Dissertation: DHL Supply Chain and Logistic Management Challenges

This dissertation investigates the major challenges in supply chain and logistics management, focusing on DHL, a leading global courier and parcel service provider. The study utilizes both primary data, gathered through questionnaires with managers, and secondary data from online sources. It explores the impact of effective supply chain management and identifies key issues such as costing, supplier relationships, delays, changing market demands, technological upgrades, and more. The research aims to determine the recent challenges in supply chain and logistics, understand the concept of supply chain and logistic management, study the benefits of proper management of supply chain and logistics activities of DHL, evaluate the issues which arise in supply chain and logistic management at DHL, and ascertain the strategies with which managers of DHL can minimise management issue. The literature review provides a foundation for understanding supply chain and logistics, highlighting components like planning, sourcing, making, delivering, returning, and enabling. It emphasizes the importance of logistics in coordinating resources and minimizing expenses while increasing productivity. The findings of this dissertation will be beneficial for other businesses and academics.

Dissertation

ABSTRACT
This report is about gathering the knowledge and understanding regarding major
challenges that an organisation mainly faces while performing supply chain and logistic
practices. These days the supply chain practices are become more and more crucial for
businesses as it support them in maintaining its network at several different locations in order to
maintain their operations effectively and managing the customers demand. The current
investigation is based on DHL a supply chain and logistic company that deals in providing
courier and parcel related services. This investigation is performed by gathering information
from sources like primary and secondary both. Among them primary information is gathered
from questionnaire where sample size remain 10 manger and for gathering secondary
information online sources are used. By conducting this study it become more easier for
analysing the impact of effective supply chain management over an organisation and challenges
it bring to an organisation.

ACKNOWLEDGEMENT
First of all I want to present my thank to God as they supported me at each and every
phase of my life that provide me confidence to accomplish my goals and objectives. After this I
also want to thank my supervisor regarding guidance which they provide to me and support
which they exert throughout this whole dissertation by listening and helping in resolving the
queries that I have, evaluating my work and providing me with feedback to present my work
effectively.
Despite of this I also want to thank the employees of DHL as with their support I become
to gather the primary information regarding this area of study in order to complete the
investigation. As without their support it won't be possible for me to complete this investigation
effectively. At the end of this I am thankful to all of my friends, relatives and family members
who supported me at each and every stage of life as well as duration of this dissertation with
their love and support. With the support of these people I become able to complete this
dissertation on timely manner.

Table of Contents

TOPIC:- "DHL Supply Chain and Logistic and recent management
challenges".
CHAPTER 1: INTRODUCTION
Background to the research topic
Supply Chain Management and Logistics refers to as most essential part of a company as
it act as a link between the customers and organisation. Sometimes both the terms are used as
interchangeable but holds up different meanings. The supply chain management refers to the
collaboration among the organisations in order to develop a network between the customers,
suppliers and other partners for developing the value among the end consumers. While, Logistics

is defined as the storage and flow of products or services from the place of origin to its
destination (Christophe and Gaudenzi, 2015). An organisation put more emphasis toward the
supply chain management practices as it help in assuring that the commodities get available to
the customers on timely manner which support in creating value to the customers. The
performance and customers satisfaction toward an organisation is very much depend over the
quality of operations that supply chain and logistic department performs. This is so because the
supply chain and logistic management mainly focuses toward ensuring that the raw material get
available to the organisation on timely manner so, products get manufactured and delivered to its
customers as per their requirement. But while performing these operations there are certain
issues get arises such as Costing, supplier relationship, delays in work, changing market demand,
more wastage, technological up-gradation, stock breakage etc. These issues directly influence the
overall performance of the company as it results into either delay in work or affect the quality of
operations (Beske-Janssen, Johnson and Schaltegger, 2015). Therefore it is crucial to determine
the issues that are involve in supply chain and logistics so that better strategies can be
formulated to deal with these issues while maintaining the quality of business functions. To
identify this, research is conducted on DHL and the issues that it faced related with supply chain
and logistic. This is world's biggest logistic services company that offer services related with
international courier, parcel and express mail service.
Background to research organisation
Supply chain and logistic management within an organisation support up to a great
extend in satisfying customers by simplifying the method of getting products or services supplied
to them on timely manner. The current dissertation is based on DHL which is an international
courier, express mail and parcel service provider that operates in more than 220 countries.
Additionally it also work toward forwarding the mail deliveries worldwide by air, road, rail and
sea (Mangan and Lalwani, 2016). Along with this it also operates in warehousing solution which
involves repair, storage, packaging, mail deliveries worldwide along with other customized
logistic services that support in keep people connected with one another. With its global network
in around 220 countries across the globe, DHL is an organisation which offers infinite logistic
related services to the people throughout the world. It is a part of a leading postal and logistic
company i.e. Deutsche Post DHL Group which consists of several business units such as DHL

