background of DHL.......................................................................................7 The world's largest express and logistics Network.......................................................8 Project Management by DHL...........................................................................................9 INTEGRATED LOGISTICS............................................................................................10 Inventory Flow.............................................................................................................11 Information flow...........................................................................................................12 Logistical information involves two major types of flows:...........................................12 Forecasting.................................................................................................................13 Purpose of DHL Web Shipping: ................................................................................15 Supply Chain Management............................................................................................17 Definition for supply chain management........................................................................17 Explanation:....................................................................................................................17 DHL International Supply Chain.....................................................................................18 Reverse Logistics...........................................................................................................20 Service logistics..........................................................................................................20 Inbound to Manufacturing...........................................................................................21 Medical Device Distribution........................................................................................23 Distribution to stores management.............................................................................23 Extended Supply Chain Services...................................................................................23 Implementation Services............................................................................................25 Performance Management :...........................................................................................26 Outsourcing Projects...................................................................................................27 TRANSPORTATION......................................................................................................31 Transport Functionality...............................................................................................31 Principles.................................................................................................................32 Transport Infrastructure..................................................................................................34 RAIL NETWORK.....................................................................................................35 Inventory Management and Warehousing....................................................................39 Warehouse Infrastructure Networks...........................................................................40 Multi User Centres......................................................................................................40 Strategic Part Centres (SPC)......................................................................................41 Express Logistics Centres (ELC)................................................................................41 Warehouse Management Solutions...........................................................................41 Strategic Inventory Management................................................................................42 Direct Express Inventory Management......................................................................42 Repair Return Inventory Management.......................................................................42 Cross Docking.............................................................................................................42 Inventory Optimisation....................................................................................................43 Shared-user Warehousing.............................................................................................44 Special Warehouse Solutions........................................................................................45 Outsourcing Projects .....................................................................................................46 Technological Electronics/Telecom solutions................................................................47

2 Value Added Services ........................................................................................................................................51 Co-packing..................................................................................................................51 Product Assembly.......................................................................................................53 Other Value Added Services......................................................................................53 External Performance Measurement......................................................................55 To succeed in any activities of business one has to always cater to and satisfy the needs of the customer. To do so, it is essential for one to know how the customer thinks in order to meet his needs in a more satisfying manner. Therefore, an important component of leading edge logistical performance is the regular measurement of customer perceptions. Such measures can be obtained through surveys or by systematic order follow up. These surveys can be company - or industry – sponsored. ........................................................................................................................................56 Such surveys ask questions regarding the firm’s and the competitor’s performance in general or for a specific order in particular. Most of the surveys incorporates measurement of customer perceptions regarding availability, performance-cycle time, information availability, problem resolution and product support. The survey may be developed and administered by the firm itself or by consultants, delivery agents or industry organizations.....................................................................................................56 Conclusion......................................................................................................................56 BIBLIOGRAPHY.............................................................................................................58

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Executive summary

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Objective of the project

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Research methodology

It is difficult to accomplish any marketing or manufacturing without logistical support. services and related . inventory. It involves the integration of information. The operating responsibility of logistics is the geographical repositioning of raw materials. implementing and controlling the efficient. effective flow and storage of goods. warehousing. material handling. transportation. work in process.6 Introduction To Logistics Logistics is concerned with getting the products and services where they are needed when they are desired.it is the process of planning. and packaging. and finished inventories where required at the lowest cost possible The formal definition of the word ‘logistics’ is: .

In order to understand the concepts of logistics in terms of practical usage and to glimpse into the how a real company or organization uses logistics as a formidable tool to gain customer satisfaction. Larry Hillblom and Robert Lynn. reduce overall cost and increase efficiency we selected “DHL” the worlds leading courier service company. just months after the world had marveled at Neil Armstrong's first steps on the moon.7 information from the point of origin to the point of consumption for the purpose of conforming to customer requirements. With this concept. History and background of DHL DHL are the first letters of the last names of the three company founders. Adrian Dalsey. beginning customs clearance of the ship's cargo before the actual arrival of the ship and dramatically reducing waiting time in the harbour. a new industry was born: international air . The founders began to personally ship papers by airplane from San Francisco to Honolulu. the three partners took another small step that would have a profound impact on the way the world does business. In 1969. Customers stood to save a fortune. But DHL is multi faceted and offers myriad types of services.

The DHL Network continued to grow at an incredible pace. Below are the global facts and figures that show you the scale of the world's largest express and logistics network.In 2003.from express document shipping to supply chain management.000 employees. overland transport and air freight. DHL was already present in 170 countries and had 16. Deutsche Post World Net consolidated all of its express and logistics activities into one single brand. DHL The world's largest express and logistics Network DHL is the global market leader in international express. Global Facts and Figures . the rapid delivery of documents and shipments by airplane.8 express. Deutsche Post World Net became the major shareholder in DHL. By 1988. DHL offers a full range of customised solutions . then the Middle East. By the end of 2002. The company expanded westward from Hawaii into the Far East and Pacific Rim. It is also the world's number 1 in ocean freight and contract logistics. DHL was 100% owned by Deutsche Post World Net. Africa and Europe. At the beginning of 2002.

