OBJECTIVE OF THE STUDY The objectives of the Project are: PRIMARY OBJECTIVES

To know the effectiveness of logistics management of DHL and to bench mark the organization with respect to the industry.

To have a thorough understanding of how logistics system works in DHL

SECONDARY OBJECTIVE • To know about Logistics Industries • To understand the value of each organization • To know whether the customers are satisfied with the existing range of service pattern. SCOPE OF THE STUDY: In order to understand the concepts of logistics in terms of practical usage and to glimpse into the how a real company or organization uses logistics as a formidable tool to gain customer satisfaction, reduce overall cost and increase efficiency I selected “DHL” the world’s leading courier Service Company. The study is done only how Dhl use logistics system effectively. There are following strength and weakness of DHL


Strong Brand Image: In 1997, DHL became the global

express transportation company to obtain simultaneous systemwide ISO 9001 certification in international quality standards. DHL has also developed their own quality system that matches their customer’s standards.

Globalism: DHL operates on a global scale. They operate

in more than 220 countries. They provide services that appeal to most of the world. They have such a large market in which to operate, and thus realize tremendous revenues. They can also achieve global economies of scale.

eServices and Technology: DHL uses and continues to nearly 10% of total

search for new technology. They spend

revenues, for information technology. DHL also has excellent eServices that provide access to systems that ensure customers have control and visibility of their supply chains at all times. Products can be tracked, queried and ordered online.

Corporate symbiosis:DHL has developed its own

organizational structure to serve the global market, which it has called “corporate symbiosis.” This approach encompasses the empowerment of the DHL personnel at a local level, at the same time recognizing the interdependence of the parts of DHL as a corporate whole.

Smart-Truck Project: It is the programme which allows

DHL to deliver faster. The data are transmitted directly to the dynamic route planning system, which recalculates the routes, depending on the current order situation and volume of traffic.


High Prices: DHL’s prices are above their competitors.

This can be a weakness if their customers do not perceive a difference between DHL and its competitors’ services.

Mistakes in Market-Share Estimate: The biggest

weakness is DHL’s market-share estimate. It is difficult to estimate even when the market is stagnant and contains few competitors, and all market-share estimates should be viewed with circumspection.

Weak Visibility: It has weak visibility in the community

compared with its potential

Not Well-known in USA as UPS and Fedex

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


BACKGROUND OF DHL……………………………..

10 11 12 14

2.1 History of DHL …………………………………………….. 2.2 The world's largest express and logistics Network ………… 2.3 The DHL Indian Profile ……………………………………. 2.4 Product and services of DHL ……………………………….

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

4.1 DHL International Supply chain……………………………. Reverse Logistics………………………………………………… Services Logistics………………………………………………… Inbound to Manufacturing……………………………………… Medical device Distribution………………………………........ Distribution to store Management…………………………..... Engineering response………………......................................

23 24 25 26 27 27 27

4.2 Extended Supply Chain Services…………………………… 28 4.3 Implementation Services ………………………………….. 29 4.4 Performance Management ………………………………… 4.5 Outsourcing Projects ………………………………………. 30 30

Logistics is concerned with getting the products and services where they are needed and when they are desired. It is difficult to accomplish any marketing or manufacturing without logistical support. It involves the integration of information, transportation, inventory, warehousing, material handling, and packaging. The operating responsibility of logistics is the geographical

repositioning of raw materials, work in process, and finished inventories where required at the lowest cost possible.Logistics is practiced for ages since organized activity began. Without logistics support no activity can be performed to meet defined goal. The current challenge is to perform logistics scientifically in order to optimize benefits to the organization. Logistics is a planning function of management. Logistics function is

concerned with taking products and services where they are needed and when they are needed.

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

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

Importance of logistics managements:
1.Logistics is the bed rock of trade and business.
• Without

selling and or buying there can be no trade and


Buying and or selling takes place only when goods are physically moved into and or away from the market. •Take away logistical support trade and business will collapse

2. Integrates logistical activities In conventional management environment, various activities of logistics work in isolation under different management functions. Each pocket trying to sub optimizes its objectives at the cost of overall organizational objectives. Purchasing trying to purchase at minimum price at the cost of what is needed by operations. Operations produce large quantities at minimum production cost ignoring demand leading to doom inventory. Logistics function of management brings all such functions under one umbrella pulling down inter departmental barriers.


