Operation and Supply chain management

Executive summary

In this report the critical analysis of logistics and supply chain management process of DHL
international. DHL International is a company which helps in dealing with the parcel and e-
commerce delivery. The mission and strategy of the company help in enabling the excellent
services for the owners and individuals. DHL has adopted the segmentation as the marketing
strategy as segmentation which is used for meeting the needs of large groups. DHL Express is
the global leader in international couriers and connects more than 220 countries and territories
worldwide. In global logistics company, the approaches which are adopted for the challenges
which they are facing in global, local and resources are the efficiency in network, embedding
sustainability, technological solutions, and green products and services. Various
recommendations are provided for the growth and development of the DHL Company. It is
analyzed that for an organization it is necessary to manage and implement the strategies for long
term success.
Contents
Introduction.................................................................................................................................................3
Description of current situation...................................................................................................................4
Possible improvements/solutions.................................................................................................................6
Proposal of a new procedure or change.......................................................................................................7
Implementation plan....................................................................................................................................9
Conclusion and recommendation...............................................................................................................10
References.................................................................................................................................................11
Introduction
Logistics management in an organization includes the management of day to day activities
effectively and efficiently for producing the finished goods and services. DHL is an express
logistics and sup chain company which was founded in 1969 in San Francisco and its
headquarter is in Bonn, Germany. It is the largest logistics company in the world which deals in
courier, parcel and express mail division. It deals in almost 220 countries and has almost 500,000
employees (Hervani, 2005). The services which are offered by DHL are DHL express, DHL
global forwarding, and DHL solutions. DHL is providing services from last 35 years and now
they had become the part of Deutsche post as it provides a mail service which a modern
privatized.

Operations and supply chain are rapidly changing which involves the various factors for placing
at every step which includes inbound sourcing to outbound customers. In the operation process
of logistics, the change will happen because of shifting commodity process, increased
globalization, change in competition, change in environment and changes in technology.
Nowadays supply change has become the key competitive differentiator and it is necessary for an
organization to focus on challenges for improving the services and lowering the costs. There are
various components that are included in the performance of the supply chain in order to improve
the function, the systems, facilities, equipment, people and process. Supply chain management
helps in enhancing the inter-organizational coordination, adds value, helps in increasing
efficiency and also improves the bottom line of the business (Dao, et al., 2015). Supply chain
management helps in coordination with the production, inventory, transportation, and location
which are included in the supply chain for serving into the market. the main goal of the company
is to provide excellent services in increasing the number of customers in world. The various
business techniques are adopted by DHL for the growth and new-market entries for the merger
and acquisition. Their strategy is to focus, connect and grow in the market. DHL is facing
challenges as it needs the system for effectively solving the email issues and the authorized
person for solving the issues by raising the tickets. The statistical report is required to show the
report and managing the tickets by their response and resolutions (Hertz and Alferdsson, 2003).
In order to manage, the implementation of the systems must be fast so that it will not disrupt the
business.
Description of the current situation
The supply chain strategy helps in assessment of current-state operation and develops the
strategy for enhancement. It helps in reviewing the business process and operations due
diligence. Sales and operations planning is included the midrange planning technique for
coordinating with the whole organization. The supply chain in DHL helps in offering customized
logistics solutions in the process of entire supply chain. The supply chain is needed at every
stage of the business in DHL from manufacturer to retailer to suppliers as it helps in achieving
operational excellence. In DHL, there are two main businesses in supply chain as the business of
logistics includes the SCM which includes the warehousing and distribution of parcel and it also
includes the Just-in-time service (Taghikhah, 2017).

