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Logistics System in Dhl

Logistics System in Dhl

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  • Mistakes in Market-Share Estimate: The biggest
  • 7 VALUE-ADDED SERVICES ««««««««««« 56
  • Products and services of DHL:
  • 1. Planning and coordination flows
  • Strategic objectives:
  • Explanation:
  • a. Implementation and Project Management
  • b. Quality Management
  • Outsourcing Projects
  • a) Warehouse Management Systems
  • 3. Inventory Optimization:
  • 2. Special Warehouse Solutions
  • 1. Co-packing
  • a. Beverage manufacturing:
  • b. Dedicated facility services:
  • 2. Product Assembly
  • 3. Other Value Added Services
  • External Performance Measurement
  • Customer Perception Measurement

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Logistics 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 By Kamlesh Pandey 9426 J.V.M s DEGREE COLLEGE OF B.M.S. Plot No.6, Sec-1, Airoli Node, Navi Mumbai-708


Logistics System in DHL

I, Mr. KAMLESH PANDEY the student of J.V.M¶s Degree college of BMS hereby assure that, I have completed this project on Logistic System In DHL in the academic year 2009-2010, the information

submitted is true to the best of my knowledge & belief.

Signature Kamlesh Pandey Roll - 9426, TY B.M.S.


Logistics System in DHL

A compendium is never the work of one individual ± more a combination of ideas, suggestion and

contribution involving many hands. My debts are too numerous to be acknowledge individually. A large number of individuals have contributed directly and indirectly in the completion of this project. I am extremely thankful to Ms. Hema Kadukar. It is pleasure to express my gratitude for the assistance received from them. Hence I would like to take this opportunity to thank them wholehearted for helping me in preparing this project.

Kamlesh Pandey


SCOPE OF THE STUDY: 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. y To have a thorough understanding of how logistics system works in DHL SECONDARY OBJECTIVE y To know about Logistics Industries y To understand the value of each organization y To know whether the customers are satisfied with the existing range of service pattern. reduce overall cost and increase efficiency I selected ³DHL´ the world¶s leading courier Service Company. The study is done only how Dhl use logistics system effectively.Logistics System in DHL OBJECTIVE OF THE STUDY The objectives of the Project are: PRIMARY OBJECTIVES y To know the effectiveness of logistics management of DHL and to bench mark the organization with respect to the industry. There are following strength and weakness of DHL 4 .

DHL also has excellent eServices that provide access to systems that ensure customers have control and visibility of their supply chains at all times.´ This approach encompasses the empowerment of the DHL personnel at a local level. queried and ordered online. They operate in more than 220 countries.Logistics System in DHL COMPANY STRENGTHS  Strong Brand Image: In 1997. They can also achieve global economies of scale. and thus realize tremendous revenues.  Corporate symbiosis:DHL has developed its own organizational structure to serve the global market. DHL became the global express transportation company to obtain simultaneous systemwide ISO 9001 certification in international quality standards. 5 . DHL has also developed their own quality system that matches their customer¶s standards. They spend nearly 10% of total revenues. Products can be tracked. They provide services that appeal to most of the world. They have such a large market in which to operate. at the same time recognizing the interdependence of the parts of DHL as a corporate whole.  eServices and Technology: DHL uses and continues to search for new technology.  Globalism: DHL operates on a global scale. which it has called ³corporate symbiosis. for information technology.

 Mistakes in Market-Share Estimate: The biggest weakness is DHL¶s market-share estimate. This can be a weakness if their customers do not perceive a difference between DHL and its competitors¶ services. which recalculates the routes. depending on the current order situation and volume of traffic. The data are transmitted directly to the dynamic route planning system. It is difficult to estimate even when the market is stagnant and contains few competitors. and all market-share estimates should be viewed with circumspection.  Weak Visibility: It has weak visibility in the community compared with its potential  Not Well-known in USA as UPS and Fedex 6 . COMPANY WEAKNESS:  High Prices: DHL¶s prices are above their competitors.Logistics System in DHL  Smart-Truck Project: It is the programme which allows DHL to deliver faster.

21 23 24 25 26 27 27 27 4. Operating flow«««««««««««««««««« ...1 DHL International Supply chain«««««««««««..2 1..4 Product and services of DHL ««««««««««««...... 2.2 Extended Supply Chain Services««««««««««« 7 ...Logistics System in DHL Table of contents 1 1. Importance of logistic management««««««««« Logistics Management and Supply chain ««««««..... 2..... INTEGATED LOGISTICS SYSTEM«««««««...1 Inventory Flow «««««««««««««««««« 17 3.....2 Information Flow ««««««««««««««««« 18 Coordination Flow«««««««««««««««««« ..2 The world's largest express and logistics Network «««« 2.. SUPPLY CHAIN MANAGEMENT«««««««« 4.... Engineering response««««««.......1 History of DHL «««««««««««««««««.... 18 20 4...... ... 16 3.. Distribution to store Management««««««««««.3 1.... 9 10 11 12 14 2....4 INTODUCTION TO LOGISTICS«««««««« 1 Meaning of logistics««««««««««««««« Origin and Definition of Logistics«««««««««.. 1 3 4 6 2 BACKGROUND OF DHL«««««««««««.. Reverse Logistics««««««««««««««««««« Services Logistics«««««««««««««««« ««« Inbound to Manufacturing««««««««««««««« Medical device Distribution««««««««««««..3 The DHL Indian Profile ««««««««««««««.1 1. 3.

....  Warehouse Management Systems«««««««««««.5 Air and ocean freight solutions «««««««««««... 29 4.4 OPTIMIZATION OF LOGISTICS WITH DHLROAD AND RAIL.1 Warehouse Infrastructure Network««««««««««. 6 INVENTORY MANAGEMENT & WAREHOUSING... SOLUTIONS «««««««««««««««««. 4.  Strategic Part Centers (SPC) «««««««««««««  Express Logistics Centers (ELC) ««««««««««« .3 Inventory Optimization ««««««««««««««....2 Warehouse Management Solution ««««««««««.2 Principles «««««««««««««««««««..  Strategic Inventory Management «««...3 Transportation Infrastructure «««««««««««« 5.... 6.7 Solution for Customize end to end logistic worldwide ««.. 5. 6.... 47 48 48 49 49 50 50 50 50 51 51 52 8  Multi User Centers «««««««««««««««««.... 5.1 Transportation functionality ««««««««««««. 5...  Direct Express Inventory Management«««««««.. 30 4.5 Outsourcing Projects «««««««««««««««...Logistics System in DHL 28 4..  Cross Docking «««««««««««««««««««.4 Performance Management ««««««««««««« 4...  Repair Return Inventory Management ««««««««.6 Innovation of Supply Chain development «««««««. . 36 37 38 40 44 45 5. 6... 31 33 30 5 TRANSPORTATION ««««««««««««.3 Implementation Services «««««««««««««........

