Logistics System in DHL

1
PROJECT REPORT ON LOGISTCS SYSTEM IN DHL´
Bachelor of Management Studies
Semester V
Submitted In Partial Fulfillment of the requirements
For the Award of Degree of Bachelor of Management Studies
By
Kamlesh Pandey9426
J.V.M s DEGREE COLLEGE OF B.M.S.
Plot No.6, Sec-1, Airoli Node, Navi Mumbai-708

DECLARATION
I, Mr. KAMLESH PANDEY the student of J.V.M’s Degree college of BMS hereby assure that, I have
completed this project on Logistic System In DHL in the academic year 2009-2010, the
information submitted is true to the best of my knowledge & belief.
Signature
Kamlesh Pandey
Roll - 9426, TYB.M.S.

ACKNOWLEDGEMENT
A compendium is never the work of one individual ± more a combination of ideas, suggestion and
contribution involving many hands.
My debts are too numerous to be acknowledge individually. A large number of individuals
have contributed directly and indirectly in the completion of this project. I am extremely
thankful to Ms.HemaKadukar.
It is pleasure to express my gratitude for the assistance received from them. Hence I would like to take
this opportunity to thank them wholehearted for helping me in preparing this project.
Kamlesh Pandey

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 ³DHL´
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
COMPANY STRENGTHS

Strong Brand Image:

In 1997, DHL became the global express transportation company to obtain simultaneous system-wide
ISO 9001 certification in international quality standards.DHL has also developed their own quality
system that matches their customers standards.

Globalism:
DHL operates on a global scale. They operatein 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 search for new technology. They spend nearly 10% of total revenues, for
information technology. DHL also has excellent Services that provide access to systems that ensure
customer shave 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
³corporate symbiosis.´ This approach encompasses the empowerment of the DHL personnel at a
local level, at thesame time recognizing the interdependence of the parts of DHL as a corporate whole

Logistics System in DHL

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.
COMPANY WEAKNESS:

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
1INTODUCTION TO LOGISTICS«««««««« 1
1.1Meaning of logistics««««««««««««««« 1
1.2Origin and Definition of Logistics«««««««««.. 3
1.3Importance of logistic management««««««««« 4
1.4Logistics Management and Supply chain ««««««.. 6
2BACKGROUND OF DHL«««««««««««.. 9

2.1History of DHL «««««««««««««««««.. 10

2.2 The world's largest express and logistics Network «««« 11

2.3 The DHL Indian Profile ««««««««««««««. 12

2.4 Product and services of DHL ««««««««««««. 14
3. INTEGATED LOGISTICS SYSTEM«««««««. 16
3.1 Inventory Flow «««««««««««««««««« 17
3.2 Information Flow ««««««««««««««««« 18
Coordination Flow««««««««««««««««««.18
Operating flow««««««««««««««««««......20

4. SUPPLY CHAIN MANAGEMENT«««««««« 21

4.1 DHL International Supply chain«««««««««««. 23
Reverse Logistics«««««««««««««««««««24
Services Logistics«««««««««««««««««««25
Inbound to Manufacturing«««««««««««««««26
Medical device Distribution««««««««««««........27
Distribution to store Management««««««««««.... 27
Engineering response««««««......................................27
4.2Extended Supply Chain Services«««««««««««28

4.3Implementation Services«««««««««««««..29
4.4 Performance Management ««««««««««««« 30
4.5OutsourcingProjects«««««««««««««««.30
4.6 Innovation of Supply Chain development «««««««. 31
4.7 Solution for Customize end to end logistic worldwide ««. 33
5TRANSPORTATION ««««««««««««... 36
5.1 Transportation functionality ««««««««««««. 37
5.2 Principles «««««««««««««««««««.. 38
5.3 Transportation Infrastructure «««««««««««« 40
5.4 OPTIMIZATIONOF LOGISTICS WITHDHLROAD AND
RAILS O L U T I O N S « « « « « « « « « « « « « « « « « . . . . 4 4
5.5Air and ocean freight solutions «««««««««««.. 45
6 INVENTORY MANAGEMENT & WAREHOUSING.47