Logistics and supply chain management is the process that helps in describing the flow of
activities that are directly and indirectly linked with the distribution of the goods to consumers. It
involves the various parties in the process like material purchasing, sourcing, inbound logistics,
outbound logistics which helps in ensuring to provide the service to customers and fulfill their
requirements. It is stated by Khalili-Damghani the process includes the traditional logistics
which is also known as the forward logistics and it is divided into two parts: outbound and
inward logistics (Khalili-Damghani, et al., 2015). For DHL, it is essential to provide the services
to customer and satisfaction to stay in business for long period and compete in the market by
fulfilling the obligations. It also includes the reverse logistics

The weaknesses of the company are that they charge high prices as compared to their
competitors. as the customers compare the prices with the other service providers and it may
decrease the number of customers. They have weak visibility as compare to its potential.
Logistics management is the part of the supply chain as it includes the implementation and
controls of the effective, efficient and flow of goods and service as it provides the services from
point of origin to the point of consumption for meeting the requirements of the customers.
Logistics management includes the delivery of the goods and services on time and at the right
place (Ballou, 2007).
In DHL, the current situation of logistics and supply chain processes is a complex system as it
provides various opportunities as well as challenges. In case of logistics and supply chain
management, the integration of software is one of the biggest challenges in the process.
Integration of software helped the DHL in bringing the advantages for effective control and
operations for purchasing, transportation, manufacture, payment and inventory (Firouzeh and
Jay, 2017). There are various parties that are included in the process of integration like suppliers,
customers, etc. In supply chain and logistics, it is necessary to have good communication for
delivering the right good and quantities to the right customers. In DHL, reverse logistics must be
concerned more as it includes the process which helps in dealing the collecting, handling and
returning the stock to right customer and it increases the time and cost in supply chain. In
logistics and supply chain management, the various problems which are faced by the company
are the demand forecasting, building network relationship, transportation, inventory and green
logistics (Allen, et al., 2014).

In DHL, their biggest environmental challenges are related to fossil fuels and greenhouse gas
emissions. DHL Company is also facing the challenge of integrating its workforce and they are
facing the problem of respecting and supporting the differences. In global logistics company, the
approaches which are adopted for the challenges which they are facing in global, local and
resources are the efficiency in network, embedding sustainability, technological solutions and
green products and services (Larson and Halldorsson, 2004.
Possible improvements/solutions
In order to improve the problems in the company, they can adopt the 3PL model in performing
the outsourcing activities which are related to logistics and distribution. The adopting of 3PL
model helps in providing the vast resource network, scalability, and flexibility, it provides
continuous improvement and it helps in saving the cost and time. 3PL helps in providing the
services and perform the task so that the company can focus on the other tasks which are related
to the marketing sales and business development. In DHL, the adoption of drop shipping method
will help in delivering the goods to the customers directly and they do not pass through with the
distributing channels (Ittmann, 2015). It helps in saving the time and cost of warehousing,
inventory, shipping and administration fee. In DHL, there are future prospects for the logistics
and supply chain management. Change in the management of the logistics company helps in
progressing in the market. Changes that are required in the future logistics and supply chain
process of DHL Company. The focus of DHL on logistics helps the company in improving the
advancement of the national financial framework. In future the logistics will helps in e-trading
and helps in developing new ways for entering into new business prospects. DHL has to majorly
consider the four elements of supply chain management which are supply, operations, logistics,
and operations (Seuring and Reiner, 2005).

The implantation of geographic information systems in DHL helps in capturing, storing,

manipulating, analyzing, managing and presenting the data. It helps in creating the interactive
queries in different locations and analyzing the spatial information and presents the data of all
the operations in system. Global position system which is a GPS in logistics management as it
helps the customers in tracking the parcels (Cosimato and Troisi, 2014).

