PROJECT REPORT

ON
“DHL LOGISTICS SYSTEM”

Submitted
In Partial Fulfillment of the requirements
For the Award of Degree of BBA
By
Ganesh Sravista K.P.
B1912209

IIBS
I, Ganesh Sravista K.P. , student of INTERNATIONAL INSTITUTE OF BUSINESS
STUDIES, hereby assure that, I have completed this project on DHL logistics
system for the partial fulfilment of Bachelor of Business Administration and
the information submitted is true to the best of my knowledge & belief.

Ganesh Sravista K.P.

B1912209
OBJECTIVE OF THE STUDY

Essential:

 To access the viability of logistics administration in DHL and to seat check the
association concerning the business.

 To have an exhaustive comprehension of how logistics framework functions in DHL

Auxiliary:

 To think about Logistics Industry.

 To comprehend the estimation of every association.

 To know whether the clients are fulfilled by the current scope of administration.

Extent OF THE STUDY:

With a specific end goal to comprehend the ideas of logistics as far as pragmatic use and to witness into
the how an organization or association utilizes logistics as an imposing instrument to increase consumer
loyalty, decrease general cost and expand proficiency I chose "DHL" the world's driving dispatch Service
Company. The study is done just to see how DHL company use logistics framework Viably in their
business
COMPANY STRENGTHS

 Strong Brand Image: In 1997, DHL turned into the worldwide express transportation
organization to acquire concurrent framework wide ISO 9001 accreditation in global
quality benchmarks. DHL has likewise added to their own particular quality framework
that matches their client's benchmarks.

 Globalism: DHL works on a worldwide scale. They work in more than 220 nations. They
give benefits that speak to the greater part of the world. They have such an expansive
business sector in which to work, and along these lines acknowledge huge incomes.
They can likewise accomplish worldwide economies of scale.

 eServices and Technology: DHL utilizes and keeps on scanning for new innovation. They
spend almost 10% of aggregate incomes, for data innovation. DHL likewise has brilliant
eServices that give access to frameworks that guarantee clients have control and
perceivability of their supply chains at all times. Items can be followed, questioned and
requested on the web.

 Corporate symbiosis: DHL has added to its own authoritative structure to serve the
worldwide business sector, which it has called "corporate beneficial interaction." This
methodology incorporates the strengthening of the DHL work force at a neighborhood
level, in the meantime perceiving the relationship of the parts of DHL as a corporate
entity.

 Smart-Truck Project: It is the system which permits DHL to convey speedier. The
information are transmitted straightforwardly to the dynamic course arranging
framework, which recalculates the courses, contingent upon the present request
circumstance and volume of activity.

COMPANY WEAKNESS:

 High Prices: DHL's costs are over their rivals. This can be a shortcoming if their clients
don't see a contrast in the middle of DHL and its rivals' administrations.

 Mistakes in Market-Share Estimate: The greatest shortcoming is DHL's piece of the

overall industry gauge. It is hard to assess notwithstanding when the business sector is
stagnant and contains couple of contenders, and all piece of the overall industry
evaluations ought to be seen with meticulousness.

 Weak Visibility: It has frail perceivability in the group contrasted and its potential.
 INDEX

1 INTODUCTION TO LOGISTICS..........................................................................1
1.1 Meaning of logistics……………………………………… 1
1.2 Origin and Definition of Logistics……………………….. 3
1.3 Importance of logistic management……………………… 4
1.4 Logistics Management and Supply chain ……………….. 6

2 BACKGROUND OF DHL......................................................................................9
2.1 History of DHL...................................................................................................10
2.2 The world's largest express and logistics Network......................................... 11
2.3 The DHL Indian Profile...................................................................................... 12
2.4 Product and services of DHL.............................................................................14

3. INTEGATED LOGISTICS SYSTEM......................................................................... 16

3.1 Inventory Flow...................................................................................................17
3.2 Information Flow.............................................................................................. 18
Coordination Flow............................................................................................ 18
Operating flow................................................................................................ 20

4. SUPPLY CHAIN MANAGEMENT...........................................................................21

4.1 DHL International Supply chain……………………………. 23
Reverse Logistics………………………………………………… 24
Services Logistics………………………………………… ……… 25
Inbound to Manufacturing……………………………………… 26
Medical device Distribution………………………………........ 27
Distribution to store Management…………………………..... 27
Engineering response………………...................................... 27
4.2 Extended Supply Chain Services……………………………
 28
4.3 Implementation Services ………………………………….. 29
4.4 Performance Management ………………………………… 30
4.5 Outsourcing Projects ………………………………………. 30
4.6 Innovation of Supply Chain development....................................................... 31
4.7 Solution for Customize end to end logistic worldwide ……. 33

5 TRANSPORTATION ………………………………... 36
5.1 Transportation functionality ………………………………. 37
5.2 Principles ………………………………………………….. 38
5.3 Transportation Infrastructure ……………………………… 40
5.4 OPTIMIZATION OF LOGISTICS WITH DHLROAD AND RAIL. SOLUTIONS.............. 44
5.5 Air and ocean freight solutions.........................................................................45