500 Number of Hubs. The basic steps in it are as follows: Project Management by DHL DHL manages projects according to a six-step process:   Initiation: The formal start of the project Design: The formal agreement on how to approach the project and its deliverables   Planning: Following agreement.000 Number of Offices: around 6.9 Number of Employees: around 285.200 Number of Countries & Territories: more than 220 Shipments per Year: more than 1. Warehouses & Terminals: more than 450 Number of Gateways: 240 Number of Aircraft*: 420 Number of Vehicles: 76. a detailed plan is created Execution: After detailed planning and preparation.000 The reason for the success of DHL is due to its very effective and efficient way of carrying out the process of project management. the project goes 'live'  Closing: Gradually phase out and prepare for handover of the deliverables  Handover: The formal end of the project .5 billion Destinations Covered: 120.

As products and materials are procured. inventory flow and information flow. forecasts and orders. Inventory Flow Suppliers Physical distribution Manufacturing support Procurement Customers Information Flow .10 INTEGRATED LOGISTICS Logistics is viewed as the competency that links an enterprise with its customers and suppliers. Thus the process is viewed in terms of two inter-related efforts. Information from and about customers flows through the enterprise in the form of sales activity. a value added inventory flow is initiated that ultimately results in ownership transfer of finished products to customers.

dealer or customer. the receiver and also the intermediateries. That means distribution Procurement also includes the material needed for packaging . wholesaler. For a large manufacturer. sender. By moving inventory when and where needed. which ultimately culminate in the delivery of the product to an industrial user. the logistical process adds value.11 Inventory Flow The management of logistics is concerned with the movement and storage of materials and finished products. Thus the material gains value at each step. From the initial purchase of a material or component. logistical operations may consist of thousands of movements. In order to understand logistics it is useful to divide it into three areas:  Physical distribution  Manufacturing support  Procurement For DHL: DHL is completely service oriented therefore it does not have its own material movement but that of it only involves physical the customers both the and procurement.

There is no value addition to the material itself but it is done to the service which is provided ( eg if there has to be a certain package delivered from India to UK the normal services would take about 2 days whereas as a super fast delivery would be done in about 9 hours) Information flow Information flow identifies specific locations within a logistical system that have requirements. The primary objective of developing and specifying requirements is to plan and execute integrated logistical operations. physical exotic goods like etc) clothing. Information also integrates the three operating areas. wooden crates. household good. chemicals. for checked weighed. and depending upon its various characteristics it is packed.12 such as paper. The goods are then dispatched to their destinations. moulded trays and boxes. Operation flows . condition. Coordination flows 2. The materials or the goods collected from the senders documents. are animals (including papers. Logistical information involves two major types of flows: 1. standard containers wraps. plastic inlays etc.

. current activity levels. Planning and coordination flows Coordination is the backbone of the overall information system. which are matched to the required products and services to be performed.13 1. Forecasting Forecasting utilizes historical data. and planning assumptions to predict future activity levels.  Strategic objectives: Strategic objectives detail the nature and location of customers. For DHL It implies estimating the time requires for collecting the goods from the door step of the sender and then estimating the time for the goods to reach the final customer.

For DHL DHL’s whole business is dependent on the vital point of timely delivery. They can accurately gauge how much time it will take for the goods to reach its end destination. Based on the distance to the final receiver.14 Logistical forecasting is generally concerned with relatively short –term predictions. Operational requirements deal with  Order management  Order processing  Distribution operations  Inventory management  Transportation and shipping  Procurement . Operational flows The second aspect of information requirements is concerned with directing operations to receive. the accessibility. The overall purpose of information planning/coordination flow is to integrate specific activities within a firm and to facilitate overall integrated performance. process. 2. and ship inventory as required supporting customer and purchasing orders. the documentations and procedures that need to be handled etc they have fine tuned the process of delivery.

They are given a certain password which they can use to trace via online or their customer service helpline. business travelers or receptionists. through the entire process.15 For DHL: DHL owns its success for the efficiency with which the operations are carried out. simplified navigation guides customers. With a click of a mouse customers can:  Select the right shipping and value-added services for each shipment    Prepare air waybills and customs documentation on-line Get the latest service bulletins and customs information Book collections and track shipments on-line . DHL WEB SHIPPING needs no special software or training. quickly and easily. book pick-ups. Here not only the company but the sender and sometimes the receiver can track the goods through their information center. store contact details and track their deliveries. So they can respond to any shipping request within minutes. Ideal for busy office managers. Purpose of DHL Web Shipping: DHL WEB SHIPPING's new. DHL WEB SHIPPING is the on-line express shipping tool that helps customers prepare documents.