In the supply chain, business intelligence improves the internal efficiencies and accountability to
save cost and time and also eliminates the various costs which are driven during the change
management and decision making. It makes the management in predicting the performance of
the business. To increase the profitability, implementation of business intelligence in
transportation and logistics will make the analysis in the services and can make the network
portfolio for the benefits of customers, suppliers and at every step of the logistics chain
(Srivastava, 2007).
New process for effective logistics will include the various transportation strategy which can be
implemented in the domestic and international process. DHL company requires the supply chain
which involves the efficient and continuous movement of products to transfer from vendor to
manufacturer to customers. Implementation of transportation program will help in meeting the
needs of the customers. In logistics and supply chain management, the aspects of time and
service are essential for transportation. It is the responsibility of the company to move the
shipments on time and customers require the shipments to be delivered on time on the needed
data and the proper shipping method must be implemented for competing the order and delivery
of the order (Ballard, et al., 2007). FocalScope is adopted for DHL express, as it helps in solving
the problems and earlier the system was managing the operational and they successfully
migrated the staff for the new implementation of system (Sarkis, 2011). For the integration of the
system, focal scope helps in solving the major problems which include assigning the ticket
number to the emails which are raised by the customers and references will be given to the
concerned staff. It helps in giving the information about the audit trail for the raised tickets in the
system and make the constant awareness to the staff for handling the raised tickets. The support
of staff in DHL express can be searched by the reference numbers, number of bookings, invoive
numbers of the raised problems for quickly assisting the customers in their queries (Hazen, et al.,
2018). Foculscope method is very simple to use and can be used as a reporting tool for
monitoring and tracking the performance of the team. POP3/SMTP is used by the focal scope
which is used for connecting with the DHL server of Microsoft exchange and it helps in making
the compatibility perfect with the mail server which exists. in DHL express, there is no option for
replacing the server of email. In Foculscope, the customer data can be fed directly with the help
of interaction in websites. It helps in enabling the information of shipping request and their
location and it does not require the manual efforts (Christopher, 2016).

Proposal for a new procedure or change

It is stated by Sara Arrhenius that DHL has its customers all around the work and they accept the
delivery requirement of any kind of customer. The competitors of DHL are the UPS, FedEx and
the TNT. It is essential for DHL to provide better services to customers at fewer prices than
competitors to retain and attract new customers. DHL can implement the GOGREEN program
for measuring the impact of environment. In this program, the main objectives for the company
will be achieving the transparency of environmental impact as it will focus on the carbon
footprints of the company which will include subcontracted transportation. It may improve
efficiency in operations and minimize the impact on environment. The company can generate
value by offering green solutions for customers and help them in achieving environmental goals.
The implementation of environmental management systems will help the company in managing
the impact on environment more efficiently (Van der Vorst, et al., 2002).

In DHL services, there are six factors which influence the customers to avail their services are a
technological process, types of equipment, organizations system, knowledge and skills and
working condition and testing and measurements. In supply chain management, Airfreight
logistics is becoming a major factor in the organization. Supply chain management includes
demand management, acquisition management, logistics management, disposal, and risk
management.

In DHL, the influence of green innovation in logistics and supply chain will increase
competitiveness and sustainability. The green supply chain management and emerging
technologies as the green supply, production, and sales logistics will help in optimizing the
transport routes and building a strong green sales network. Green supply chain management
includes the various policies which includes the relationships and actions for responding to the
concern in designing, acquisition, production, distribution and reuse the goods and services of
the company. In the case of logistics competitiveness and sustainability, innovation is necessary
but must represent the fundamental drivers in competitive enhancements. The innovative process
in logistics helps in representing the research for improving the services effectively and
efficiently. The various functions can be included in the green supply chain, as the first function
is inbound function in which the factors like holding awareness about the contractors and
suppliers will be done by implementing the best practice of learning, sharing and improving
relationships (Brewer, et al., 2008). DHL can adopt the strategy to guide the suppliers for setting
up the environmental programs and in this required action is the supplier's code of conduct. DHL
can adopt the strategy by informing the suppliers about the technologies and production benefits
and it can be done by online and offline communications. In the green production function, raw
material can be used as environmental friendly where the packaging, paper, site consumables,
and energy reduction. In order to reduce the solid waste and emissions, the process can be
optimized which will include the innovative solution for recycling the 100% raw material,
creating awareness about the environment among the employees. Greening of outbound function
will include the factor of environmental friendly waste management in which the knowledge
about technology and expertise for reverse logistics will be included for collecting the products
and recycling the products (Sarkis, 2003).

The tolls which are included in the supply chain management are the order processing toll as it is
an important tool for making the task easier and work more effectively. It process the functions
like sales order process, order management, order fulfillment, billing and order to cash.
Warehouse management is also essential in the logistics and supply chain management company
to manage the day-to-day operations in the warehouse (Kleijnen, 2005). For the solution of
supply chain management, it provides a wide array of warehouse management capabilities and
specifies the requirements of the company. It provides the solutions in supply chain planning tool
for allowing the user to handle the difficult logistic which are related to receiving and tracking
the products, counting the cycle of process and planning the route of the parcel (Erceg and
Sekuloska, 2019). In case of supplier management, the procurement process must be managed
effectively for includes the features of cost issues and for understanding the supplier's
requirement.