Competitive edge:

In the fiercely competitive environment logistics provides the edge. Due to technological revolution most of the products are moving into commodity markets. In a commodity market where price is controlled by competition, where there is no product differentiation in terms of quality parameters like performance & reliability, where brands are almost irrelevant, competitive edge is that of availability of product and service in terms of time, place and quantity.


Leads to customer satisfaction P

Through superior customer service. Organizational objectives of [Productivity],Q [Quality],C [Cost],D [Delivery],E


Morale],F [Flexibility],S [Safety],H [Health],E [Environment] are set to meet customer expectations.

5.Supports critical functions like operations and marketing Strong logistics support enables a company to move towards JUST IN TIME production system for survival in a highly competitive market

6.Logistics wins or loses wars British lost American war of independence due to poor logistics

Rommel was beaten in the desert by superior logistics of Allies

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

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

Company Profile

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

History and background of DHL
 DHL are the first letters of the last names of the three company founders, Adrian Dalsey, Larry Hillblom and Robert Lynn.  In 1969, just months after the world had marveled at Neil

Armstrong's first steps on the moon, the three partners took another small step that would have a profound impact on the way the world does business.

The founders began to personally ship papers by airplane from San

Francisco to Honolulu, beginning customs clearance of the ship's cargo before the actual arrival of the ship and dramatically reducing waiting time in the harbour. Customers stood to save a fortune. With this concept, a new industry was born: international air express, the rapid delivery of documents and shipments by airplane.

The DHL Network continued to grow at an incredible pace. The

company expanded westward from Hawaii into the Far East and Pacific Rim, then the Middle East, Africa and Europe. By 1988, DHL was already present in 170 countries and had 16,000 employees.

At the beginning of 2002, Deutsche Post World Net became the

major shareholder in DHL. By the end of 2002, DHL was 100% owned by Deutsche Post World Net. In 2003, Deutsche Post World Net consolidated all of its express and logistics activities into one single brand, DHL

The world's largest express and logistics Network
DHL is a global expertise in express, air and ocean freight, overland transport and logistics solutions; DHL combines worldwide coverage with an in-depth understanding of local markets. Below are the global facts and figures that show you the scale of the world's largest express and logistics network.

DHL Express worldwide
Employees Countries and territories Hubs Bases Vehicles Aircraft Pack stations (only Germany) more than 124,000 more than 220 36 4700 72,000 350 900

DHL Logistics in figures
DHL logistics worldwide Employees * DHL Global Forwarding Countries and territories 150 813 4,409,000 tones 2,764,000 59 2500 23,000,000 more than 30 2,000,000 more than 160 more than 162,500

Terminals, warehouses, offices
Air freight volume Ocean freight volume TEU ** DHL Excel Supply Chain Countries and territories Centers, warehouses, terminals Storage area sqm DHL Freight Countries and territories Full truckload movements p.a. Terminals


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

Facilities: DHL India has an outstanding reputation in the market for providing a reliable, fast and easy-to-use service. DHL offersHighly trained and professional staff, committed to being responsive to all customers’ needs

 Customer Service Agents, available round-the-clock, 365 days of
the year, to serve customers whenever and wherever they need them

 Electronic pre-clearance of shipments through Customs  Five international gateways providing direct-to-air networks and
faster sorting of inbound and outbound shipments DHL India is a proven facilitator of trade, across the globe. His strength lies in our global network and the know-how of our people. Backed by strategic alliances with world-class partners and the innovative use of technology, they strive to continuously improve the quality of our service. Our services range from fast, responsive and cost effective express deliveries toe-commerce fulfillment and intelligent logistics solutions. DHL Core Services consist of door-to-door air express delivery of documents and parcels of all sizes (and weight), both into and out of the country.

Products and services of DHL: DHL Document Express (DOX):
This service is ideal for shipments that are not subjected to Customs declaration at destinations, or have no commercial value or do not require a license.

