ABOUT DHL

DHL Express is one of the international market leaders in express delivery with over
50 years of successful experience. The key to its success is its global network of over
120,000 employees in 220 countries and territories of the world, every one of them
striving to deliver the best-in-class service.

Express delivery industry in general and DHL in particular came to life due to
innovative thinking of three entrepreneurs from San Francisco. In 1969 Adrian
Dalsey, Larry Hillblom and Robert Lynn set up door-to- door express delivery of
document and non-document shipments, thus becoming pioneers of logistics industry.

The idea which made a big difference in the world and brought countries and
continents closer was simple as all breakthrough ideas are. The three partners decided
to reduce the time of customs clearance for shipments by speeding up delivery of
customs documents. Due to express courier delivery the paperwork arrived at customs
offices before the actual freight arrival at the destination port, thus enabling goods to
pass through customs without any delay.

On September 20, 1969 Dalsey, Hillblom and Lynn (the D, H and L in the company
name) registered their enterprise. The first DHL customers were Seatrain Lines, APL
and Matson Navigation. Banks were also among the first to fully realize advantages of
working with DHL: they used the company services to ensure fast and safe delivery of
documents.

The innovative company expanded its geography and entered the international market
in 1972. Following its aim to be wherever its customers need it, DHL opened its
offices in the People’s Republic of China (1980) and the Soviet Union (1984) during
the high Cold War.

Improving its skills to transport heavy shipments all over the world as well as
mastering the complex supply chain management, the express delivery provider
enjoyed rapid development. In 2002 a German corporation Deutsche Post became the
major shareholder in DHL. The event was followed by integration with the market
leader in freight forwarding Danzas Air&Ocean. In 2005 the company merges with
Exel, an expert in contract logistics. As a result, DHL gained the opportunity to
provide the full scope of logistics services operating its unique network which spans
220 countries and territories of the world.

In 2007 DHL opened the Innovation Center, a one-of-a-kind facility. It is here that
high-tech, flexible and sustainable logistics solutions are designed and special offers
are worked out for global customers.

The company was the first to offer to its clients an opportunity to make a contribution
into the environmental protection by choosing dedicated green services for shipments
aimed at reducing emissions into the atmosphere and mitigate the impact of CO2
produced by airplanes and trucks when carrying shipments. In 2008 DHL became the
first operator on express delivery and logistics market to publicly announce its
commitment to reduce CO2 emissions by 30% by 2020.

In 2008 DHL opened a new shipment sorting hub in Leipzig/Halle, Germany. The
hub became one of the largest logistics facilities in Europe and enabled the company
to offer even shorter transit times to the most remote areas of the world.

Nowadays DHL is the world leader in logistics and express delivery operating on the
global scale. DHL offers to its customers cutting-edge technology and solutions for
international express delivery, domestic and international post services, air, land and
ocean freight, contract logistics and e-commerce. DHL’s network spans over 220
countries in the world. DHL employs over 120,000 highly competent international
specialists who make sure that the company offers top-quality and safe service while
meeting customers’ needs and offering the best possible logistics solutions. DHL is a
socially responsible company as it supports environmental programs aimed at climate
protection, develops projects to train specialists and gives support in the event of a
natural disaster.

In Russia DHL operates the territory which covers over 6,000 locations and has about
130 offices in over 120 cities in the country. The total fleet of DHL Express in Russia
now comprises over 950 vehicles. The company business unit in Russia is integrated
into the international network via 2 dedicated flights carrying up to 32 tons of
shipments daily and connecting Moscow and Leipzig, Saint-Petersburg and Helsinki.
How DHL Express increased its employee engagement rate by 11%.

A successful combination of employee engagement, active leadership and

investing in employee training have been critical to improving DHL’s
organisational culture, according to Linda Clinch, VP HR for DHL Express
Oceania.
She explained that the underlying foundation for building a great workplace where
employees feel valued and inspired to do their best originates in an organisation’s
culture.
“We invest in our three areas of success – employee engagement, active leadership
and employee training – through a number of measured programs across our business
that all aim to give our employees a voice,” she explained.
“When each part of our strategy aligns, that’s when the best outcomes occur for
everyone.”
DHL, which employs some 360,000 people in over 220 countries and territories
worldwide (of which more than 1200 are located in Australia), places a strong focus
on training and development to engage and retain talent.
“Every employee will participate in our structured global certified international
specialist and certified international manager training program, right from the point
they are on-boarded and throughout their career at DHL Express,” said Clinch.
In this program, each employee is given a DHL Express ‘passport’, and as they
complete courses along their career journey they will be awarded another stamp in
their passport.
“This program enables employees to learn and adapt to our respect- and results-
orientated culture, develop their industry knowledge and their job role related skills,
ultimately becoming a specialist and leader in their chosen area.

“Many of our employees spend their entire career with us, moving from one role to
the next,” she said.
The company’s culture of employee development , inclusivity and appreciation has
resulted in a very low single-digit employee turnover rate over the past five years,
Clinch explained.
DHL Express was also recognized as one of the best places to work in Australia (over
1,000 employees), while it has also been certified by the top employers institute as a
leading employer globally and an employer of choice in the  Australian business
awards Clinch explained that the company’s management team comes together
annually to show appreciation for the significant contributions employees make to the
business.
“During the employee appreciation week period, employees are treated to lunches,
gifts and the opportunity to participate in engagement activities that link back to
strengthening our workplace culture,” she said.
DHL also conducts a yearly employee opinion survey, which has recorded a continual
climb in employee engagement from 78 per cent to 89 per cent and an active
leadership score from 76 per cent to 84 per cent over a five-year period.
“On a day-to-day basis our employees have the opportunity to express their thoughts
through team performance dialog board meetings, employee committees at our sites,
and nominations in our employee of the month, quarter and year program,” said
Clinch.
“Two-way communication is a key focus area for us in building an open, trusting
culture.”
Getting talent acquisition right
DHL employs a range of recruitment tools for selecting the right talent, and when
assessing a candidate it screens for alignment with the key attributes of DHL’s
workforce: “a passion for work, pride in getting things right first time, a can-do spirit,
and the ability to deliver results with speed”, said Clinch.