Implementation plan
Implementing any new plan includes the strategies and methods for effective implementation. It
is essential for the company to consider the process for the implementation of the new plan. The
new plan will include the adopting of new strategies and methods for increasing the revenue and
growth in the business. Product assembling is required to be done effectively in DHL and they
can arrange the quick response, mass customization for enabling the business strategies. There
are various services in packaging which are to be considered in the postponement of packaging
are primary, secondary and special components. In the operations of logistics and supply chain
management, inventory and transportation management is essential to consider. By providing the
value-added services to customers will helps in growth of the business. the services can be co-
packaging and product assembly. Outsourcing of projects can be done in DHL by taking over
and managing the services. It includes the distribution centers, transport operations, after-sales
services, functions in supply chain management and transport operations (Graham and Hardaker,
2000). A warehouse management solution can be done in the process by recording all the actions
and events for handling the products and orders in the environment of warehouse. It will help in
accurately recording the inventory location which is stored in the warehouse. In the process, all
the critical issues can be managed by the warehouse management system and it helps in
supporting the distribution and transport systems. Strategic inventory management can be created
for delivering the urgent shipments where the business areas are major can as estimate the time
for the highly impacting and adding value in the business. In the case of direct express inventory
management, it helps in allowing the customers in centralizing the stock in warehouses and can
use the service of express for distributing the components on the next day. it is the process that
can be managed by DHL. In order to build the warehouse infrastructure network, as the
warehouse services help in supporting the logistics, distribution, for improving the inventory
management by reducing the operating cost and times of cycle (van Hoek, et al., 2005).

Conclusion and recommendation

Logistics and supply chain management is the most essential part of the DHL express. It is one
of the largest logistics expresses in the world. They had implemented the various effective
strategies for delivering the products on time and satisfy the customers with their services. In
order to increase revenues and profits, logistics costs must be managed effectively. DHL
Company must implement the best practices for managing the supply chain and logistics
management effectively. It is recommended for the company to enhance the project in smart and
effective way by making the full-load truck strategy for delivering the consignments faster and
helps in cutting the cost of fuel. The new system must be implemented as it can be ERP system
that is helpful in managing the information and tracking the information of goods and services
which will help in keeping the record of customers and make the information available for the
customers (Mangan and Lalwani, 2016). ERP system will also help the supply chain and
logistics department to interact with the other departments as it will help in understanding the
needs and preferences of the customers. ERP helps in increasing the productivity and increasing
efficiencies and decreasing the costs. ERP implementation includes the 3 phases: discovery,
implementation and results. ERP helps in reducing the administrative and operations costs. It
helps in managing the process of manufacturing by managing the operation proactively, and
disruptions and delays can be prevented. ERP system helps in creating an interaction with other
departments also as it gives a understanding of customers’ needs and preferences. The quality of
product development can be improved and process of service delivery can also be improved.

Implications of practices are must in the company. Software system helps in designing the
supply chain management Inbound logistics help in avoiding the delays and making the
communication and information flow better. Implementation of updated technology will help the
company in sharing the information on a large scale. ERP systems are used in organization to
manage and track the information of goods and services which help in keeping the record of
information of customers. Competitiveness factors will include factors like improving efficiency,
improvement in quality, productivity improvement and helps in saving costs. An effective Green
Logistics management can lead not only to operational and economic performance improvement.
DHL is one of the most important and globalized logistics companies (Minculete and Olar,
2014). In logistics, green product and process innovations are even more important because they
contribute to giving a good response to stakeholders’ environmental pressures. Because of green
innovation contribution to competitive advantage achieving, making organizations able to gain
cost savings, better product quality, and increase their efficiency and productivity. It helps in
reducing the overhead and inventory costs. The sales, ROI, and profitability can be improved
with the help on new implementation of plan in business. in order to optimize the inventory at
every stage of the supply chain, DHL can focus on the forecasting demand, safety stock setting,
order pipeline monitoring, expediting, supplier management and managing excess stock at the
time of peak season.
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