BUSINESS 2 BUSINESS

CIA-3

By

SEBASTIAN RAJU (2127924)

SHIVAM SAHNI (2127925)
RADHIKA SINGHAL (2127948)
SAKSHI BAHL (2127951)
SHUBHANGI BAWANIA (2127955)
TRISHNA BHARALI (2128013)

Under the Guidance of

PROF. BARKATHUNISSA A

MBA PROGRAMME

SCHOOL OF BUSINESS AND MANAGEMENT

CHRIST (DEEMED TO BE UNIVERSITY), BANGALORE

APRIL 2022
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 CONTENTS

PAGE
S. No. PARTICULARS
NUMBER

1. Transportation Industry 3

2. Product 6

3. Marketing Mix Analysis 7

4. Technology and AI in Transportation 11

5. Sustainable Production and Ethical Consideration 15

6. Challenges in Transportation Industry 18

7. Solutions of Success of New Product 20

8. Conclusion 21

9. References 21

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 TRANSPORTATION INDUSTRY
One of the major Industry responsible for the functioning of all the day to day activities, which
helps in moving the people or the goods from one place to another is Transportation Industry.
Efficient transportation system contributes to the all the people catering from individual
businessman, employees, employers, government etc. Nation as a whole, functions effectively
only due to the timely delivery of every product ranging from, food grains to electronic goods, on
a timely fashion.

Indian Transportation Industry

The Indian Transportation Industry can be majorly divided into two broad segments namely the

1. Freight and Passenger transportation

2. Warehousing and Cold storage

The CAGR of the transportation Industry had grown at a rate of 16% for the last five years. The
aggregate freight traffic was estimated to be 2- 2.3 trillion tone kilometers. When the freight transport is
considered around 60% is carried by roadways and 32% by the railways.

Indian Freight Industry

In the Indian logistics industry, many key indicators were identified for the future trend. Freight
services demand has been led mainly by the Indian economy's remarkable growth. The freight
expenditure for India, which is comparatively higher than in other developing countries, is
estimated at some 13 percent of GDP. The contribution of the aviation sector was roughly 0.2 per
cent of the country's GDP, and in the last few years the contribution of the transport sector to GDP
has increased. In the next few years, the Indian aviation cargo is projected to increase by 11,5%
over CAGR. The marine transport industry's contribution to the country's GDP has also risen by

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about 0,2%. Due to the increasing economic changes in the world the sector has added more to
GDP. The shipping industry played a very important part in the development of the Indian
economy. The Indian Railways also recognized the need for improved service facilities. The
strategy for developing logistics parks or hubs has the ability to rationalize, simplify and reduce
the supply chain. Roughly 80% of the commodities currently being moved in India have to be
planned by rail for transportation. The transportation market has drawn enormous investments in
India and has left some main sectors such as aviation, metals and sustainable consumer products.

Future measures to be implemented

Some of the future measure which are to be implemented to enhance the transportation industry in
India are

 Connection of various methods of transportation to form a hybrid system. So as to reduce

the cost of transportation and also to reduce the various fuels which are exploited at a very
large extent. The carbon emission among the various transportations are found to be
o Roadways – 84g per ton-km
o Railways -28g per ton-km
o Waterways -15g per ton-km
 Digital collection of the toll system. The process of Fastag is being made mandatory to all
the vehicles registered now. The manufacturers themselves provide the end product to the
customers with the Fast tag.
 The freights being carried by large distances had to be transported only by large trucks and
medium & small size trucks are being restricted.
 Truck pooling is a new kind of business model which is being developed by many private
business entities. Trucks can be booked online and only when a certain capacity is booked
truck is being dispatched to the desired route.
 Privatization of government sector is being encouraged. Transportation sector is one of the
major industries in privatization.

Latest Trends

 Visibility and Anti-Theft GPS: Anti-Theft GPS, for example, is a method of receiving
relatively close locations for entire vehicles and individual items in transit. The additional
security protocols will also actually prevent losses all across the board. Nowadays, E-
Commerce, retail, and logistics companies are focusing on increased visibility; and
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 thereby, tracking technology adoption and adaptation for increased traceability are some
of the major trends in the transportation industry.

