DHL Case Study: Sustainable Practices and Business Strategy

This case study examines DHL's global package delivery and logistics operations, focusing on supply chain management, sustainable practices, and its strategic collaboration with the National University of Singapore (NUS). The study explores the characteristics of the industry, the application of the SCOR model for growth, and the need for sustainable practices to maintain a competitive edge. It analyzes DHL's competitors, FedEx and UPS, and their sustainable initiatives. The study also investigates the benefits of the DHL-NUS partnership, the role of the sustainable supply chain center of Asia Pacific, and the engagement with international civil society organizations. The case study further delves into the factors driving DHL's location selection in Singapore, potential challenges, and recommendations for performance improvement. The study highlights the conditions leading to industry competition and the importance of stakeholder interests in fostering sustainable practices. The analysis covers topics such as eco-friendly strategies, advanced technologies, and the role of innovation.

CASE STUDY

Table of Contents
INTRODUCTION...........................................................................................................................3
Assignment 1...................................................................................................................................3
1 Characteristics of the global package delivery and logistic industry..................................3
2 Application of SCOR(Supply chain operations reference) for the company growth..........3
3 Need of DHL to engage in sustainable practices and to collaborate with NUS..................4
4 Sustainable practices adopted by DHL's competitors ........................................................4
5 Relation of Sustainable practices with the stakeholders interest.........................................5
6 Condition in an industry that may lead to a Race to the Top.............................................5
7 Benefits avail by the University of Singapore by collaborating with DHL........................6
8 Engagement of sustainable supply chain centre of Asia Pacific with the international civil
society organisation................................................................................................................6
9 Working of DHL and NUS in the new center.....................................................................7
10 Industries which are in race to the bottom position...........................................................7
Part 2................................................................................................................................................7
1. Factors that Drove DHL behind selection location Singapore...........................................7
2. Potential challenges needs to considered for improving DHL's performance...................8
3. Recommendations..............................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Supply chain management can be defined as a process to manage the flow of goods and
services from one place to another for business purpose. It is very important to have sound
supply chain management in this era to beat the competitors. On time delivery plays a significant
role in the growth of business. In this report the challenges in front of DHL's has been elaborated
which provides worldwide package delivery. The collaboration of University of Singapore with
this company has also been enunciated. The benefit of the same for establishing efficient supply
chain management is drawn into attention.
Assignment 1
1 Characteristics of the global package delivery and logistic industry
In order to remain competitive in the market global package delivery and logistic
industries are gaining significance. For this efficient supply chain management has to be
established. Production lead time has to be shortened for this. These industries can serve in a
better manner with the help of sourcing from lower cost countries. Transportation modes have to
be balanced for the same. Use of lower emission vehicles can do a favour. Renewable sources of
energy must be used. The company can run smoothly if it follows the rules and regulations made
by the government. One has to maintain high tolerance factor to cope up with the sudden
changes because of market condition or natural disaster.
On time product delivery is the main characteristic of this industry. Implementation of
advanced technologies will help to track the product easily. This will also help in global
expansion (Dalvi and et.al., 2016). Hence, the organisation has to be adhered with these online
technologies for efficient working. It must have efficient information system. Transportation and
logistic are interrelated to one another. Hence, company has to put efforts for improving the
traffic control. The interest of the labours has to be kept in mind. All these are the features of
logistic and package delivery industry.
2 Application of SCOR(Supply chain operations reference) for the company growth
DHL's is a German company which provides worldwide package delivery. In the present
era there are various challenges in front of the company because of its competitors. To deal with
this the supply chain operations reference model can be helpful. It is a tool for supply chain
management. With the help of this the current position of the company can be analysed along
with its operational performance. This can be compared with the standard data to rectify the

things which require correction. Supply chain management practices can be improved with the
help of this. This will also help to integrate the business process engineering, benchmarking,
process measurement and organisational design. The growth of company can be possible because
of the increase in the speed of system implementation, improvement of business agility and
inventory turns, acceleration of business process effectiveness. It also supports the learning goals
of the organisation which helps to improve the overall operational performance. In this way we
can say that the implementation of this model of business approach is helpful for the growth of
organisation(Dang and et.al., 2018).
3 Need of DHL to engage in sustainable practices and to collaborate with NUS
To gain the market share in Asia, the company has to indulge itself in the sustainable
practices. For a sustainable supple chain management it is important to indulge in the
development strategy where the needs of the present can be met without compromising the needs
of future generation. One has to work as per the norms established by the authority for the sake
of the community. This will help the company to maintain its reputation.
To position itself at the top of race the company is trying to collaborate with the National
University of Singapore (NUS). This will help to establish sustainable supply chain centre of
Asia Pacific in Singapore. To grab the attention of more stakeholders this is done by the
company. Also, the inhumane working conditions can be controlled for the welfare of
community (De Felice, Petrillo and Zomparelli, 2016). This will help to maintain the
environmental factors which would otherwise increase the green house emission. Improved
information and the communication techniques can be implemented with the help of this for the
growth of business. This is the reason of its collaboration with NUS.
4 Sustainable practices adopted by DHL's competitors
The well branded US firms FedEx and UPS are the major competitors of DHL. It serves
four sectors namely, mail, express, freight and supply chain. Sustainable practices adopted by the
company to serve the customers in a better way. GoGrren climate program is also adopted by the
company. Its competitors are competing on sustainable initiatives.
FedEx is a financially stable company. It has well established network in US. Global
reporting initiative is taken by the company by introducing the concept of global citizen report.
Earth-smart program is also conducted by it to reduce the carbon-dioxide emissions. It has also
collaborated with N GO'S to have a capital advantage.

