Distribution Management | Assignment

Running head: Distribution Management 1
Distribution Management
Student’s Name
University
Course
Date

Distribution Management 2
Major Issues and Problems of DHL
Initially, the DHL logistics company was established to operate in the local market
and was later expanded to global markets. However, it was a challenge to create a shipment,
and air transport means to reach out to the customers as the company grows. Therefore, it was
a challenge to invest huge capital on new hubs. Finally, the company was recognized as being
amongst the most significant distribution and logistics company after developing out
successful strategies on warehousing, inventory, and transport management. Unfortunately,
after all this success, multiple issues and problems have been facing the company so more on
the sector of distribution management (Dhir, 2019).
Despite having many suppliers over the world and multiple product lines amongst
business units, the company is challenged to utilize sufficient resources available. All this
results in low service than expected by customers through delivery using effective
distribution, like in Japan. DHL company is also aiming to optimize all local networks of
distribution, including their logistics operations, thus aiming to minimize operating costs.
However, this was not achievable accordingly since building responding capacity, which is
greater and able to recover natural disasters, was impossible to distribution channels (Baxter,
and Srisaeng, 2018). Therefore, the company was demanded to look for an alternative to
improving and redesigning of customer services, warehouse activities, and distribution
networks and centers.
Lean production and globalization throughout the company have been risking the
entire supply chain operations. Huge losses have occurred during 2015, with an average of
$117 billion annually and expected to be higher, thus influencing the modern economic run.
The risk management system towards the entire distribution channel of supply was unable to