Parcel, DHL express, DHL E-Commerce, GHL Global Forwarding, DHL supply chain and DHL
Freight.
DHL is an organisation whose performance wholly depends over the efficiency of its
supply chain and logistic practices as it is the core operation that this organisation performs in
order to deliver its services. Hence in order to perform well and maintain its position within
marketplace it is crucial for DHL to perform its operations effectively. But despite of all these
there are certain challenges that DHL has to face in term of its supply chain and logistic related
operations. These includes, a network of more than 100 suppliers throughout the world along
with several type of business unit and product line to manage which is difficult for the company
as they won't be able to provide efficient resources for running the domestic supply chain while
offering high quality service as per the expectation of its customers. Additionally, company is
also experiencing the challenges such as increasing fuel costs, business process inefficiency that
require improvement, driver shortage and their retention, increased in governmental regulations,
improved customer services etc. These issues are continuously affecting the performance of
DHL. Hence these are required to be improved in order to maintain its operational quality and
practices (Wang, Gunasekaran, Ngai and Papadopoulos, 2016). These can be done with the help
of proper management of supply chain as it is very much helpful in making customers more
satisfied and keeping them engaged with organisation for long period of time as it will further
help in achieving the competitive edge.
Research Rationale
The purpose for performing current study is to determine the range of issues or
challenges that an organisation have to face related with logistic and supply chain management.
This will aid toward determining impact of these issues over organisation so that other
businesses can develop better strategies to deal with these issues effectively (Hingley, Lindgreen
and Grant, 2015). Additionally, this data can be further remain helpful for the academics as it
support them in developing knowledge regarding the area by studying various aspects of supply
chain and logistic by considering real life example.
Research Aim
To determine the recent challenges arise in supply chain and logistic management in an
organisation. A study on DHL

Research Objectives
 To understand the concept of supply chain and logistic management in an organisation.
 To study the benefits of proper management of supply chain and logistics activities of
DHL.
 To evaluate the issues which arise in supply chain and logistic management at DHL.
 To ascertain the strategies with which managers of DHL can minimise management
issue.
Research questions
 What is the basic concept of supply chain and logistic management in an organisation ?
 What are the major benefit of proper management of supply chain and logistics activities
of DHL ?
 What are the major issues that get arises in supply chain and logistic management at
DHL ?
 What are the strategies that managers of DHL can adopt for minimising the management
issue ?
CHAPTER 2 : LITERATURE REVIEW
It is an essential section of a dissertation that involve a process of collecting information
from several different sources which is already being published by several different authors
previously. The aim behind conducting this literature review for creating an understanding about
the recent topic of investigation so that further investigation can be performed (Huo, Han, Chen
and Zhao, 2015). This will support in developing an understanding regarding the nature of study
and also act as a base so that further investigation can be based on this information.
Supply chain and logistic management in an organisation
According to view point of Bart Perkins and Thomas Wailgum, 2017, supply chain
management refers to the procedure of arranging the raw material or other essential components
that an organisation required to create products or services as per the customers' requirement.
The purpose of supply chain management is to ensure that both the manufacturer as well as
retailers become able to reduce the excessive inventory which support in decreasing the cost of

production, shipment, insuring as well as storing of products which can not be sold. It has six
components such as planning, sourcing, making, delivering, returning and enabling.
On the other hand as per the view point of Marc Wins, 2018, logistic is a main part of a
supply chain management which help in keeping this supply chain more stronger. It work toward
planning, implementing and controlling the flow as well as storage of good or services for
meeting up the customers' requirement. Logistic management contribute greatly over the
successful execution of an organisation's operations that directly influence over the bottom line.
At the time when the freight volume get increased and transportation become more complicated
the requirement of logistic get arises. The logistic of an organisation involves several fields such
as,
Production Logistics:- This involves controlling and streamlining regarding the flow of
supply chain which start from the origin of product to its consumption which is consider as
distribution logistics. The production logistic activities involve factors like, layout planning,
organisational concepts, production planning, controlling etc.
Distribution logistics:- It is linked with finished goods delivery to consumers which
mainly involves warehousing, processing and transportation. The main sub sector involve within
this industry involves air, water, truck and rail transportation along with urban transit, ground
passenger, motor vehicle and warehousing.
Disposal logistics:- It is also called as reverse logistics which work toward performing
all the operations that are connect with the reprocess of products and material. The aim behind
this is to minimise the logistic costs while enhancing services and saving the natural resources.
According to the view point of Heckmann, Comes and Nickel, 2015, logistic is consider
as the most crucial component of the supply chain management which involves plan as well as
management of good or services from the point of origin to its final consumption. It support in
traffic, shipment, aligning the complex pattern of transportation, import and export operations,
inventory management, warehousing, production planning, purchasing and customer services.
The organisations mainly consider the logistics as an essential blueprint of the supply chain. This
is so because it is used to manage, coordinate as well as monitoring the resources which are
needed to transfer a product from one place to another in more reliable and effective manner.
Additionally, companies also believe that they become able to minimise the expenses of
company and on other side help in increasing the productivity by effectively managing the

