Inventory Management With Auctions

DHL Logistics Operation 1
DHL Logistics Operation
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DHL Logistics Operation 2
Table of Contents
Introduction.................................................................................................................... 3
Methodology.................................................................................................................. 4
Analysis and evaluation..................................................................................................... 4
Volume...................................................................................................................... 5
Variety....................................................................................................................... 5
Variation.................................................................................................................... 6
Visibility.................................................................................................................... 7
Conclusion..................................................................................................................... 7
References..................................................................................................................... 9

DHL Logistics Operation 3
Introduction
DHL is an international leader in logistics and express delivery worldwide. DHL
combines an extensive service area with a deep understanding of local markets. DHL network
covers more than 220 countries of the world. DHL employs over 275,000 highly professional
employees, thanks to which the company provides high-quality and reliable service in
accordance with the needs of customers in high-quality logistics solutions. However, DHL does
not meet all operational requirements because in international logistics, import / export requires
special operations, which often hinder efficiency of the services. The major operational issue
facing the DHL is the challenge of meeting ever-changing demands. Variation in consumer
demands especially customers located in overseas significantly hinders the DHL operation
process. It takes time and man-hours to perform these tasks, but not only that, but the more tasks
that need to be done, the greater the risk of mistakes and trouble. In fact, it is not uncommon for
import / export processes to stagnate due to business mistakes and delays in delivery. In fact
DHL, which is a company involved in international distribution of goods, faces several issues
related to delays in delivery. These issues arise from the complexity of the ordering and
delivering processes. Basically, the challenges of international logistics are almost the same as
domestic logistics. As Andrea Olson of Manufacturing Global says , on-time delivery, return
rates, and daily shipments are important in international shipping . However, when it comes to
international shipping, new challenges are also added (Li and Graves, 2012).
Inventory visibility is already important for domestic operations, but it's especially
important for cross-border e-commerce, because SKUs are growing rapidly. Lori Mitchell Keller
of MultiChannel Merchan also says that visualizing international logistics is more difficult than
domestic logistics due to differences in customer preferences and geographical issues.

DHL Logistics Operation 4
As with any business challenge, when it comes to solving logistics issues, the first thing
to worry about is the customer experience. As the supply chain crosses countries, delivery times
increase, which can frustrate customers. In addition, fluctuating shipping costs may affect the
amount paid by customers. Customers who require additional payments will be particularly
angry. Increasing the amount at the end of the checkout process will increase the cart
abandonment rate (Brynjolfsson, Hu, and Rahman, 2009).
In international logistics, the product flow line becomes longer, and the process becomes
more complicated, leading to longer lead times. In international logistics, marine transportation
by cargo ship is frequently used, but in the case of marine transportation, it can take several days
from Japan to Asian countries, about 2 weeks on the west coast of North America, about 1 month
to Europe. There is. In addition, the land transportation period to the port, the number of days for
transshipment, the number of days for various procedures such as customs clearance, etc. will be
added, so the time until the cargo arrives at the destination will be a long time.
International logistics is not only long travel distance, but also can not reach the
destination without going through many business processes. One of the decisive differences
between international logistics and domestic logistics is the need for "import / export", which
involves many import / export-specific operations.
Moreover, these tasks cannot be completed by one company. Many companies such as
customs brokers, trucking companies, sea freight companies, cargo handling companies,
shipping companies, insurance companies, banks, etc. work together to promote one import /
export, and government agencies such as customs and related ministries are always involved. A
series of tasks are difficult to standardize, and there are many individual procedures, making
them extremely tedious and time-consuming (Inderfurth, 2015).