.2 Product Assembly ««««««««««««««««. 7..5 Outsourcing Projects. 7.. ««««««««««««««. 56 58 59 60 60 61 63 64 65 9..Logistics System in DHL 6.5 Customer Perception Measurement «««««««««. 8 Worldwide Parcel Express «««««««««««««.3 Other-Value added Service ««««««««««««.. 7.1 Co-Packaging ««««««««««««««««««. 7. 54 55 7 VALUE-ADDED SERVICES ««««««««««« 56 7.4 Special Warehouse solution ««««««««««««.. 6....4 External Performance Measurement «««««««««... Recommendation ««««««««««««««««. 10 Conclusions ««««««««««««««««««« 11 Bibliographies «««««««««««««««««« 9 ..

inve ntory. transportation. warehousing.Logistics System in DHL INTRODUCTION MEANING OF LOGISTICS: Logistics is concerned with getting the products and services where they are needed and when they are desired. material handling.Logistics is practiced for ages since organized activity began. 10 . Logistics is a planning function of management. Logistics function is concerned with taking products and services where they are needed and when they are needed. The current challenge is to perform logistics scientifically in order to optimize benefits to the organization. work in process. and packaging. Without logistics support no activity can be performed to meet defined goal. It involves the integration of information. The operating responsibility of logistics is the geographical repositioning of raw materials. and finished inventories where required at the lowest cost possible. It is difficult to accomplish any marketing or manufacturing without logistical support.

and finished inventories where required at the lowest cost possible. It involves the integration of information. work in process. services and information between the point of origin and the point of consumption in order to meet customers' requirements rather to the customers¶ delight. and shipping out products in an increasingly globalize supply chain.and it is the science of process having its presence in all sectors of the industry. A professiona l working in the field of logistics management is called a logistician.Logistics System in DHL LOGISTICS MANAGEMENTS: Logistics management is that part of the supply chain which plans. as a business concept. material handling. effective. supply chains and resultant efficiencies. The operating responsibility of logistics is the geographical repositioning of raw materials. 11 . transportation. Logistics is Concerned with getting (or transmitting) the products and services where they are needed or when they are desired. The goal of logistics work is to manage the fruition of project life cycles. warehousing. This was mainly due to the increasing complexity of supplying one's business with materials. forward and backward (reverse) flow and storage of goods. This can be defined as having the right item in the right quantity at the right time at the right place for the right price and to the right target customers (consumer). implements and controls the efficient. Logistics. and packaging. inventory. evolved only in the 1950s. calling for experts in the field who are called Supply Chain Logisticians. It is difficult to accomplish any marketing or manufacturing without logistical support.

reason. and storage of goods. maintaining and transporting material. In ancient Greek. Logistics is considered to have originated in the military's need to supply themselves with arms.´ 12 . word. Roman and Byzantine empires. there were military officers with the title µLogistikas¶ who were responsible for financial and distribution of supplies. The Oxford English dictionary defines logistics as: ³The branch of military science having to do with procuring. services and related information from the point of origin to the point of consumption for the Purpose of conforming to customer requirements. speech. calculation. implementing and controlling the efficient and effective flow. oration").Logistics System in DHL ORIGIN & DEFINITION OF LOGISTICS: The term "logistics" originates from the ancient Greek " " ("logos"²"ratio.´ The American Council of Logistics Management defines logistics as´ the process of planning. ammunition and rations as they moved from their base to a forward position. personnel and facilities.

various activities of logistics work in isolation under different management functions. where brands are almost irrelevant. In a commodity market where price is controlled by competition. y Take away logistical support trade and business will collapse 2. where there is no product differentiation in terms of quality parameters like performance & reliability . Purchasing trying to purchase at minimum price at the cost of what is needed by operations. 13 .Logistics System in DHL Importance of logistics managements: 1. competitive edge is tha t of availability of product and service in terms of time. y Without selling and or buying there can be no trade and business. Buying and or selling takes place only when goods are physically moved into and or away from the market.Logistics is the bed rock of trade and business. Due to technological revolution most of the products are moving into commodity markets . Operations produce large quantities at minimum production cost ignoring demand leading to doom inventory. place and quantity. 3. Competitive edge : In the fiercely competitive environment logistics provides the edge. Logistics function of management brings all such functions under one umbrella pulling down inter departmental barriers. Each pocket trying to sub optimizes its objectives at the cost of overall organizational objectives. Integrates logistical activities In conventional management environment.

5.D [Delivery].S [Safety].E [Environment] are set to meet customer expectations.Leads to customer satisfaction Through superior customer service.H [Health].C [Cost].Logistics System in DHL 4. Organizational objectives of [Productivity].Q [Quality].E P [Employee Morale].Logistics wins or loses wars y British lost American war of independence due to poor logistics y Rommel was beaten in the desert by superior logistics of Allies 14 .Supports critical functions like operations and marketing Strong logistics support enables a company to move towards JUST IN TIME production system for survival in a highly competitive market 6.F [Flexibility].

it also included coordination and collaboration with channel partners. deliver. Logistics typically refers to activities that occur within the boundaries of a single organization and supply chains refer to networks of companies that work together and coordinate 15 . conversion. The pace of change and the uncertainty about how markets will evolve has made it increasingly i mportant for companies to be aware of the supply chains they participate in and to understand the roles that they play. make. and transportation among the participants in a supply chain to achieve the best mix of responsiveness and efficiency for the market being served. Every business fits into one or more supply chains and has a role to play in each of them. Importantly. Supply chain management is the coordination of production. and all Logistics Management activities. Supply Chain Management integrates supply and demand management within and across companies ³Supply chains encompass the companies and the business activities needed to design RFDn. and use a product or service. third-party service providers. inventory. In essence. Businesses depend on their sup ply chains to provide them with what they need to survive and thrive. Those companies that learn how to build and participate in strong supply chains will have a substantial competitive advantage in their markets. location.Logistics System in DHL Logistics Managements and Supply Chain: SCM and logistics management. There is a difference between the concept of supply chain management and the traditional concept of logistics. the definitions made by the Council of Supply Chain Management Professionals. which can be suppliers. and customers. intermediaries. CLM) SCM is defined as ³Supply chain management encompasses the planning and management of all activities involved in sourcing and procurement. CSCMP (former Council of Logistics Management.

16 . these additional activities are now seen as part of the work needed to fulfill customer requests. Internal efficiency for organizations in a supply chain means that these organizations get an attractive rate of return on their investments in inventory and other assets and those they find ways to lower their operating and sales expenses. finance. maintenance. and a very low rate of products returned by customers for whatever reason. distribution. high on-time delivery rates. Effective supply chain management requires simultaneous improvements in both customer service levels and the internal operating efficiencies of the companies in the supply chain. Customer service at its most basic level means consistently high order fill rat es.Logistics System in DHL their actions to deliver a product to market. and inventory management. new product development. Supply chain management acknowledges all of traditional lo gistics and also includes activities such as marketing. Also traditional logistics focuses its attention on activities such as procurement. In the wider view of supply chain thinking. and customer service.