6.1 Warehouse Infrastructure Network««««««««««. 48

Multi User Centers «««««««««««««««««..48

Strategic Part Centers (SPC) «««««««««««««49
 Express Logistics Centers (ELC) «««««««««««. 49

6.2 Warehouse Management Solution ««««««««««. 50

W arehouse Management Systems«««««««««««.50

Strategic Inventory Management «««............................. 50

Direct Express Inventory Management «««««««... 50

Repair Return Inventory Management ««««««««...51

Cross Docking «««««««««««««««««««.51

6.3 Inventory Optimization ««««««««««««««. 52

Logistics System in DHL

6.4 Special Warehouse solution ««««««««««««.. 54

6.5 Outsourcing Projects. ««««««««««««««.... 55
7 VALUE-ADDED SERVICES «««««««««««56
7.1 Co-Packaging ««««««««««««««««««. 56
7.2 Product Assembly ««««««««««««««««.. 58
7.3 Other-Value added Service ««««««««««««... 59
7.4 External Performance Measurement «««««««««.. 60
7.5Customer Perception Measurement «««««««««... 60
8 Worldwide Parcel Express «««««««««««««. 61
9.Recommendation ««««««««««««««««... 63
10 Conclusions ««««««««««««««««««« 64
11 Bibliographies «««««««««««««««««« 65

Logistics System in DHL

INTRODUCTION
MEANING OF LOGISTICS:
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 MANAGEMENTS:
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.

ORIGIN & DEFINITION OF LOGISTICS:

The term "logistics" originates from the ancient Greek "ȜȩȖȠȢ"("logos"²"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 Byzantineempires, there were military officers
with the title µ Logistikas’ who were responsible for financial and distribution of supplies. The
Oxford English dictionary
defines logistics as³The 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 business.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.
3.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
 4.Leads to customer satisfaction
Through superior customer service. Organizational objectives of P[Productivity],Q [Quality],C [Cost],D
[Delivery],E [EmployeeMorale],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 ³
Supply chainmanagement 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, andcustomers. In essence, Supply Chain Management integrates supply and demand manage
ment within and across companies Supplychains encompassthe companies and the business activities needed to design
RFDn, make,deliver, and use a product or service. Businesses depend on their supplychains to provide them
with what they need
tosurviveandthrive.Every business fits into one or more supply chains and has a role to play ineach of them. The
pace of change and the uncertainty about howmarkets will evolve has made it increasingly important for
companies to be aware of the supply chains they participate in and to understand theroles that they play.
Those companies that learn how to
buildand participate in strong supply chains will have a substantial competitiveadvantage in their markets.
Supply chain management is thecoordination of production, inventory, location, and transportationamong the
participants in a supply chain to achieve the best mix of responsiveness and efficiency for the market
being served. There is adifference between the concept of supply chain management and thetraditional concept of
logistics. Logistics typically refers to activitiesthat occur within the boundaries of a single organization and supplychains refer
to networks of companies that work together and coordinate
their actions to deliver a product to market. Also traditional logisticsfocuses its attention on activities such
as procurement, distribution,maintenance, and inventory management. Supply chain managementacknowledges all
of traditional logistics and also includes activities suchas marketing, new product development, finance, and
customer service.In the wider view of supply chain thinking, these additional activitiesare now seen as part of the work
needed to fulfill customer requests.Effective supply chain management requires simultaneousimprovements in both
customer service levels and the internal operatingefficiencies of the companies in the supply chain. Customer service atits
most basic level means consistently high order fill rates, high on-timedelivery rates, and a very low rate of
products returned by customers for whatever reason. Internal efficiency for organizations in a supply chainmeans that these
organizations get an attractive rate of return on their investments in inventory and other assets and those they find
ways tolower their operating and sales expenses.

Company profile

INFORMATION
 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 CustomsBrokerage. They are the first choice for companies looking for endto 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 thehighest quality,
History and background of D H L
DHL are the first letters of the last names of the three companyfounders, Adrian Dalsey, Larry Hillblom and
Robert Lynn.