 Self-Driving Trucks: Self-driving trucks is still being modified, and preparing

to overcome certain challenges, such as developing driverless software to allow it to
operate efficiently on congested urban roads. It is, however, one of the transportation future
trends. For Long-term, transportation companies should start preparing for upcoming
technological changes in the industry by outfitting the trucks with self-navigating software
that can "learn" from real drivers. An AI-enabled vehicle can correctly evaluate road
conditions and learn from how truck drivers behave in unusual road conditions. In fact, in
the coming future Tesla's electric Semi truck has autopilot features that can greatly simplify
driving. Walmart, along with a number of other companies, including Pepsi, Asko, and
Loblaw, reported that they had ordered Tesla Semi trucks for commercial use.

 Regulation Compliance: It would be more accurate to say that regulatory compliance is a

must rather than one of the most recent transportation trends. Any local, state, or federal
government should keep commercial transportation companies up to date on recent
requirements and regulations that have been adopted, changed, or removed. Whether it's
regulations for electronic logbooks, overtime, or safety rules.

 Blockchain in Logistics: Blockchain is one of the transformative distribution and

transportation technology trends that will shape mobility in 2021 and even beyond. One
potential application for blockchain technology in trucking is making sure the accurateness
of performance history records. Considering an example, when a truck is sold for the
second time, potential buyers may have questions about how it was used, as blockchain
transactions are unchangeable and transparent, all parties involved in a transaction can be
satisfied that the truck information is reliable.

 Address Delivery: As e-commerce businesses expand, so does the demand for

home deliveries would also increase. Being more competitive means providing better
service. Heavy trucking companies should consider expanding their fleet of small vehicles
in order to capture a larger share of the market. As a result, one of the transport and logistics
industry trends for 2021 is optimizing last mile deliveries.

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  Drone Delivery: Several companies began investing in drone delivery to improve the cost-
effectiveness of their operations as well as the customer experience. In the current state of
COVID-19, contactless home delivery has become the most popular and necessary of all
current transportation industry trends. It prompted even more businesses to consider and
implement this delivery method.

PRODUCT

DHL is a global leader in the transportation and logistics industry. It specializes in international
shipping, courier services and transportation.
Customer shipments are transported primarily by air, according to Air Freight Products.
DHL operates with schedules on all of the world's key routes, working with carefully selected
carriers, so you may plan with confidence and become more efficient. They provide a variety of
extremely flexible goods that allow you to choose from a variety of delivery speeds to meet your
needs.

 DHL Road Freight Products provide high-quality road transportation, ranging from
typical services like LTL (less-than-truck-load), part- or full-truckload shipments to
temperature-controlled and highly secured transports.
 DHL rail freight products provide safe, dependable, and ecologically friendly freight
transportation throughout Europe or between Europe and Asia, in both westbound and
eastbound, LCL (Less-than-Container Load) or FCL (Full Container Load) modes (Full-
Container Load).
 DHL Ocean Freight Products are designed to carry your freight mostly by sea. With our
diverse product offering, we can provide a variety of equipment and consolidation
services to ensure that your cargo arrives at the correct location, at the right time, and at a
reasonable cost. We have prepared space protection from every major cargo port in the
world in order to provide the highest level of reliability.

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 MARKETING MIX ANALYSIS
Product

DHL Freight offers road and rail transportation, as well as warehouse and cross-docking
services, and is a customs expert. Customers can choose between basic services and custom
logistics solutions developed by DHL's engineering teams. LTL (less than truck load) and FTL
(full truck load) are two types of road transport (Full truck load). By combining items in DHL
warehouses and cross docking them in trucks that operate as line-haul between DHL depots,
LTL solutions can be maximized. Freight has a fleet of over 3,000 heavy-duty tilt trailers and
subcontracts over 50,000 external transport providers each year in Europe alone. The company
has many daily train routes linking different parts of Europe in terms of rail or intermodal
solutions. In 2013, the business also opened a daily route connecting European countries with
China, connecting economies that account for 29% of global industrial activity (China rail 2019)

One of DHL's three priorities is to build long-term connections with its customers, which is one
of the company's three priorities: "provider of choice" (8). The company's major goal is to
provide a great customer experience. A favorable customer experience, according to Biedenbach,
G., and Marell, A. (2010), has a beneficial effect on all dimensions of brand equity, including
brand awareness, brand associations, perceived quality, and brand loyalty

Price

DHL Freight's standard pricing policy is based on the estimation of the total logistical costs of
the operation and a margin is added to this. The 3PL market is an extraordinarily fragmented one,
where access is easy and competition is high (MacGillavry & Wilson 2014). In 2019, more than
580 000 transport companies are registered in the European Union alone, and the total revenue
of these companies is 400 billion euros (Popescu, D. 2020, January 22). DHL Freight, the market
leader, has around 3% market share. Excessive fragmentation and high level of competition
creates a high pressure on the price level.