16    Save up to 300 customer addresses Access shipment records for 99 days Alert recipients and other interested parties DHL WEB SHIPPING is also perfect for telecommuters. You can order a pick-up. . check service availability or track your shipments from any location. direct from your wireless laptop. in real time.

17 Supply Chain Management Definition for supply chain management “Supply chain management is the management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole. DHL has developed a reputation for consistently developing innovative solutions that streamline operations and improve control. in the different processes and activities that produce value in the form of products and services in the hands of ultimate consumer. Their in-house teams have contributed to the solutions design of some of the world's leading brands and enabled to win key contacts. from logistics network strategy. DHL solutions design team offers a wide portfolio of expertise and services. transport design.” Explanation: The supply chain is the network of organizations that are involved through upstream and downstream linkages. For DHL: Supply Chain Optimisation Good design is at the heart of an effective supply chain solution. .

better able to respond to changes in consumer demand  Reduce lead times. through to operational improvement and inventory analysis. International Supply Chain Extended Supply Chain Services Implementation Services Outsourcing Projects DHL International Supply Chain DHL’s international supply chain management solutions are focused on helping customers take increased control of international inbound supply chain to maximise the value of international and global sourcing. and associated storage costs Customer-focused solutions are built up from the following core services: .18 warehouse design and simulation. and enable earlier decision making  Create a more agile supply chain. inventories. DHL helps customers :  Give visibility of the upstream supply chain.

including: vendor management. management. customs brokerage. Logistical services that are offered. customs brokerage. direct store delivery (US only)  Supply chain visibility and management. including: purchase order management. de-consolidation and preretail services. European managed transport  Destination management. including: port and demurrage management. exception inventory management. RFID product and tracking.19  Origin management. port to distribution centre transportation. Reverse Logistics Service Logistics Inbound to Manufacturing Medical Device Distribution Distribution to Stores Management Engineering Response .  Global forwarding services are provided across all major routes. planning forecasting. supplier collections. including: air/ocean/road/rail freight forwarding and management. consolidation services and value-added services  Global forwarding.

24 hours a day. four. seven days a week. . verifying and managing returned products  Express Delivery: Exchange of Dead On Arrival products Service logistics Service and replacement parts DHL’s service and replacement parts service involves the management of manufacturers' replacement parts delivered to and from customers according to pre-defined service levels or warranty agreements on a one-. Items include the recovery of obsolete or nonoperational white goods such as refrigerators. back up the supply chain to recapture values and ensure the safe disposal of goods.20 Reverse Logistics DHL’s reverse logistics solutions help customers plan. implement and control flow of materials and manage related information. two-.or eight-hour and next-day basis. plus the removal of old furniture on delivery of new or replacement products. sorting. Services include:  Roll in Management: de-installation of finished goods at the customer's site  Returns Management: receiving.

reporting and control Cost control of the demand chain Key services include:      International freight forwarding Domestic and regional inbound deliveries Inventory planning.21 DHL works closely with customers to overcome common issues such as:       Poor parts availability High inventory investment Long lead times. accentuated by global sourcing High levels of customer returns Poor visibility. procurement and analysis Distribution centre operations Outbound delivery The entire process is underpinned by a web-enabled electronic order processing and order monitoring tool. Inbound to Manufacturing Inbound to manufacturing is the complete end-to-end logistics management of inventories. forecasting. . facilities and labour associated with the inbound flow of materials from vendors and supplier origins to consumption points in manufacturers production lines.

22 The service encompasses:      Network. order management and supply chain execution processes with their component suppliers. DHL implements allow warehouse chain management and supply chain event management systems to manage just-in-time deliveries and supply participants to exchange forecast requirements in real time. transportation and facility design Inventory optimisation Supplier management Transportation management In-plant services Key to the service is integrating manufacturers' forecasting. Value is created for manufacturers and component suppliers throughout the world by:   Enabling a robust and cost-effective supply chain Providing the necessary visibility so that the location of all components within the supply chain is known to all supply chain participants    Reduce inventory and investment costs Improve delivery times Co-ordinate multiple components more efficiently .

we manage the materials supply chain from works planning and inbound goods through to on-site works. Extended Supply Chain Services . Engineering Response Through our Engineering Response services. builders and construction workers in the field. processing. value recovery. delivering stock out to engineers. This includes the receipt of product from local or global manufacturing sites and downstream distribution to hospitals. sortation. These solutions are built from several core services: reverse logistics collections. disposal and compliance.23 Medical Device Distribution DHL country-based warehouses for a number of manufacturers to service a local customer base. Distribution to stores management DHL distribution to store services are focused on helping retailers create efficient and flexible supply chains to deliver product to retail outlets at high levels of service. repair/refurbishment.