In 1969, just months after the world had marveled at Neil Armstrong'sfirst steps on the moon, the three partners took another
small step thatwould have a profound impact on the way the world does business.

The founders began to personally ship papers by airplane from SanFrancisco to Honolulu, beginning customs clearance of the
ship's cargo before the actual arrival of the ship and dramatically reducing waitingtime in the harbour.
Customers stood to save a fortune. With thisconcept, a new industry was born: international air express, the rapiddelivery of
documents and shipments by airplane.

The DHL Network continued to grow at an incredible pace. Thecompany expanded westward from Hawaii into the Far East
and PacificRim, then the Middle East, Africa and Europe. By 1988, DHL wasalready 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 byDeutsche Post World Net. In 2003, Deutsche Post World Netconsolidated 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, overlandtransport and logistics solutions; DHL combines
worldwide coveragewith an in-depth understanding of local markets.Below are the global facts and figures that show you
the scale of theworld's largest express and logistics network.
DH L Express worldwide
Employees more than 124,000
Countries and territories more than 220
Hubs 36
Bases 4700
Vehicles 72,000
Aircraft 350
Pack stations (only Germany) 900
DH L Logistics in figures
DHL logistics worldwide
Employees * more than 162,500
DHL Global Forwarding
Countries and territories 150
Terminals, warehouses, offices813
Air freight volume 4,409,000 tones
Ocean freight volume TEU ** 2,764,000
DHL Excel Supply Chain
 Countries and territories 59
Centers, warehouses, terminals 2500
Storage area sqm 23,000,000
DHL Freight
Countries and territories more than 30
Full truckload movements p.a. 2,000,000
Terminals more than 160

D H L INDIA CORPORATE PROFILE

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 50,000customers serviced through DHL's national network with its
1,000strong 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 are liable, fast and easy-to-use service.DHL
offers-Highly trained and professional staff, committed to being responsive to all customer’s 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 in to and out of the country.

Products and services of DHL:

DH L Document Express (DOX):
This service is ideal for shipments that are not subjected to Customsdeclaration at destinations, or have no commercial value or
do notrequire a license.
DH L 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 subjectedto Customs inspection at destinations and may be taxable or dutiable.
Jumbo Pack and JumboJunior:
This service makes exporting easy. One box dispatched for one flat fee,anywhere in the world. DHL Jumbo
Box is for shipments under 25kgand Jumbo Junior for shipments less than 10kg.
Import Express:
This service is a single window solution for all importing needs. DHLI mport 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 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.

INTEGRATED LOGISTICS

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 inter-related efforts, inventory flow
and information flow. Inventory flow Information flow

Inventory flow
Suppliers Physicaldistribution Manufacturing support Customers

Inventory Flow
The management of logistics is concerned with the movement andstorage of materials and finished products. From
the initial purchase of amaterial or component, the logistical process adds value. By movinginventory when and where
needed. Thus the material gains value at eachstep. 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 ownmaterial movement but that of the customers the sender,
the receiver andalso the intermediateries. That means it only involves physicaldistribution and procurement.
Procurement also includes the materialneeded for packaging such as paper, moulded trays and boxes, woodencrates,
standard containers wraps, plastic inlays etc. The materials
or thegoods collected from the senders (including papers, documents, physical goods like clothing, household
good, chemicals, exotic animalsetc) are weighed, checked for condition, and depending upon its variouscharacteristics it
is packed. The goods are then dispatched to their destinations. There is no value addition to the material itself but
it isdone 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 9hours)

Information flow
 Information flow identifies specific locations within a logistical systemthat have requirements. Information also
integrates the three operatingareas. The primary objective of developing and specifying requirementsis 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, whichare matched to the required products and
services to be performed

For DHL

It implies estimating the time requires for collecting the goods from thedoor step of the sender and then estimating the time for
the goods toreach the final customer