Logistics System in DHL Company Profile 17 .

Supply Chain Management.DHL Lemuir Logistics. 18 . His goal is to build strong. Project Transport and Customs Brokerage. they are now also the sector's leading innovator . which consolidates their position as the leader in International Freight Forwarding. In India.Logistics System in DHL INFORMATION DHL is the global leader in logistics . across all our operations.providing the extraordinary range of cutting-edge solutions.with more highly experienced professionals at more locations in more count ries than any other provider. they have formed a new joint venture . but because they strive to deliver globally consistent services of the highest quality. long-term partnerships with customers by providing world class services. These organizations trust us with their brands and reputations not simply because they are the worldwide market leader. Aft er joining forces with Excel in 2005. They are the first choice for companies looking for end to end logistics solutions and high quality servicing capabilities. His logistics customers include over 75% of the worlds largest quoted non-financial enterprises.

Customers stood to save a fortune. By the end of 2002. Africa and Europe.  The founders began to personally ship papers by airplane from San Francisco to Honolulu.  The DHL Network continued to grow at an incredible pac e. DHL was already present in 170 coun tries and had 16. In 2003.  In 1969. Deutsche Post World Net consolidated all of its express and logistics activities into one single brand. DHL was 100% owned by Deutsche Post World Net. Larry Hillblom and Robert Lynn.  At the beginning of 2002. DHL 19 . just months after the world had marveled at Neil Armstrong's first steps on the moon. By 1988. With this concept. the three partners took another small step that would have a profound impact on the way the world does business. a new industry was born: international air express. Adrian Dalsey. then the Middle East.000 employees. beginning customs clearance of the ship's cargo before the actual arrival of the ship and dramatically r educing waiting time in the harbour. Deutsche Post World Net became the major shareholder in DHL. The company expanded westward from Hawaii into the Far East and Pacific Rim.Logistics System in DHL History and background of DHL  DHL are the first letters of the last names of the three company founders. the rapid delivery of documents and shipments by airplane.

Terminals 20 .409.000 350 900 DHL Logistics in figures DHL logistics worldwide Employees * DHL Global Forwarding Countries and territories 150 813 4.000 59 2500 23.500 Terminals.000. air and ocean freight.a. terminals Storage area sqm DHL Freight Countries and territories Full truckload movements p.Logistics System in DHL The world's largest express and logistics Network DHL is a global expertise in express.000 more than 30 2. DHL Express worldwide Employees Countries and territories Hubs Bases Vehicles Aircraft Pack stations (only Germany) more than 124. Below are the global facts and figures that show you the scale of the world's largest express and logistics network.000. warehouses.000 tones 2. warehouses.000 more than 220 36 4700 72.000 more than 160 more than 162.764. offices Air freight volume Ocean freight volume TEU ** DHL Excel Supply Chain Countries and territories Centers. DHL combines worldwide coverage with an in-depth understanding of local markets. overland transport and logistics solutions.

Junior Jumbo.000 customers serviced through DHL's national network with i ts 1. a position it has held since it began its India operations in 1979.Logistics System in DHL DHL INDIA CORPORATE PROFILE DHL Worldwide Express (India) Pvt Ltd is the No. DHL India has many firsts to its credit including India's first and only 24-hour customer service call center.000 strong ground staff. Today. as well as the first to provide track and trace services in India via email. 21 . Acknowledged for its innovative solutions and pioneering initiative s. Import Express and Fashion First for customers in the air express industry. the first to introduce customized solutions such as Jumbo Box. DHL offers its customers the entire spectrum of express services from international air express to high end logistics solutions including repair and return. Pune and Tripura. strategic inventory management and direct express inventory. fleet of 400 vehicles and dedicated service centers in Ahmadabad. Kolkata.1 international air express services provider in India. DHL India has over 50. Mumbai. Chennai. Bangalore. Jaipur. Hyderabad. New Delhi. Cochin. via SMS or via the Internet and WAP phones.

365 days of the year. 22 . committed to being responsive to all customers¶ needs  Customer Service Agents. across the globe. available round-the-clock. DHL offersHighly trained and professional staff. DHL Core Services consist of door-to-door air express delivery of documents and parcels of all sizes (and weight). His strength lies in our global network and the know-how of our people. fast and easy-to-use service.Logistics System in DHL Facilities: DHL India has an outstanding reputation in the market for providing a reliable. responsive and cost effective express deliveries toe-commerce fulfillment and intelligent logistics solutions. both into and out of the country. to serve customers whenever and wherever they need them  Electronic pre-clearance of shipments through Customs  Five international gateways providing direct-to-air networks and faster sorting of inbound and outbound shipments DHL India is a proven facilitator of trade. Backed by strategic alliances with world-class partners and the innovative use of technology. Our services range from fast. they strive to continuously improve the quality of our service.

Jumbo Pack and Jumbo Junior: This service makes exporting easy. or have no commercial value or do not require a license. it allows the customer to maintain total control of your importing costs. DHL Import Express is a one window. And what's more.Logistics System in DHL Products and services of DHL: DHL Document Express (DOX): This service is ideal for shipments that are not subjected to Customs declaration at destinations. One box dispatched for on e flat fee. one currency service that enables a shipment picked up from the supplier's doorstep overseas and delivered directly to the customer anywhere in the world. Import Express: This service is a single window solution for all importing needs. which must be declared for Customs evaluation. and one account. They may be subjected to Customs inspection at destinations and may be taxable or dutiable. 23 . DHL Express Worldwide Package (WPX) This service is used for shipments with commercial value or those. anywhere in the world. one rate. DHL Jumbo Box is for shipments under 25kg and Jumbo Junior for shipments less than 10kg.

calculates total landed costs of a shipment (including duty. 24 .Logistics System in DHL Fashion First: Fast Forward is the revolutionary new service of DHL for moving heavy goods that brings increased efficiency and delivers greater cost savings for Indian importers and exporters. Electronics. and compares an item's export and import clearance costs and regulations to enable qualifying sourcing decision. Another feature of Fast Forward is Trade Automated Services (TAS). an online platform that provides comprehensive trade and customs information in 50 key countries worldwide. screens senders and receivers against government lists pertaining to emb argoes and sanctions. Publishing and Textiles. tax and other customs related charges). It facilitates the import and export of shipments weighing 20kg and above by providing significant savings with a wide range of innovative and flexible door -to-door solutions. generates import and export documentation. Fast Forward is specially developed after extensive research and designed to meet the unique needs of industries such as Automobiles. Heavy Engineering.