based on all services performed in a specific time-period by more than one service provider. • Call Centre Management A Call Centre manages orders. thus enabling informed decisions regarding the disposition of stock. • Global Inventory Management DHL gives the customer a global view of inventory. execution. management. • Order Management Receipt. combined with the European . provides customer services and functions as a Help-desk. improving efficiencies and reducing costs. • Freight & Customs Solutions DHL's many years of experience with international trade requirements and formalities.24 DHL not only provides physical logistics services but also manages other enhanced supply chain services. made available in an agreed format. monitors sales activities. • Consolidated Billing Services The creation of a consolidated and categorized invoice. sequencing and dispatch of orders in a timely manner.

25 Competence Centre and country expertise. migration. real estate. gives customers the leading edge in service. engineering. The major topics in implementation include business processes. setting the targets and describing the deliverables in detail. IT systems. finance and legal considerations. Health and Safety (QEHS) is based on five corporate values:  Customer satisfaction: Providing our customers and their customers with excellent. HR. high value logistics solutions  Employee motivation: Building on the know-how and stimulation of individual potential in multi-cultural teams . • Quality Management Total Quality Management is a management strategy that integrates quality orientation into the whole structure and workflow of a company by using methods and techniques of quality management Corporate Policy for Quality. Implementation Services • Implementation and Project Management Implementation starts by defining project aims. Environment. quality and management in cross border transactions.

Measured component elements interacts are reviewed all the as a system. parts as each it. according unit.26  Operational excellence: Continuous improvement of processes and services to fulfil or exceed expectations  Corporate citizenship: Acting as a responsible corporate citizen in all countries  Shareholder reward: Developing a sustainable business to provide increasing shareholder value Globally. with other around Performance measuring not only records historical performance but also provides early indication of any service slippage. DHL to management the systems are for certified quality international standard management systems ISO 9000 in almost every operating Performance Management : Performance management is a key part of the supply chain. In this .

27 second role. knowledge and resources in terms of personnel and supply chain tools. All services are targeted at optimising logistical operations in both process and strategy. The services are as follows: . Outsourcing Projects Outsourcing involves DHL taking over and managing previous inhouse logistics operations. including:      Distribution centres Transport operations Back-office functions Supply chain management functions After sales services Innovative Supply Chain Development Supply Chain Management services are delivered across industry sectors and provide expertise. the measures provide a valuable contribution to DHL's Continuous Improvement Programme. and are aligned to the client's commercial expectations.

• After Sales Optimisation Optimising return logistics and spare parts logistics as well as maintenance and repair services. . Data analysis allows DHL to provide customers with 'what if modeling' or the impact of changing the business rules. • Supply Chain Re-engineering DHL works with customers to review supply chain efficiencies. creation of tender documents and tender processing.28    Strategic Logistics Consulting Lead Logistics Provider Consulting and providing Transport optimisation: Route-Pro and Trans-Pro       Consulting and providing Supply Chain Design Consulting and providing Transportation Engineering. implementation of new IT Systems. One of the main tasks is to evaluate cost efficiency to ensure that costs are being driven down throughout the contract duration. project management for customers. optimisation and re-engineering Implementation and Project Management Process Management Outsourcing DHL’s consulting services also offer re-organisation of customer facilities.

• After Sales Optimisation Optimising return logistics and spare parts logistics as well as maintenance and repair services. Vehicle Management Services . These solutions are built from several core services including reverse logistics:    logistics network strategy warehouse design and simulation transport modelling. we help you overcome challenges at the end of the automotive supply chain.29 • Vehicle Management Services Our vehicle management services focus on the management of sales and marketing support programmes for automotive manufacturers. Combining a range of services and systems to deliver a global response. • Distribution to Stores Management DHL’s distribution to store solutions are focused on helping retailers create efficient and flexible supply chains to deliver product to retail outlets at high levels of service.

we help you overcome challenges at the end of the automotive supply chain. • These solutions are built from several core services including reverse logistics:    logistics network strategy warehouse design and simulation transport modelling.30 Our vehicle management services focus on the management of sales and marketing support programmes for automotive manufacturers. Distribution to Stores Management DHL’s distribution to store solutions are focused on helping retailers create efficient and flexible supply chains to deliver product to retail outlets at high levels of service. . Combining a range of services and systems to deliver a global response.