Forecasting
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 withdirecting operations to receive, process, and ship
inventory as requiredsupporting customer and purchasing orders. Operational requirementsdeal 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
³
Supply chain management is the management of upstream anddownstream relationships with suppliers and
customers to deliver superior customer value at less cost to the supply chain as a whole.´
Explanation:
The supply chain is the network of organizations that are involvedthrough upstream and downstream
linkages, in the different processesand activities that produce value in the form of products and services inthe 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. DHLhas developed a reputation for consistently developing
innovativesolutions that streamline operations and improve control. Their in-houseteams have contributed to the
solutions design of some of the world'sleading brands and enabled to win key contacts.DHL solutions design team offers a
wide portfolio of expertise andservices, from logistics network strategy, transport design, warehousedesign and
simulation, through to operational improvement andinventory analysis

International Supply Chain

Extended Supply Chain Services

Implementation Services

Outsourcing Projects

1 International Supply Chain:

 DHL¶s international supply chain management solutions are focused onhelping customers take increased control of
international inboundsupply chain to maximize the value of international and global sourcing.

DHL helps customers:

Give visibility of the upstream supply chain, and enable earlier decisionmaking

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

Reduce lead times, inventories, and associated storage costs

Customer-focused solutions are built up from the following coreservices:
Origin management, including: vendor management; supplier collections; customs brokerage; consolidation
services and value-addedservices

Global forwarding, including: air/ocean/road/rail freight forwarding andmanagement; European managed

transport

Destination management, including: port and demurrage management;customs brokerage; de-consolidation and pre-
retail services; port todistribution centre transportation; direct store delivery (US only)

Supply chain visibility and management, including: purchase order management; RFID product tracking; exception
management; planningand 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
a . ) Reverse Logistics
DHL¶s reverse logistics solutions help customers plan, implement andcontrol flow of materials and manage related
information, back up thesupply chain to recapture values and ensure the safe disposal of goods.Items include the recovery
of obsolete or non-operational white goodssuch as refrigerators, plus the removal of old furniture on delivery of newor
replacement products.

Services include:

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

Returns Management: receiving, sorting, verifying and managingreturned 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

. ) 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 a thigh 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.
b . ) 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. Measuredelements are reviewed as a system, as each component
interacts with allthe other parts around it. Performance measuring not only recordshistorical performance but also provides
early indication of any serviceslippage. In this second role, the measures provide a valuablecontribution to DHL's
Continuous Improvement Programme.
Outsourcing Projects
Outsourcing involves DHL taking over and managing previous in-houselogistics 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 optimizinglogistical operations in both
process and strategy, and are aligned to theclient's commercial expectations.
The services are as follows:

Strategic Logistics Consulting

Lead Logistics Provider

Consulting and providing Transport optimization: Route-Pro and Trans-Pro
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 analysisallows 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.

Solution for customizedEnd-to-end logistics

Worldwide
Best-in-class solutions that deliver Value to your supply chain.
Customized Logistics Solutions.
 Supply ChainManagement Analysis, design and engineering.Lead Logistics Provider (LLP)
andLead Service Provider (LSP) services
.
Warehousing
Engineering, design and management.Vendor management, just in time.
Value AddedServices Order management, quality control,outbound fulfillment, reverse andreturn
logistics and other services
Distribution
Take-over and management of in-house logistics including distribution,transport, back-office, supply

Chain and after sales.

Outsourcing
Industry-specific local andtransnational. Network and fleet planning and optimization

DHLSolutions offers customized logisti cs solutions for your entire supply

chain . O ur complete overview from manufa cturer/supplier to retailer to consumer ± en
ables you to a chieve operational ex cellen ce at every stage Services range from consult
ing and design to management and execution . They provide industry-
spe cifi cexpertise and long- term experien ce that addvalue to your business
.
DHl Solutions sets the pace in Supply Chain M anagement with state-of-the-
art technologies,delivering
customized business solutions Leading e d g e IT systems ensure seamless integration
and guarantee full transparency and control throughout the entire supply chain.

