Analysis of DHL Company's Strategic Supply Chain Reorganization Report

This report provides an in-depth analysis of the strategic reorganization of the supply chain within DHL Company. It examines the operational strategies and management plans implemented by DHL to adapt to changes in the global marketplace, including advancements in technology and communication networks. The report explores the use of operation strategy matrices, achieving fit in operation strategy, operational sustainability, fulfillment of customer needs, environmental scanning, process thinking, and operational risk management. It also delves into strategic supply chain costing and performance measurement. The report highlights how DHL has focused on strategic reorganization to remain competitive, improve service delivery, and enhance its operations. The study covers various aspects of DHL's supply chain, from consumer and retail sectors to contract logistics, and emphasizes the company's commitment to customer satisfaction and innovation. The conclusion offers recommendations for DHL to further improve its supply chain operations, ensuring its continued success in a dynamic global environment.

The Strategic Reorganization of the Supply Chain for DHL Company 1
THE STRATEGIC REORGANIZATION OF THE SUPPLY CHAIN IN DHL COMPANY
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The Strategic Reorganization of the Supply Chain for DHL Company 2
Table of Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................3
Operation strategy matrix on strategic for the reorganization of the supply chain for DHL
Company..........................................................................................................................................4
Achieving fit in operation strategy..................................................................................................5
Operation Strategy for the reorganization of supply chain..........................................................5
Operational strategy sustainability..................................................................................................7
Fulfilment of customer needs and environmental scanning.........................................................7
Processes thinking of supply chain along with fulfilment of the order........................................8
Operational strategy risk..................................................................................................................9
Strategic supply chain costing and performance measurement....................................................9
Summary........................................................................................................................................11
Recommendations..........................................................................................................................11
List of References..........................................................................................................................13

The Strategic Reorganization of the Supply Chain for DHL Company 3
Executive summary
It is in the public domain that companies around global marketplaces are always
experiencing operational changes in their activities. The operational strategies on changes in the
company like DHL sometimes originate from ambitions of the management to actively improve
their operations. However, on other time there are reactions to such functional changes always
undertaken by other firms. This report is commissioned to investigate and report different
operational strategies and management plan used for the reorganization of the supply chain
within operations of DHL Company around the global marketplaces. It illustrates how the
continuous advancement in technology that allows people to use other means to send their
parcels and messages to different places around the globe has made DHL Company experience
continuous operational changes. The investigation reveals different approaches that DHL
Company has set in place to help it in dealing with cases of technological developments and
improved communication networks that negatively affect its operation strategies. This report
shows how ideal operational strategy on the reorganization of the supply chain by DHL
Company have improved its operations of forwarding and supply chain business globally.
Therefore, this paper analyzes DHL Company’ strategic reorganization of the supply chain
management as a concept that can be applicable in enhancing its experiences of changes in its
operations.
Introduction
The supply chain of DHL remains to be the Deutsche Post DHL organization that
comprises of different branches in at least two hundred and twenty nations internationally.

The Strategic Reorganization of the Supply Chain for DHL Company 4
Besides being with various offices in the global society, the company still experiences
operational change. According to Childress (2015, p. 24), the change in operation result due to
the rapid advancement in technological usage, improved road networks, as well as the
modernized communication channel. The difference makes the society to find the alternative,
comfortable, convenient, and cheaper method of communicating and sending their luggage to
their peers, customers, or relatives without necessarily relying on services of DHL Company
(Angheluta and Costen 2011, p. 64). Despite all these improvements, DHL Company
concentrates on ideas that allow them to remain as the global organization that deals with express
deliveries, worldwide delivery of freight by road, rail, and air. It also focuses on the strategic
reorganization of the supply chain to ensure that their branches remain to provide appropriate
warehousing solutions that comprise of storage, repairs, packaging, mail delivery around the
globe, as well as involvement in many other services that deals with logistics (Agus 2011, p.
134). Therefore, the primary target of this research paper is to examine operational strategy that
include strategic reorganization of the supply chain by DHL Company that experiences
operational changes to remain highly competitive among its chief competitors in the global
marketplaces.
The focus on the operational strategy through strategic reorganization of the supply chain
by the management of the corporation has enabled the company to operate while establishing
two significant sections that comprise of delivery of mail together with transport and logistics
sector. Cases of globalization, technology, and increased usage of the internet have remained to
be the primary contributors to the narrowing the gap that existed between DHL Company and
other companies that deals with the same services along the supply chain (Chen 2012, p. 9). All
these factors have made DHL Company to experience continuous changes in its operations