the success of FedEx prompted DHL's own domestic (intra-US) expansion starting in

1983. In 1998, Deutsche Post began to acquire shares in DHL. It reached controlling
interest in 2001, and acquired all outstanding shares by December 2002.[9] The
company then absorbed DHL into its Express division, while expanding the use of the
DHL brand to other Deutsche Post divisions, business units, and subsidiaries. Today,
DHL Express shares its DHL brand with business units such as DHL Global
Forwarding and DHL Supply Chain.[10] It gained a foothold in the United States
when it acquired Airborne Express.
The DHL Express financial results are published in the Deutsche Post AG annual
report.[10] In 2016, this division's revenue increased by 2.7% to €14 billion.
[11] The earnings before interest and taxes (EBIT) increased by 11.3% over 2015 to
€1.5 billion.[12]
 SWOT ANALYSIS

1. Strengths of DHL

 Brand Partnerships: 
DHL is the specialist for delivering globally around the world. As an official logistics
partner, DHL is committed to offering innovative solutions for complex logistics
challenges in sports, arts, and culture.

DHL has partnerships with some of the most popular and leading brands in
motorsports, music & arts, fashion & lifestyle, and sports, some of them are:

a. motorsports:Formula 1, ABB FIA Formula E, MotoGP, 

b. Sports: manchester united, rugby, ESL One

c. Music and arts: exhibitionism, BTHVN on Tour.

d. Fashion and lifestyle: fashion

 Globalization
DHL Launched its new brand campaign with the tagline “The power of global trade”
global trade gives people access to ideas, technology, and opportunities, by
globalization DHL has to expand business worldwide,

 First mover advantage

DHL was the first company to start an air courier service worldwide, which gives
monopoly in delivery industries.

 Range of products
DHL offers a large range of products to get more customers. DHL office parcel and
international express services, freight transport, supply chain management services,
and e-commerce logistics solutions.

 Trademark and patents

DHL owns several intellectual property rights that include trademarks and patents.
That allows it exclusivity over its products and competitors can not copy or reverse
engineer them.

 Customer trust
DHL’s customers are all around the world.. DHL always listens to its customer’s
voices. DHL received the customer service award for best B2B customer service in
Sweden in 2011.

 Worldwide service
 Every year, the firm delivers about 1.5 billion shipments. It is also the sole provider
for transferring USPS mails in and out of Iraq, Afghanistan, and Myanmar. They also
provide service in North Korea with strict codes.

 Right investments
DHL has invested in fast-developing countries to become a large part of grooving
markets from the beginnings 

2. Weaknesses of DHL

 Several employees
DHL does not have as many UPS.which means DHL has way more capability to do
more tasks but not without required human resources.

 Culpability policy
liability insurance is also known as a culpability policy protects against claims
resulting from injuries and damage to people or properties. Compared to DHL’s
competitors, DHL lacks liability insurance. It probably might cause customer loss
someday.

 Price
the most serious problem is price. Indeed DHL is more expensive than its
competitors. And in some areas, quality of service is difficult to guarantee. DHL can
make a discount for customers to inspire sustainable business.

 Staff
 bad attitude of staff might affect the image of the company, in today’s world of
online business, most peoples do their purchase after reading reviews so the company
might lose some future customers.

3. Opportunities for DHL

 Access to worldwide opportunities

DHL is the largest international logistics company which means the company has
access to all the opportunities available in different nations. 

 Learn from competitors

 Different companies have different exclusive strategies and there are still a lot of
things DHL can learn from other companies. For instance, DHL can establish its
liability insurance by taking examples from its opponents. 

 Employee cooperation
regarding employee cooperation Key Performance Indicator I(KPIs) states that the
credit of cooperation in 2010 is 74%.it is not enough for such a large international
company. In my opinion, DHL has way more ability to improve cooperation between
employees. Moreover, DHL must innovate its services to surprise customers.

 Go Trade
DHL has come up with the idea of GO TRADE, by giving small and medium-sized
enterprises from developing countries access to the global market.

 DHL innovation centre

DHL group extends its role as an innovation leader in worldwide logistics with the
openings of the DHL innovation centre. The goal of this centre is to create new,
highly innovative, and commercial goods based on the future logistics trend.

4. Threats to DHL

 Supply chain cyber attacks

it is nothing but a network or computer hardware that is delivered with malware
installed on it already. supply chain cyber-attacks include cyber-terrorism, malware,
data theft. Companies might lose the private information of customers of private
company data which might lead to huge damage.

 Climate change
DHL is a cargo shipping company which means weather plays a very important part
in every task. A higher frequency of natural disasters can affect the performance of
the company or any kind of extreme weather event.

 Port congestion
port congestion means when ships arrive at the port and can not load or unload, as the
port capacity is already full. The only option is to queue up and wait for their turn. 

 High fuel prices

strikes and protests over high fuel prices causing fuel shortage and disruption to road
aviation freight. which has increased the overall cost of DHL

 Cargo theft
cargo theft can cause huge losses. This is caused by instability and a new modus
Operandi of truck theft. Cargo theft can range from stealing trailers, or vehicles. We
can prevent cargo theft by carefully selecting transportation partners.
 Small local courier companies
 a major threat to DHL is brand suffers local courier players which might be operating
at a lower price. These small local businesses are also able to give excellent service.