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, fast-moving 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
Transportation is the most visible of all functions of logistics and high contributor to logistics cost. We can see trucks,
containers and wagon loads 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 transportationfunction 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 chainstrategies 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 andenvironmental 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]

Principles

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. truck load 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
1- pound 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 chargest a per 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-hireor internal basis. The nature of the infrastructure also determines avariety of legal
and economic characteristics for each mode or multimodal system. A mode identifies the basic transportation methodor form.
RAIL NETWORK
 Since olden times, railroads have handled the largest number of ton-miles. 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.
MOTOR CARRIERS
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 rail roads, 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 over-the-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,
andnavigable 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 todays 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.

OP T I M I Z A T I O N O F L O G I S T I C S W I T H
DHL
ROAD AND RAIL SOLUTIONS
.
DHL Freight is a leader in European overland transport. Our continent-wide 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.

Whether you need to forward door-to-door,airport-to-airport or port-to-port freight,

DHL Danzas Air & Ocean offers a comprehensiverange 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 createthe
right logistics solution for your business. DHL Danzas Air & Ocean is in pole positionto 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-effectiveairfreight services for your most time-
sensitive freight with door-to-door or airport-to-airport services, fixed schedules on all main routes andreliable
connections to all other destinations
 DHL Air Freight products include:

Air FirstWhether door-to-door or airport-to-airport,Air First guarantees priority on the first flightout and forwarding within
two days ± 24-hours a day, 7-days a week, and 365-days a

Air Premier Combines price and time considerations for both door-to-door and airport-to-airportservice. Your
shipment will arrive at theairport of any major marketplace around theworld within
o n l y t h r e e d a y s .
Air Value Creative routing solutions via major gatewayscan save you even more money while addingonly 1-2 days over
our Air Premier Service

Part and FullCharter Combine the speed of airfreight and the lower cost of ocean freight ± and you¶ll benefit fromour
strength and experience in both. Plus,real-time tracking at every step of the way.

Sea/Air Chartering additional airfreight capacity is part of everyday business ± especially if thereis limited
commercial lift, for new productlaunches, during peak seasons or for oversized cargo. Our specialists createsolutions to get
your goods through on time.

Inventory Management and Warehousing

.

Inventory is an unused asset, which lies in stock without participating invalue adding process. Unused equipment, raw material,
WIP andFinished goods, consumables, spare parts, bought out parts, tools andtackles, gauge and fixtures etc. In
India 9 to 12 months of sales quantitylies in the form of Inventory [R/M, WIP, Bought out parts and Finishedgoods] as
against a few days in Japan and a month in the US andEurope.