The Strategic Reorganization of the Supply Chain for DHL Company 5
continuously. Operation strategy on the strategic reorganization of the supply chain by DHL
Company remains to be the critical factor that leads to the success of the supply chain of the
company to be capable of overseeing the process of integration of every activity during
company’s operations.
Operation strategy matrix on strategic for the reorganization of the supply chain for DHL
Company
Active processes of operations within an organization are always characterized by how
appropriate the organization can deliver value to its targeted and esteemed clients. The
operations strategy of the company relates to the practical plans together with tactics the
company designs for the allocation of operational resources. According to arguments by
Craighead et al., (2017, p. 7), the procedure of operation matrix comprises of formal and
informal assessments of dynamics like capacity, the demand of marketplace, core competencies,
and logistics of supply. Besides, the operations strategy matrix remains to be the device applied
by the management of strategy to help in assessing these significant factors that impact
operations of different companies that are experiencing operational changes like DHL Company.
In operations of DHL Company, operational strategy matrix performs different purposes
that help in reorganizations of its supply chain. For instance, operations strategy matrix helps in
identification of danger factors that are present in operations of DHL Company. Therefore, the
aim of operational strategy matrix remains to aid in the process of classification and assessing
real risks and actual failures that make DHL Company experience functional changes. Hutfield
and Heap (2012, p. 68) illustrated that the matrix of operational strategy assists in reviewing the
core elements of the company. The core elements of operation strategy matrix comprise of

The Strategic Reorganization of the Supply Chain for DHL Company 6
performance targets, decision areas, usage of resources, as well as marketplace competitiveness.
Therefore, in strategic reorganization of supply chain within DHL Company, operations strategy
matrix can be term as the checklist of different operational issues that DHL need to evaluate
when concentrating on ideas of developing the comprehensive operational strategy to help in the
reorganization of its supply chain.
Achieving fit in operation strategy
Operation Strategy for the reorganization of supply chain
Every strategy of reorganization of the supply chain, help DHL Company to interrelate as
well as connect its operations by the cause along with effect relationship. Therefore, the DHL
Company work collaboratively to concentrate on ideas that help to improve its activities of
service delivery to its esteemed and targeted clients. The increased changes in operations of DHL
Company have made the management to establish the headquarter of the operations in Bonn a
city in Germany while employing more than one hundred and thirty thousand workers to support
supply management activities of the organization (Hueiner et al., 2014, p. 34). DHL Company
has focused on the development of consumer and retail sectors to ensure that every need of
consumer are met so that they can remain to use the services offered by the company over its
chief rivals. In the sectors of consumers and retails, DHL Company provides several services as
well as their supply chain that comprise of ideas of planning, sourcing, production, storage,
together with services that adds value to the company (Illyas et al., 2017, p. 62). The focus on
improving service deliveries has made it necessary for management to concentrate on ideas that
make the company be the international leader in contract logistics with over eight point three
percent marketplace share within the very fragmented marketplace (Ojala 2014, p. 72). Besides,