6 INVENTORY MANAGEMENT & WAREHOUSING. 47

6.1 Warehouse Infrastructure Network…………………………. 48
➢ Multi User Centers …………………………………………….. 48
➢ Strategic Part Centers (SPC) ………………………………… 49
➢ Express Logistics Centers (ELC) ……………………………. 49
6.2 Warehouse Management Solution …………………………. 50
➢ Warehouse Management Systems……………………………. 50
➢ Strategic Inventory Management ………............................. 50
➢ Direct Express Inventory Management…………………... 50
➢ Repair Return Inventory Management ……………………... 51
➢ Cross Docking …………………………………………………. 51
6.3 Inventory Optimization ……………………………………. 52
6.4 Special Warehouse solution ………………………………..
54 6.5 Outsourcing Projects. ……………………………………....
55

7 VALUE-ADDED SERVICES.........................................................................................56
7.1 Co-Packaging........................................................................................................ 56
7.2 Product Assembly................................................................................................ 58
7.3 Other-Value added Service ………………………………... 59
7.4 External Performance Measurement.................................................................60
7.5 Customer Perception Measurement..................................................................60
8 Worldwide ParcelExpress …………………………………. 61
9. Recommendation …………………………………………... 63
10 Conclusions.............................................................................................................64
11 Bibliographies ……………………………………………… 65
 INTRODUCTION
LOGISTICS Meaning:

The expression "logistics" starts from the old Greek "Zóyoç" ("logos"— "proportion, word,
computation, reason, discourse, speech"). Logistics is considered to have begun in the military's
have to supply themselves with arms, ammo and proportions as they moved from their base to a
forward position. In old Greek, Roman and Byzantine realms, there were military officers with the
title "Logistikas" who were in charge of monetary and dispersion of supplies.

Logistics is related with getting the items and administrations where they are required and when
they are fancied. It is hard to fulfill any advertising or producing without logistical backing. It includes
the incorporation of data, transportation, inventory, warehousing, material taking care of, and
bundling.

The working obligation of logistics is the land repositioning of crude materials, work in procedure,
and completed inventories where required at the most reduced cost possible. Logistics is drilled for
a very long time subsequent to sorted out movement started. Without logistics bolster no
movement can be performed to meet characterized objective. The present test is to perform
logistics experimentally so as to streamline advantages to the association. Logistics is an arranging
capacity of administration. Logistics capacity is worried with taking items and administrations where
they are required and when they are required.

LOGISTICS Management:

Logistics administration is that part of the production network which arranges, executes and
controls the proficient, compelling, forward and in reverse (converse) stream and capacity of
merchandise, administrations and data between the purpose of birthplace and the purpose of
utilization keeping in mind the end goal to meet clients' prerequisites rather to the clients'
enjoyment. An expert working in the field of logistics administration is known as a logistician.

Logistics, as a business idea, advanced just in the 1950s. This was for the most part because of
the expanding multifaceted nature of supplying one's business with materials, and shipping out
items in an inexorably globalize store network, calling for specialists in the field who are called
Supply Chain Logisticians. This can be characterized as having the right thing in the right amount
at the perfect time at the ideal spot at the right cost and to the right target clients (consumer);
and it is the exploration of procedure having its vicinity in all areas of the business. The objective
of logistics work is to deal with the fulfillment of venture life cycles, supply chains and resultant
efficiencies. Logistics is Concerned with getting (or transmitting) the items and administrations
where they are required or when they are wanted. It is hard to fulfill any advertising or
fabricating without logistical backing. It includes the mix of data, transportation, stock,
warehousing, material taking care of, and bundling. The working obligation of logistics is the
geological repositioning of crude materials, work in procedure, and completed inventories where
required at the most minimal cost conceivable.

Significance of logistics administrations:

1. Logistics is the bed rock of exchange and business:

 Without offering as well as purchasing there can be no exchange and business.

Purchasing as well as offering happens just when products are physically moved into as
well as far from the business sector.
 Take away logistical backing exchange and business will crumple.

2. Integrates logistical exercises:

 In ordinary administration environment, different exercises of logistics work in

disengagement under various administration capacities. Every pocket attempting to sub
improves its targets at the expense of general authoritative goals. Buying attempting to
 buy at least cost at the expense of what is required by operations. Operations create
expansive amounts at least generation cost overlooking interest prompting fate stock.
Logistics capacity of administration brings every such capacity under one umbrella pulling
down entomb departmental obstructions.

3. Competitive edge:

 In the wildly focused environment logistics gives the edge. Because of mechanical unrest
the vast majority of the items are moving into product markets. In an item market where
cost is controlled by rivalry, where there is no item separation regarding quality
parameters like execution and unwavering quality, where brands are verging on
immaterial, focused edge is tha t of accessibility of item and administration as far as time,
spot and amount.

4. Leads to consumer loyalty:

 Through prevalent client administration. Authoritative destinations of P [Productivity],Q

[Quality],C [Cost],D [Delivery],E [Employee Morale],F [Flexibility],S [Safety],H [Health],E
[Environment] are set to meet client desires.