In our country inventory is always viewed as asset [workingcapital], in fact, though it is called an asset, it is a big
liabilityWarehousing was a customer’s function conventionally anywhere in theworld. Customer to protect himself from
shortages at the time of inclement weather always used to store provisions and other utilities inhis house. Consumer’s own
stores were underground cellars, smokehouses to store variety of items. Poor communication infrastructure wasmainly the
cause for this storage by customer. Producers and tradesmenconveniently shrugged off their responsibility for
storage and passed iton 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 aremarkable 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 andaftermarket 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 integratedinto the wider supply chain and meets demanding service levels. Thisencompasses the design
implementation and operation for bothdedicated 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
a. Multi User Centers
We provide a network of multi-user warehouses, enablingmanufacturers to hold inventory at local level, whilst
avoidingexpensive, dedicated storage solutions. These facilities can
receive products from both local and global manufacturing sites, providingdownstream 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
c. Express Logistics Centers (ELC)
Our Express Logistics Centers (ELCs) are regional centralized facilitiesoffering:
order processing
outsourced repair facilities
custom final assembly
kitting services
2.Warehouse Management Solutions:
a)Warehouse Management Systems
The Warehouse Management System (WMS) records all events andactions in the receipt, handling and storage of products
and orders in awarehouse environment. The WMS also accurately records the locationof inventory whilst stored in the
warehouse.Our Prologs WMS manages all critical processes in the warehouse, and isalso an important support for
varied transport and distribution concepts(planning, time controlling, booking of transport capacity,communication
with customs and other authorities).
b)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.
c)Direct Express Inventory Management
Direct Express Inventory (DEI) allows customers to centralize stock inone warehouse and use express distribution to deliver
components thenext day. Entire management is done by DHL.
d)Repair Return Inventory Management
Return & Repair Inventory (RRI) manages the physical flows for Returnmaterial authorization. In this case, DHL
will be responsible for pickingup the broken part, sending a new one, bringing the broken part to arepair centre and
moving repaired parts back into stock.
e)Cross Docking
Cross-dock operations are facilities where shipments are received fromone mode of transport and transferred to another mode,
or whereshipments complete one leg of a journey prior to commencement of another journey. Shipments are consolidated or
deconsolidated. Productreceived into the facility is not taken into inventory
3. Inventory Optimization:
Through effective inventory management, inefficiencies can be drivenout of the supply chain, overall costs reduced
and high service levelsachieved. 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 managementsoftware that calculates 'line item risk profiles' that measure
thevariability 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 toleading manufacturers and retailers of medical supplies,
consumer products, industrial equipment, chemicals and technology.Through sharing of DHL's resources, such
as space, labour, equipmentand transportation, customers benefit from synergies that considerablyreduce supply
chain costs. This environment returns significant value toa small business requiring distribution operations without
long termlease or capital commitments, or a large enterprise handling a newacquisition, product launches or seasonal
overflow.
Campus Solutions
We pioneered the campus model to provide regional customers with aflexible 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 Northand South America, Europe and select locations in Asia, allowing for expedited
transit times to large concentrations of consumers.
2.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
manufacturingfacility.
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 andtaxes.
Shared-user Warehousing
Our shared-user facilities are designed to meet the needs of organizations of any size. Currently, we provide shared-
user services toleading manufacturers and retailers of medical supplies,
consumer products, industrial equipment, chemicals and technology.Through sharing of DHL's resources, such as
space, labour, equipmentand transportation, customers benefit from synergies that considerablyreduce supply chain costs.
Consequently, the customer can increaseefficiencies 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-houselogistics 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

1.Co-packing
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:
a.Beverage manufacturing:
Blending, mixing and filling of hot and cold fill beverages andconcentrates 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)
b.Dedicated facility services:
Turnkey manufacturing solutions including:
Site selection/development
Facility and systems design
New facility start-up and operation
c.Other services:
Packaging and raw material sourcing, procurement and assembly
Batch/quality control tracking via digital easy-to-trace coding system
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 distr
ibution centers streamlines fulfillmentreducing cost, enhancing product visibility and control, and improvingspeed-to-
market and flexibility in the supply chain.
Packaging services include:
Postponement packaging - primary, secondary and specialtycomponents
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, clubstore packs, clamshells and printed and
unprinted film over-wraps
Make-to-order pallets
Product rework/redress

3.Other Value Added Services

a.Kitting/Pre-Assembling
Kitting is the addition of items such as accessories and batteries to the product pack. Pre-
assembling is completion of a finished product fromcomponent 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 dispatchedfrom 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
promotionalitems ready for retail display.
External Performance Measurement

While internal measures are important for detailed organizationalmonitoring, external performance measures are also
necessary tomonitor, understand and maintain a focused customer perspective and togain innovative insights from other
industries. The topics of customer perception measurement and best practice benchmarking, which
addressthese requirements, are discussed and illustrated below.
Customer Perception Measurement
To succeed in any activities of business one has to always cater to andsatisfy the needs of the customer. To do so,
it is essential for one toknow how the customer thinks in order to meet his needs in a moresatisfying manner. Therefore, an
important component of leading edgelogistical performance is the regular measurement of
customer perceptions. Such measures can be obtained through surveys or bysystematic order follow up. These
surveys can be company - or
industry ± sponsored. Such surveys ask questions regarding the firm¶s and thecompetitor¶s performance in
general or for a specific order in particular.Most of the surveys incorporates measurement of customer perceptionsregarding
availability, performance-cycle time, information availability, problem resolution and product
support. The survey may be developedand administered by the firm itself or by consultants, delivery agents or industry
organizations
 International express door-to-door delivery overnight or by theend of the next possible business day for goods subject
toCustoms clearance
One, reliable company makes international shipping easy
. Need to get products, samples, or spares to someone fast? Then trustDHL¶s Worldwide Parcel Express
to expedite urgent shipments fromyour door, through customs direct to the receiver - virtually anywhere inthe world.
One company means you eliminate all the hassles of international shipping. You never lose sight of your shipments. Andwith
DHL¶s customs expertise, you get instant advice regarding localregulations and customs documentation, ensuring the smooth
clearanceof your goods. When it comes to delivering your company¶s time-critical shipments ± and your
reputation, rely on DHL¶s WorldwideParcel Express.