According to Vasiliauskas & Barysien (2008), retaining profitability under price pressure from
clients is the largest fear of European 3PL (79 percent of enterprises). "Delivering great quality
at a reasonable price" summarizes the company's pricing approach in the 2020 DHL strategy.
The operational and support teams optimize or recreate the logistical schemes on a regular basis
in order to reduce transportation costs and improve the quality of the logistics service. By
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lowering operating costs, one can keep or even increase margins, and implicitly, new contracts
can be negotiated. Special rates and yearly cost-saving programs can be offered to significant
DHL clients

Promotion

DHL's services promotion programme is mostly built on brand awareness rather than particular
division or product promotion. DHL has sponsorship agreements with some of the most
prestigious events around the world, including ESL One (e-sports), Rugby World Cup, major
football clubs and national teams (Manchester United, Bayern Munich, Romania, and others),
Fashion and Culture, and motorsport (Formula E, Formula 1, World Touring Car Cup, Moto GP)
(Brand partnerships 2020)

The development of the DHL brand relies heavily on public relations. DHL's corporate social
responsibility plan is a large-scale initiative with a global reach, with the goal of promoting the
impression that DHL is a caring and supporting corporation that is actively involved in resolving
pressing issues.

As a result, the company's CSR strategy comprises three core programmes: Go Teach, Go Help,
and Go Green (Corporate Responsibility at Deutsche Post DHL Group. 2020). Go Green is the
most ambitious and long-term programme. The program's goal is for the corporation to have zero
carbon emissions by 2050. In comparison to 2007, DHL achieved a 32 percent reduction in
emissions in 2019. DHL has made significant expenditures in the research and development of
alternative and environmentally friendly modes of transportation in order to fulfil these
objectives. The purchase of Street Scoter by DHL in 2014 is one example of this ongoing
endeavor to minimize emissions. DHL has replaced almost 10,000 vans with electric vehicles in
the previous three years (Tomoff & Jüchter 2018)

Place

Despite the fact that the DPDHL Group has a global footprint, the Freight segment is limited to
Europe and a few nearby locations. It provides services in more than 50 countries, primarily in
Europe and neighboring regions.

According to a study conducted by Kepelabuhanan, of the four aspects that make up the
marketing mix: product, pricing, promotion, and distribution, distribution has the greatest

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individual impact on the decision to choose a 3PL as a supplier. Members of the distribution
channel are chosen based on a number of essential considerations, including service quality,
equipment type, and cost. Because different types of items are transported with different types of
equipment, the equipment used varies. For example, basic products are transported on tilt
trailers, wet food is conveyed on a fridge trailer, and chemicals are delivered in tanks. DHL's
primary suppliers are audited and examined to ensure that they are of high quality and meet
DHL's standards.

Physical evidence

In the service industry, physical evidence is crucial. This element encompasses the way and
atmosphere in which the service is delivered, as well as all tangible items that aid in the delivery
of the service. This is critical since the clincher assesses service quality based on concrete facts
(Al Muala & Al Qurneh 2012).

Logos, colours, and symbols all contribute to a company's identity. Companies with a strong
corporate visual identity system are more effective in conveying a strong corporate identity,
according to Melewar & Saunders (2000) in UK-based research. All of DHL's divisions have the
same logo and colours (yellow and red). The nearly 100,000 road freight vehicles are all branded
and designed in the same way around the world, and the drivers are all clothed in DHL branded
clothing. Furthermore, all promotional items are standardised and ordered from the headquarters.
There is a DHL logo and colour standard for email signatures, business cards, invoices, and
packaging.