DHL Express Worldwide Package (WPX)
This service is used for shipments with commercial value or those, which must be declared for Customs evaluation. They may be subjected to Customs inspection at destinations and may be taxable or dutiable.

Jumbo Pack and Jumbo Junior:
This service makes exporting easy. One box dispatched for one flat fee, anywhere in the world. DHL Jumbo Box is for shipments under 25kg and Jumbo Junior for shipments less than 10kg.

Import Express:
This service is a single window solution for all importing needs. DHL Import Express is a one window, one rate, and one account, one currency service that enables a shipment picked up from the supplier's doorstep overseas and delivered directly to the customer anywhere in the world. And what's more, it allows the customer to maintain total control of your importing costs.

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

Logistics is viewed as the competency that links an enterprise with its customers and suppliers. Information from and about customer’s flows through the enterprise in the form of sales activity, forecasts and orders. As products and materials are procured, a value added inventory flow is initiated that ultimately results in ownership transfer of finished products to customers. Thus the process is viewed in terms of two interrelated efforts, inventory flow and information flow.
Inventory flow


Physical distribution

Manufacturing support


Information flow

Inventory Flow
The management of logistics is concerned with the movement and storage of materials and finished products. From the initial purchase of a material or component, the logistical process adds value. By moving inventory when and where needed. Thus the material gains value at each step. For a large manufacturer, logistical operations may consist of thousands of movements, which ultimately culminate in the delivery of the product to an industrial user, wholesaler, dealer or customer. In order to understand logistics it is useful to divide it into three areas:

 Physical distribution  Manufacturing support  Procurement
For DHL: DHL is completely service oriented therefore it does not have its own material movement but that of the customers the sender, the receiver and also the intermediateries. That means it only involves physical distribution and procurement. Procurement also includes the material needed for packaging such as paper, moulded trays and boxes, wooden crates, standard containers wraps, plastic inlays etc. The materials or the goods collected from the senders (including papers, documents, physical goods like clothing, household good, chemicals, exotic animals etc) are weighed, checked for condition, and depending upon its various characteristics it is packed. The goods are then dispatched to their destinations. There is no value addition to the material itself but it is done to the service which is provided (e.g. if there has to be a certain package delivered from India to UK the normal services would take

about 2 days whereas as a super fast delivery would be done in about 9 hours)

Information flow
Information flow identifies specific locations within a logistical system that have requirements. Information also integrates the three operating areas. The primary objective of developing and specifying requirements is to plan and execute integrated logistical operations. Logistical information involves two major types of flows: 1.Coordination flows 2.Operation flows

1. Planning and coordination flows
Coordination is the backbone of the overall information system.

Strategic objectives:
Strategic objectives detail the nature and location of customers, which are matched to the required products and services to be performed. For DHL It implies estimating the time requires for collecting the goods from the door step of the sender and then estimating the time for the goods to reach the final customer.

Forecasting utilizes historical data, current activity levels, and planning assumptions to predict future activity levels. Logistical forecasting is generally concerned with relatively short –term predictions. The overall purpose of information planning/coordination flow is to integrate specific activities within a firm and to facilitate overall integrated performance.

For DHL DHL’s whole business is dependent on the vital point of timely delivery. Based on the distance to the final receiver, the accessibility, the documentations and procedures that need to be handled etc they have fine tuned the process of delivery. They can accurately gauge how much time it will take for the goods to reach its end destination.

2. Operational flows
The second aspect of information requirements is concerned with directing operations to receive, process, and ship inventory as required supporting customer and purchasing orders. Operational requirements deal with

 Order management  Order processing  Distribution operations  Inventory management  Transportation and shipping  Procurement
For DHL: DHL owns its success for the efficiency with which the operations are carried out. Here not only the company but the sender and sometimes the receiver can track the goods through their information center. They are given a certain password which they can use to trace via online or their customer service helpline.

Supply Chain Management
Definition for supply chain management “Supply chain management is the management of upstream and
downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole.”