The Strategic Reorganization of the Supply Chain for DHL Company 7
the company has concentrated on the development of several branches of its operations across
most major cities around the global nations.
The primary purpose of strategic reorganization of the supply chain in the DHL Company
aims to improve its operations in the competitive market that make it experience operational
changes for the company to grow through excellence. As urged by Egelhoff et al., (2013), the
process of strategic reorganization of the supply chain in the DHL Company makes the company
to targets to steadily to improve the existing operations of its business that keep on changing and
achieving sufficient progress in the key sectors of the economy. According to (White 2017), the
sections that deal with supply chain section concentrate on the application of the corporate
strategy for reorganization in the changing marketplace. The ideal strategic reorganization of the
supply chain in the DHL Company aims at improving the objectives of the company to enhance
the profitability of the company by ensuring that every set strategy is attained to reduce cases of
operational changes. Besides, department of the supply chain of the DL Company comprises of
the focused plan that focuses on improving the expertise in all operational sectors (Ilyas et al.,
2017, p. 66). The strategy ensures that the company stays to be capable of developing as well as
reproducing logistic outputs that control cases of experience functional changes.
Operational strategy sustainability
Fulfilment of customer needs and environmental scanning
Strategic reorganization of the supply chain of the DHL Company concerns with various
series of events that ensure that satisfaction of customers with the services offered remain to
benefit from the supply chain. The need to implement the Parcel 2012 Production concept by the
DHL Company can help in reorganizing its operations that will effectively help in reducing cases

The Strategic Reorganization of the Supply Chain for DHL Company 8
of operational shifts. Hutfield and Heap (2012, p. 68) argue that the use of such theory is vital as
it ensures that there exists efficient sorting together with transportation of goods that will lead to
improving efficiency while lowering charges for supply series. Strategic reorganization of the
supply sequence can concentrate on enhancing innovative approaches and new products within
the marketplace (Egelhoff et al., 2013, p. 213). The idea always ensures that DHL Company will
be capable of coming up with the ideal number of products aimed at lowering operational
changes and costs while improving efficiency. As reported by Ojala (2014), the success of
operations of the DHL supply chain business has always resulted in increased services and
development of the company. To support this kind of transformation that deals with experiences
of operational changes within DHL Company, there is the need for the people responsible for its
operations to step up to advanced levels of efficiency and performance. Every individual within
the organization needs a quick approach to understanding the part that the can actively play in
the process of delivering the overall strategy for the supply chain.
DHL Company can concentrate on commissioning the manufacture of the electronic
automotive that will ensure that there exist efficient transportation of emails and goods during
transit. The strategic reorganization of supply chain within the DHL Company can help in
providing the company stays in the forefront in developing client cantered products for ideal
delivery of services together with commodities. According to Hughes (2016), the use of strategic
reorganization for the supply chain, the company can become one of the corporations that
introduce the device that tracks the footprint of carbon on shipments that tend to improve the
security of goods. The idea can be vital in ensuring that efficiency in the delivery of services and
products in the operations that are continually changing. Ideal strategies for reorganization can
be useful in providing that introducing Flexi tank that allows clients to ship bi quantities of non-

The Strategic Reorganization of the Supply Chain for DHL Company 9
hazardous liquids around the entire globe. The use of Flexitank remains to be necessary for
cutting costs of transportation while making delivery of commodities such as liquids to be more
efficient (Agus 2011, p. 134). Besides, strategic reorganization of the supply chain can enable the
DHL that faces operational changes to deliver every good assigned to its operations.
Processes thinking of supply chain along with fulfilment of the order
Strategic reorganization of the supply chain of the DHL Company will help the company
in utilizing the number of existing strategies in ensuring that they affected operations improves
and stays at the top of the logistics companies around the entire globe. One of the strategies they
have set in place is to ensure that they put the esteemed and targeted customer as the primary
focus and ensure that their customers get quality goods and services. Kumar and Blair (2013, p.
1236) stated that DHL Company has focused on providing that they have the appropriate prices
in the industry and have various specialized services offered to dedicated customers. Such
specialized services comprise of Flexitank that enables targeted customers to ship large
quantities of non-hazardous liquids as well as Thermonet that allows company’s customers to
send temperature-sensitive shipments. The company also operates by having has Time Definite
International (TDI), that remains to be the on-time delivery service guaranteeing efficient and
timely delivery of goods
Once a supply chain order has been received at DHL Company, the first step is planning
on how the delivery will be made. In this phase, the company managers are supposed to identify
the assets and resources that will be used to complete the order and ensure that they will be
enough for the task. They are then expected to source the benefits and apparatuses that will be
supposed to execute the errand efficiently (Haraburda 2016, p. 13). In this progression, they
should guarantee that they have the right labor and assets for the fruitful execution of the chore.