Conclusion
In this blog, we saw what DHL is as a company and we also analyzed the strengths,
weaknesses opportunities, and threats that DHL possess. They have been one of the
leading logistics companies. 

MARKETING STRATEGIES OF DHL

BCG Matrix in the Marketing strategy of DHL –

As mentioned earlier the company has different strategic business units operating in
freight transportation, supply chain solutions, warehousing and distribution services.

Its DHL Express, DHL Supply Chain, DHL Freight, DHL Parcel are starred in
the BCG matrix as they are a leader in their respective business segments.

DHL eCommerce service is still in evolving phase, emerging eCommerce markets of

the world bring in opportunities in this segment of the business. It is a question mark
in the BCG matrix.

Distribution strategy in the Marketing strategy of DHL –

Working closely with customers for delivering customer-centric supply chain
solutions have helped the company in being competitively ahead of its competitors.
Providing customised logistics solutions & value-added services along with the
different set processes in the entire supply chain is what makes its integrated
distribution channel effective & efficient.

DHL express worldwide has more than 255 dedicated aircraft which cater to more
than 3 million customers across the globe (2016 data).

Brand equity in the strategy of DHL- DHL is the renowned brand in the logistics
industry which is known for its worldwide shipping and courier delivery services. It
has been associated with & has been official logistics partner of many
prominent events around the world like Formula 1 race, Rugby world Cup 2015,
Fashion week, Manchester United and Cirque du Soleil.

Competitive analysis in the Marketing strategy of DHL –

The logistics industry is facing tough competition from local national and
international players. DHL competes in the business with companies
like FedEx, UPS, Amazon express, TNT express and many others. DHL provides end
to end logistic solutions to the individual as well as SME’s (Small and medium
enterprises) and MNC’s from the varied industries.
Market analysis in the Marketing strategy of DHL –
Changing economic scenario, increasing cross-border business opportunities,
changing government regulations, the opening of economies/ markets for foreign
players in various sectors in the developing nations and increasing competitions,
transportations of short product life cycles/ shelf life are some of the factors affecting
the operations of the companies in this industry.

Customer analysis in the Marketing strategy of DHL –

Customers of DHL are the companies from various industries,
government organisations and individual customers who are looking for various
logistics solutions.
REVERSE LOGISTICS AND CLOSED LOOP SUPPLY CHAINS.