The supply chain is the network of organizations that are involved through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of ultimate consumer.( in detail mention above) For DHL: Supply chain Optimization

Good design is at the heart of an effective supply chain solution. DHL has developed a reputation for consistently developing innovative solutions that streamline operations and improve control. Their in-house teams have contributed to the solutions design of some of the world's leading brands and enabled to win key contacts. DHL solutions design team offers a wide portfolio of expertise and services, from logistics network strategy, transport design, warehouse design and simulation, through to operational improvement and inventory analysis International Supply Chain Extended Supply Chain Services Implementation Services Outsourcing Projects


International Supply Chain:

DHL’s international supply chain management solutions are focused on helping customers take increased control of international inbound supply chain to maximize the value of international and global sourcing. DHL helps customers:

Give visibility of the upstream supply chain, and enable earlier

decision making

Create a more agile supply chain, better able to respond to changes

in consumer demand

Reduce lead times, inventories, and associated storage costs

Customer-focused solutions are built up from the following core services:

Origin management, including: vendor management; supplier

collections; customs brokerage; consolidation services and value-added services






forwarding and management; European managed transport







management; customs brokerage; de-consolidation and pre-retail services; port to distribution centre transportation; direct store delivery (US only)

Supply chain visibility and management, including: purchase order

management; RFID product tracking; exception management; planning and forecasting; inventory management.  Global forwarding services are provided across all major routes.

Logistical services that are offered.

Reverse Logistics

 Services Logistics
 Inbound to Manufacturing

 Medical device distribution  Distribution to stores Management  Engineering Response

Reverse Logistics

DHL’s reverse logistics solutions help customers plan, implement and control flow of materials and manage related information, back up the supply chain to recapture values and ensure the safe disposal of goods. Items include the recovery of obsolete or non-operational white goods such as refrigerators, plus the removal of old furniture on delivery of new or replacement products. Services include:

Roll in Management: de-installation of finished goods at the

customer's site

Returns Management: receiving, sorting, verifying and managing

returned products

Express Delivery: Exchange of Dead On Arrival product

b.) Service logistics
Service and replacement parts DHL’s service and replacement parts service involves the management of manufacturers' replacement parts delivered to and from customers according to pre-defined service levels or warranty agreements on a one, two, four or eight-hour and next-day basis, 24 hours a day, seven days a week. DHL works closely with customers to overcome common issues such as:
     

Poor parts availability High inventory investment Long lead times, accentuated by global sourcing High levels of customer returns Poor visibility, reporting and control Cost control of the demand chain

Key services include:
    

International freight forwarding Domestic and regional inbound deliveries Inventory planning, forecasting, procurement and analysis Distribution centre operations Outbound delivery

The entire process is underpinned by a web-enabled electronic order processing and order monitoring tool.

c.)Inbound to Manufacturing
Inbound to manufacturing is the complete end-to-end logistics management of inventories, facilities and labour associated with the inbound flow of materials from vendors and supplier origins to consumption points in manufacturers production lines. The service encompasses:
 Network, transportation and facility design  Inventory optimization  Supplier management  Transportation management  In-plant services

Key to the service is integrating manufacturers' forecasting, order management and supply chain execution processes with their component suppliers. DHL implements warehouse management and supply chain event management systems to manage just-in-time deliveries and allow supply chain participants to exchange forecast requirements in real time Value is created for manufacturers and component suppliers throughout the world by:
 Enabling a robust and cost-effective supply chain  Providing the necessary visibility so that the location of all

components within the supply chain is known to all supply chain participants
 Reduce inventory and investment costs  Improve delivery times  Co-ordinate multiple components more efficiently

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

2. Extended supply chain services
DHL not only provides physical logistics services but also manages other enhanced supply chain services, improving efficiencies and reducing costs.

a.) Order Management
Receipt, management, execution, sequencing and dispatch of orders in a timely manner.

Call Center Management

A Call Centre manages orders, monitors sales activities, provides customer services and functions as a Help-desk.

c.) Global Inventory Management
DHL gives the customer a global view of inventory, thus enabling informed decisions regarding the disposition of stock.

d.) Consolidated Billing Services
The creation of a consolidated and categorized invoice, based on all services performed in a specific time-period by more than one service provider, made available in an agreed format.

e) Freight & Customs Solutions
DHL's many years of experience with international trade requirements and formalities, combined with the European Competence Centre and country expertise, gives customers the leading edge in service, quality and management in cross border transactions.

