Current Scenario
Pain Point to Solve for
Operating Profits are falling
DHL Global Forwarding Consolidation Program
What is Working
Consolidation is happening at 3 warehouses
and is being shipped on Tuesdays,
Thursdays and Saturdays which are already
the optimal days
Through Consolidation the airline costs are
at a minimum as the volumes hit their
maximum slab of cost per kg
What Can be improved upon
Currently using only Air transport
for shipment and consolidation
happening only within one
warehouse
Cost of Shipping per week is Rs.
41,96,000 which in-turn is Rs.
21,81,92,000 per year
PGCSCM (2021-22) Group 8
 • Use Road transportation to transport goods between warehouses
to optimize consolidation without impacting current delivery
Suggestions for timelines.
• Shipment from Bangalore is cheaper and hence should be
improvements focused on for maximum material dispatch. By shipping from
Hyderabad on Monday night and Chennai to Bangalore on
Friday night there can be a reduction in overall costs

DHL Global Forwarding Consolidation Program PGCSCM (2021-22) Group 8

 Suggestions for
improvements

• Allow for increase in delivery times while

still maintaining industry standards of
delivery in 5 days
• By spreading out the shipments
within a warehouse from once in 2
days uniformly, to consolidating in a
manner that all shipments are
consolidated on Tuesday first, then
Saturday(as it is the second least
costed day) and lastly on
Thursday.the cost can be reduced.

DHL Global Forwarding Consolidation Program PGCSCM (2021-22) Group 8

 Impact of Improvements

By Implementing the Road Transportation suggestion By implementing the Consolidation improvement by spreading
the costs can be reduced by Rs. 24,75,200 per year out the shipments along with the road transportation
which is a reduction of approx. 1.1% Suggestion the costs can be reduced by Rs. 50,49,200 per year
which is a reduction of 2.3%

DHL Global Forwarding Consolidation Program PGCSCM (2021-22) Group 8

 Risk Vs Benefit

• There is a 2% chance that there will be a delay and DHL will

have to Pay the cost of transportation for those goods
where there is a delay.
• Considering that based on the risk probability and that
there will be 104 shipments in the year, there is a possibility
of 2 shipment in a year having a delay.
• Taking the worst case scenario that both these shipments
are Chennai shipments the cost incurred would be Rs.
14,00,000 for the full year
• Considering that the worst case scenario cost is much lower
than the cost saving. The Savings out weigh the risks.

DHL Global Forwarding Consolidation Program PGCSCM (2021-22) Group 8