Reverse Logistics and Closed-Loop Supply Chain

In the last years, Reverse Logistics and Closed-Loop Supply Chain issues have
attracted attention among public opinion, academia and industry. The focus on
Reverse Logistics and Closed-Loop Supply Chain originated from public awareness,
then faced by governmental legislation with the aim of forcing producers to take-back
and manage their EoL products, e.g. Directive 2002/96/EC (now Directive
2012/19/EU) on Waste Electrical & Electronic Equipment (WEEE), and Directive
2000/53/EC on end- of-life Vehicles (ELV). Now, in many industrial sectors, Reverse
Logistics and Closed-Loop Supply Chain are considered an opportunity for supply
chain cost minimisation (Guide and Van Wassenhove, 2009).
Traditionally, a supply chain is understood in its “forward” form, which corresponds
to “a combination of processes to fulfil customers’ requests and includes all possible
entities like suppliers, manufacturers, transporters, warehouses, retailers, and
customers themselves.” (Chopra and Meindl, 2010).
Reverse Logistics is defined by Tibben‐Lembke (2002) as “the process of planning,
implementing, and controlling the efficient, cost effective flow of raw materials, in-
process inventory, finished goods and related information from the point of
consumption to the point of origin for the purpose of recapturing value or proper
disposal”. The integration of Forward and Reverse supply chains, simultaneously,
results in the creation of a Closed-Loop Supply Chain. In Guide et al. (2003) the
Closed-Loop Supply Chain Management is defined as “the design, control, and
operation of a system to maximise value creation over the entire life cycle of a
product with dynamic recovery of value from different types and volumes of returns
over time”.
According to Govindan et al. (2014b), the contributions from the literature to the
issues of Reverse Logistics and Closed-Loop Supply Chain can be classified as
follows:
 Network Designing and Planning: the aim of designing is to determine strategic
decision variables, such as facility location and facility capacity. In the planning
stage, the most important decision variables are the quantities of flows between
supply-chain network entities known as mid-term decision variables. Some studies
regard designing and planning stages simultaneously, and some concentrate on one of
them in depth. The topic of Supply Chain Network Design is deepened in 3.3.4.
 Network Planning: it is a sub-category of the previous one, in which the planning
level decisions, such as quantity of flows between network entities, are studied
without regarding any strategic or operational decisions.
Production planning and Inventory Management: management issues such as finding
reorder point, base stock, and economic order quantity without regarding production-
planning subjects.
 Price and Coordination: this category includes studies that focus on the
determination of the price of products and the coordination of win-win strategies to
balance profit margins between two entities of a supply chain network (e.g. a
remanufacturer and a retailer of second market). Usually, in such problems, optimum
price and coordination strategies are determined.
 Decision-making and performance evaluation: this category includes the research on
the evaluation of the performance of various networks and recovery strategies in
Closed-Loop Supply Chain.
Depending on the specific topic, different tools, techniques and methodologies are
adopted in literature for the design, planning, optimisation and control of Reverse
Logistics operations and Closed-Loop Supply Chain Management.
3.3.3.1 Tools/Techniques/Methodologies in Reverse Logistics and Closed-Loop
Supply Chain Both Reverse Logistics and Closed-Loop Supply Chain have been
faced by many authors in recent years. Srivastava (2007) presents an extended review
of these issues. The author focuses on studies related to the mathematical modelling
for network design and planning problems. The author builds a taxonomy based on
mathematical tools/techniques. Results show that the methodologies applied the most
in this context are the following: Mixed Integer Linear Programming, simulation,
sensitivity analysis, algebraic equations, heuristics and meta-heuristics, dynamic
programming, Markov chains, and game theory. Although to a lesser degree, also
Petri-net, Analytic Hierarchy Process, Fuzzy reasoning, and neuro-fuzzy are used.
Classifying them on the basis of the decision level they deal with, it is possible to
notice that 35%, 33% and 32% is the portion of studies having operational, tactical
and strategic focus, respectively.
3.3.3.1.1 Linear Programming
Govindan et al. (2014b) analyse studies published between 2007 and 2013 on Reverse
Logistics and Closed-Loop Supply Chain. According to the survey, 18.8% of papers
deal with the Design and Planning of Closed-Loop Supply Chains, and the 69.4 % of
these researches are based on linear modelling, such that it is possible to claim that the
Linear Programming approach can be introduced as the dominating modelling
approach for the design and planning problems of Reverse Logistics and Closed-Loop
Supply Chain.
3.3.3.1.2 Exact solutions VS heuristics and meta-heuristics
The authors propose a further classification of methodologies, according to which
methods leading to extract solutions and heuristics and meta-heuristics are split in two
categories. The survey shows that in case of large complex problem, utilising heuristic
and meta-heuristic algorithms is unavoidable, but these methods do not ensure
knowledge about the quality of the found solutions. Despite the fact that analytical
and exact methods are rarely applicable to real-sized instances of a problem, they are
still largely studied and proposed in literature (41.6% against 11.2% of heuristics and
meta-heuristics).
3.3.3.1.3 Single VS Multi period, product and objective
A further classification can be made based on the number of periods, products and
objectives considered in the problem modelling. Govindan et al. (2014b) classified
recent papers on the basis of single- and Multi-objective models, for Single and multi-
period, and for single- and multi-product problems. The trend in recent literature is
shown in Figure 3.3.1, Figure 3.3.2 and Figure 3.3.3, in which the incidence of each
approach is measured by the number of papers per period.
Figure 3.3.1 - Trend of Single- and Multi-Period problem modelling (from Govindan
et al. (2014b))
Figure 3.3.2 - Trend of Single- and Multi-Product problem modelling (from Govindan
et al. (2014b))
There is a balance between Single- and Multi-Period problems. That proves the
equilibrium in the ratio of strategic and planning models: the former are characterised
by single-period problems, the latter by multi-period modelling. However, a negative
trend for Single-period approaches has been recently noticed, which demonstrates that
dynamic approaches are more representative of the reality. Finally, the majority of
recent papers present single-product models (65.4%) and only few studies consider
multi-part products (just 5.4%). This result is probably caused by the computational
difficulties that Multi.
 Reverse Logistics, Closed Loop Supply Chain and Multi-Objective problems
Multi-objective approaches are still a minor part in recent publications: 87.6% of
papers deal with Single- objective approaches while only 12.4% present Multi-
objective tools. These numbers demonstrate that Multi-objective decision-making is
still a gap in literature (Govindan et al., 2014; Kumar and Kumar, 2013). Real world
problems are rarely single objective, therefore implementing Multi-objective
functions instead of single objective ones is a priority in research. The approaches for
dealing with Multi-objective problems and achieving the optimal solutions (e.g.
Pareto optimal solutions) need to be revised to produce more robust and applicable
methods.
One of the most interesting extension in objective functions regards the introduction
of sustainable and environmental objectives. According to Govindan et al. (2014b) “it
is expected that researchers regard appropriate environmental, social, and green-based
objectives in their analyses, which can be a critical future avenue for all entities in the
Reverse Logistics and Closed-Loop Supply Chain network”, who concludes the paper
with “the integration of different levels of decision-making and defining new decision
variables are future opportunities for the decision variables category. Paying attention
to multi objective problems, utilising new approaches, and applying more green,
sustainable, and environmental objectives can be the future directions in single and
multiple objective problems”.