. it is important that items be moved only when it truly enhances the product value. A primary transportation function of product movement is moving up and down the value chain. commonly referred to as in-transit inventory. components. assemblies. Transportation involves the use of temporal resources because product is inaccessible during the transportation process. financial.31 TRANSPORTATION Transport Functionality Transportation is one of the most visible elements of logistics operations. Transportation provides 2 major functions: product movement & product storage. or finished goods. work-in-process. Product Movement Whether the product is in the form of materials. Since transportation utilizes temporal. and environmental resources. transportation is necessary to move it to the next stage of the manufacturing process or physically closer to the ultimate consumer. is becoming a significant consideration as a variety of supply chain strategies such as just – in – time and quick response practices reduce manufacturing and distribution center inventories. Such product.

it is one of the largest consumers of energy (fuel and oil) in the domestic United States economy. air pollution and noise pollution. it accounts for close to 67% of all domestic oil use. transportation creates environmental expense through congestion. In fact. uses are financial required resources for because or internal public expenditures are necessary for private fleets or external commercial Transportation uses environment resources both directly and indirectly. At the same time the movement must take place in such a manner that meets customer demands regarding availability. Loss and damage expenses must also be minimized.32 Transportation expenditures transportation. delivery performance and shipment information Principles . The major objective is to move product from an origin location to a prescribed destination while minimizing temporal. Indirectly. In direct terms. financial and environmental resource costs.

g. a shipment of 800 miles will cost less than two shipments (of the same combined weight) of 400 miles. E.00.00. Economy of scale refers to the characteristic that transportation cost per unit of weight decreases when the size of the shipment increases. Transportation economies of scale exist because fixed expenses associated with moving a load can be spread over the load’s weight. while the 1. E.01. These costs are fixed because they do not vary with shipment volume. Then the 1-pound shipment has a per unit of weight cost of $10.33 There are two fundamental principles guiding transportation management and operations. time to position the vehicle for loading or unloading. Economy increases.000 pound shipment has a per unit of weight cost of $0. e. invoicing and equipment cost.g. Thus. They are economy of scale and economy of distance. The fixed expenses include administrative costs of taking the order.g. It is also generally true that larger capacity transportation vehicles such as rail or water are less expensive per unit of weight than smaller capacity vehicles like motor or air. suppose the cost to administer a shipment is $ 10. Transportation of distance refers to the characteristic that transportation cost per unit of distance decreases as distance . it can be said that an economy of scale exists for the 1000-pound shipment. truckload shipments cost less per pound than less-thantruckload shipments.

34 economy of distance is also referred to a se tapering principle since rates or charges taper with distance. Transport Infrastructure Transportation infrastructure consists of the rights-of-ways. and carrier organizations that offer transportation services on a for-hire or internal basis. Longer distances allow the fixed expenses to be spread over more miles. These principles are important considerations when evaluating alternative transportation strategies or operating practices. The objective is to maximize the size of the load and the distance that is shipped while still meeting customer service expectations. resulting in lower overall per mile charge. The nature of the . vehicles. The rationale of distance economies is similar to that for economies of scale.

Although the cost of license fees. In comparison to railroads. user fees. railroads have handled the largest number of ton-miles. This is because Motor carrier industry results from door-to-door operating flexibility and speed of intercity movement. MOTOR CARRIERS Highway transportation has increased rapidly since the end of World War II. motor carriers have relatively small fixed investments in terminal facilities and operate on publicly maintained highways.35 infrastructure also determines a variety of legal and economic characteristics for each mode or multimodal system. these expenses are directly related to the number of over-the-road units and miles operated. This early superiority enabled railways to transport large shipments very economically. As a result of the early establishment of a comprehensive rail network connecting almost all the cities and towns. They are even flexible because they can operate on each and every kind of roadways. and tolls are considerable. RAIL NETWORK Since olden times. railways dominated the intercity freight tonnage till World War II and in some cases of Europe. A mode identifies the basic transportation method or form. Asia and Africa they even connected the countries. .

WATER TRANSPORT It is the oldest mode of transportation. First it was the sailing vessels. Water transport ranks between rail and motor carrier in the fixed cost aspect. which generally operate on rivers and canals. The main advantage of water transportation is the capacity to move extremely large shipments. canals. and navigable rivers. In every country. which was replaced by steamboats in early 1800’s and by diesel power in the 1920’s. fewer system miles exist for inland water than any other transportation mode. have considerably more flexibility. & are restricted to deep-water ports for access. Water transport employs 2 types of vessels. which are generally designed for Ocean and Great Lakes use. diesel-towed barges. Labor requirements are also high because of driver safety restrictions and the need for substantial dock labor. Motor carriers are best suited to handle small shipments moving short distances. Deep-water vessels. Although water carriers must develop and operate their own terminals. In contrast.36 The variable cost per mile for motor carriers is high because a separate power unit and driver are required for each trailer or combination of tandem trailers. the right-of-way is developed and . Domestic water transportation – involves the Great Lakes.