People

People are crucial in the field of services in order to provide a high-quality logistic service. This
area has been hampered in recent decades by a scarcity of experienced supply chain managers
with the required abilities to deal with the rising complexity of global logistics. One argument is
that students are looking for professions that will allow them to grow and develop their
creativity. This is in contrast to the majority of 3PL entry-level roles, which are mundane. (Jeng
et al. 2018; Ellinger et al. 2008). The level of involvement and interaction between the frontline
employee and the customer is a critical aspect in generating a pleasant customer experience.
DHL Freight and Gallup, Inc. collaborated in 2013 to develop a new approach that emphasised
top-down culture change to strengthen the link between staff engagement and customer centricity

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(MacGillavry & Sinyan 2016). DHL has created and implemented a number of trainings and
courses to help employees grow their skills. To ensure that all new employees are brought up to
DHL standards within the first six months, they must attend the following trainings: Code of
Conduct, Certified Freight Specialist, GO GREEN, Adaptation to Competition, Fight Against
Corruption Each of them has specific training for the department to which they belong. The
remainder of the staff, meanwhile, are involved in a continual learning process that includes both
external and internal training for the development of soft and hard skills. DHL spent more than
EUR 83 million on external training and employee development in 2018.

In the same Gallup, Inc. survey, it was discovered that there is a direct correlation between
employee happiness and the quality of the logistical service. Thus, in recent years, the EOS
(employee opinion survey) programme has been introduced at the firm level, with the goal of
measuring employee satisfaction. Annual objectives for raising the program's indicators are
defined at the senior management level of each country based on these results.

Processes

A poll of 700 DHL customers revealed that they value ease of contact, swift action, and having
knowledgeable personnel as equally vital as or more important than quality and pricing
(MacGillavry & Wilson 2014). DHL Freight designed and executed a Customer Experience
Management plan in 2013 to deal with the survey's conclusions. DHL incurs significant costs to
rectify difficulties in order to keep client loyalty. The organisation uses a lean mindset
programme called First Choice to create and improve procedures.

Due to the acquisition of two significant global corporations (Danzas and EXEL) as well as other
regional or national companies, the Freight division's IT management systems are diversified and
occasionally unintegrated. Large attempts have been made to integrate IT systems, although this
has been unsuccessful in some cases due to significant technological disparities. For example,
one of the most popular TMS systems, Freightsoft, was developed in 1982 and is still in use by
Danzas. DHL started developing EVO, a new TMS and dispatching IT system, in 2016. The
rollout has started in a few countries and will be completed by 2025 across Freight.

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 TECHNOLOGY AND AI IN TRANSPORTATION

Transportation, the industry of transporting goods and people from one place to another, has
undergone countless surveys, researches, trials, and refinements to get to where it is now. In the
year 1787, the steamboat became one of the most significant milestones in the history of
transportation. Previously, people had to depend on animal-drawn carts to get around. Following
that, significant breakthroughs in the transportation industry included the invention of bicycles in
the early nineteenth century, automobiles in 1890s, trains in the nineteenth century, and airplanes
in the twentieth century. The transportation industry has advanced to the point where vehicles
can maneuver and drive without the need for human interference. The transportation sector has
benefited from technological advances in its path of growth and evolution. AI is one example of
a cutting technology that has benefited the industry. Using AI in transportation will help the
industry boost passenger safety, reduce traffic congestion and injuries, reduce carbon emissions,
and lower overall costs.

Artificial intelligence (AI) is a technology that gives machines human intelligence. AI-enabled
computers can imitate humans, automate manual tasks, and learn on the fly in the same way that
humans can. Repetitive and time-consuming tasks are put on AI's plate as a result of
automation.AI has been inevitable in our daily lives for quite some time now, having transcended
its theoretical presence in research centre’s. And, for the most part, technology has succeeded in
its goals. The majority of us aren't aware that we use AI on a regular basis.

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AI-powered devices display human intelligence and learn over time, suggesting that these
computers may be able to perform critical thinking tasks and make decisions on their own in the
future. Businesses in the transportation sector are making substantial investments to boost
revenue generation and remain ahead of their rivals, recognizing the unique potential of AI. The
global demand for AI in transportation is projected to hit 3.5 billion dollars by 2023, according to
studies. Some of the innovations are:-

1. SELF-DRIVING VEHICLES

Autonomous vehicles are one of the most ground-breaking AI applications. Autonomous

vehicles, which were once just a sci-fi dream, have now become a realistic fact. Despite
the fact that many people were wary of this technology during its early stages of growth,
driverless vehicles have now entered the transportation field. In Tokyo, self-driving taxis
have already begun to run. However, for safety purposes, the driver currently sits in the
car to take charge of the taxi in the event of an emergency. According to the creator of
this self-driving taxi, the technology would lower the cost of taxi services, which will
further expand public transit options in rural areas.
Similarly, the logistics industry in the United States is adopting autonomous vehicles in
order to reap various benefits. According to a Mckinsey survey, trucks transport 65
percent of goods globally. And, as autonomous trucks become more popular,
maintenance and administration costs will drop by around 45 %. For the time being, the
majority of businesses are still conducting pilot projects in order to perfect self-driving
cars and ensure passenger safety. Self-driving cars can gain widespread acceptance as
technology advances and become commonplace in the consumer market.