5. Supports basic capacities like operations and showcasing:

 Solid logistics support empowers an organization to move towards JUST IN TIME

generation framework for survival in an exceedingly focused business sector

6. Logistics wins or loses wars:

 British lost American war of autonomy because of poor logistics

 Rommel was beaten in the desert by predominant logistics operations
Company Profile

DHL is the worldwide pioneer in logistics - with all the more exceedingly experienced experts at
a bigger number of areas in a larger number of nations than some other supplier.
They are the first decision for organizations searching for end to end logistics arrangements and
fantastic overhauling capacities. In the wake of uniting with Excel in 2005, they are currently
additionally the division's driving trend-setter - giving the phenomenal scope of forefront
arrangements. They are the overall business sector pioneer since they endeavor to convey all
around steady administrations of the most astounding quality.

History and foundation of DHL:

 DHL are the first letters of the last names of the three organization authors, Adrian
Dalsey, Larry Hillblom and Robert Lynn.
 In 1969, the three accomplices made little stride that would profoundly affect the way
the world works together.
 The authors started to ship by boat papers via plane from San Francisco to Honolulu,
starting traditions leeway of the boat's freight before the real entry of the boat and
significantly evoking holding up time in the harbor. Clients remained to spare a fortune.
With this idea, another industry was conceived: global air express, the fast conveyance
of records and shipments via plane.
 The DHL Network kept on developing at an extraordinary pace. The organization
extended westbound from Hawaii into the Far East and Pacific Rim, then the Middle
East, Africa and Europe. By 1988, DHL was at that point present in 170 nations and had
16,000 workers.
 At the start of 2002, Deutsche Post World Net turned into the real shareholder in DHL.
Before the end of 2002, DHL was 100% claimed by Deutsche Post World Net. In 2003,
Deutsche Post World Net combined the greater part of its express and logistics exercises
intoDHL.
 DHL Express worldwide
Employees more than 124,000
Countries and territories more than 220
Hubs 36
Bases 4700
Vehicles 72,000
Aircraft 350
Pack stations (only Germany) 900

DHL INDIA:
DHL Worldwide Express (India) Pvt Ltd is the No.1 global air express administrations supplier in
India, a position it has held since it started its India operations in 1979. Today, DHL offers its
clients the whole range of express administrations from universal air express to top of the line
logistics arrangements including repair and return, key stock administration and coordinate
express stock. DHL India has more than 50,000 clients adjusted through DHL's national system
with its 1,000 in number ground staff, armada of 400 vehicles and die hard loyalty focuses in
Ahmadabad, Bangalore, Chennai, Cochin, Jaipur, Hyderabad, Kolkata, Mumbai, New Delhi, Pune
and Tripura.

Items and administrations of DHL:

1. DHL Document Express (DOX):

 This administration is perfect for shipments that are not subjected to Customs
affirmation at destinations, or have no business esteem or don't require a permit.

2. DHL Express Worldwide Package (WPX):

 This administration is utilized for shipments with business esteem or those, which
should be pronounced for Customs assessment. They might be subjected to Customs
review at destinations and might be assessable or dutiable.
3. Kind sized Pack and Jumbo Junior:
 This administration makes sending out simple. One box dispatched for one level
expense, anyplace on the planet. DHL Jumbo Box is for shipments under 25kg and
Jumbo Junior for shipments under 10kg.

4. Import Express:
 This administration is a solitary window answer for everything importing needs. DHL
Import Express is an one window, one rate, and one record, one cash benefit that
empowers a shipment got from the supplier's doorstep abroad and conveyed
specifically to the client anyplace on the planet.

5. Fashion First:
 It encourages the import and fare of shipments providing so as to weigh 20kg or more
noteworthy reserve funds with an extensive variety of imaginative and adaptable
entryway - to-entryway arrangements. Another component of Fast Forward is Trade
Automated Services (TAS), an online stage that gives thorough exchange and traditions
data in 50 key nations around the world, computes absolute landed expenses of a
shipment (counting obligation, charge and different traditions related charges), creates
import and trade documentation, screens senders and recipients against government
records relating to embargoes and authorizes, and looks at a thing's fare and import
freedom costs and regulations to empower qualifying sourcing choice.
Supply Chain Management
Definition:
"Production network administration is the administration of upstream and downstream
associations with suppliers and clients to convey better client esteem at less cost than the
inventory network all in all."

The store network is the system of associations that are involved through upstream and
downstream linkages, in the distinctive procedures and exercises that create esteem as items
and administrations in the hands of extreme shopper.

Great configuration is at the heart of a powerful store network arrangement. DHL has built up a
notoriety for reliably creating imaginative arrangements that streamline operations and
enhance control. T beneficiary in-house groups have added to the arrangements outline of a
portion of the world's driving brands and empowered to win key contacts.

DHL arrangements plan group offers a wide arrangement of ability and administrations, from
logistics system technique, transport design, distribution center configuration and reenactment,
through to operational change and stock investigation.
1. Global Supply Chain:
DHL's universal inventory network administration arrangements are centered around offering
clients some assistance with taking expanded control of worldwide inbound store network to
augment the estimation of worldwide and worldwide sourcing.