INTERNSHIP REPORT ON DHL

With a workforce exceeding 285,000 employees, we provide solutions for an almost

infinite number of logistics needs. DHL is part of the world’s leading postal and
logistics Group, Deutsche Post DHL and encompasses four divisions: DHL Express,
DHL Global Forwarding, Freight and DHL Supply Chain. DHL‘s mission and vision
In 2009, company laid out goals for the future Strategy 2015, including vision and
mission for the company. Its vision emphasizes that organization wants to be The
Logistics Company for the World.
This goes beyond the simple fact that, as a global company, DHL present in over 220
countries and territories, or that DHL are often the very first logistics company to
enter new markets. It also extends beyond unique ability to offer a wide range of
logistics solutions, encompassing everything from international express deliveries, to
warehousing, to customs brokerage, to freight forwarding – to mention just a few
areas in which company are active. DHL‘s vision stresses that it wants to be the
logistics provider people turn to – their first choice not only for all their shipping
needs, but also as an employee or investor.
This is further underlined in DHL‘s mission statement, which has four main elements:
1) We want to simplify the lives of our customers 2) We make our customers,
employees and investors more successful 3) We make a positive contribution to the
world 4) We always demonstrate respect when achieving our results „We are
successful when you are“ Company strongly believes that pursuing all of these goals
is in its interest and in the interest of all of their stakeholders: customers, employees,
investors and the planet as a whole.
However, organization add value to people’s interaction with themselves, whether
with excellent services or products, by engaging its employees and nurturing their
talents, or by being a solid, long-term investment on the stock market. And, the
company shows concern for its world and its communities with its various corporate
responsibility programs under the motto of ‘Living responsibility. ’ A company with a
purpose DHL are deeply proud of the contribution it makes in daily work. Everything
that is moved from one place to another needs the aid of logistics – but behind this
simple truth one finds millions of stories.
As the logistics company for the world, it forms the backbone of trade, ensuring that
whatever needs to be delivered, gets delivered. A shipment placed in organization‘s
trust may include life-saving medicines, or a birthday present from a friend, or hold a
company’s entire existence in the form of a prototype. It is not only deliver parcels
and packages, and make sure containers arrive at ports: it delivers prosperity, it
transports health, it powers growth, it delivers joy. Every day it connects people,
improving their lives.
DHL Express‘s organization overview and main economic figures Express deliveries
worldwide; freight forwarding with planes, trucks, ships and trains; warehousing
services that go beyond just storage, but include everything from packaging to repairs;
international mail deliveries; customized and specialized shipping. DHL Express
transports urgent documents and goods reliably and on time from door-to-door in
more than 220 countries and territories, and operates the most comprehensive global
express network. With a fleet of more than 250 aircraft, DHL Express is also one of
the largest air carriers worldwide.
Facts and figures: DHL Express Worldwide (2012) Head Office Bonn, Germany
Revenue Approx. 12. 8 billion euros Network More than 220 countries and territories
served/more than 500 airports served globally Employees Approx. 100,000
Customers Approx. 2. 6 million Aircraft More than 250 dedicated aircraft 1. 1
Organization history and economic development results DHL Express is a division of
the German logistics company Deutsche Post DHL providing international express
mail services. Deutsche Post is the world’s largest logistics company operating around
the world. DHL is a world market leader in sea and air mail.
Originally founded in 1969 to deliver documents between San Francisco and
Honolulu, the company expanded its service throughout the world by the late 1970s.
The company was primarily interested in offshore and inter-continental deliveries, but
the success of FedEx prompted their own intra-U. S. expansion starting in 1983. DHL
aggressively expanded to countries that could not be served by any other delivery
service, including the Soviet Union, Eastern Bloc, Iraq, Iran, China, Vietnam and
North Korea. In 1998, Deutsche Post began to acquire shares in DHL. It finally
reached majority ownership in 2001, and completed the purchase in 2002.
Deutsche Post then effectively absorbed DHL into its Express division, while
expanding the use of the DHL brand to other Deutsche Post divisions, business units
and subsidiaries. Today, DHL Express shares its well-known DHL brand with other
Deutsche Post business units, such as DHL Global Forwarding and DHL Supply
Chain. The company started expanding their service through the early 1970s, first to
the Philippines, then Japan, Hong Kong, Singapore and Australia. For lower-volume
routes the company hired couriers on a one-off basis, trading airline tickets for the
delivery.
This simple expedient repeatedly saved the company many legal hassles in the future,
when would-be investigators took them up on the open offer and make a delivery
while taking their family on vacation. The first was when the FBI was tipped off
about the groups of briefcase-carrying young men making repeated trips to Hawaii,
and when they investigated and found nothing amiss, several agents became regular
couriers for the company. 1. 2 Nature and types of products (services) and their
tendency in change DHL has 5 main divisions: DHL Express, DHL Global
Forwarding, DHL Freight, DHL Global Mail, DHL Supply Chain.
However, products and services of the company are arranged between these divisions.
DHL Express: The Express division transports courier, express and parcel shipments
internationally, combining air and ground transport, under the DHL brand. It is
divided into business units along regions: Europe, Asia Pacific, Americas, Europe, the
Middle East and Africa. DHL offers worldwide services, including deliveries to
countries such as Iraq, Afghanistan and Burma. As it is German-owned, DHL is not
affected by U. S. embargoes or sanctions and will ship to Cuba and North Korea.
However there are strict codes for delivering to North Korea, as the country has shaky
relations with the West. The only country currently not being serviced by DHL is
Turkmenistan. As DHL is not a US company, it is not allowed to make domestic
flights between U. S. airports. DHL contracts these services to other providers. DHL
Global Forwarding: Formerly known as DHL Danzas Air & Ocean, is a division of
Deutsche Post DHL providing air and ocean freight forwarding services. It also plans
and undertakes major logistics projects under the brand name DHL Industrial
Projects.
Together with DHL Freight, it forms Deutsche Post’s Freight/Forwarding department.
The Forwarding division carries goods by rail, road, air and sea under the DHL brand.
DHL Global Forwarding handles global air and ocean freight. DHL Freight: DHL
Freight is a division of Deutsche Post DHL providing road and rail freight services
across Europe, parts of the Commonwealth of Independent States (CIS), North Africa
and the Middle East. Together with DHL Global Forwarding (formerly DHL Danzas),
it forms Deutsche Post’s Freight/Forwarding business division.
It runs a groundbased freight network covering Europe, Russia and traffic into the
Middle East. DHL Global Mail: The Mail division delivers approximately 70 million