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2. TRAFFIC MANAGEMENT
Traffic congestion is another transportation problem that people face on a regular basis.
AI is now poised to tackle this dilemma as well. Sensors and cameras installed in the road
surface gather a massive amount of traffic data. This data is then sent to the cloud, where
big data analytics and an AI-powered system can be used to analyse and reveal traffic
patterns. Data analysis may provide useful insights such as traffic forecasts. Important
information such as traffic forecasts, incidents, and road closures can be delivered to
commuters. Furthermore, people will be informed of the shortest path to their destination,
allowing them to drive without traffic congestion. AI can be used in this way to not only
eliminate unnecessary traffic, but also to improve road safety and shorten commuting
times.

3. DELAY PREDICTIONS
Flight delays are another pressing concern in today's aviation. According to a report
conducted by researchers at the University of California, Berkeley, the total costs of
flight delays in the United States are 39 billion dollars. Flight delays have a detrimental
impact on travellers’ travel experiences in addition to financial losses. Negative flying
experiences will devalue a transportation company's value, resulting in higher customer
churn rates. To address these problems, artificial intelligence (AI) comes to the rescue of
the airline industry.
The industry will provide outstanding service to traveller’s by using data lake technology
and computer vision to reduce passenger wait times and enhance their journey
experience. Because anything from bad weather to a technical glitch can cause flights to
be delayed, it is important to provide passengers with updated flight information ahead of
time to avoid excessive wait times. Continuous tracking of airplanes can be carried out
with the aid of computer vision devices, avoiding unplanned downtime. Aside from that,
AI and machine learning components can process real-time aircraft data, historical
records, and weather data. On-the-spot computation will assist in the detection of secret
trends, which will aid the aviation industry in obtaining valuable insights into other
possible causes of flight delays and cancellations. This information can be forwarded to
traveller’s, allowing them to better prepare their schedules.

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4. DRONE TAXIS

A drone taxi is one of the most exciting and creative AI applications in transportation.
Pilotless helicopters provide a one-of-a-kind solution for eliminating carbon emissions,
traffic congestion, and the need for costly infrastructure building plans. Furthermore,
drone taxis would allow people to arrive at their destination much faster, reducing
commute time.
Furthermore, growing demographic pressures have placed city planners under a lot of
pressure to ensure smart urban planning and infrastructure development while still
conserving scarce resources. Drone taxis may be the only solution to all of the issues that
these city planners are attempting to address. The latest demonstration of an autonomous
aerial vehicle in China, in which 17 passengers first witnessed smart air mobility, is a
great predictor of similar potential applications. AI is, without a doubt, one of humanity's
most impressive technological accomplishments. Despite all of the incredible inventions
we've seen so far, it's important to remember that we've just scratched the surface of AI,
and there's still a lot more to learn. The above examples of AI in transportation display
only a small portion of the possibilities and opportunities that the technology can bring.
Think how awesome and exciting an AI-driven future will be.

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 SUSTAINABLE PRODUCTION AND ETHICAL
CONSIDERATION
At various global forums, sustainable transportation has long been recognized as a key
development goal. The concept of sustainability is gaining traction around the board. Sustainability
and sustainable growth are increasingly aimed at combining economic, social, cultural, political,
and ecological factors. Sustainable development is development that meets the needs of the present
without compromising the ability of future generations to meet their own needs.” This definition
is connected with two principal concepts: the notion of “needs”, particularly elementary needs of
the poorest in the world that should be prioritized, and the notion of limitations, i.e., imposed
capabilities of the environment to meet present and future needs through the level of technology
and social organization.

A sustainable transportation system satisfies the basic need of individuals and community to access
it in a healthy manner that is compatible with human health and ecosystems, as well as the
requirements of capital values within and between generations. It minimizes the usage of non-
renewable resources, restricts the use of renewable resources to sustainable levels, recycles and
reuses their materials, minimizes land use, and reduces noise pollution.