As products and materials are procured. Thus the process is viewed in terms of two interrelated efforts. a value added inventory flow is initiated that ultimately results in ownership transfer of finished products to customers. inventory flow and information flow. Inventory flow Suppliers Physical distribution Manufacturing support Customers Information flow 25 .Logistics System in DHL INTEGRATED LOGISTICS Logistics is viewed as the competency that links an enterprise with its customers and suppliers. forecasts and orders. Information from and about customer¶s flows through the enterprise in the form of sales activity.

the logistical process adds value. wooden crates. physical goods like clothing. Thus the material gains value at each step. That means it only involves physical distribution and procurement. 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 the customers the sender. There is no value addition to the material it self but it is done to the service which is provided (e. documents. household good. checked for condition. By moving inventory when and where needed. which ultimately culminate in the delivery of the product to an industrial user. The goods are then dispatched to their destinations. logistical operations may consist of thousands of movements. moulded trays and boxes. For a large manufacturer. wholesaler.Logistics System in DHL Inventory Flow The management of logistics is concerned with the movement and storage of materials and finished product s. From the initial purchase of a material or component. dealer or customer. Procure ment also includes the material needed for packaging such as paper. exotic animals etc) are weighed. The materials or the goods collected from the senders (including papers. the receiver and also the intermediateries. standard containers wraps. and depending upon its various characteristics it is packed.g. plastic inlays etc. if there has to be a certain package delivered from India to UK the normal services would take 26 . chemicals.

which are matched to the required products and services to be performed .Logistics System in DHL 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. Coordination flows Operation flows 1. 2. Strategic objectives: Strategic objectives detail the nature and location of customers. Information also integrates the three operating areas. The primary objective of developing and specifying requirements is to plan and execute integrated logistical operations. 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 . Logistical information involves two major types of flows: 1. 27 . Planning and coordination flows Coordination is the backbone of the overall information system.

Logistics System in DHL Forecasting Forecasting utilizes historical data. Logistical forecasting is generally concerned with relatively short ±term predictions. and planning assumptions to predict future activity levels. Based on the distance to the final receiver. For DHL DHL¶s whole business is dependent on the vital point of timely delivery. current activity levels. They can accurately gauge how much time it will take for the goods to reach its end desti nation. the accessibility. 28 . the documentations and procedures that need to be handled etc they have fine tuned the process of delivery. The overall purpose of information planning/coordination flow is to integrate specific activities within a firm and to facilitate overall integrated performance.

and ship inventory as required supporting customer and purchasing orders. Operational requirements deal with  Order management  Order processing  Distribution operations  Inventory management  Transportation and shipping  Procurement For DHL: DHL owns its success for the efficiency with which the operations are carried out. Here not only the company but the sender and sometimes the receiver can track the goods through their information center. Operational flows The second aspect of information requirements is concerned with directing operations to receive. They are given a certain password which they can use to trace via online or their customer service helpline. process.Logistics System in DHL 2. 29 .

´ Explanation: The supply chain is the network of organizations that are inv olved through upstream and downstream linkages.( in detail mention above) For DHL: Supply chain Optimization 30 .Logistics System in DHL Supply Chain Management Definition for supply chain management ³Supply 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. in the different processes and activities that produce value in the form of products and services in the hands of ultimate consumer.

T heir in-house teams have contributed to the solutions design of some of the world's leading brands and enabled to win key contacts. DHL solutions design team offers a wide portfolio of expertise and services. warehouse design and simulation. DHL has developed a reputation for consistently developing innovative solutions that streamline operations and improve control.Logistics System in DHL Good design is at the heart of an effective supply chain solution. from logistics network strategy. through to operational improvement and inventory analysis International Supply Chain Extended Supply Chain Services Implementation Services Outsourcing Projects 31 . transport des ign.

inventories. International Supply Chain: DHL¶s international supply chain management solutions are focused on helping customers take increased control of international inbound supply chain to maximize the value of international and global sourcing. DHL helps customers:  Give visibility of the upstream supply chain. RFID product tracking. port to distribution centre transportation.  Global forwarding services are provided across all major routes. including: vendor management. including: purchase order management. 32 . exception management. planning and forecasting. direct store delive ry (US only)  Supply chain visibility and management. customs brokerage. and associated storage costs Customer-focused solutions are built up from the following core services:  Origin services management. and enable earlier decision making  Create a more agile supply chain. including: air/ocean/road/ra il freight forwarding and management. better able to respond to changes in consumer demand  Reduce lead times. supplier collections. de-consolidation and pre-retail services. European managed transport  Destination management.Logistics System in DHL 1. customs brokerage. including: port and demurrage management. inventory management. consolidation services and value -added  Global forwarding.

Services include:  Roll in Management: de-installation of finished goods at the customer's site  Returns Management: receiving.) Reverse Logistics DHL¶s reverse logistics solutions help customers plan. verifying and managing returned products  Express Delivery: Exchange of Dead On Arrival product 33 . implement and control flow of materials and manage related information. plus the removal of old furniture on delivery of new or replacement products. Items include the recovery of obsolete or non -operational white goods such as refrigerators.Logistics System in DHL Logistical services that are offered. back up the supply chain to recapture values and ensure the safe disposal of goods.  Reverse Logistics  Services Logistics  Inbound to Manufacturing  Medical device distribution  Distribution to stores Management  Engineering Response a. sorting.

Logistics System in DHL

b.) 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, two, four or eight-hour and next-day basis, 24 hours a day, seven days a week. 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, reporting and control  Cost control of the demand chain
Key services include: 

International freight forwarding  Domestic and regional inbound deliveries  Inventory planning, forecasting, procurement and analysis  Distribution centre operations  Outbound delivery The entire process is underpinned by a web-enabled electronic order processing and order monitoring tool.


Logistics System in DHL

c.) Inbound to Manufacturing
Inbound to manufacturing is the complete end -to-end logistics management of inventories, facilities and labour associated with the inbound flow of materials from vendors and supplier origins to consumption points in manufacturers production lines. The service encompasses:  Network, transportation and facility design  Inventory optimization  Supplier management  Transportation management  In-plant services Key to the service is integrating manufacturers' forecasting, order management and supply chain execution processes with their component suppliers. DHL implements warehouse management and supply chain event management systems to manage just-in-time deliveries and allow supply chain participants to exchange forecast requirements in real time
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 tha t 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


Logistics System in DHL

d.) Medical Device Distribution DHL country-based warehouses for a number of manufacturers to service a local customer base. This includes the receipt of product from local or global manufacturing sites and downstream distribution to hospitals.
e.) Distribution to stores management

DHL distributions to store services are focused on helping retailers create efficient and flexible supply chains to deliver product to retail outl ets at high levels of service. These solutions are built from several core services: reverse logistics collections; sortation; proces sing;

repair/refurbishment; value recovery; disposal and compliance.
f.) Engineering Response

Through our Engineering Response services, we manage the materials supply chain from works planning and inbound goods through to on -site works, delivering stock out to engineers, builders and construction workers in the field.