The Strategic Reorganization of the Supply Chain for DHL Company 10
They are then expected to take part in the make stage which will require that they participate in
any creation exercises is necessary for the assignment. After creation, they should do bundling of
the item and discharge it for transportation (Hitt 2011, p. 11). While in travel, the request will
have conveyed to eliminate that hopes to guarantee that there is the fruitful conveyance of
merchandise to the end clients.
Operational strategy risk
Strategic supply chain costing and performance measurement
DHL Company uses all the seven principles of strategic cost management. These
principles include defining clear and consistent objectives, provision of tools and knowledge for
success, having excellence as the only performance target, understanding the impact of real costs
during decision making, reducing organizational complexity, having rational management
decisions, and commitment in business (Gina 2016, p. 29). DHL Company uses these principles
to engage in different cost decrease systems to guarantee that they offer the best costs in the
business. One of the cost decrease strategies utilized is to deal with all exercises over the whole
production network (Chen 2012, p. 24). In doing this, the company uses its warehouses,
resources, and transportation thus minimizing contracting and sourcing costs (Craighead et al.,
2013, p. 219). Additionally to this, DHL has a simplified organizational structure which ensures
that less revenue is used to pay managerial staff. It also reduces the number of required assets
and office space thus cutting on costs.
For DHL Company to have adequate strategic cost management, the company is
supposed to adopt some tools that will help increase efficiency and accountability. The first tool
is value chain management concept. Understanding the new esteem chain of an organization will

The Strategic Reorganization of the Supply Chain for DHL Company 11
help chiefs to distinguish centre and sham exercises along the chain in this manner giving them
simple time when settling on choices along the esteem chain (Childress 2015, p. 25). Another
instrument that can be received is the objective cost bookkeeping. Understanding target expenses
will help administrators to set reasonable costs for items while as yet keeping up decent overall
revenue. Item life cycle is additionally another apparatus that can be utilized to decide.
Understanding the life cycle of an item will help administrators to settle on the correct cost
choices of the question. Another device for important essential leadership is action based costing
or administration. It allows managers to focus their attention on activities that improve
customers’ value and the resulting profits the achieved (Huner et al., 2014, p. 35). The last
device meant for the cost of strategic management is the analysis of competitive advantage.
Understanding the upper hand of a firm will help directors to utilize this preferred standpoint
when setting item costs along these lines improving cost administration.
Summary
In summary, it is clear that DHL Company has established a well operation strategy
through the use of strategic reorganization of the supply chain during its operations in the
competitive world. It is evident that advancement in technology, improved communication, and
improvement in transportation network remains to be the significant factors that make DHL
Company experience operational costs. Therefore, the capabilities to control all transactions
along with activities as well as operations across the whole supply chain within DHL Company
in a highly competitive advantage or market over its chief rivals. Besides, strategic
reorganization of the supply chain in DHL Company through operation strategy help in
streamlining communication along with the flow of services and products making the company

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develop efficient processes as well as services during its operations on the competitive
marketplace. The development of such efficient services and process by the company enables it
to be the most preferred organization for supply chain activities over other companies that offer
same services in the same competitive marketplace.
Recommendations
Some of the important suggestions for DHL Company following the strategic
reorganization of its supply chain in operation strategy comprised of:
1. DHL Company is required to be capable of incorporating different gifts or discounts
to their freights along with charges of transportation. Such idea is essential in attracting
more clients into the company’s system. It will also help in maintaining esteemed
customers to continue seeking services of the organization such as freight transportation
and delivery of emails.
2. DL Company is needed to be capable of incorporating various usages of
technological advancement techniques such as internet together with e-commerce. The
company can then use such services in their process of the supply chain to allow for the
efficient along with the cost-effective approach of transferring data and payment.
3. The company needs to concentrate on how it can introduce the analysis of variance
as well as other practical strategies for measuring charges of its operations to help it
understand how to make attainable budget for services. The company is also supposed to
automate costs along with performance measurement using software for the information
system to eliminate cases of operating changes.