Companies in the freight transportation sector face additional ethical challenges. Globalization of
goods output and distribution networks has increased the environmental effect of goods
transportation, leading to natural resource degradation and climate change. For years, the freight
industry has taken a responsible approach to various industry issues. Transparency, controlled
carbon and resource restrictions, the growth of rights and local governance, as well as socio-
economic shifts, have all accelerated the process of industry transition. These developments have
presented the industry with additional obstacles, such as increased pressure to turn to low-sulfur
fuels and increased demands to monitor what goes within the 'box.'

Best Practices that can be used in freight industry

 Manufacturers also improved tractor aerodynamics by sloping the hood and streamlining
the front profile, using aerodynamic bumpers and mirrors, and adding roof and side
fairings, among other things. The average drag coefficient (a measure of wind resistance)

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 has been decreased from 0.80 to 0.65, a 20% increase over more conventional tractor
styling.

 Other technologies, such as trailer aerodynamics, advanced cargo management systems,

and higher productivity vehicles, can also help increase fuel efficiency and lower
emissions.

 Tires are another important factor in truck fuel efficiency. Low rolling resistance tyres are
made to reduce friction between the tyre and the road. Slightly thinner sidewalls, shallower
tread depths, and low rolling resistance tread compounds are all possible features. Single-
wide tyres (also known as "wide-base" or "super-singles") are thought to boost fuel
efficiency by 2 to 4 percent.

 Engines: The advancements in engine technology and safer fuels, today's diesel engines
emit 60 to 99 percent less Sulphur dioxide, hydrocarbons, nitrogen oxides, and particulate
matter than previous models.

 Alternative fuels, which usually include fuels produced from non-petroleum sources, are
another choice for reducing petroleum consumption and emissions. Because diesel engines
are prevalent in medium and heavy-duty fleets, natural gas (in both compressed [CNG] and
liquefied [LNG] forms), biodiesel, and hybrid engines are emerging as viable alternatives.

 Intermodal (combined) transport—transportation using more than one mode of transport.

In reality, combined transportation normally entails merging road and rail transportation.
In the traditional concept of intermodal transportation, the transport method entails
transporting goods using various modes of transportation or, in the case of a door-to-door
arrangement, moving goods in the same vehicle along the entire route.
In the age of sharing, reducing consumption, and making life greener, the idea of
intramodality takes on a new sense. Integrated bike sharing, car sharing, park and ride, and
pre-paid Transport Service Cards are examples of this. In the age of sharing, reducing
consumption, and making life greener, the idea of intramodality takes on a new sense.
Integrated bike sharing, car sharing, park and ride, and pre-paid Transport Service Cards

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 are examples of this. The development of applications such as mytaxi, movel, Nextbike,
and others supports this approach to intramodality.

 The integrated intermodal transport and logistics system is a mode of transportation that
optimizes the transportation of goods and passengers, reduces electricity, property, and
other resource use, produces low emissions of greenhouse gases, ozone-depleting
chemicals, and other contaminants, and reduces the negative social impacts of
transportation operations.

Alternative freight modes can be evaluated in the state's large freight centers and corridors. Short-
sea shipping (SSS) is a low-emissions alternative to land-based modes like heavy-duty trucks. SS
has the ability to reduce carbon dioxide emissions while also providing a number of other
advantages, such as lowering local pollution levels. California recently enacted legislation to
reduce greenhouse gas emissions.

With nearly 2 billion customers expected to enter the market in the next five years, businesses have
the opportunity to expand exponentially and causing a greater risk to Earth. As natural resources
becoming increasingly scarce, many companies are finding an even greater opportunity to
introduce sustainable shipping and manufacturing practices through their global supply chains in
order to ensure their long-term sustainability. To help mitigate the environmental impact of both
production and shipping, businesses are gradually turning to sustainable supply chain solutions.

Sustainable transportation manufacturing is changing from a priority for companies to an

imperative strategy that generates value across the industry. Current developments in the freight
transportation industry, such as zero-emission vehicles and carbon-neutral manufacturing, show
the increasing value of sustainability.

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 CHALLENGES IN TRANSPORTATION INDUSTRY

GLOBAL LEVEL

1. Visibility: In the transportation industry of shipping goods through ships have poor
visibility into their supplier's activity. The ship's transportation team has limited or no
visibility into a purchase order's execution status from the time a purchase order is
processed. This lack of visibility at an early stage of transportation becomes challenging in
optimizing inventory across a global supply chain. The first case in a series of events that
adversely effect on-time delivery performance is the transportation's lack of visibility into
the Purchase Order from its release to the vendor.