Logistics System in DHL 2. improving efficiencies and reducing costs. provides customer services and functions as a Help -desk. sequencing and dispatch of orders in a timely manner. quality and management in cross border transactions.) Call Center Management A Call Centre manages orders. c. d. thus enabling informed decisions regarding the disposition of stock. a. e) Freight & Customs Solutions DHL's many years of experience with international trade requirements and formalities. 37 . gives customers the leading edge in service. made available in an agreed format.) Global Inventory Management DHL gives the customer a global view of inventory. combined with the European Competence Centre and country expertise.) Consolidated Billing Services The creation of a consolidated and categorized invoice. based on all services performed in a specific time-period by more than one service provider.) Order Management Receipt. b. Extended supply chain services DHL not only provides physical logistics services but also manages other enhanced supply chain services. management. execution. monitors sales activities.

IT systems. migration. finance and legal considerations. DHL management systems are certified according to the international standard for quality management systems ISO 9000 in almost every operating unit. high value logistics solutions  Employee motivation : Building on the know-how and stimulation of individual potential in multi-cultural teams  Operational excellence : Continuous improvement of processes and services to fulfill 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.Logistics System in DHL 2. Implementation and Project Management Implementation starts by defining project aims. Health and Safety (QEHS) is based on five corporate values:  Customer satisfaction: Providing our customers and their customers with excellent. b. HR. real estate. 38 . 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. Environment. The major topics in implementation include business processes. Implementation Services: a. setting the targets and describing the deliverables in detail. engineering.

as each component interacts with all the other parts around it. Outsourcing Projects Outsourcing involves DHL taking over and managing previous in-house logistics operations.Logistics System in DHL Performance Management: Performance management is a key part of the supply chain. the measures provide a valuab le contribution to DHL's Continuous Improvement Programme. Performance measuring not only records historical performance but also provides early indication of any service slippage. including:  Distribution centers  Transport operations  Back-office functions  Supply chain management functions  After sales services 39 . In this second role. Measured elements are reviewed as a system.

40 . optimization and re-engineering  Implementation and Project Management  Process Management  Outsourcing DHL¶s consulting services also offer re-organization of customer facilities. impleme ntation of new IT Systems.Logistics System in DHL Innovative Supply Chain Development Supply Chain Management services are delivered across industry sectors and provide expertise. The services are as follows:  Strategic Logistics Consulting  Lead Logistics Provider  Consulting and providing Transport optimization: Route-Pro and Trans-Pro  Consulting and providing Supply Chain Design  Consulting and providing Transportation  Engineering. All services are targeted at optimizing logistical operations in both process and strategy. creation of tender documents and tender processing. and are aligned to the client's commercial expectations. knowledge and resources in terms of personnel and supply chain tools. project management for customers.

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 services These solutions are built from several core services including reverse logistics:  logistics network strategy  warehouse design and simulation  Transport modeling. 41 . Combining a range of services and systems to deliver a global response. After Sales Optimization Optimizing return logistics and spare parts logistics as well as maintenance and repair services. Vehicle Management Services Our vehicle management services focus on the management of sales and marketing support programmes for automotive manufacturers. One of the main tasks is to evaluate cost efficiency to ensure that costs are being driven down throughout the contract duration. they help you overcome challenges at the end of the automotive supply chain. Data analysis allows DHL to provide customers with 'what if modeling' or the impact of changing the business rules.Logistics System in DHL Supply Chain Re-engineering DHL works with customers to review supply chain efficiencies.

Logistics System in DHL DHL Solution Solution for customized End-to-end logistics worldwide. 42 .

43 .Logistics System in DHL Best-in-class solutions that deliver Value to your supply chain. delivering customized business solutions. Engineering. Our complete overview ± from manufacturer/supplier to retailer to consumer ± enables you to achieve operational excellence at every stage. design and management. design and engineering. just in time. DHL Solutions sets the pace in Supply Chain Management with state-of-the-art technologies. Leading edge IT systems ensure seamless integration and guarantee full transparency and control throughout the entire supply chain. Warehousing Value Added Services Order management. Industry-specific local transnational. back-office. Network and planning and optimization and fleet Outsourcing Distribution Take-over and management of inhouse logistics including distribution. Services range from consulting and design to management and execution. reverse and return logistics and other services. Supply Chain Management Analysis. transport. Lead Logistics Provider (LLP) and Lead Service Provider (LSP) services. quality control. supply chain and after sales. outbound fulfillment. DHL Solutions offers customized logistics solutions for your entire supply chain. Vendor management. They provide industry-specific expertise and longterm experience that add value to your business. Customized Logistics Solutions.

prints. The business unit Supply Chain provides warehousing and transportation services as well as value-added solutions along the entire supply chain for customers from various sectors of industry. Corporate Information Solutions This division consists of contract logistics services and Corporate Information Solutions (Williams Lea). digitalizes. life sciences.Logistics System in DHL DHL Supply Chain. The expert for document-based outsourcing solutions gathers. addresses. technology. retail. The subsidiary Williams Lea is the heart of the business unit Corporate Information Solutions. fast moving consumer goods. Williams Lea is also the right point of call for electronic invoicing and marketing services. envelops. Both business units focus on tailor-made customer solutions. sorts. including the key automotive. and fashion sectors. 44 . stores. dispatches and archives documents of all types.

transportation is necessary to move it to the next stage of the manufacturing process or physically closer to the ultimate consumer. A primary transportation function of product movement is moving up and down the value chain. We should also appreciate that this is an activity that adds highest amount of cost to the activity of making inputs and outputs available to consumers. 45 . Transportation provides 2 major functions: product movement & product storage. Transportation function moves the products to meet customer expectations at minimum cost. Transportation is one of the most visible elements of logistics operations. 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. assemblies.Logistics System in DHL TRANSPORTATION Transportation is the most visible of all functions of logistics and high contributor to logistics cost. and environmental resources. Transportation involves the use of temporal resources because product is inaccessible during the transportation process. components. it is important that items be moved only when it truly enhances the product value. work-in-process. Since transportation utilizes temporal . containers and wagonloads of material being moved from place to place as an activity directly associated with trade and business. commonly referred to as in-transit inventory. Product Movement Whether the product is in the form of materials. financial. or finished goods. We can see trucks.

