Unit 7: Operational Planning Report for DHL Express (BTEC Diploma)

This report analyzes DHL Express's operational planning, focusing on the principles and practices within the BTEC Level 4 Diploma in Business Administration (Unit 7). The report begins with an executive summary and table of contents, followed by an introduction that outlines the scope of the study, which includes discussion of DHL's operational systems, activities, and functions. The main body of the report delves into operations management, exploring DHL's core operations, including customer service, finance, IT, HR, and supply chain elements like warehouse management and transportation solutions. It examines the relationship between business performance and operations, identifying internal measures for success, such as standardization and continuous improvement, and evaluating these measures against DHL's strategic objectives. The report also explores the development of operational plans, comparing functional and process management approaches, analyzing the relationship between supply chain and operations, and examining the link between quality management and operations within DHL. The conclusion summarizes the key findings and insights from the analysis.

PROGRAMME: Pearson BTEC Level 4.
Diploma in Business Administration (BTEC) – Unit 7
 STUDENT NAME:
 MODULE: Unit 7:Principles Of Operational Planning
 MODE OF SUBMISSION: Written Assignment
DATE OF SUBMISSION:
CERTIFICATION
I certify the contents of the assignment to be my own and original work and that all sources have been
accurately been reported and acknowledged within the texts of this submission.

Executive summary:
Operations management is one of most crucial aspect of every organisation as it is concern
with the overall business practices that is helping in achievement of higher efficiency of business.
Present report is based on the discussion of different principles that have to be adopted in order to
achieve overall laid down objectives. There are different operations that are part of business and
represent a system for supporting a business performance. There is overview of the relationship
between administrative Management and operational activities. Critical comparison is made between
functional and process approaches that are part of operational management. There always exits a
between quality management and operations as better quality maintenance leads to better
performance on organisation as a whole.

Table of Contents
Executive summary:
INTRODUCTION
1. Operations management
1.1 Main operations in business
1.2 Operational activities
1.3 Analysis of features of different operational systems
2. Relationship between business performance and operations
2.1 Operation functions supporting business performance
2.2 Identification of internal measures for success of business
2.3 Evaluate internal measures to achieve business objectives
3. Plan Development
3.1 Relationship between administrative management and operation management
3.2 Comparison of process of functional management approaches
3.3 Analysis of relationship between supply chain and operations
3.4 Link between quality management and operation's
CONCLUSION.................................................................................................................13
REFERENCE...................................................................................................................14

INTRODUCTION
There are different types of approaches of operational management that is helping in smooth
functioning of organisations. Present report is based on DHL express that is a German courier,
express mail and parcel service organisation that is division of German logistic brand Deutsch post
DH 1. Present report is based on discussion of different operation types and activities that are part of
operations management. There is overview of relationship between operations and the performance
of business. Further there is understood of the different functional and process approaches that are
part of operations management. There is need to development of a link between quality management
and operations in an organisation.
1. Operations management
1.1 Main operations in business
Operations of a business consist of activities that are adopted by a business organisation
regularly to enhance their revenue and earn higher profits. Activities have to be optimized to generate
profits and revenues to cover cost2. Employees are willing to accomplish such business activities by
performing major functions such as marketing, manufacturing, accounting etc.
Business operations evolve with growth of business & management has to plan to adopt to changes
according to dynamic environment. There are different types of functions that are part of operational
systems such as in case of DHL there are several different functions that have to be performed as
mentioned below:
Operations: It consists of wide range of functions that have to be performed according to
nature and type of business.
Customer service: DHL is working towards enhancing the satisfaction of their workforce for
this they are willing to create a special department towards solving all the queries, problems or issues
that are being faced by their customers.
Finance department: Finance department is responsible for all the financial resources that
have to be allocated to different functional departments of organisation. It is also helping in
maintaining the financial accounts with proper balance of cost, revenue and associated profits.
IT: IT department of DHL is having one of most comprehensive and innovative systems. They
are using latest technologies3. There is integration of process management by use of Enterprise
resource planning system.
HR: Human resource department is having HR experts who are working towards hiring of
incredible talent to maximise the contribution of available workforce.
Supply chain:
Warehouse: there is a software based warehouse management systems (WMS) that helps
organisation in controlling and managing daily operations. It consists tracking of products &
shipments. There are better management systems by adapting and sensing to Change conditions
without any type of human intervention.
Transportation:
1 (Gibson and Parkman, 2018)
2 (Ivanov, Tsipoulanidis and Schönberger, 2017)
3 (Lee, and Tang, 2018)