The main disadvantage of water transport is the limited range of operation and speed. Its major advantage being its speed. inventory to be reduced or eliminated. But still air transport remains more of a potential opportunity than a reality because it is very much under utilized. Unless the origin and destination are adjacent. However premium carriers provide planes dedicated for freight operations. supplement haul by rail or truck is required. This premium service started . which allows other elements of logistical design. The high cost of jet aircraft.37 maintained by the government and results in moderate fixed costs as compared to railways and highways. The capability to carry very high cargo at an extremely low variable cost places this mode of transport in demand when low freight rates are desired and speed of transit is a secondary consideration. has limited the assignment of dedicated planes to allfreight operations. AIR TRANSPORT Air transport is the newest and the least utilized mode of transport. which is accompanied by high costs. coupled with erratic nature of freight demand. A coast-to-coast shipment via air requires only a few hours contrast to days taken by other mean of transportation. The high cost of transport can be traded off for high speed. such as warehousing.

. FOR DHL: DHL uses all the modes of transportations that is • • • • airways roadways waterways rail freight DHL has its own fleet of airplanes and motor vans. which is an ideal service for firms with a large number of high-value products and time-sensitive service requirements. Depending upon the final destination where the goods have to finally reach and the type of package the customer has paid for. The concept of economies of scale and economies of distance are both taken into consideration in case of larger consignments where DHL provides an appropriate logistical solution which helps in reducing the overall cost for the customers. DHL uses the individual modes of transport or a combination of either of these or all. Once again the geographical location and how fast the goods have to be delivered are the factors for the final selection of modes of transportation .38 off with documents and has moved onto large parcels.

39 Inventory Management and Warehousing. Warehouse Infrastructure Networks Warehouse Management Solutions Inventory Optimisation Special Warehouse Solutions Outsourcing Projects .

. dedicated storage solutions. reduces total operating costs and improves cycle times. Benefits include improvements in:      Customer service levels Stock accuracy Lead times Redundant stock costs Productivity responsiveness to a company's strategic needs Multi User Centres We provide a network of multi-user warehouses. distribution and aftermarket services in a way that improves inventory management. This encompasses the design implementation and operation for both dedicated and multi user sites.40 Warehouse Infrastructure Networks DHL warehouse service supports inbound logistics. These facilities can receive products from both local and global manufacturing sites. providing downstream distribution. enabling manufacturers to hold inventory at local level. whilst avoiding expensive. DHL facilities offer our customers warehousing that is fully integrated into the wider supply chain and meets demanding service levels.

Our Prologs WMS manages all critical processes in the . handling and storage of products and orders in a warehouse environment. The WMS also accurately records the location of inventory whilst stored in the warehouse. 2 and 4 hour order fulfillment stock optimisation across the complete network of SPCs guaranteed performance against agreed business rules Express Logistics Centres (ELC) Our Express Logistics Centres (ELCs) are regional centralised facilities offering:     order processing outsourced repair facilities custom final assembly kitting services Warehouse Management Solutions • Warehouse Management Systems The Warehouse Management System (WMS) records all events and actions in the receipt.41 Strategic Part Centres (SPC) Our Strategic Part Centers (SPCs) are in-country facilities offering:     1.

booking of transport capacity. usually time critical spare parts with a high value and high impact on business. Direct Express Inventory Management Direct Express Inventory (DEI) allows customers to centralise stock in one warehouse and use express distribution to deliver components the next day. communication with customs and other authorities).42 warehouse. time controlling. . In this case. Repair Return Inventory Management Return & Repair Inventory (RRI) manages the physical flows for Return material authorisation. DHL will be responsible for picking up the broken part. Strategic Inventory Management Strategic Inventory Management (SIM) has been created to deliver urgent shipments to main business areas within a 2 to 4 hour time frame. Shipments are consolidated or deconsolidated. Entire management is done by DHL. or where shipments complete one leg of a journey prior to commencement of another journey. sending a new one. and is also an important support for varied transport and distribution concepts (planning. bringing the broken part to a repair centre and moving repaired parts back into stock. Product received into the facility is not taken into inventory. Cross Docking Cross-dock operations are facilities where shipments are received from one mode of transport and transferred to another mode.

overall costs reduced and high service levels achieved. We optimize inventory at a line-item level at every stage of the supply chain.43 Inventory Optimisation Through effective inventory management. profitability and return on investment . DHL focuses on driving results in:        Supplier management Expediting Order replenishment Demand forecasting Safety stock setting Order pipeline monitoring Excess stock management Inventory optimisation is supported by inventory management software that calculates 'line item risk profiles' that measure the variability of demand and supply for each line item within a customers inventory. inefficiencies can be driven out of the supply chain. DHL offers:  Average of 20% inventory reduction and 8% improvement in product availability   Reduced inventory and overhead costs Improved sales.

such as space. product launches or seasonal overflow. we provide shared-user services to leading manufacturers and retailers of medical supplies.44    High service standards Better matching of supply with demand More streamlined and responsive supply chain Shared-user Warehousing Our shared-user facilities are designed to meet the needs of organisations of any size. industrial equipment. customers benefit from synergies that considerably reduce supply chain costs. • Campus Solutions We pioneered the campus model to provide regional customers with a flexible solution designed to capitalise on similar distribution channels. minimise labour costs. consumer products. . and increase specialized equipment utilization. chemicals and technology. equipment and transportation. labour. Through sharing of DHL's resources. This environment returns significant value to a small business requiring distribution operations without long term lease or capital commitments. or a large enterprise handling a new acquisition. Currently.