Product Storage: Temporary storage in stationary vehicles or Vehicles kept moving on a circuitous route . [Situation when inventory levels are very high] 46 . Loss and damage expenses must also be minimized.Logistics System in DHL Transportation uses financial resources because internal expenditures are necessary for private fleets or external expenditures are required for commercial or public transportation. At the same time the movement must take place in such a manner that meets customer demands regarding delivery performance and shipment information availability. When storage space is limited.Product storage is expensive in a transport vehicle. When unloading and loading is more expensive than storage B. financial and environmental resource costs. But sometimes keeping overall cost in mind this is adopted. The major objective is to move product from an origin location to a prescribed destination while minimizing temporal. A.

while the 1. truckload shipments cost less per pound than less -than-truckload shipments. invoicing and equipment cost. 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.000 pound shipment has a per unit of weight cost of $0.00. Thus. Economy of scale refers to the characteristic that transportation cost per unit of weight decreases when the size of the shipment increases.Logistics System in DHL Principles There are two fundamental principles guiding transportation management and operations.01. The fixed expenses include administrative costs of taking the order. suppose the cost to administer a shipment is $ 10.g.g. Then the 1 pound shipment has a per unit of weight cost of $10. it can be said that an economy of scale exists for the 1000-pound shipment. 47 . E. They are economy of scale and economy of distance. Transportation economies of scale exist because fixed expens es associated with moving a load can be spread over the load¶s weight.00. These costs are fixed because they do not vary with shipment volume. E. time to position the vehicle for loading or unloading.

Logistics System in DHL Economy of distance refers to the characteristic that transportation cost per unit of distance decreases as distance increases.g. E. The objective is to ma ximize the size of the load and the distance that is shipped while still meeting customer service expectations. 48 . These principles are important considerations when evaluating alternative transportation strategies or operating practices. The rationale of distance economies is similar to that for economies of scale. resulting in lower overall per mile charge. a shipment of 800 miles will cost less than two shipments (of the same combined weight) of 400 miles. Transportation economy of distance is also referred to a se tapering principle since rates or charges taper with distance. Longer distances allow the fixed expenses to be spread over more miles.

motor carrie rs have relatively small fixed investments in terminal facilities and operate on publicly maintained highways. and tolls are considerable. railways dominated the intercity freight tonnage till World War II and in some cases of Europe. 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. and carrier organizations that offer transportation services on a for-hire or internal basis. This is because Motor carrier industry results from door-to-door operating flexibility and speed of intercity movement. user fees. The nature of the infrastructure also determines a variety of legal and economic characteristics for each mode or multimodal system. They are even flexible because they can operate on each and every kind of roadways. In comparison to railroads. these expenses are directly related to the number of over the-road units and miles operated. vehicles. Although the cost of license fees. A mode identifies the basic transportation method or form. railroads have handled the largest number of ton miles. This early superiority enabled railways to transport large shipments very economically.Logistics System in DHL Transport Infrastructure Transportation infrastructure consists of the rights-of-ways. RAIL NETWORK Since olden times. Asia and Africa they even connected the countries. MOTOR CARRIERS Highway transportation has increased rapidly since the end of Wor ld War II. Labor requirements are 49 . As a result of the early establishment of a comprehensive rail network connecting almost all the cities and towns.

The main advantage of water tr ansportation is the capacity to move extremely large shipments. diesel-towed barges. Unless the origin and destination are adjac ent. Deep-water vessels. which was replaced by steamboats in early 1800¶s and by diesel power in the 1920¶s. have considerably more flexibility. 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. The main disadvantage of water transport is the limited range of operation and speed. 50 . In contrast. the right -of-way is developed and maintained by the government and results in moderate fixed costs as compared to railways and highways. Water transport employs 2 types of vessels. WATER TRANSPORT It is the oldest mode of transportation. & are restricted to deep-water ports for access. which are generally designed for Ocean and Great Lakes use. Although water carriers must develop and operate their own terminals. Water transport ranks between rail and motor carrier in the fixed cost aspect. First it was the sailing vessels. In every country. which generally operate on rivers and canals. Motor carriers are best suited to handle small shipments moving short distances.Logistics System in DHL also high because of driver safety restrictions and the need for substantial dock labor. fewer system miles exist for inland water than any other transportation mode. supplement haul by rail or truck is required. Domestic water transportation ± involves the Great Lakes. and navigable rivers. canals.

This premium service started off with documents and has moved onto large parcels. which is an ideal service for firms with a large number of high-value products and time-sensitive service requirements. 51 . such as warehousing. But still air transport remains more of a potential opportunity than a reality because it is very much underutilized. However premium carriers provide planes dedicated for freight operations. The high cost of jet aircraft. which is accompanied by high costs. The high cost of transport can be traded off for high speed.Logistics System in DHL AIR TRANSPORT Air transport is the newest and the least utilized mode of transport. Its major advantage being its speed. coupled with erratic nature of freight demand. which allows other elements of logistical design. has limited the assignment of dedicated planes to all -freight operations. inventory to be reduced or eliminated. A coast-to-coast shipment via air requires only a few hours contrast to days taken by other mean of transportation.

Depending upon the final destination where the goods have to finally reach and the type of package the customer has paid for. 52 . 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. 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.Logistics System in DHL 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. DHL uses the individual modes of transport or a combination of either of these or all.

Our industry-specific expertise and long-term experience can improve your productivity and streamline your operations. as well as tailored customs clearance services in more than 350 offices across Europe. 53 . high-caliber partnership with DHL Freight gives you all the advant ages you need to optimize your logistics. DHL Freight offers you regular services for group age and a full range of transport services for part. DHL Freight is a leader in European overland transport. furniture. State-of-the-art IT systems give you totals shipment visibility and higher delivery efficiency. Our continentwide network and comprehensive range of products and services guarantee reliable transport. rail and inter modal transportation. A successful.Logistics System in DHL OPTIMIZATION OF LOGISTICS WITH DHLROAD AND RAIL SOLUTIONS. trade fair or event equipment. They provide special handling and transportation for perishables.and full-load shipments by road.

DHL Danzas Air & Ocean is in pole position to lead the future of air and ocean freight logistics and sets high standards in quality and security 54 . Combined with an extensive tool kit of information management systems and a global network of dedicated control towers.Logistics System in DHL Air and ocean freight solutions for a competitive advantage Whether you need to forward door-to-door. airport-to-airport or port-to-port freight. weight or dimensions of your goods. our experienced teams around the world can create the right logistics solution for your business. DHL Danzas Air & Ocean offers a comprehensive range of services no matter the size.