DHL helps clients:

 Give perceivability of the upstream inventory network, and empower prior choice
making
 Create a more spry store network, better ready to react to changes in purchaser request
 Reduce lead times, inventories, and related capacity costs

Client centered arrangements are developed from the accompanying center administrations:
 Origin administration, including: seller administration; supplier accumulations; traditions
business; union administrations and esteem - included administrations
 Global sending, including: air/sea/street/rail cargo sending and administration;
European oversaw transport
 Destination administration, including: port and demurrage administration; traditions
business; de-solidification and pre-retail benefits; port to dissemination focus
transportation; direct store conveyance (US just)
 Supply chain perceivability and administration, including: buy request administration;
RFID item following; special case administration; arranging and determining; stock
administration.
 Global sending administrations are given over every significant course.
Reverse Logistics:
DHL's converse logistics arrangements offer clients some assistance with planning, execute and
control stream of materials and oversee related data, go down the store network to recover
values and guarantee the sheltered transfer of merchandise. Things incorporate the
recuperation of outdated or non - operational white merchandise, for example, fridges, in
addition to the evacuation of old furniture on conveyance of new or substitution items.
Administrations include:
 Roll in Management: de-establishment of completed products at the client's site
 Returns Management: getting, sorting, checking and overseeing returned items
 Express Delivery: Exchange of Dead On Arrival item

Service logistics:
Administration and new parts DHL's administration and new parts administration includes the
administration of makers' new parts conveyed to and from clients as indicated by pre-
characterized administration levels or guarantee concurrences on an one, two, four or eight-
hour and following day premise, 24 hours a day, seven days a week.
DHL works intimately with clients to overcome normal issues, for example,
 Poor parts accessibility
 High stock venture
 Long lead times, complemented by worldwide sourcing
 High levels of client returns
 Poor perceivability, reporting and control
 Cost control of the interest chain
Key administrations include:
 International cargo sending
 Domestic and provincial inbound conveyances
 Inventory arranging, determining, obtainment and examination
 Distribution focus operations
 Outbound conveyance
The whole process is supported by a web-empowered electronic request handling and arrange
checking instrument.

Medical Device Distribution:

 DHL nation based distribution centers for various makers to benefit a nearby client base.
This incorporates the receipt of item from nearby or worldwide assembling destinations
and downstream dissemination to healing centers.

Distribution to stores administration:

 DHL conveyances to store administrations are centered around offering retailers some
assistance with creating proficient and adaptable supply binds to convey item to retail
outl ets at large amounts of administration. These arrangements are manufactured from
a few center administrations: reverse logistics accumulations; sortation; preparing;
repair/renovation; esteem recuperation; transfer and consistence.

2. Augmented store network administrations:

DHL gives physical logistics administrations as well as oversees other upgraded store network
administrations, enhancing efficiencies and diminishing expenses.

Order Management:
 Receipt, administration, execution, sequencing and dispatch of requests in an auspicious
way.

Call Center Management:

 A Call Center oversees orders, screens deals exercises, gives client benefits and works as
a Help-work area.

Global Inventory Management

 DHL gives the client a worldwide perspective of stock, subsequently empowering
educated choices in regards to the mien of stock.
Consolidated Billing Services
 The production of a united and ordered receipt, taking into account all administrations
performed in a particular time-period by more than one administration supplier, made
accessible in a concurred design.

Freight and Customs Solutions

 DHL's numerous years of involvement with global exchange prerequisites and
conventions, joined with the European Competence Center and nation ability, gives
clients the main edge in administration, quality and administration in cross fringe
exchanges.

3. Implementation Services:

Implementation and Project Management:

 Execution begins by characterizing venture points, setting the objectives and portraying
the deliverables in subtle element. The significant points in usage incorporate business
forms, building, land, IT frameworks, movement, HR, money and legitimate
contemplations.

Quality Management:
 Complete Quality Management is an administration system that coordinates quality
introduction into the entire structure and work process of an organization by utilizing
routines and methods of value administration

Execution Management:

 Execution administration is a key part of the store network. Measured components are
checked on as a framework, as every segment collaborates with the various parts
around it. Execution measuring records chronicled execution as well as gives early sign
of any administration slippage. In this second part, the measures give a valuab le
commitment to DHL's Continuous Improvement Program.

Outsourcing Projects:
Outsourcing includes DHL assuming control and overseeing past in-house logistics operations,
including:
 Distribution focuses
 Transport operations
 Back-office capacities
 Supply chain administration capacities
 After sales
 DHL Solutions

DHL Solutions offers altered logistics answers for your whole store network. Our complete
review – from maker supplier to retailer to shopper – empowers you to accomplish operational
magnificence at each stage. Administrations range from counseling and plan to administration
and execution. They give industry-particular skill and long haul encounter that enhance your
business. DHL Solutions sets the pace in Supply Chain Management with cutting edge
advancements, conveying redid business arrangements. Driving edge frameworks guarantee
consistent mix and ensure full straightforwardness and control all through the whole
production network.