2. Reporting: Aggregating information and maintaining its quality is a manual and time-
consuming operation in most global transportation departments. When information is
prepared, it is often out of date.

3. Communication: Because of the difficulty in aggregating information from different

data sources, communicating transportation information with internal associates and
external actors is a real and ongoing challenge. Transportation data is vital for managing
any global supply chain.

4. Transportation cost management: The effectiveness of transportation deals and

operation is directly linked to the ability to minimize product transportation expenses.
Hence building an effective strategy to reduce the transportation cost is the greatest
challenge existing.

5. Border delay: Inbound entry for a different way of transportation across country borders
is another challenge. Congestion entry, Customs, and other government regulatory bodies
all affect the movement of goods across the global supply chain. Entry delays have a
negative effect on inbound delivery results. They might have almost no insight into border
activity, resulting in late deliveries.

6. Political disruption: Political uncertainties are making global transportation jobs more
difficult. Countries are now using both tariff and non-tariff trade barriers to show political
will. Because of these political barriers, transportation teams must adapt rapidly to evolving
trade trends.

7. Covid-19: The pandemic diseases spreading across the world recently caused a most
significant threat to the transportation industry. Due to this pandemic, most of the country's
borders are closed sometimes, and sometimes heavy restrictions were implemented that
reduced and affected much business from the transportation industry.

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NATIONAL LEVEL
National and global operating transportation industries share some common challenges, such as
Covid-19, transportation cost management. Other challenges that the transportation industry faces
are as follows.

1. Political challenges: Public transports help people travel or transport goods at an

affordable cost. Still, due to various pressure that central-level government undergoes,
there may be a risk of changing the tariff of these transports or even privatizing a particular
way of transports.

2. Economic condition: The country's economic condition is critical that, if not suitable,
will affect a lot of industries of which transportation industries also get affected.

3. Fuel cost: Fuel cost majorly determines the price of transport. Hence, changes in fuel
costs affect the transportation industry to a great extent.

LOCAL LEVEL
Some common challenges for the local level from the national and global levels are Covid-19,
transportation cost management, economic condition, and fuel cost. Other challenges that the
transportation industry faces here are as follows.

1. State government performance: The state government's performance affects the

economic condition of the state, and this economic condition affects different industries,
in which transportation industries are also included.

2. Population's trend shift: The change in trend affects the different way of transports.
For example, change the trend from petrol or diesel vehicle to electric vehicle affects the
business that runs with petrol or diesel vehicles' help.

3. Climatic condition: The climate condition affects almost all levels that are global,
national, and international level. The climatic condition majorly affects the airlines'
industry of transportation.

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 SOLUTIONS FOR SUCCESS OF NEW PRODUCT

 DHL should bring a diversification of freight services to capture the niche but highly
profitable market. It can take over small companies, specialized in certain market
segments to grow at an international level in terms of services.

 To capture and grow the market share, it should lower down its prices of standard
logistics services like transportation or warehouse. High customized services can also be
provided with extra services to attract consumers.

 Increasing the geographical coverage and service network can be an important factor in
the success of the product in financial terms. The company should expand to new
horizons where there are new emerging markets since people follow different practices at
different places.

 The company should develop and implement customer services based on different
software applications that are user-friendly and convenient at the same time. One of the
examples can be of a mobile application that can track the shipment in real-time from the
origin to destination.

 The freight should be the integration of the IT systems to provide data which will help in
optimizing network and supply chain of the company.

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 CONCLUSION
One of the most important services provided by the transportation and logistics industry in today's
globalized and integrated environment is transportation and logistics. At the beginning of 2020, an
increasing number of countries around the world have closed their borders and restricted
transportation and travel in order to curb the coronavirus (COVID-19) epidemic, causing
impediments to international commerce and transportation. Globally, the pandemic impacts nearly
every aspect of economic life and people. Significant supply chains in the logistics and shipping
industries have been hampered as a result of the coronavirus epidemic, though in various ways
around the air, freight, and sea sectors. The coronavirus epidemic produced a state of meta-
uncertainty. Therefore, there are various interpretations of its potential consequences on the
logistics and transportation industry.

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