Currently. allowing for expedited transit times to large concentrations of consumers. Europe and select locations in Asia. Reverse Centres Specially designated facilities for the receipt and handling of returned parts for repair. • • Bonded Warehousing Bonded warehouses provide secure environments in which customers' products can be held without immediate payment of local duties and taxes. based on demand pull. Vendor hubs are usually located in close proximity to the manufacturing facility. • Shared-user Warehousing Our shared-user facilities are designed to meet the needs of organisations of any size.45 Campuses are strategically located at key distribution points in North and South America. we provide shared-user . recycling or disposal. Special Warehouse Solutions • Vendor Hubs Warehousing and delivery of service parts.

customers benefit from synergies that considerably reduce supply chain costs. Consequently.46 services to leading manufacturers and retailers of medical supplies. labour. consumer products. Outsourcing Projects Outsourcing involves DHL taking over and managing previous inhouse logistics operations. chemicals and technology. equipment and transportation. industrial equipment. the customer can increase efficiencies throughout their distribution network and maintain a higher level of service to their customers. Through sharing of DHL's resources. such as space. including:      Distribution centres Transport operations Back-office functions Supply chain management functions After sales services .

47 Technological Electronics/Telecom solutions Electronics/Telecom Core and Value-added Technology Solutions Inbound to Manufacturing Service Parts Logistics Technical Distribution Technical Services Electronics/Telecom Technology Manufacturers have some of the most complicated supply chain requirements of any industry because of the nature of the .

48 products: Our complex. transport. and delivery capabilities for any size. Modular networks consisting of warehouses and hubs. supply chain management and after sales. business optimisation and supply chain integration .spare parts Lead Logistics Provider (SCM) . Services include:  logistics operation. speed and dimension      Inbound logistics (VMI or JIT) Electronics Distribution Network (EDN) Reverse logistics After sales logistics . For optimum flexibility and speed. This is achieved by focusing on product availability and optimisation of product flows and supply chain costs. including transfer of staff. whether end-to-end solutions or management of partial supply chain solutions  Complete outsourcing. you can outsource your entire to DHL. reduce logistics solutions help technology companies inventory and cycle time. Electronics/Telecom DHL provides the know-how to optimize flows and drive down supply chain costs. downstream links enabling merge-in-transit. high value and rapid obsolescence. infrastructure financing. and maintain flexibility to meet market needs. while providing control and visibility through to final delivery. You reduce stock but not quality.integrated supply chain services from DHL. including distribution centers. back-office.

assembly and light manufacturing operations     order fulfillment and finished goods distribution integrated freight management and contract logistics services product delivery and installation. including vendor managed inventory hubs kitting. Service Parts Logistics . we provide a range of core and value-added services that reduce cycle times and improve performance. including reverse logistics aftermarket and critical service parts logistics Inbound to Manufacturing Our Inbound to Manufacturing service enables our customers to more effectively manage the inbound flow of materials from collection points at their component suppliers' facilities to consumption points in their production lines.49 Core and Value-added Technology Solutions Responding to customer needs. These include:  inbound logistics to production facilities. We help address the constant challenge for both finished goods manufacturers and component and sub-assembly suppliers who must adapt to shorter product lifecycles and the migration of production facilities to developing countries.

Technical Services Technology manufacturers expect every link in the supply chain to have capabilities to add value to their product or process. challenges vending equipment.50 Our Service Parts Logistics service involves the management of technology manufacturers' replacement parts delivered to and from customers according to pre-defined service levels or warranty agreements on a one-. seven days a week. 24 hours a day. service medical the equipment. Our tailor-made solutions can be integrated into existing customer operations at our warehouses. office equipment and telecommunications. . technical distribution meets associated with the effective and safe movement of high-value goods.or eight-hour and next-day basis. Technical Distribution Supporting companies in a wide range of industries including computer our equipment and peripherals. two-. The strength is the integrated approach with other segments of the business which improves time-to-market and reduces the cost for the customer. four.