Supply Chain Investigation, plan and building. Lead Logistics Provider

Management (LLP) and Lead Service Provider (LSP) administrations.
Warehousing Building, outline and administration. Seller administration,
without a moment to spare.
Value Added Services Request administration, quality control, outbound
satisfaction, invert and return logistics and different
administrations.
Outsourcing Industry-particular local and transnational. Arrange and
armada arranging and improvement
Distribution Assume control and administration of in-house logistics
including conveyance, transport, back-office, store network
and after deals.
DHL Supply Chain Corporate Information Solutions:

This division comprises of agreement logistics administrations and Corporate Information

Solutions.

Both specialty units concentrate on tailor-made client arrangements.

The specialty unit Supply Chain gives warehousing and transportation administrations and in
addition esteem included arrangements along the whole inventory network for clients from
different segments of industry, including the key car, life sciences, innovation, quick - moving
purchaser products, retail, and mold divisions. The backup Williams Lea is the heart of the
specialty unit Corporate Information Solutions. The master for report based outsourcing
arrangements accumulates, digitalizes, prints, stores, sorts, addresses, conceals, dispatches and
files records of various kinds. Williams Lea is likewise the right purpose of call for electronic
invoicing and showcasing administrations.
TRANSPORTATION
Transportation is the most noticeable of all elements of logistics and high supporter to logistics
cost. We can see trucks, holders and wagonloads of material being moved from spot to put as
an action specifically connected with exchange and business. We ought to likewise welcome
this is a movement that adds most elevated measure of expense to the action of making inputs
and yields accessible to purchasers. Transportation capacity moves the items to meet client
desires at least cost. Transportation is a standout amongst the most noticeable components of
logistics operations. Transportation gives 2 noteworthy capacities: Item development and Item
stockpiling.

Item Movement:

Whether the item is as materials, segments, gatherings, work-in-procedure, or completed

merchandise, transportation is important to move it to the following phase of the assembling
process or physically closer to a definitive purchaser. An essential transportation capacity of
item development is climbing and down the worth chain. Since transportation uses transient,
money related, and ecological assets, it is vital that things moved just when it genuinely
improves the item esteem. Transportation includes the utilization of worldly assets since item is
difficult to reach amid the transportation process. Such item, ordinarily alluded to as in-travel
stock, is turning into a noteworthy thought as an assortment of store network procedures, for
example, only – in – time and speedy reaction rehearses decrease producing and conveyance
focus inventories.
Transportation utilizes monetary assets in light of the fact that inner uses are essential for
private armadas or outside uses are required for business or open transportation.
The significant target is to move item from a cause area to an endorsed destination while
minimizing worldly, monetary and ecological asset costs. Misfortune and harm costs should
likewise be minimized. In the meantime the development must happen in such a way, to the
point that takes care of client requests with respect to conveyance execution and shipment
data accessibility.

Item Storage:

Provisional capacity in stationary vehicles or Vehicles continued proceeding onward a

circumlocutory course - Product stockpiling is costly in a vehicle. Be that as it may, once in a
while remembering general cost this is embraced.
 When emptying and stacking is more costly than capacity
 When storage room is constrained.
Principles:
There are two major standards directing transportation administration and operations. They
are economy of scale and economy of separation.
Economy of scale alludes to the trademark that transportation cost per unit of weight
abatements when the measure of the shipment increments.
E.g. truckload shipments cost less per pound than less - than-truckload shipments. It is
additionally for the most part genuine that bigger limit transportation vehicles, for example, rail
or water are less costly per unit of weight than littler limit vehicles like engine or air.
Transportation economies of scale exist in light of the fact that settled costs connected with
moving a heap can be spread over the heap's weight. The altered costs incorporate managerial
expenses of taking the request; time to position the vehicle for stacking or emptying, invoicing
and gear cost. These expenses are altered on the grounds that they don't change with shipment
volume.
E.g. assume the expense to oversee a shipment is $ l0.00. At that point the l-pound shipment
has a for every unit of weight expense of $l0.00, while the l,000 pound shipment has a for every
unit of weight expense of $0.0l. In this manner, it can be said that an economy of scale exists
for the l000 - pound shipment.

Economy of separation alludes to the trademark that transportation cost per unit of separation
declines as separation increments.
E.g. a shipment of 800 miles will cost under two shipments (of the same joined weight) of 400
miles. Transportation economy of separation is additionally alluded to a se decreasing rule
since rates or accuses decrease of separation. The method of reasoning of separation
economies is like that for economies of scale.
Longer separations permit the altered costs to be spread over more miles, bringing about lower
general per mile charge. These standards are essential contemplations while assessing elective
transportation methodologies or working practices. The goal is to expand the measure of the
heap and the separation that is dispatched while as yet meeting client administration desires.
Transport Infrastructure

Transportation foundation comprises of the privileges of-ways, vehicles, and transporter

associations that offer transportation administrations on a for-contract or inside premise. The
way of the base likewise decides an assortment of legitimate and financial qualities for every
mode or multimodal framework. A mode distinguishes the essential transportation strategy or
structure.

RAIL NETWORK

Following time long past times, railways have taken care of the biggest number of ton - miles.
As an aftereffect of the early foundation of a complete rail system interfacing every one of the
urban communities and towns, railroads ruled the intercity cargo tonnage till World War II and
sometimes of Europe, Asia and Africa they even associated the nations. This early prevalence
empowered railroads over transport extensive shipments financially.