logistics. By enhancing the partnership practices with the suppliers, warehouses and shipping
services, and connecting them with the automated system it become more simple for the
organisations to enhance the logistics of getting products to the final consumers as it help in
reducing the overhead costs and ensure faster delivery.
Benefit of proper management of supply chain and logistics activities of DHL
According to view point of John Gomez, 2020, supply chains are becoming more
complex day by day for DHL as it operational networks are getting more broader due to
business expansion at different countries all over the world. Hence, for effectively manage the
supply chain and logistics, data driven approach is become the necessity of the organisation. This
is so because the data driven SCM provide visibility in monitoring the flow of information,
product or services that is from procurement to the manufacturing as well as delivering of them
to the end consumers. But data is not just the only driver of effective supply chain management
as other factors are also crucial which includes good vendor, effective cost control, supplier
relationship, securing right logistics partner and use of innovative supply chain technologies that
brings up a big impact over the supply chain and logistics. The effective SCM offer numerous of
benefit to DHL and support it in performing well at the global market place that are mentioned
below:
Better collaboration:- Information flow is one of the most prominent challenges for the
organisations as sometimes majority of businesses mainly lack in the automated information
flow throughout whole supply chain and half of the organisations mainly believe that the
fragmented information results into the lost of sale opportunity. With the help of integrated
software that DHL uses it become easier for it to eliminate the bottleneck and allow for the
seamless transmission of information, providing big pictures of supply chain end to end.
Higher efficiency rate:- Another importance of supply chain management is that by
having a real time data availability of raw material and manufacturing delays allows the
organisations for staying active with their back up plans which includes sourcing material with
the help of secondary suppliers in order to prevent further delays (Tzounis and et. al., 2017). This
in turn support in maintaining the quality of operations and at the same time also support in
enhancing the efficiency of the work by working over the same order or schedule which is being
formulated by DHL with its customers.

Keeping up with demand:- With the proper management of supply chain and logistics it
become easier for company to integrate the data for determining the further requirement of
services. In this case the supply chain leaders can predict about the future requirement as well as
the sources available to them for delivering the services in best possible manner. In addition to
this it will also support them in managing with the changing market condition for avoiding the
challenges that may affect the quality of services.
Major issues that get arises in supply chain and logistic management at DHL
As per the view point of Fernie, J. and Sparks, L. eds., 2018, supply chain and logistic
management is consider to be the core of a business as it support in providing more satisfaction
and happiness to the customers from services offered by the organisation. But despite of this, the
maintenance of these practices are becoming more and more complicated these days due to
increasing competition and technological enhancement. Therefore, DHL is required to rethink
about the technology used for managing supply chain and logistic practices to maximise the
opportunity, reducing cost, eliminating the risk and gaining competitive edge. This is so because
the risk related with supply chain and logistics are continuously increasing that may affect the
operations of DHL. These challenges includes,
 Cost control:- Another major issue in front of supply chain management is that
operating cost are under extreme pressure due to increase in the energy fuel, freight cost,
number of global customer, technology, labour rates, rising commodity prices and new
regulations. These all increase the cost of operation or expenses that create a major
challenge in front of DHL as it required to plan and manage the operations in such a
manner that larger number of operations can be performed in less possible time as well as
cost.
 Customer services:- Supply chain is all about performing set of actions toward
providing right product at right time and in right quantity (Bing and et. al., 2016). It
require to manage and schedule all the operations in right manner as per the requirement
while arranging sources on timely manner which is quite difficult as DHL offer services
to range throughout the world.
 Supplier relationship:- In today's competitive world it become quite challenging to
manage the supplier relationship as their demand get enhanced regularly which results
into switching of brand in term of taking orders. This is a major challenge in front of

DHL as the managers have to manage with all the requirement of its supplier in order to
keep them connected with the brand so that long term relation can be maintained for
ensuring execution of operations in efficient manner.
Strategies that managers of DHL can adopt for minimising the management issue
As per the view point of Waters, D. and Rinsler, S., 2014, while managing the operations
at global level it become quite genuine that organisation may face the management related issues
due to differences in term of culture, language, method of operations etc. These factors directly
afect the operational quality as well as market practices of a company. Therefore, it is crucial for
DHL to adopt appropriate strategies in order to keep the management issues at minimum. These
strategies involves:
 Free flow of operations:- The managers of DHL must focuses toward promoting the
culture of transparent or free flow communication. This in turn support them in ensuring
that each and every crucial information get circulate within the organisation and in right
manner so that appropriate decision can be undertaken (Rushton, Croucher and Baker,
2014). This will further support in reducing the chances of management issues that get
mainly arises due to inappropriate information.
 More technological integration:- Another strategy that can be adopted by the mangers
of DHL in order to reduce the chances of management issues is to increase the
technological integration. This is so because by increasing the technological integration it
become easier to mange work without any sort of error or duplications. This in turn help
in reducing the management disputes that mainly occur due to inefficiently performance
of operations.
 Regular supplier meetings:- Effective communication plays a significant role within
managing the positive relationship among the stakeholders and reducing the chances of
personal as well as managerial issues (Zhu and et. al., 2018). Hence, by regularly
managing the meetings among the stakeholders specially suppliers it become easier for
the managers of DHL to maintain healthy relationship with them and at the same time
getting a regular idea regarding quality of operations so that the management issues can
be minimised.