Our specialists create solutions to get your goods through on time. real-time tracking at every step of the way. fixed schedules on all main routes and reliable connections to all other destinations. Plus. Combine the speed of airfreight and the lower cost of ocean freight ± and you¶ll benefit from our strength and experience in both. DHL Air Freight products include: Air First Whether door-to-door or airport-to-airport. during peak seasons or for oversized cargo. 7-days a week.Logistics System in DHL Air Freight DHL Danzas Air & Ocean offers a range of fast and cost -effective airfreight services for your most time-sensitive freight with door-to-door or airport-to-airport services. Your shipment will arrive at the airport of any major marketplace around the world within only three days. Combines price and time considerations for both door-to-door and airport-to-airport service. and 365-days a year. Chartering additional airfreight capacity is part of everyday business ± especially if there is limited commercial lift. Air First guarantees priority on the first flight out and forwarding within two days ± 24hours a day. for new product launches. Air Premier Air Value Sea/Air Part and Full Charter 55 . Creative routing solutions via major gateways can save you even more money while adding only 1-2 days over our Air Premier Service.

raw material. Consumer¶s own stores were underground cellars. WIP and Finished goods. which lies in stock without participating in value adding process. Poor communication infrastructure was mainly the cause for this storage by customer. consumables. in fact. smoke houses to store variety of items. Inventory is an unused asset. bought out parts. tools and tackles. though it is called an asset. Producers and tradesmen conveniently shrugged off their responsibility for storage and passed it on to the customer who was left with no option. spare parts. In our country inventory is always viewed as asset [working capital].Logistics System in DHL Inventory Management and Warehousing. playing a remarkable role as a function of logistical management.  Warehouse Infrastructure Network  Warehouse Management Solution  Inventory Optimization  Special warehouse solution  Outsourcing Projects 56 . WIP. Unused equipment. Traditional concept of warehouse as store or godown has undergone major change now. In India 9 to 12 months of sales quantity lies in the form of Inventory [R/M. Warehouse is considered a value adding facility now. it is a big liability Warehousing was a customer¶s function conventionally anywhere in the world. gauge and fixtures etc. Customer to protect himself from shortages at the time of inclement weather always used to store provisions and other utilities in his house. Bought out parts and Finished goods] as against a few days in Japan and a month in the US and Europe.

We Multi User Centers provide a network of multi -user warehouses. dedicated storage solutions. This encompasses the design implementation and operation for both dedicated and multi user sites. providing downstream distribution. 57 . Benefits include improvements in:  Customer service levels  Stock accuracy  Lead times  Redundant stock costs  Productivity responsiveness to a company's strategic needs a. reduces total operating costs and improves cycle times. distribution and aftermarket services in a way that improves inventory management.Logistics System in DHL 1. enabling manufacturers to hold inventory at local level. DHL facilities offer our customers warehousing that is fully integrated into the wider supply chain and meets demanding service levels. Warehouse Infrastructure Networks DHL warehouse service supports inbound logistics. These fa cilities can receive products from both local and global manufacturing sites. whilst avoiding expensive.

2 and 4 hour order fulfillment  Stock optimization across the complete network of SPCs  Guaranteed performance against agreed business rules c.Logistics System in DHL b. Express Logistics Centers (ELC) Our Express Logistics Centers (ELCs) are regional centralized facilities offering:  order processing  outsourced repair facilities  custom final assembly  kitting services 58 . Strategic Part Centers (SPC) Our Strategic Part Centers (SPCs) are in-country facilities offering:  1.

Logistics System in DHL 2. Warehouse Management Solutions: a) Warehouse Management Systems The Warehouse Management System (WMS) records all events and actions in the receipt. 59 . time controlling. Our Prologs WMS manages all critical processes in the warehouse. communication with customs and other authorities). b) 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. Entire management is done by DHL. 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. usually time critical spare parts with a high value and high impact on business. booking of transport capacity. c) Direct Express Inventory Management Direct Express Inventory (DEI) allows customers to centralize stock in one warehouse and use express distribution to deliver components the next day. and is also an important support for varied transport and distribution concepts (planning.

or where shipments complete one leg of a journey prior to commencement of another journey.Logistics System in DHL d) Repair Return Inventory Management Return & Repair Inventory (RRI) manages the physical flows for Return material authorization. e) Cross Docking Cross-dock operations are facilities where shipments are received from one mode of transport and transferred to another mode. In this case. Shipments are consolidated or deconsolidated. 60 . DHL will be responsible for picking up the broken part. sending a new one. bringing the broken part to a repair centre and moving repaired parts back int o stock. Product received into the facility is not taken into inventory.

inefficiencies can be driven out of the supply chain.Logistics System in DHL 3. Inventory Optimization: Through effective inventory management. overall costs reduced and high service levels achieved. profitability and return on investment  High service standards  Better matching of supply with demand  More streamlined and responsive supply chain 61 . They optimize inventory at a line-item level at every stage of the supply chain. DHL focuses on driving results in:  Supplier management  Expediting  Order replenishment  Demand forecasting  Safety stock setting  Order pipeline monitoring  Excess stock management Inventory optimization 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 customer¶s inventory. DHL offers: Average of 20% inventory reduction and 8% improvement in product availability  Reduced inventory and overhead costs  Improved sales.

Logistics System in DHL Shared-user Warehousing Our shared-user facilities are designed to meet the needs of organizations of any size. equipment and transportation. Through sharing of DHL's resources. or a large enterprise handling a new acquisition. Europe and select locations in Asia. we provide shared-user services to leading manufacturers and retailers of medical supplies. product launches or seasonal overflow. such as space. minimize labour costs. Campus Solutions We pioneered the campus mode l to provide regional customers with a flexible solution designed to capitalize on similar distribution channels. This environment returns significant value to a small business requiring distribution operations without long term lease or capital commitments. chemicals and technology. Currently. customers benefit from synergies that considerably reduce supply chain costs. labour. 62 . con sumer products. industrial equipment. allowing for expedited transit times to large concentrations of consumers. and increase specialized equipment utilization. Campuses are strategically located at key distribution points in North and South America.

Currently. consumer products. labour. Reverse Centers specially designated facilities for the receipt and handling of returned parts for repair. 63 . Through sharing of DHL's resources. Special Warehouse Solutions Vendor Hubs warehousing and delivery of service parts. chemicals and technology. 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. industrial equipment. recycling or disposal. Consequently. such as space. the customer can increase efficiencies throughout their distribution network and maintain a higher level of service to their customers. we provide shared-user services to leading manufacturers and retailers of medical supplies. customers benefit from synergies that considerably reduce supply chain costs. 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 organizations of any size. equipment and transportation.Logistics System in DHL 2.

Logistics System in DHL Outsourcing Projects Outsourcing involves DHL taking over and managing previous in -house logistics operations. including:  Distribution centers  Transport operations  Back-office functions  Supply chain management functions  After sales services 64 .

Logistics System in DHL Value Added Services  Co packing  Product assembly  Other value added services 1. By integrating manufacturing and packaging operations within their supply chains. Power Packaging brings a unique set of services and capabilities for customers that include: 65 . Co-packing We offer a comprehensive selection of manufacturing and packaging services through Power Packaging a DHL Company. our customers can:  Add flexibility  Improve service levels  Reduce costs  Accelerate time to mark  Increase asset utilization In addition to these core packaging services.