Engine CARRIERS

Expressway transportation has expanded quickly since the end of Wor ld War II. This is on the
grounds that Motor transporter industry results from way to-entryway working adaptability
and velocity of intercity development. They are even adaptable in light of the fact that they can
work on every last sort of roadways. In correlation to railways, engine carrie rs have generally
little altered interests in terminal offices and work on openly looked after interstates. Despite
the fact that the expense of permit charges, client charges, and tolls are impressive, these costs
are straightforwardly identified with the quantity of over - the-street units and miles worked.
The variable expense per mile for engine transporters is high in light of the fact that a different
force unit and driver are required for every trailer or blend of coupled trailers. Work
prerequisites are additionally high in light of driver wellbeing limitations and the requirement
for significant dock work. Engine transporters are most appropriate to handle little shipments
moving short separations.

WATER TRANSPORT

It is the most established method of transportation. To begin with it was the cruising vessels,
which was supplanted by steamboats in mid 1800's and by diesel power in the 1920's.
Household water transportation – includes the Great Lakes, waterways, and traversable
streams. In each nation, less framework miles exist for inland water than whatever other
transportation mode.

The primary point of preference of water transportation is the ability to move to a great degree
vast shipments. Water transport utilizes 2 sorts of vessels. Profound water vessels, which are
for the most part intended for Ocean and Great Lakes use, and are confined to profound water
ports for access. Conversely, diesel-towed freight boats, which by and large work on waterways
and channels, have extensively more adaptability. Water transport positions in the middle of
rail and engine transporter in the settled cost angle. In spite of the fact that water transporters
must create and work their own terminals, the privilege of-way is produced and kept up by the
legislature and results in moderate altered expenses when contrasted with railroads and
parkways.

The fundamental detriment of water transport is the constrained scope of operation and speed.
Unless the beginning and destination are adjacent, supplement pull by rail or truck is required.
The ability to convey high payload at a to a great degree low variable expense puts this method
of transport sought after when low cargo rates are coveted and speed of travel is an auxiliary
thought.

AIR TRANSPORT

Air transport is the freshest and the slightest used method of transport. Its significant favorable
position being its rate, which is joined by high expenses. An across the nation shipment through
air requires just a couple of hours complexity to days taken by other mean of transportation.
The high cost of transport can be exchanged off for rapid, which permits different components
of logistical configuration, for example, warehousing, stock to be lessened or wiped out. Yet air
transport stays even more a potential open door than a reality since it is all that much
underutilized.

The high cost of plane flying machine, combined with unpredictable nature of cargo interest,
has constrained the task of devoted planes to all - cargo operations. However premium bearers
give planes devoted to cargo operations. This premium administration began off with records
and has moved onto huge packages, which is a perfect administration for firms with countless
quality items and time-touchy administration necessities.

FOR DHL:

DHL utilizes every one of the methods of transportations that is

 Airways
 Roadways
 Waterways
 Rail cargo

DHL has its own armada of planes and engine vans. Contingent on the last destination where
the merchandise need to at long last reach and the sort of bundle the client has paid for, DHL
utilizes the individual methods of transport or a blend of both of these or all. At the end of the
day the land area and how quick the merchandise must be conveyed are the variables for the
last determination of methods of transportation. The idea of economies of scale and economies
of separation are both thought about if there should be an occurrence of bigger dispatches
where DHL gives a proper logistical arrangement which helps in decreasing the general expense
for the customers.
DHL ROAD AND RAIL SOLUTIONS:

DHL Freight is a pioneer in European overland transport. Our mainland wide system and
extensive scope of items and administrations ensure dependable transport. DHL Freight
offers you normal administrations for gathering age and a full scope of transport
administrations for part-and full-load shipments by street, rail and multi-purpose
transportation. They give extraordinary taking care of and transportation to perishables,
furniture, exchange reasonable or occasion hardware, and in addition customized
traditions leeway administrations in more than 350 workplaces crosswise over Europe.
Cutting edge IT frameworks give you adds up to shipment perceivability and higher
conveyance effectiveness. Our industry-particular ability and long haul experience can
enhance your profitability and streamline your operations. An effective, high-bore
organization with DHL Freight gives all of you the focal points you have to streamline
your logistics.
Air and sea cargo arrangements:

Whether you have to forward way to-entryway, air terminal to-air terminal or port-to-port
cargo, DHL Danzas Air and Ocean offers an exhaustive scope of administrations regardless of
the size, weight or measurements of your products.

Consolidated with a broad toolbox of data administration frameworks and a worldwide system
of devoted control towers, our accomplished groups far and wide can make the right logistics
answer for your business.

DHL Danzas Air and Ocean is in post position to lead the eventual fate of air and sea cargo
logistics and sets exclusive requirements in quality and security.
Inventory Management and Warehousing.