UPS has an aim for 20% carbon intensity reduction by 2020 . For this renewable sources
of energy are installed by the organisation. The carbon disclosure leadership index is also
estimated to control the harmful gases. It has also tried to work in collaboration with other
government and non-government organisation to raise its fund. In this way both the companies
are moving forward for the sustainable development. DHL is also motivated by the steps taken
by these companies and hence it is trying to collaborate with NUS.
5 Relation of Sustainable practices with the stakeholders interest
Sustainable practices have to be adopted by the organization to meet the needs of the
present generation as per the social, cultural, political and environmental factors prevailing in the
society (Ratanavilaikul, 2018. This will be beneficial to satisfy the needs of future generation.
One has to follow the laws and regulations to deal with the same. Exchanger of the commodity
should be as per the standard.
It may influence the shareholder wealth since shares have to allotted as per the set norms
but simultaneously the interest of the shareholders will rise because of the sustainable practices
adopted by the company. These are all done in the favour of the community which will be
praised by the share holders and they will try to abide by the norms set by the authority.
According to the reputation of the company, the shareholder invest in it. Sustainable practices
helps to ameliorate the company's reputation. Stakeholders interest will be maximized because of
this. In this way the implementation of sustainable practices effect the trend of stakeholders.
6 Condition in an industry that may lead to a Race to the Top
In order to beat the competitors the company has to adopt the strategies accordingly.
Some conditions that may lead to acquire the top position in the target market are as follows:
 For an establishment of sustainable supply chain centre, the company has to collaborate
with other organisations and universities.
 Labours working standards have to be maintained. Appropriate rules and regulations
must be adopted for the same.
 Advanced technologies have to be implemented.
 Trade agreements should be supported by taking assistance from the government.
 Innovation has to be done to attract more number of customers for the competitive
advantage.

 Eco-friendly strategies have to adopted . This can be accomplished with the use of
renewable sources of energy. Energy efficient installation has to be done. While
transportation also this factor must have to be kept in mind.
 By promoting right at work, employment opportunity and social protection one can easily
establish a brand image in the market place.
In this way the organisation can plan to get a top position in-front of the community. It has to
work as per the norms set by the government to maximize the interest of stakeholders.
7 Benefits avail by the University of Singapore by collaborating with DHL
They have established the sustainable supply chain centre of Asia Pacific in Singapore by
this collaboration. Due to this the university got an opportunity to expose its students in the
practical scenario where they can implement the knowledge gain by them. This will be beneficial
for both the companies. Effective global strategies are planned by this university for the growth
of the business (TRAPPEY and et.al., 2017). Various eco-friendly programs are also planned by
the company for maintaining the ecological balancing. It is actually providing the platform to the
students of the university. Various policies are also adopted by the centre for which proper
assistance is provided by the university. In this way we can say that the university is effectively
working to serve a favour for its students.
8 Engagement of sustainable supply chain centre of Asia Pacific with the international civil
society organisation
In order to have a sustainable supply chain management the company is collaborating
with these organisations. Non-government and the inter-government organizations ,like NGO's
can be beneficial for the growth of this centre. Ii is very easy to identify the sustainable issues by
working along with them. They will help to identify if the centre is working according to the
rules and regulations or not. Inhumane working conditions can be controlled with the help of
this. The United Nations Environmental Program(UNEP).
It has emphasised the use of information and communication techniques. Ethical and
electronic code of conduct are maintained by this. International Labour Organisation helps to
protect the right of the labour. Similarly, FLA organisation helps to prevent and support the
labour abuse. The United Nations Global Compact is again an association to maintain the
environmental factors and anti-corruption practices. In this way , there are various organisations
to which the company can collaborate to set a brand image in front of the community. In the