Transportation solutions are developed to meet the high level of reliability and services to get
fill visibility of product movements. There is effector transportation system as it is revolving around the
core function of DHL service. There is use of network planning, real time visibility to ensure proper
management of transportation system.
1.2 Operational activities
Operational activities consist of aspects such as planning, scheduling & controlling of
activities to transform the raw materials or provide need services to customers. Successful planning is
very crucial to ensure that management has to determine the technology and task that are required to
fulfil all the strategic objectives that is used for design the way resources are acquired and facilities
are designed4.
Primary activities of operations management consist of job designing, scheduling of all
functions, resource management, facilities management, and capacity management and last is quality
management.
All these aspects are then designed as a whole system that is part of DHL operational system.
It further consists of some of the functional department that help in smooth non-functioning of overall
functions. Such as:
Transportation solutions: Transportation solutions are helping DHL to maintain high amount
of reliability and level of services. There is focus to get fill visibility of product movements; they are
willing to ensure effectiveness in terms of transportation cost. For that vision whole team of DHL is
Woking towards an ideal communication of carrier, system and resources to meet some specific
customer needs.
Warehouse management systems: In DHL there is a system of work and capabilities that
consist of wide range of software partners 5. It consists controlling and monitoring all critical
warehouse process. Warehouse solution are determined to improve the efficiency systems and
acceleration of response to changing customer demands. Experts are designing, implementing and
operating flexible distribution solutions according to business requirements.
Supply chain solutions: DHL has spent a time period of two months with customer’s global
business to build a business case for Lead logistics provider (LLP). It will help in creation of
agreements where DHL is responsible for sea freight and air freight, warehousing services,
export/import centres and supporting elements of “in plant” activities of logistics. They have
established logistics control towers across UK, USA, Hong Kong and USA) to procure & manage the
shipments. It is used for leverage of experience & knowledge for implementing of conversion
programmes to enhance low cost policy and transferring of transport responsibility to LLP.
1.3 Analysis of features of different operational systems
Warehouse systems:
Recording of events & activities in receipt, handling of products and orders in distribution centre
or warehouses along with inventory location.
Dedicated & shared partitions
There are different partitions in a organisation such as logical partitions are providing sharing of
resources. It is the ability to share resources among local partitions to allow enhancement of utilisation
of resources where they are most required. In DHL there is performing of functions such as storage,
packaging, returns management and establishment of controlling facilities across organisation.
 Storage, pack, pick & dispatch
4 (Mišić and Perakis, 2020)
5 (Gölzer and Fritzsche, 2017)

 proper returns management
 Temperature controlled facilities
 strategic network design
 logistics facility design & consultation'
 Lease negotiation and site selection
Domestic transportation consists of activities such as:
 transportation of finished and raw materials
 International transport and domestic distribution
 Transport management system
 Temperature assured transport
DHL inbound transport operations consist of activation such as:
 Network planning
 Real time visibility
 Data management & analytic
Supply chain solutions: The supply chain solutions consist of identification of opportunities and
then creation of mutual benefit. It consists of formation of different functions such as warehousing, air
& sea freight, import, export centres to deal with further expansion of functions. Logistic control towers
have been set up across key geographies such as Hong Kong, India, UK, USA to manage and
procure shipments. There is IT solution known as Supply chain integrator that is focussing on creation
of end to end components visibility for inbound collection destined for plant across globe.
 Sophisticated IT solution
 Approved carriers ranging from motorcycle to express van
 Optimization of shipment routing
 Strategic cross docks for prior onward movement
2. Relationship between business performance and operations
2.1 Operation functions supporting business performance
Operations management is an aspect of every business that consist of designing and
management of operations in such a way that it can help in ensuring that all customer requirements
are timely met 6. A properly defined operations plan can help in strengthening of all the organisation
functions as part of one of core strategies. In DHL operations management is playing a vital role by
helping in two major areas of functions as mentioned below:
Planning: Operational management is helping DHL in having collaboration with executives and
managers to determine the operational planning contribution for a long run strategy. It consists of
determination of goals and formation of policies for budget formulation, logistic management and
supporting activities of services management. Operations manager is assigned the responsibility to
ensure that all departments are having proper coordination and functions are aligned towards a
common objective.
Direction: After planning has been performed in next step it is ensured that planning is
executed in proper manner7. For this professionals are providing direction to all managers to ensure
that departments are performing functions aligned with goals of organisation and following of
budgetary guidelines.
6 (Kumar, Mookerjee, and Shubham, 2018)
7 (Benjaafar, and Hu, 2020)