Inventory is an unused asset, which lies in stock without participating in value

adding process. Unused equipment, raw material, WIP and Finished goods,
consumables, spare parts, bought out parts, tools and tackles, gauge and
fixtures etc. In India 9 to 12 months of sales quantity lies in the form of
Inventory [R/M, WIP, Bought out parts and Finished goods] as against a few
days in Japan and a month in the US and Europe. In our country inventory is
always viewed as asset [working capital], in fact, though it is called an asset,
it is a big liability Warehousing was a customer’s function conventionally
anywhere in the world. Customer to protect himself from shortages at the
time of inclement weather always used to store provisions and other utilities
in his house. Consumer’s own stores were underground cellars, smoke
houses to store variety of items. Poor communication infrastructure was
mainly the cause for this storage by customer. Producers and tradesmen
conveniently shrugged off their responsibility for storage and passed it on to
the customer who was left with no option. Traditional concept of warehouse
as store or godown has undergone major change now. Warehouse is
considered a value adding facility now, playing a remarkable role as a
function of logistical management.

➢ Warehouse Infrastructure Network

➢ Warehouse Management Solution
➢ Inventory Optimization
➢ Special warehouse solution
➢ Outsourcing Projects
1. Warehouse Infrastructure Networks

DHL warehouse service supports inbound logistics, distribution and

aftermarket services in a way that improves inventory management, reduces
total operating costs and improves cycle times.
DHL facilities offer our customers warehousing that is fully integrated into the
wider supply chain and meets demanding service levels. This encompasses
the design implementation and operation for both dedicated and multi user
sites.
Benefits include improvements in:

➢ Customer service levels

➢ Stock accuracy
➢ Lead times
➢ Redundant stock costs
➢ Productivity responsiveness to a company's strategic needs

a. Multi User Centers

We provide a network of multi-user warehouses, enabling manufacturers to

hold inventory at local level, whilst avoiding expensive, dedicated storage
solutions. These facilities can receive products from both local and global
manufacturing sites, providing downstream distribution.
b. Strategic Part Centers (SPC)

Our Strategic Part Centers (SPCs) are in-country facilities offering:

➢ 1, 2 and 4 hour order fulfillment

➢ Stock optimization across the complete network of SPCs
➢ Guaranteed performance against agreed business rules

c. Express Logistics Centers (ELC)

Our Express Logistics Centers (ELCs) are regional centralized facilities offering:

➢ order processing
➢ outsourced repair facilities
➢ custom final assembly
➢ kitting services
 2. Warehouse Management Solutions:

a) Warehouse Management Systems

The Warehouse Management System (WMS) records all events and actions in
the receipt, 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. Our Prologs WMS manages all
critical processes in the warehouse, and is also an important support for varied
transport and distribution concepts (planning, time controlling, booking of
transport capacity, 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, usually
time critical spare parts with a high value and high impact on business.

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.
Entire management is done by DHL.
d) Repair Return Inventory Management

Return & Repair Inventory (RRI) manages the physical flows for Return
material authorization. In this case, 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.

e) Cross Docking

Cross-dock operations are facilities where shipments are received from one
mode of transport and transferred to another mode, or where shipments
complete one leg of a journey prior to commencement of another journey.
Shipments are consolidated or deconsolidated. Product received into the
facility is not taken into inventory.

60
3. Inventory Optimization:

Through effective inventory management, inefficiencies can be driven out of

the supply chain, overall costs reduced and high service levels achieved. 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, profitability and return on investment
➢ High service standards
➢ Better matching of supply with demand
➢ More streamlined and responsive supply chain

61
□ Shared-user Warehousing

Our shared-user facilities are designed to meet the needs of organizations of

any size. Currently, we provide shared-user services to leading manufacturers
and retailers of medical supplies, con sumer products, industrial equipment,
chemicals and technology. Through sharing of DHL's resources, such as
space, labour, equipment and transportation, customers benefit from
synergies that considerably reduce supply chain costs. 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, product launches or seasonal overflow.

□ Campus Solutions

We pioneered the campus model to provide regional customers with a

flexible solution designed to capitalize on similar distribution channels,
minimize labour costs, and increase specialized equipment utilization.
Campuses are strategically located at key distribution points in North and
South America, Europe and select locations in Asia, allowing for expedited
transit times to large concentrations of consumers.

62
2. Special Warehouse Solutions

□ Vendor Hubs
warehousing and delivery of service parts, based on demand pull. Vendor
hubs are usually located in close proximity to the manufacturing facility.

□ Reverse Centers
specially designated facilities for the receipt and handling of returned parts
for repair, recycling or disposal.

□ Bonded Warehousing

Bonded warehouses provide secure environments in which customers'

products can be held without immediate payment of local duties and taxes.

□ Shared-user Warehousing

Our shared-user facilities are designed to meet the needs of organizations of

any size. Currently, we provide shared-user services to leading manufacturers
and retailers of medical supplies, consumer products, industrial equipment,
chemicals and technology. Through sharing of DHL's resources, such as
space, labour, equipment and transportation, customers benefit from
synergies that considerably reduce supply chain costs. Consequently, the
customer can increase efficiencies throughout their distribution network and
maintain a higher level of service to their customers.