2. Implementation Services:
a. Implementation and Project Management

Implementation starts by defining project aims, setting the targets and describing the deliverables in detail. The major topics in implementation include business processes, engineering, real estate, IT systems, migration, HR, finance and legal considerations.

b. Quality Management
Total Quality Management is a management strategy that integrates quality orientation into the whole structure and workflow of a company by using methods and techniques of quality management Corporate Policy for Quality, Environment, Health and Safety (QEHS) is based on five corporate values:

Customer satisfaction: Providing our customers and their

customers with excellent, high value logistics solutions

Employee motivation: Building on the know-how and stimulation

of individual potential in multi-cultural teams

Operational excellence: Continuous improvement of processes

and services to fulfill or exceed expectations

Corporate citizenship: Acting as a responsible corporate citizen in

all countries

Shareholder reward: Developing a sustainable business to

provide increasing shareholder value
Globally, DHL management systems are certified according to the international standard for quality management systems ISO 9000 in almost every operating unit.

Performance Management:
Performance management is a key part of the supply chain. Measured elements are reviewed as a system, as each component interacts with all the other parts around it. Performance measuring not only records historical performance but also provides early indication of any service slippage. In this second role, the measures provide a valuable contribution to DHL's Continuous Improvement Programme.

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

Innovative Supply Chain Development
Supply Chain Management services are delivered across industry sectors and provide expertise, knowledge and resources in terms of personnel and supply chain tools. All services are targeted at optimizing logistical operations in both process and strategy, and are aligned to the client's commercial expectations. The services are as follows:
 Strategic Logistics Consulting  Lead Logistics Provider  Consulting and providing Transport optimization: Route-Pro and

 Consulting and providing Supply Chain Design  Consulting and providing Transportation  Engineering, optimization and re-engineering  Implementation and Project Management  Process Management  Outsourcing

DHL’s consulting services also offer re-organization of customer facilities, project management for customers, implementation of new IT Systems, creation of tender documents and tender processing.

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

DHL Solution

Solution for customized End-to-end logistics worldwide.

Best-in-class solutions that deliver Value to your supply chain.

DHL Solutions offers customized logistics solutions for your entire supply chain. Our complete overview – from manufacturer/supplier to retailer to consumer – enables you to achieve operational excellence at every stage. Services range from consulting and design to management and execution. They provide industry-specific expertise and long-term experience that add value to your business. DHL Solutions sets the pace in Supply Chain Management with state-ofthe-art technologies, delivering customized business solutions. Leading edge IT
Customized Logistics Solutions.
Supply Chain Management Analysis, design and engineering. Lead Logistics Provider (LLP) and Lead Service Provider (LSP) services. Engineering, design and management. Vendor management, just in time.


Value Added Services

Order management, quality control, outbound fulfillment, reverse and return logistics and other services. Industry-specific local transnational. Network and planning and optimization and fleet



Take-over and management of inhouse logistics including distribution, transport, back-office, supply chain and after sales.

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

Transportation is the most visible of all functions of logistics and high contributor to logistics cost. We can see trucks, containers and wagonloads of material being moved from place to place as an activity directly associated with trade and business. We should also appreciate that this is an activity that adds highest amount of cost to the activity of making inputs and outputs available to consumers. Transportation function moves the products to meet customer expectations at minimum cost. Transportation is one of the most visible elements of logistics operations. Transportation provides 2 major functions: product movement & product storage.

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

Transportation uses financial resources because internal expenditures are necessary for private fleets or external expenditures are required for commercial or public transportation. The major objective is to move product from an origin location to a prescribed destination while minimizing temporal, financial and environmental resource costs. Loss and damage expenses must also be minimized. At the same time the movement must take place in such a manner that meets customer demands regarding delivery performance and shipment information availability.

