DHL: Innovation, IT, and Supply Chain Management Report Analysis

This report provides a comprehensive analysis of DHL's innovation strategies, focusing on its application of Rothwell's five models of innovation, particularly the fifth generation, which emphasizes networking. The report details how DHL integrates these models to drive innovation in its supply chain management, including the use of IT systems like Warehouse Management Systems (WMS) for data processing, inventory management, and customer service. It explores DHL's employee-centric company culture, its knowledge management systems for both internal and external stakeholders, and its approach to addressing market challenges through collaboration and business network integration. The report also discusses how DHL leverages IT, such as WMS and Transportation Management Systems (TMS), to enhance operational efficiency, reduce costs, and improve customer service. The report also provides an abstract and introduction for an automotive industry example like Toyota or BMW, discussing innovation, knowledge management, and the application of Rothwell's model.

Innovation at DHL

About DHL
 International courier and
logistics company based in
Germany
 Subsidiary to Deutsche Post
DHL
 World’s largest courier
company
 Partners with several airline
companies and cruisers to
deliver couriers all over the
world.

Type of innovation taking place
in DHL
 The type of innovation
which is DHL has
embraced belongs to
systems networking
which falls in the fifth
category of innovation
proposed by Rothwell

Type of innovation taking place
in DHL contd…
 The networking company collaborates with companies across diverse
industries to ensure timely and secure delivery of mail. For example,
the company is investing in emerging markets like India to facilitate
superior courier services in both developed and emerging markets

Type of innovation taking place
in DHL contd…
 DHL in order to align its innovation with the fast changing global
market conditions is identifying markets like India which would provide
the company with high business and revenue generation in the long
run.
 The company is then investing in these markets to boost the resident
courier markets of these countries.
 This method of business expansion by integrating business networks
clearly corresponds to the fifth generation of innovation proposed by
Rothwell namely, networking.
 Thus, it can be established the the courier company involves the
networking in bringing about innovation in its business.

Using models of innovation to
archive innovation
 The model of innovation used to archive the innovation in DHL refers to
the fifth generation of innovation proposed by Rothwell namely,
networking

Using models of innovation to
archive innovation contd…
 The managers at DHL when faced with work problems gain participations of their
stakeholders to identify viable solutions and then choose the most appropriate
solution.
 The global courier company operates in several nations and has strong business
networks in all these markets. Hence, when the challenge or a risk appears, the
company involves both external and internal stakeholders in identifying solution.
 For example, if the company faces problems due to newly emerging courier
companies in a particular market, it collaborates with its local representatives to
ensure that it receives majority of parcels generated in the concerned locality.
 This extensive market penetration ensures that the company is able to attract and
retain immense shares of market even in small towns. Thus, it is evident that the
company uses integration and networking to deal with market challenges or risks.

Company culture of DHL
 The company culture at DHL: can be termed as employee centric
which enables the company to bring about innovation in its operations.
It is evident from the official website of the company that its culture is
based on five pillars. They are diversity, equal opportunities, training,
development and mentoring, flexible working conditions and corporate
social responsibilities

Sharing of knowledge or information
at DHL
 DHL maintains a strong knowledge management system or KMS both with
internal stakeholders and external stakeholders. the company in order to
communicate with its external stakeholders like customers and business partners
has dedicated pages on its official website.
 The multinational courier and logistics services company in order to provide
substantial information to business partners for instance maintains page called
‘Our Divisions’.
 The page provides information about the different services like DHL Global
Freight and DHL Supply chain. The customers similarly can gain information
about the couriers on transit on dedicated page titled ‘Track DHL Express
Shipments’. The research and development firms seeking partnerships with the
global company can be gain information on the page ‘Insights & Innovation’.

Sharing of knowledge or information
at DHL contd…
 The internal stakeholders namely, the management and employees
working with the company can acquire, manage and use business
information on its internal KMS which is not available to the external
stakeholders for viewing

IT used in DHL
 DHL uses WMS or Warehouse Management
System in data processing in integrating its
internal accounting and business reporting.
This is evident from the official website of
the company.
 The website clearly mentions that the
company has integrated its IT platform with
WMS and Transportation Management
System or TMS to enable customers obtain
real time data on the delivery of their
parcels.
 The company in order to ensure handling of
large mass of parcels and store them
appropriately so as to minimize damage has
acquired several warehouses into its facility

IT used in DHL contd…
 The website of the company then goes onto to mention that in order to
ensure timely delivery of parcels to consumers the company has
carried out extensive market research regarding the availability of
transportation in local markets like cities and towns.
 DHL then has recognized ways which it’s on road logistics carriers can
take to ensure timely delivery of their couriers.
 The company in order to integrate WMS with its customer services
deploys customized refrigerated trucks which enable transport of
temperature sensitive products in appropriate conditions. This
integration of WMS with customer services has enable DHL to reduce
its operational costs