2.2 Identification of internal measures for success of business
There are some specific internal measures that are used by business to ensure its success as
mentioned below:
Standardisation of work: It is very important to ensure that all the process that are part of
organisation have to be properly standardised. In DHL there is use of standardised approach in
Supply chain process because of increasing complexity of supply chain networks across different
parts of world. There is use of “Plug and play” approach8. There is a use of blue blocks that is majority
part of construction. It is according to smart segmentation strategies where their segmentation
according to critical factors that is profitability, market requirements, customer centric approach and
service parameters. This approach is focussed not only to cuts cost but to drive growth.
Continuous improvement: In DHL management is working towards enhancing the
effectiveness of all different types of functions. There is focus on serving global markets so that there
can be reduction of supply chain complexity and to enhance cost effectiveness.
Some of the internal measures that are helping in success of DHL are discussed below:
 Cost savings according to customer targets
 16% savings in standard transportation cost
 35% reduction in expedite transportation cost
 11% reduction in costs of warehouses
 75% material is connected to EX works that helps in an average savings of 5 percent.
Additional projects of DHL include:
 Rolling out of in plant logistics at four different plants
 Creation of world logistic centre that acts as an inbound for manufacturing hub for different
plants that are located in Europe
 Redesigning and packaging evaluation to maximise the filling of container and reduction of
product damages in transit.
If all the above discussed measures are adopted in operational management process of
organisation, then it will help in having a direct positive impact on the overall profitability of DHL.
2.3 Evaluate internal measures to achieve business objectives
There are certain internal measures that have been developed to measure against the laid
strategic goals of the organisation in DHL 9. It consists of several activities such as:
There is establishment of critical success factors that are related to strategic goals of the
organisation. There are some other functional areas where specific standards have to be set to
measure the performance:
Financial: The financial viability of DHL is understood to evaluate the way its financial benefits
will be delivered.
Customers: The way customer satisfaction can be enhanced. There is use of customer
feedback forms to evaluate the reaction of customers and understand the brand image as compared
to other competitors.
Innovation: It is very crucial to evaluate the requirement of innovation and how to work
towards improvement so that value for stakeholder and customers can be enhanced.
Internal business process: There are two basic questions that are being focussed by the
management such as:
1) Areas that need improvement to deliver customer?
8 (Karlsson, 2016)
9 (Anand and Gray, 2017)

2) Improvements to be done to cater to needs of other stakeholders?
3. Plan Development
3.1 Relationship between administrative management and operation management
Operations management consist of activities such as detection & determination of faults,
monitoring of external environment and alerting administrators10. It is function that is concern with
determination of policies, finance activities coordination, distribution, productions and establishment of
control of executives. According to Emerson Soares who is director of operations at DHL supply chain
there are 16 thousand km of pipes that are used for gas distribution in approx. 88 cities with a
constant pace of expansion, according to logistical know how and experience gained through services
offered to public service concessionaires DHL is contributing towards innovation capacity and
management to seek quality and efficiency gains.
Administrative management is a activity that consist of collection of performance statistics,
accounting of whole data for billing objectives, capacity planning by use of data and maintaining of
reliability of systems. It is concern with policy execution with proper administration of organisation. In
administration of DHL there is involvement of activities such as storing, receiving, controlling and
shipping of inventory supplies and parts. According to demands of customers items have to be
shipped. Management & administrative function at DHL is carried through some specialised software
such as WMS that enables complete control and visibility. DHL has to collaborate towards receipt
controlling, delivery and storage of items to ensure a progress system process.
3.2 Comparison of process of functional management approaches
Organisation is a complex system that has to be divide into manageable activities according to
different functional departments. Each function is divided in some specific areas such as two types of
approaches that is process approach and functional approach:
In Process approach there is division according to different organisational functions to achieve
specific outcome. In DHL, there is no fixed horizontal or vertical structure instead there is presence of
cross functional teams that includes employees from different functional department who meet as
team and then willing to solve mutual problems. There is reporting to different functional departments
along with cross team leaders to which they belong.
In Functional approach all the functions are grouped individually such as research and
development, finance, marketing where each project is headed by a project manager. In DHL, there is
division according to functions such as warehouses, supply chain management functional
departments, human resource department, after sales services and transportation department.
In DHL there is a matrix structure approach that has been adopted by the management. In this
approach there is division of organisation according to functional units that are guided by a project
manager. Further there are cross functional teams where in case of special projects that are build up
for a short period of time people come together and are willing to enhance their contribution towards
specified objectives.
3.3 Analysis of relationship between supply chain and operations
The relationship between supply chain management and operations management in DHL is
related to process that supply chain is concern with activities that are taking place outside an
organisation that is obtaining of materials & delivering of products. Whereas operations
management consist of activities that is taking place internally in an organisation.
10 (Van Aken, Chandrasekaran and Halman,, 2016)