letters in Germany, six days a week and provides mail services including production
facilities at central hubs, sales offices and production centers on four continents, as
well as direct connections to more than 200 countries. The Mail division inherits most
of the traditional mail services formerly offered by the state-owned monopoly, for
which it uses the Deutsche Post brand.
Its exclusive right to deliver letters under 50 grams in Germany expired on 1 January
2008, following the implementation of European legislation. A number of companies
are vying to challenge Deutsche Post’s near monopolistic hold on letter deliveries,
including Luxembourg-based PIN Group and Dutch-owned TNT Post. As of January
2008, the Mail division is subdivided into the following business units: •Mail
Communication handles domestic mail service as well as international mail from
Germany •Press Services handles domestic distribution of print products (newspapers
and magazines).
•Retail Outlets operates domestic retail outlets (post offices), which offer a complete
array of letter mail, and parcel. •Dialogue Marketing provides services for direct
marketing such as market research and address verification. •Parcel Germany handles
the domestic, non-express parcel service, including the Pack station network. It was
changed over to the DHL umbrella brand when it was temporarily assigned to the
Express division. •Global Mail handles international mail and domestic mail in other
countries under the DHL umbrella brand.
Deutsche Post offers a service called a Garagenvertrag (literally “garage agreement”
in English) to its German customers. The postman can leave packets and parcels in a
specified place (such as the garage, or a neighbor’s house) if the addressee is not at
home to receive them. This on the one hand saves the recipient a trip to the post office
to pick up their mail. On the other hand, any item left at the specified place is
regarded as “delivered” and hence not covered by Deutsche Post’s insurance
anymore. DHL Supply Chain: is a division of Deutsche Post DHL.
The SUPPLY CHAIN division comprises two business units – Supply Chain and
Williams Lea. In the Supply Chain business, DHL provides contract logistics
solutions along the entire supply chain for customers from a wide variety of sectors.
Williams Lea is a global provider of business process outsourcing and a specialist in
corporate information solutions, the management of companies’ information and
communication processes. In Canadian and USA markets DHL Supply Chain
operates under the name Exel. DHL Supply Chain has around 130,000 employees and
is headquartered in Bonn, Germany.
Deutsche Post DHL is the world’s leading mail and logistics services group. The
Deutsche Post and DHL corporate brands represent a one-of-a-kind portfolio of
logistics (DHL) and communications (Deutsche Post) services. The Group provides
its customers with both standardized products as well as solutions ranging from
dialogue marketing to industrial supply chains. Deutsche Post DHL has about 470,000
employees in more than 220 countries and territories. The Supply Chain/Corporate
Information Solutions provides contract logistics and corporate information solutions
tailor-made for customers.
It consists of two main business units: •DHL Supply Chain provides warehousing and
warehouse transport services as well as value-added services for customers.
•Corporate Information Solutions handles documents (collection, digitalisation,
printing, storage, archival) of all types. 1. 3. Structural departments of the
organisation, their types and functions Four operating divisions The Group is
organised into four operating divisions, each of which is under the control of its own
divisional headquarters and is subdivided into business units for reporting purposes.
The company are the only provider of universal postal services in Germany. In its
MAIL division, company delivers domestic and international mail and parcels and
specializing in dialogue marketing, nationwide press distribution services and all the
electronic services associated with mail delivery. Furthermore, with its E-Postbrief
product, company are the first in the market to offer secure, user-identified written
communication on the internet. EXPRESS division offers courier and express services
to business customers and consumers in more than 220 countries and territories, the
most comprehensive network in the world.
GLOBAL FORWARDING, FREIGHT division handles the carriage of goods by rail,
road, air and sea. Comany are the world’s number one air freight operator, number
two ocean freight operator and one of the leading overland freight forwarders in
Europe. SUPPLY CHAIN division is the global market leader in contract logistics,
providing warehousing, managed transport and value-added services at every link in
the supply chain for customers in a variety of industries. It also offers solutions for
corporate information and communications management tailored precisely to the
needs of our customers.
The company consolidate the internal services that support the entire Group, including
Finance, IT and Procurement, in our Global Business Services. This allows to make
even more efficient use of organization resources whilst reacting flexibly to the
rapidly changing demands of its business and its customers. Group management
functions are centralised in the Corporate Center. Organisational structure of
Deutsche Post DHL CORPORATE CENTER (CEO’S BOARD DEPARTMENT,
FINANCE AND PERSONNEL) MAIL EXPRESS GLOBAL FORWARDING,
FREIGHT SUPPLY CHAIN Mail Communication Dialogue Marketing Press
Services
Value-Added Services Parcel Germany Retail Outlets Global Mail Pension Service
Europe Americas Asia Pacific EEMEA (Eastern Europe, the Middle East and Africa)
Global Forwarding Freight Supply Chain Williams Lea 1. 4 Organization of the
technical level of investment in innovation and economic efficiency Solutions &
Innovation (S&I) – Logistics of Tomorrow. The department of Solutions &
Innovation is part of the DHL Customer Solutions & Innovation organization.
Emphasis placed on the development and marketing of industry tailored solutions
designed to simplify the lives of DHL customers.
Solutions & Innovation performs research on tomorrow’s logistics solutions and
works with the various DHL units to develop solutions from start to finish – from the
initial concept to market readiness. Focusing on innovation projects and
demonstrating DHL’s innovation capability while driving innovation excellence
across the company are key tasks of S&I. The Innovation projects are either Product
Development based, with the aim of delivering new short-term solutions and services
to the current needs of customers, or Research & Development (R&D) based.
R&D projects focus on emerging trends within the industry, to develop advanced
solutions to pre-emptively tackle future challenges. Additionally company
concentrates on Thought Leadership topics here as it has a big interest in the world.
Based at the Innovation Campus in Troisdorf, the innovation team incorporates new
technologies for future projects and combines existing approaches and solutions to
utilize them more effectively in the marketplace. Solutions & Innovation aims to
harness the potential of Innovation at DHL and offer cross-divisional, integrated
solutions to customers worldwide.
Discovering Trends for Tomorrow’s Logistics. Research & Development is the
central team of the Group for identifying future customer and sector challenges.
Compared to Product Development it takes on a long term focus. With the help of
applied research, it designs prototypes, pilots and protects the next generation of
products and solutions. By that the base for sustainable product development is built