Logistics System in DHL a. 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. Beverage manufacturing: Blending. Other services:  Packaging and raw material sourcing. Dedicated facility services: Turnkey manufacturing solutions including:  Site selection/development  Facility and systems design  New facility start-up and operation c. procurement and asse mbly  Batch/quality control tracking via digital easy -to-trace coding system  Full range of secondary packaging services 66 . plastic cup a nd bag-in-a-box) b.

Logistics System in DHL 2. assembly and repackaging  Retail-ready. Product Assembly Postponement. Packaging services include:  Postponement components packaging - primary.labeling. and improving speed-to-market and flexibility in the supply chain. quick response and mass customization are breakthrough business strategies enabled via packaging services. point-of-purchase displays  Lot control via variable digital and laser printing  Machinery system engineering . clamshells and printed and unprinted film over -wraps  Make-to-order pallets  Product rework/redress 67 . secondary and specialty  Co-packing. Integrating packaging operations into distribution centers streamlines fulfillment reducing cost. carton filling. club store packs. kitting. bagging. enhancing product visibility and control.

e. Re-Working/Re-Packing Repacking for a specific customer can include repalletisation. 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.Logistics System in DHL 3. b. Merchandising can include the addition of price stickers or promotional items ready for retail display. Pre-assembling is completion of a finished product from component parts or pre-programming of products.Kitting/Pre-Assembling Kitting is the addition of items such as accessories and batteries to the product pack. Other Value Added Services a. 68 . Labeling/Merchandising The application of labels either to the product or to the packaging. Packaging/Bundling Packaging includes packing of products into suitable media for transportation and retail display. d. c. QA Control Quality control ensures that product is received into and dispatched from the warehouse in a suitable condition. free from faults and defects.

an important component of leading edge logistical performance is the regular measurement of customer perceptions. understand and maintain a focused customer perspective and to gain innovative insights from other industries. problem resolution and product support. These surveys can be company .Logistics System in DHL External Performance Measurement While internal measures are important for detailed organizational monitoring. Customer Perception Measurement To succeed in any activities of business one has to always cater to and satisfy the needs of the customer. performance -cycle time. Therefore. 69 . Such measures can be obtained through surveys or by systematic order follow up. are discussed and illustrate d below. it is essential for one to know how the customer thinks in order to meet his needs in a more satisfying manner. The topics of customer perception measurement and best practice benchmarking. external performance measures are also necessary to monitor. information availability. delivery agents or industry organizations. Most of the surveys incorporates measurement of customer perceptions regarding availability. Such surveys ask questions regarding the firm¶s and the competitor¶s performance in general or for a specific order in particular.or industry ± sponsored. The survey may be developed and administered by the firm itself or by consultants. To do so. which address these requirements.

Need to get products. rely on DHL¶s Worldwide Parcel Express. 70 . One company means you eliminate all the hassles of international shipping. reliable company makes international shipping easy . One. You never lose sight of your shipments. When it comes to delivering your company¶s time critical shipments ± and your reputation. or spares to someone fast? Then trust DHL¶s Worldwide Parcel Express to expedite urgent shipments from your door. through customs direct to the receiver . And with DHL¶s customs expertise.Logistics System in DHL Worldwide Parcel Express . samples.virtually anywhere in the world. you get instant advice regarding local regulations and customs documentation. International express door-to-door delivery overnight or by the end of the next possible business day for goods subject to Customs clearance . ensuring the smooth clearance of your goods.

Logistics System in DHL One company to keep your business moving. WAP. 71 . you don¶t need the hassle of brokers or guessing the answers on customs forms. When you need to get your goods delivered quickly. With Worldwide Parcel express. Never lose sight of your goods. e-mail. Access tracking and delivery details from virtually anywhere via the Internet.  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 quicker and improve cash flow. international shipping couldn't be easier. Benefit from the largest international express network and more in-house customs expertise than anyone else Experienced DHL personnel ensure delivery overnight in most locations or by the end of the next possible day One price for door-to-door delivery eliminates hidden costs so you can avoid surprises for your customers and your Finance Manager. SMS or phone Gain greater control over your business.

we are hiring them to work with us. To invent completely new product can be very expensive and take very much time. this will decrease the threat of restrictions in those companie . will give us precense in that countries. making little difference on the current product or service can be better. we will follow some steps: a. I mean we are not firing people who were working there actually. Also pay premium for new and creative ideas whoever gives it (even juniors). c. we need to talk about innovation. Also. b. At this time. So we are acquiring new brains at the same time.Logistics System in DHL RECOMMENDATION 1. As a CEO of DHL Logistics. 72 . So this will provide us innovativ e atmosphere 2.SIZE LOGISTICS COMPANIES: By acquiring small local companies in different countries like China. enhancing the Smart-Truck Project is going to be my first strategy.To achieve this goal. Prepare an office for a new innovation team and assign a leader to work on this project. USA. So. ENHANCE THE SMART-TRUCK PROJECT Because of the stage of recession and high competi tion. the companies need to make difference to have new customers and increase their market share. India. Increase the budget of R&D 10%. they can have creative solutions to different problems. We can get some ideas from them to improve our skills. This project will allow our company to deliver faster and cut cost by using less fuel. Even they are small companies. AQUIRE SMALL .

This is because of its dynamic nature and attitude of maintaining good customer relations. wild animals and any other thing under the sun DHL delivers it.Logistics System in DHL Conclusion Logistics is one the most important and integral part of any organisations strategy and function. pen. When the logistical process is carried out accurately then not only the company reduces the production cost but a lso improves the efficiency and customer satisfaction. Overall logistics management is very important for today¶s highly competitive and cut throat corporate world. standard packaging and other formalities to adhere to. A happy and satisfied customer makes the business grow. No wonder that DHL is head and shoulders above all of its competitors! 73 . hazardous chemicals. documents. clothes. drugs. cargo ship carriers & even rail way automotives in some countries DHL can handle any type of goods. Over the past decades it had turned delivering goods into a finely oiled process. Be it a book. Logistics management is important for every organization but more so DHL. In the end what matters is delivering well in good condition at the door step of the customer. mobile vans. With a network spanning 200 countries and with its private fleet of airplanes. But DHL has its own department which looks into the international laws and other formalities. Not only has that with international network there come the hassle of documentation and paperwork. Competitors have come and gone but DHL has been able to keep its No 1 position intact. We have tried to incorporate all the facets of logistics which propel DHL to be the best delievery and carriage -service around the world. WIP material. DHL has the world¶s largest express and logistics Network.

www. www.dhl.S.APHALE Websites: 1.com 74 .Written by Martin Christopher b) Indian Logistics Industry´ (2008) published by Cushman & Wakefield c) BUSINESS LOGISTICS ± BARDI d) Elements of Logistics Management.google. www.about.com 2.Logistics System in DHL BIBLIOGRAPHY a) Logistics and Supply Chain Management .D.com 4. www.com 3.logisticmanagement.

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