One company to keep your business moving.

When you need to get your goods delivered quickly, you don¶t needthe hassle of brokers or guessing the answers on
customs forms. WithWorldwide Parcel express, international shipping couldn't be easier.
Benefit from
the largest international express network andmore in-housecustoms expertise than anyone else
Experienced DHL personnel ensure delivery overnight inmost locations or by the end of the next
possible day One price for door-to-door delivery eliminates hidden costs so you canavoid surprises for
your customers and your Finance Manager. Never losesight of your goods. Access tracking and
delivery details from virtuallyanywhere via theInternet, e-mail,WAP, SMS or phone
GAIN GREATER CONTROL OVER YOUR BUSINESS
One company to handle your shipmentsMore efficient processes
Customs experience and advice to ensure smoothclearance
Shorter lead times through direct distribution
Ability to invoice quicker and improve cash flow

RECOMMENDATION
1.ENHANCE THE SMART-TRUCK PROJECT

Because of the stage of recession and high competition, thecompanies need to make difference to have new
customers andincrease their market share. To invent completely new product can bevery expensive and take very much time.
So, making little differenceon the current product or service can be better. At this time, we needto 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 achievethis 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 towork on this project.c.

Also pay premium for new and creative ideas whoever gives it(even juniors). So this will provide us innovative atmosphere
2. AQUIRE SMALL - SIZE LOGISTICS COMPANIES:
By acquiring small local companies in different countries like China,India, USA, will give us precense in that
countries. Also, this willdecrease the threat of restrictions in those companie. Even they are
smallcompanies, they can have creative solutions to different problems. So weare acquiring new brains at the same time. We
can get some ideas fromthem to improve our skills. I mean we are not firing people who wereworking there actually, we are
hiring them to work with us.
 Conclusion
Logistics is one the most important and integral part of any organisationsstrategy and function. When the logistical process is
carried outaccurately then not only the company reduces the production cost but alsoimproves the efficiency
and customer satisfaction. Overall logisticsmanagement is very important for today¶s highly competitive and cut-
throat 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 deliversit. With a network spanning 200 countries and with its private fleet
of airplanes, mobile vans, cargo ship carriers & even rail way automotivesin some countries DHL can handle any type of
goods. Not only has thatwith international network there come the hassle of documentation
and paperwork, standard packaging and other formalities to adhere to. ButDHL has its own department which
looks into the international laws andother formalities. In the end what matters is delivering well in goodcondition at the door
step of the customer. A happy and satisfiedcustomer makes the business grow. Competitors have come and gone butDHL has
been able to keep its No 1 position intact. This is because of itsdynamic nature and attitude of maintaining good customer
relations.Logistics management is important for every organization but more soDHL.
We have tried to incorporate all the facets of logistics which propel DHL to be the best delievery and carriage-
service around theworld. No wonder that DHL is head and shoulders above all of its competitors!
BIBLIOGRAPHY
a)Logistics and Supply Chain Management- Written by Martin Christopher
b)Indian Logistics Industry´ (2008) published byCushman & Wakefield
c)BUSINESS LOGISTICS- BARDI
d)Elements of Logistics Management- S.D.APHALE

Websites:
1.www.google.com
2.www.logisticmanagement.com
3.www.about.com
4.www.dhl.com