51 Value Added Services • • • Co packing Product assembly Other value added services Co-packing We offer a comprehensive selection of manufacturing and packaging services through Power Packaging a DHL Company. Power Packaging brings a unique set of services and capabilities for customers that include: Dry foods manufacturing: Blending and production of complex. our customers can:      Add flexibility Improve service levels Reduce costs Accelerate time to mark Increase asset utilisation In addition to these core packaging services. pouch and canister filling in the following types of containers . By integrating manufacturing and packaging operations within their supply chains. multi-component products Carton.

metal cans. cartons. mixing and filling of hot and cold fill beverages and concentrates in the following types of containers:   Plastic bottles (PET) and glass containers (10 oz up to 128 oz) Shelf-stable containers (paperboard. procurement and assembly . slimsticks and standup/recloseable pouches)  Beverage manufacturing: Blending. Other services:  Packaging and raw material sourcing. plastic cup and bag-in-abox) Dedicated facility services: Turnkey manufacturing solutions including:    Site selection/development Facility and systems design New facility start-up and operation. glass or plastic jars) Flexible containers (form fill and seal pouches.52  Rigid containers (composite and plastic canisters.

bagging. point-of-purchase displays Lot control via variable digital and laser printing Machinery system engineering .primary. Packaging services include:  Postponement packaging . clamshells and printed and unprinted film over-wraps       Make-to-order pallets Product rework/redress Other Value Added Services . assembly and repackaging Retail-ready. and improving speed-to-market and flexibility in the supply chain. enhancing product visibility and control. Integrating packaging operations into distribution centres streamlines fulfillment reducing cost. secondary and specialty components Co-packing. kitting. quick response and mass customisation are breakthrough business strategies enabled via packaging services. club store packs.labelling.53  Batch/quality control tracking via digital easy-to-trace coding system Full range of secondary packaging services  Product Assembly Postponement. carton filling.

54 Kitting/Pre-Assembling Kitting is the addition of items such as accessories and batteries to the product pack. pre-assembly and sequencing of material flows. Line feeding covers the delivery of assembled components to a production line. Re-Working/Re-Packing Repacking for a specific customer can include repalletisation. Pre-assembling is completion of a finished product from component parts or pre-programming of products. Packaging/Bundling Packaging includes packing of products into suitable media for transportation and retail display. Bundling is the assembly of a number of pre-packaged products to make up an integrated product offering. . Reworking is the modification of products to suit a local market. Sequencing/Linefeeding Sequencing is the consolidation.

external performance measures are also necessary to monitor. External Performance Measurement While internal measures are important for detailed organizational monitoring. free from faults and defects. Customer Perception Measurement . are discussed and illustrated below. which address these requirements. The topics of customer perception measurement and best practice benchmarking.55 QA Control Quality control ensures that product is received into and dispatched from the warehouse in a suitable condition. Merchandising can include the addition of price stickers or promotional items ready for retail display. understand and maintain a focused customer perspective and to gain innovative insights from other industries. Labelling/Merchandising The application of labels either to the product or to the packaging.

The survey may be developed and administered by the firm itself or by consultants. Therefore. delivery agents or industry organizations. problem resolution and product support.56 To succeed in any activities of business one has to always cater to and satisfy the needs of the customer. information availability. Conclusion Logistics is one the most important and integral part of any organisations strategy and function. Such measures can be obtained through surveys or by systematic order follow up. These surveys can be company . performance-cycle time.or industry – sponsored. an important component of leading edge logistical performance is the regular measurement of customer perceptions. When the logistical process . Most of the surveys incorporates measurement of customer perceptions regarding availability. it is essential for one to know how the customer thinks in order to meet his needs in a more satisfying manner. Such surveys ask questions regarding the firm’s and the competitor’s performance in general or for a specific order in particular. To do so.

drugs. Overall logistics management is very important for today’s highly competitive and cut. But DHL has its own department which looks into the international laws and other formalities. documents. Competitors have come and gone but DHL has been able to keep its No 1 position intact.throat corporate world. DHL has the worlds largest express and logistics Network. WIP material. hazardous chemicals.57 is carried out accurately then not only the company reduces the production cost but also improves the efficiency and customer satisfaction. Not only that with international network there comes the hassle of documentation and paperwork. This is because of its dynamic nature and attitude of maintaining good customer relations. Be it a book. Over the past decades it had turned delivering goods into a finely oiled process. clothes. We have tried to incorporate all the facets of logistics which propel DHL to be the best delievery and carriage-service around . cargo ship carriers & even rail way automotives in some countries DHL can handle any type of goods. A happy and satisfied customer makes the business grow. pen. Logistics management is important for every organisation but more so DHL. In the end what maters is delivering good in good condition at the door step of the customer. wild animals and any other thing under the sun DHL delivers it . mobile vans. With a network spanning 200 countries and with its private fleet of airplanes. standard packaging and other formalities to adhere to.

No wonder that DHL is head and shoulders above all of its competitors! BIBLIOGRAPHY .58 the world.

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