both supply chain management and operations management is an expected to add value to an
organisation as it is supporting efficiency of process so that there is better revenue. Supply chain
management in DHL is used for controlling the different activities. It consists of functions such as
organisation, decision making, setting of objectives, cross functional leadership and establishment of
internal communication channels. In DHL there is sometimes overlapping of activities of supply chain
and operations as managers can play both roles that involve some common functions. The
requirement of skill set is also similar in both the functions like leading teams, managing
communication and human resources.
3.4 Link between quality management and operation's
Operations management is an activity that consists of process design, project management all
these are part of improvement in system to deliver high value products & services.
Total quality management is a widely used tool for improvement of competitiveness of organisation. In
case of quality management, it consists of four basic components in DHL that are mentioned below:
Quality planning: In this there is identification of quality standards that are very relevant to
project and in eking decision of how to achieve them.
Operations manager have to understand such quality standards to help them in their operational
functioning such as in DHL managers are setting standards in terms of fast delivery, timely pick up
that are standard measures.
Quality improvement: In this there is need to focus on bringing some purposeful changes to
improve the reliability and confidence of outcome. In DHL operational team is working towards
ensuring that set standards have been achieved in the laid time period.
Quality control: In this stop there is continuity of efforts to enhance the process integrity &
reliability in achievement of specific outcome. In DHL there are continuous efforts that are made to
ensure the delivery in areas where there are some non-feasible conditions so that they are able to
enhance their market reach.
Quality Assurance: Planned and systemic actions are needed to ensure high reliability of
products and services to meet all the specific requirements. For this in DHL there is different training
programmes are started to train their employees to enhance their existing skills such in term of picking
up or finding out correct locations.

CONCLUSION
From above made discussion it can be summarised that operations management is one of
most crucial activities in every organisation as it helps in making a detailed analysis of the different
functional departments. There is always a relationship that is Present between operational functions
and overall performance of business. All the operational activities are part of a system that can be
used for differentiating different systems. Operations management is an integrated system that
consists of business process and responsibilities that can help in making continuous improvement of
performance of all functional units.

REFERENCE
Books & Journal
Anand, G. and Gray, J.V., 2017. Strategy and organization research in operations
management. Journal of Operations Management, 53, pp.1-8.
Benjaafar, S. and Hu, M., 2020. Operations management in the age of the sharing economy: what is
old and what is new?. Manufacturing & Service Operations Management, 22(1), pp.93-101.
Gibson, P. and Parkman, R., 2018. Cruise operations management: Hospitality perspectives.
Routledge.
Gölzer, P. and Fritzsche, A., 2017. Data-driven operations management: organisational implications
of the digital transformation in industrial practice. Production Planning & Control, 28(16),
pp.1332-1343.
Ivanov, D., Tsipoulanidis, A. and Schönberger, J., 2017. Global supply chain and operations
management. A decision-oriented introduction to the creation of value, 2.
Karlsson, C. ed., 2016. Research methods for operations management. Routledge.
Kumar, S., Mookerjee, V. and Shubham, A., 2018. Research in operations management and
information systems interface. Production and Operations Management, 27(11), pp.1893-1905.
Lee, H.L. and Tang, C.S., 2018. Socially and environmentally responsible value chain innovations:
New operations management research opportunities. Management Science, 64(3), pp.983-996.
Mišić, V.V. and Perakis, G., 2020. Data analytics in operations management: A review. Manufacturing
& Service Operations Management, 22(1), pp.158-169.
Van Aken, J., Chandrasekaran, A. and Halman, J., 2016. Conducting and publishing design science
research: Inaugural essay of the design science department of the Journal of Operations
Management. Journal of Operations Management, 47, pp.1-8.
Online
Measuring for success, [online], Available through<https://www.business.vic.gov.au/marketing-and-
sales/growth-innovation-and-measurement/measuring-for-success>
Supply Chain Management vs. Operations Management, 2020 [online], Available
through<https://www.floridatechonline.com/blog/process-improvement/supply-chain-management-vs-
operations-management/>
Quality Management, 2020 [online], Available
through<https://corporatefinanceinstitute.com/resources/knowledge/strategy/quality-management/>

REDESIGNING GLOBAL SUPPLY CHAIN OPERATIONS, 2020 [online], Available
through<https://www.dhl.com/in-en/home/our-divisions/supply-chain/thought-leadership/case-
studies/engineering-and-manufacturing/redesigning-global-supply-chain-operations.html>