and DHL’s thought leader status in logistics is protected. For DHL, thought leadership
is an essential component of being prepared for the future.
By understanding and evaluating trends and early indicators it helps to develop
innovative projects that have a real impact on our growth and competitiveness. To
secure this position Corporate Patent Management is another part of the team dealing
with all patent applications for DPDHL worldwide. On the pages below you can find
out more about the Research & Development projects currently being undertaken by
Solutions & Innovation. Tailor-made Solutions for our Customers. The main aim of
company Product Development projects is to create solutions which can be deployed
within business units across multiple sectors.
Here, innovations arise from the direct needs of customers and are led by a team of
experts from S&I through the entire process, from the initial idea right up to the final
product launch in a maximum of 2 years. By that Solutions & Innovation not only
generates value-added services for customers but also makes sure that daily business
is kept up to date with the logistics industry. Find out how use RFID technology to
track the goods of customers along the entire supply chain. See how the SmartTruck
uses the latest navigation systems to enable automated route planning for its couriers.
Discover the SmartSensor that allows to check on the condition of goods – anytime,
anywhere. DHL – Thought Leader in Logistics. Innovation Excellence is an important
part of Solutions & Innovation that fosters the Innovation Capability of DHL. Three
steps are necessary to reach this objective. The first one is to raise the awareness for
the topic of innovation. Not just for the group but also for the logistics industry and
customers. This is why we host the DHL Innovation Day, an event to increase the
understanding of its customers for the challenges of the future in all kinds of fields,
but for logistics in particular.
Company also make logistics tangible with its Showroom. There organization present
the ideas, concepts and projects of DHL and Solutions & Innovation to sensitize
visitors for the topic. The next step is to develop new value for the group and
customers. This happens in tailored Innovation Workshops, in which best practice of
innovation methods is used to understand the needs of customers and to react to them
in a sufficient way. The last step is to implement or adjust the services that are created
by the Innovation Workshops into daily business. This process is accompanied by the
organization all along the way.
2. ACTIVITY ANALYSIS OF THE ORGANISATION AND THE INCREASE OF
ITS COMPETITIVENESS 2. 1 The planning system applied in the organisation
(Systematic logistics links) Logistics networks determine the geographic and logical
distribution and networking of transportation, transshipment and warehousing
processes as well as the related information processes. Companies choose the network
structure that optimally suits their needs in terms of effectiveness and costs. In the
process, they also make fundamental decisions that have a large number of secondary
and operational effects.
Basic structures of logistics systems Basic structures of logistics networks The
logistics chain between procurement and the sales market can be illustrated
graphically as a network. The transport, handling and warehousing processes related
to the movement and storage of goods and the associated information processes are
implemented through this network. The chart above illustrates the basic structures of
such logistics systems. The logistics network strategy helps shape the basic structure
of the logistics system and the related logistics capacity for the logistics processes.
One-stage system In a one-stage system, the movement and storage involve a direct
flow of goods between the supply point, or source, and the receiving point, or
destination. In this system, the goods are made available at the supplier site and used
at the receiving point. The strength of the one-stage system is that the flow of goods is
not interrupted. No other warehousing and transport processes are required to send the
goods in another direction. Multi-stage system In a multi-stage system, the movement
and storage involve an indirect flow of goods between the supply and receiving
points.
The flow of goods is interrupted at one or more stages. Here, additional storage or
transport processes are performed. The objective of this work is to separate or
consolidate the flow of goods. Breakbulk point: Large quantities of goods from the
supply point arrive at the “breakbulk point,” and small quantities of them leave it
bound for various receiving points. Consolidation point: The interruption point in a
multi-stage system can be a “consolidation point,” where the goods are consolidated,
collect or sorted. Combined system: In combined systems, direct and indirect flows of
goods can co-exist.
2. 2 Organization of external relations and their impact on the operational efficiency
The corporate and economic environment has changed considerably in recent years.
Many factors have had an impact on DHL‘s mail and logistics business. As part of our
Strategy 2015, company systematically and continuously review the key factors
affecting its business. Company continues to believe that its business is substantially
impacted by four long-term trends: 1) Globalisation. Growth in the logistics industry
will continue to outpace the growth of national economies in the future.
Trade flows and volume to and from Asia as well as within Asia are seeing further
sharp increases, as are those in other emerging regions, such as South America and
the Middle East. DHL divisions are in a better position than most in these regions as
well as in Europe and North America. Hardly any other company in the industry
offers integrated logistics solutions for all means of transport and in all parts of the
world as we do. 2) Outsourcing. In times of economic difficulty, companies feel
increased pressure to reduce costs and streamline business processes.
Activities that are not considered part of the core business are being outsourced to a
greater extent. In addition, supply chains are becoming more complex and are being
placed increasingly on an international footing. This makes them more susceptible to
potential disturbances as this past year has again demonstrated. Accordingly,
customers are demanding integrated solutions that provide a comprehensive range of
services and modes of transport and which protect their supply chains. Copmany
benefits from this trend due to its leading positions in the express, freight forwarding
and contract logistics markets.
3) Digitalisation. The internet continues to fundamentally change the way in which
information is exchanged. Physical communication channels are being replaced
increasingly by electronic communication, which is leading to a decline in volumes
and revenues in the traditional mail business in particular. On the other hand, the
internet brings dealers and customers closer together and creates new demand for the
transport of goods, advertising materials and contract documents. Demand for secure,
confidential and reliable electronic communication is growing on the virtual
market. Company have responded by launching the E-Postbrief product. Furthermore,
it is expect to be able to take advantage of increasing digitalisation in other
businesses. 4) Climate change. The past year again demonstrated that the heightened
awareness of the environment and climate considerably impacts the logistics industry.
In all of organization divisions, an ever-increasing number of customers are asking for
climate-neutral products. As the world’s leading logistics company, it goes without