Product Storage:
Temporary storage in stationary vehicles or Vehicles kept moving on a circuitous route - Product storage is expensive in a transport vehicle. But sometimes keeping overall cost in mind this is adopted. A. When unloading and loading is more expensive than storage B. When storage space is limited. [Situation when inventory levels are very high]

There are two fundamental principles guiding transportation management and operations. They are economy of scale and economy of distance.

Economy of scale refers to the characteristic that transportation cost
per unit of weight decreases when the size of the shipment increases. E.g. truckload shipments cost less per pound than less-than-truckload shipments. It is also generally true that larger capacity transportation vehicles such as rail or water are less expensive per unit of weight than smaller capacity vehicles like motor or air. Transportation economies of scale exist because fixed expenses associated with moving a load can be spread over the load’s weight. The fixed expenses include administrative costs of taking the order; time to position the vehicle for loading or unloading, invoicing and equipment cost. These costs are fixed because they do not vary with shipment volume. E.g. suppose the cost to administer a shipment is $ 10.00. Then the 1pound shipment has a per unit of weight cost of $10.00, while the 1,000 pound shipment has a per unit of weight cost of $0.01. Thus, it can be said that an economy of scale exists for the 1000-pound shipment.

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

Transport Infrastructure
Transportation infrastructure consists of the rights-of-ways, vehicles, and carrier organizations that offer transportation services on a for-hire or internal basis. The nature of the infrastructure also determines a variety of legal and economic characteristics for each mode or multimodal system. A mode identifies the basic transportation method or form.

Since olden times, railroads have handled the largest number of tonmiles. As a result of the early establishment of a comprehensive rail network connecting almost all the cities and towns, railways dominated the intercity freight tonnage till World War II and in some cases of Europe, Asia and Africa they even connected the countries. This early superiority enabled railways to transport large shipments very economically.

Highway transportation has increased rapidly since the end of World War II. This is because Motor carrier industry results from door-to-door operating flexibility and speed of intercity movement. They are even flexible because they can operate on each and every kind of roadways. In comparison to railroads, motor carriers have relatively small fixed investments in terminal facilities and operate on publicly maintained highways. Although the cost of license fees, user fees, and tolls are considerable, these expenses are directly related to the number of overthe-road units and miles operated. The variable cost per mile for motor carriers is high because a separate power unit and driver are required for each trailer or combination of tandem trailers. Labor requirements are

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

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

FOR DHL: DHL uses all the modes of transportations that is  Airways  roadways  waterways  rail freight DHL has its own fleet of airplanes and motor vans. Depending upon the final destination where the goods have to finally reach and the type of package the customer has paid for, DHL uses the individual modes of transport or a combination of either of these or all. Once again the geographical location and how fast the goods have to be delivered are the factors for the final selection of modes of transportation. The concept of economies of scale and economies of distance are both taken into consideration in case of larger consignments where DHL provides an appropriate logistical solution which helps in reducing the overall cost for the customers.

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

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

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

Air Premier

Air Value


Part and Full Charter

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

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

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.

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

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:

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).

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.

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.

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 into stock.

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.

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

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. 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.

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.

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

Value Added Services
  
Co packing Product assembly Other value added services

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:


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)


Dedicated facility services:

Turnkey manufacturing solutions including:

   c.  

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

Other services:
Packaging and raw material sourcing, procurement and assembly Batch/quality control tracking via digital easy-to-trace coding


Full range of secondary packaging services

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


   

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

3. Other Value Added Services


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.

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 illustrated 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.

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 timecritical shipments – and your reputation, rely on DHL’s Worldwide Parcel Express.

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 greater virtually anywhere via the Internet, e-mail, Gain details from control over your WAP, SMS or phone

 One company to handle your shipments  More efficient processes  Customs experience and advice to ensure smooth clearance  Shorter lead times through direct distribution

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

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.

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 also improves the efficiency and customer satisfaction. Overall logistics management is very important for today’s highly competitive and cutthroat 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!

a) Logistics and Supply Chain Management- Written by Martin Christopher
b) Indian Logistics Industry” (2008) published by Cushman &

c) BUSINESS LOGISTICS – BARDI d) Elements of Logistics Management- S.D.APHALE

1. www.google.com 2.

www.logisticmanagement.com www.dhl.com

3. www.about.com

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