given case, company has to the centre has to collaborate with UNEP and international labour
organisation to work effectively. They will help to promote the practices while considering the
interests of the labour and also the stability of the environment. In this way the organisation can
work in a better way (Xie , 2014).
9 Working of DHL and NUS in the new center
DHL is a package delivery company . For this , appropriate means of transportation and
one-time delivery is a major thing to be accomplished. National University of Singapore will
assist in the effective delivery with the help of suitable strategies. With the help of field exposure
the students can implement the suitable methods to deal with any situation. DHL can seek the
help of university while implementing new and advanced technologies.
Environmental and labour standards have to be maintained by the centre which is only
possible if both the companies interact efficiently before making nay decision. Both are aimed to
deliver the best services to the consumers as per the standards set by the government. With the
help of the student's knowledge and understanding , DHL can implement affordable 3D printers
to deliver the product as fast as possible. New generation easily understand new technologies.
This is one of the way to beat the competitors.
10 Industries which are in race to the bottom position
Many industries have yet not implement the 3D printing strategies for delivery and also
not operating as per the laws and regulations set by the government. Unfair labour practices are
used by them to generate cash. City Link , Connect Group are some example of it.
In the given case, DHL is facing many challenges because of the competitors. Because of
this reason it has collaborated with NUS. This is one of the approach used by the company to
acquire the top position (Zhenzhen, 2017). Also, the policies and procedures of the government
Part 2
1. Factors that Drove DHL behind selection location Singapore.
From the analysis of case study, it has been understood that DHL is global organisation
that offers package delivery services for people across 200 countries but facing major global
competition due to increase in number competitors which are dominating its local market in US.
Due to this company has decided to expand its business operations in Asia pacific regions as they
have analysed major opportunities of growth in continuously growing countries in Asia pacific

region. Below given are some factors due to which they have selected Singapore as prominent
location to establish their business.
Emerging economy: Singapore is identified as one most emerging economy which has
achieved continuous economic growth over the span of several years due to availability of
technological resources in country (Christopher, 2016). As per the market analysis, population of
Singapore has been increased in some years therefore it is identified as major opportunity by
administration of DHL for establishment of business. Growing market Size for Package delivery
service in country is major factors for company to raise its sales and profitability through
adoption of competitive pricing policies.
Recognition for sustainability: There is high recognition for the sustainability have been
analysed as positive for basis for the organization to raise its market share in industry. DHL has
established their business Asia pacific region before several years and its has a strong market
presence and recognition among the people. Service which are provided by companies are very
effective and influenced people to be loyal towards the organisation. Although, company has
targeted various corporate entities in Singapore which usually have requirement of package
delivery service as channel of product distribution.
Thus, these are two main factors due to which company has selected the Singapore to establish
its sustainable supply chain centre.
2. Potential challenges needs to considered for improving DHL's performance.
From the case study, there are some potential supply chain challenges creating and keep ,
efficient and effective supply chain methods. There are five potential supply chain challenges
such as:
 Customers service: Supply is all about the delivery of right product in the right quality
to the right place and right time (Jacobs, Chase and Lummus, 2014). In order to improve
the performance of DHL the company needs to focus on providing excellent customers
service.
 Cost control: Business operating cost are under the extreme pressure through increasing
the energy /fuel and cost of freight costs, greater number of international clients ,
technology and increasing employment rates along with the new rules and regulation as
well as rising commodity prices.

 Planning and risk management: In order to stay efficient and effective as the possible,
DHL needs to make periodic assessment and redesigning of their business operations
(Anderson, 2017). These major modification must be in response to changes in the
market such as change in introduction of new services, global sourcing, credit availability
and requirement of protecting their intellectual property.
 Supplier relationship management: It is also essential for business to create, understand
and follow mutually agreed upon the major standards in order understand current present
performance and opportunities for improvement (Tayur, Ganeshan and Magazine, 2012).
By having tow different methods for measurement and interaction of performance and
results wastes the time and efforts. Company needs to trust the system which was
established in place for consistent results and effective suppliers' partnership.
 Talent: It is analysed that in order to become a supply chain leader company needs to
have extensive understanding of the major competencies and responsibilities required for
supply chain management and ability to efficiently source key skills set and as methods
developing the future leaders.
3. Recommendations
From the above analysis, it is recommended to the organisation that they have selected
proper location for established and expansion of business as they will be able to increase their
supply chain performance. Company is also required to make modification in their business
functions as per current market trends and requirements of their customers. Growing market
Size for Package delivery service in country is major factors for company to raise its sales and
profitability through adoption of competitive pricing policies. DHL must create, understand and
follow mutually agreed upon the major standards in order understand current present
performance and opportunities for improvement.
CONCLUSION
To conclude we can say that in order to beat the competitors the logistic industries have
to collaborate with other organisations. Advanced technologies have to be implemented by them
to deliver the package at right time and the right place. In this way , the managers can easily gain
the competitive advantage.

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