saying that we shall play part in reducing carbon emissions.
Company offers to its customers an extensive range of energy-saving transport
options and climate-neutral products and have set an ambitious climate protection
goal. 2. 3. PLANNING OF SEPARATE RESOURCES AND ORGANISATION OF
THE ACTIVITY. 2. 3. 1. Planning of sales and manufacture (services) and its
arrangement. DHL Express has very active sales and marketing organization that help
to present DHL’s brand and build image of quality. It also works on expanding
company’s presence into emerging markets. Asset of a company lays in well-
established and well-managed brand especially in the service sector.
Good brand also gives a competitive advantage in the labor market. It is important to
show the company as an attractive employer to get highly skilled and committed
employees. DHL uses modern tools for marketing. As an example can serve an online
career portal used as a recruiting tool. DHL also reworked its corporate design and
every service employee wears uniform clothing. Employees are educated about their
company through Brand manuals. There is multi-lingual internet platform for DHL
employees to get consistent information and be aware of the brand image.
Customer retention, customer loyalty and brand recognition are amongst the
benchmarks that DHL values to reach success. These innovative programs that DHL
is running are expensive for the company. They know that the benefit will not come in
short-term. Brand awareness and trust cannot be gained in short-time. However, if it is
gained it could have long-lasting. Customer support and customer service is very
important in logistics industry because one of the most important factors is customer
satisfaction.
Therefore, DHL Express regularly holds customer satisfaction surveys because they
help to identify problem of substitute products, help to answer what substitute
products customers consider, make better position in the market and among
customers, uncover customers’ perceptions, improve customer loyalty and make
product improvements. DHL Express knows that loyalty of the customers increase
with satisfaction and if customer gets better value or benefit for the same price it
could mean lower profit for the company but it is worth it in long-run.
Research & Development and Marketing & Sales organizations have their significant
role in After sales. 2. 3. 2. The main resources used, their planning and stocking
Efficient management of information and goods Enterprise resource planning ERP is
a description of systems that employ innovative information technology to manage all
sorts of areas in companies. Major corporations, in particular, could hardly function
without tailor-made ERP software. One component of ERP can be a warehouse
management system (WMS).
With its assistance, precise warehouse management can be conducted even in the
most complex storage and distribution systems. As a result, inventory monitoring can
be improved and the entire supply chain can be designed more efficiently. Physical
goods movement and information flow in the ERP system The characteristics and
application areas of ERP systems One elementary factor in optimizing a company’s
important core business processes is the fast and precise retrieval, integration and
collection of information.
Enterprise resource planning ERP is a system that uses modern information
technology to manage the functions of various company divisions and to create
transparency in the process. Through the use of ERP – and, as a result, a single data
model for all company-relevant information – significant amounts of internal
integration can be achieved. This is an important benefit especially for international
companies. But small and mid-sized companies can profit from tailor-made ERP
solutions as well.
For the entire supply chain Supply chain, an ERP system with a shared data model is
a desirable solution – but the implementation of it is extremely complex. The trend
toward outsourcing Outsourcing is also raising the system’s cost because the number
of companies in the supply chain continues to expand. Advanced planning systems
Advanced planning system (APS) represent an extension of the ERP in terms of
relationships with other companies. These systems represent complex logistics
structures and processes in a supply chain Supply chain , and facilitate fast responses
and optimal inventories and capacities.
For this purpose, APS uses data managed by ERP systems. In the automotive
industry, for instance, the supply chain can be mapped all the way to the pre-suppliers
of a system supplier. As a result, critical paths can be recognized and supply squeezes
prevented at an early point in time. Efficient storage administration through
warehouse management systems Warehouse management systems (WMS) represent a
further evolutionary step from the inventory management systems (IMS) used in the
1980s and early 1990s.
The traditional IMS only enabled stored items and storage positions to be
administered and conveying systems to be managed. But today’s WMS can do much
more. Among other things, they permit numerous important indicators to be
monitored and develop multifaceted strategies for optimizing the systems in use from
these indicators. As a result, complex storage and distribution systems can be easily
managed, monitored and optimized. A traditional IMS was generally used as a “black-
box system” that was separated from the central company software.
In contrast, the WMS began to be increasingly networked and integrated into the ERP
Enterprise resource planning at the end of the 1990s. As modular software, the WMS
offers a scalable functional range within the framework of the ERP: The core
functions of a WMS support the basic processes in every company’s warehouse area:
e. g. , receiving, storage, warehouse management, picking Picking , retrieval,
shipping, inventory and forms management. The expanded functions of a WMS
include batch/serial number management, management of empty bottles and returns.
Additional modules offer connections to self-contained software packages like RFID
Radio frequency identification software or pick-by-voice Pick-by-voice /pick-by-light
Pick-by-light systems. One other important function is support that is provided to the
management of linked storage facilities. As a result, the inventories of several
warehouses can be balanced with one another or particularly high-quality items can be
distributed only upon notification from centrally located warehouses. 2. 3. 3. Labour
resources, their qualitative and quantitative need, applied types of payroll.
A large part of how organization work revolves around the people who ultimately
power its supply chain. Labour represents 30 percent of typical distribution costs in
India. Whilst these labour costs may be proportionally less than more mature markets
around the world, company still provide the same training and support to ensure they
have the right skills and motivation to deliver world-class service and performance. A
systematic approach: Flexible Resources In situations where company handles
products, workforce is experienced and trained to respond to new challenges.
It has the right mix of employees to cater to sectors such as Retail, Supply Parts
Logistics, Health, Automotive, Technology and Consumer Goods. Organization‘s
scale allows to bring qualified resources to the task just when clients need them most.
Even its infrastructure is engineered to be more efficient – many of its facilities are
close to transportation hubs and share pre-trained resources for temporary or start-up
needs. Motivated Teams Helping to its people work smarter pays dividends for
everyone. Company is able to deliver more volume to its customers and reduce costs.
Company