63
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
 Value Added Services

➢ Co packing
➢ Product assembly
➢ Other value added services

1. Co-packing

We offer a comprehensive selection of manufacturing and packaging services

through Power Packaging a DHL Company.
By integrating manufacturing and packaging operations within their supply
chains, our customers can:

➢ Add flexibility
➢ Improve service levels
➢ Reduce costs
➢ Accelerate time to mark
➢ Increase asset utilization

In addition to these core packaging services, Power Packaging brings a unique

set of services and capabilities for customers that include:

65
a. Beverage manufacturing:

Blending, 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, plastic cup and bag-in-a-box)

b. Dedicated facility services:

Turnkey manufacturing solutions including:

➢ Site selection/development
➢ Facility and systems design
➢ New facility start-up and operation

c. Other services:
➢ Packaging and raw material sourcing, procurement and asse mbly
➢ Batch/quality control tracking via digital easy -to-trace coding system
➢ Full range of secondary packaging services

66
 2. Product Assembly

Postponement, quick response and mass customization are breakthrough

business strategies enabled via packaging services. Integrating packaging
operations into distribution centers streamlines fulfillment reducing cost,
enhancing product visibility and control, and improving speed-to-market
and flexibility in the supply chain. Packaging services include:

➢ Postponement packaging - primary, secondary and specialty

components
➢ Co-packing, kitting, assembly and repackaging
➢ Retail-ready, point-of-purchase displays
➢ Lot control via variable digital and laser printing
➢ Machinery system engineering - labeling, bagging, carton filling, club store
packs, clamshells and printed and unprinted film over -wraps
➢ Make-to-order pallets
➢ Product rework/redress

67
 3. Other Value Added Services

a.Kitting/Pre-Assembling
Kitting is the addition of items such as accessories and batteries to the
product pack. Pre-assembling is completion of a finished product from
component parts or pre-programming of products.

b. Re-Working/Re-Packing

Repacking for a specific customer can include repalletisation.

Reworking is the modification of products to suit a local market.

c. 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.

d. QA Control

Quality control ensures that product is received into and dispatched from
the warehouse in a suitable condition, free from faults and defects.

e. Labeling/Merchandising

The application of labels either to the product or to the packaging.

Merchandising can include the addition of price stickers or promotional items
ready for retail display.

68
External Performance Measurement

While internal measures are important for detailed organizational monitoring,

external performance measures are also necessary to monitor, understand
and maintain a focused customer perspective and to gain innovative insights
from other industries. The topics of customer perception measurement and
best practice benchmarking, which address these requirements, are discussed
and illustrate d below.

Customer Perception Measurement

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. 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.

69
Worldwide Parcel Express.

International express door-to-door delivery overnight or by the end

of the next possible business day for goods subject to Customs

clearance.

One, reliable company makes international shipping easy .

Need to get products, samples, 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 - virtually anywhere in the world. One
company means you eliminate all the hassles of international shipping. You
never lose sight of your shipments. And with DHL’s customs expertise, you
get instant advice regarding local regulations and customs documentation,
ensuring the smooth clearance of your goods. When it comes to delivering
your company’s time - critical shipments – and your reputation, rely on DHL’s
Worldwide Parcel Express.

70
One company to keep your business moving.
When you need to get your goods delivered quickly, you
don’t need the hassle of brokers or guessing the answers
on customs forms. With Worldwide Parcel express,
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. Never lose sight of your goods.
Access tracking and delivery details from virtually
anywhere via the Internet, e-mail, WAP, SMS or phone

Gain greater control over your business.

➢ O necompanytohandleyourshipments
➢ Moreefficientprocesses
➢ Customs experience and advice to ensure smooth
clearance
➢ Shorterleadtimesthroughdirectdistribution
➢ Ability to invoice quicker and improve cash flow.

71
RECOMMENDATION

1. ENHANCE THE SMART-TRUCK PROJECT

Because of the stage of recession and high competition, the companies
need to make difference to have new customers and increase their
market share. To invent completely new product can be very expensive and
take very much time. So, making little difference on the current product or
service can be better. At this time, we need to talk about innovation.
As a CEO of DHL Logistics, enhancing the Smart-Truck Project
is going to be my first strategy. This project will allow our company to
deliver faster and cut cost by using less fuel. To achieve this goal, we will
follow some steps:
a. Increase the budget of R&D 10%.
b. Prepare an office for a new innovation team and assign a leader to work
on this project.
c. Also pay premium for new and creative ideas whoever gives it (even
juniors). So this will provide us innovative atmosphere

2. AQUIRE SMALL - SIZE LOGISTICS COMPANIES:

By acquiring small local companies in different countries like China, India, USA,
will give us precense in that countries. Also, this will decrease the threat of
restrictions in those companie. Even they are small companies; they can have
creative solutions to different problems. So we are acquiring new brains at the
same time. We can get some ideas from them to improve our skills. I mean we
are not firing people who were working there actually; we are hiring them to
work with us.

72
 Conclusion

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

73
a) Logistics and Supply Chain Management- Written by Martin Christopher
b) Indian Logistics Industry” (2008) published by Cushman & Wakefield
c) BUSINESS LOGISTICS – BARDI
d) Elements of Logistics Management- S.D.APHALE

Websites:
1. www.google.com

2. www.logisticmanagement.com
3. www.about.com
4. www.dhl.com
5. http://www.dpdhl.com/en/about_us/corporate_divisions/supply_chain.html

74