CBE6385: DHL International Supply Chain and Logistics Analysis

This case study analyzes the supply chain management and logistics processes of DHL International, a global leader in express logistics and e-commerce delivery. It examines DHL's strategies, including segmentation, and its approach to addressing challenges in global, local, and resource management, such as network efficiency, sustainability, and technology integration. The study identifies current issues, including high prices, weak visibility, and software integration challenges. It proposes improvements like adopting a 3PL model and implementing geographic information systems and business intelligence. The analysis also covers demand forecasting, transportation strategies, and the use of FocalScope for ticket management. The conclusion emphasizes the importance of effective strategies for long-term success and offers recommendations for DHL's growth and development, making this an insightful resource for students studying supply chain management.

Supply chain management and Logistics

Executive summary
In this report the critical analysis of logistics and supply chain management process of DHL
international. DHL International is a company which helps in dealing with the parcel and e-
commerce delivery. The mission and strategy of the company help in enabling the excellent
services for the owners and individuals. DHL has adopted the segmentation as the marketing
strategy as segmentation which is used for meeting the needs of large groups. DHL Express is
the global leader in international couriers and connects more than 220 countries and territories
worldwide. In global logistics company, the approaches which are adopted for the challenges
which they are facing in global, local and resources are the efficiency in network, embedding
sustainability, technological solutions, and green products and services. Various
recommendations are provided for the growth and development of the DHL Company. It is
analyzed that for an organization it is necessary for managing and implementing the effective
strategies for the success on long run.

Contents
Introduction.................................................................................................................................................3
Description of current situation...................................................................................................................4
Possible improvements/solutions.................................................................................................................6
Proposal of a new procedure or change.......................................................................................................7
Implementation plan....................................................................................................................................9
Conclusion and recommendation...............................................................................................................10
References.................................................................................................................................................11

Introduction
Logistics management in an organization includes the management of day to day activities
effectively and efficiently for producing the finished goods and services. DHL is an express
logistics and supply chain company which was founded in 1969 in San Francisco and its
headquarter is in Bonn, Germany. It is the leading logistics company across the world which
deals in courier, parcel and express mail division. It deals in almost 220 countries and has almost
500,000 employees (Hervani, 2005). The services which are offered by DHL are DHL express,
DHL global forwarding, and DHL solutions. DHL is providing services from last 35 years and
now they had become the part of Deutsche post as it provides a mail service which a modern
privatized.
Operations and supply chain are rapidly changing which involves the various factors for placing
at every step which includes inbound sourcing to outbound customers. In the operation process
of logistics, the change will happen because of shifting commodity process, increased
globalization, change in competition, change in environment and changes in technology.
Nowadays supply change has become the key competitive differentiator and it is necessary for an
organization to focus on challenges for improving the services and lowering the costs. There are
various components that are included in the performance of the logistics for improving the
function, the systems, facilities, equipment, people and process. Supply chain management helps
in enhancing the inter-organizational coordination, adds value, helps in increasing efficiency and
also improves the bottom line of the business (Dao, et al., 2015). Supply chain management
helps in coordination with the production, inventory, transportation, and location which are
included in the supply chain for serving into the market. the main goal of the company is to
provide excellent services in increasing the number of customers in world. The various business
techniques are adopted by DHL for the growth and new-market entries for the merger and
acquisition. Their strategy is to focus, connect and grow in the market. DHL is facing challenges
as it needs the system for effectively solving the email issues and the authorized person for
solving the issues by raising the tickets. The statistical report is required to show the report and
managing the tickets by their response and resolutions (Hertz and Alferdsson, 2003). In order to
manage, the implementation of the systems must be fast so that it will not disrupt the business.

Description of the current situation
The supply chain strategy helps in assessment of current-state operation and develops the
strategy for enhancement. It helps in reviewing the business process and operations due
diligence. Sales and operations planning is included the midrange planning technique for
coordinating with the whole organization. The supply chain in DHL helps in offering customized
logistics solutions in the procedure of entire supply chain. The process of supply chain is needed
at every stage of the business in DHL from manufacturer to retailer to suppliers as it helps in
achieving operational excellence. In DHL, there are two main businesses in supply chain as the
business of logistics includes the SCM which includes the warehousing and distribution of parcel
and it also includes the Just-in-time service (Taghikhah, 2017).
Logistics and SCM is the process that helps in describing the flow of activities that are directly
and indirectly linked with the distribution of the goods to consumers. It involves the various
parties in the process like material purchasing, sourcing, inbound logistics, outbound logistics
which helps in ensuring to provide the service to customers and fulfill their requirements. It is
stated by Khalili-Damghani the process includes the traditional logistics which is also known as
the forward logistics and it is divided into two parts: outbound and inward logistics (Khalili-
Damghani, et al., 2015). For DHL, it is essential to provide the services to customer and
satisfaction to stay in business for long period and compete in the market by fulfilling the
obligations. It also includes the reverse logistics
The weaknesses of the company are that they charge high prices as compared to their
competitors. as the customers compare the prices with the other service providers and it may
decrease the number of customers. They have weak visibility as compare to its potential.
Management of logistics is the part of the supply chain as it includes the application and controls
of the effective, efficient and flow of goods and service as it provides the services from point of
source to the point of consumption for meeting the requirements of the customers. Logistics
management includes the delivery of the products on time and at the right place, in the right way
(Ballou, 2007).

In DHL, the current situation of supply chain and logistics processes is a difficult system as it
provides various opportunities as well as challenges. In case of supply chain management(SCM),
the integration of software is one of the biggest challenges in the process. Integration of software
helped the DHL in bringing the advantages for effectively control and operations for,
transportation, manufacture, payment, purchasing and inventory (Firouzeh and Jay, 2017). There
are various parties that are included in the process of integration like suppliers, customers, etc. In
supply chain and logistics, it is required to have effective communication for delivering the right
good and quantities to the right customers. In DHL, reverse logistics must be concerned more as
it includes the process which helps in dealing the collecting, handling and returning the stock to
right customer and it increases the time and cost in the process of supply chain. In logistics and
supply chain management(SCM), the various problems which are faced by the company are the
demand forecasting, building network relationship, transportation, inventory and green logistics
(Allen, et al., 2014).
In DHL, their biggest environmental challenges are related to fossil fuels and greenhouse gas
emissions. DHL Company is also facing the challenge of integrating its workforce and they are
facing the problem of respecting and supporting the differences. In global logistics company, the
approaches which are adopted for the challenges which they are facing in global, local and
resources are the efficiency in network, embedding sustainability, technological solutions and
green products and services (Larson and Halldorsson, 2004. In logistics and supply chain
company, it is necessary to track the products and deliver them to customers on time and for that
purpose, company requires the updated version of tracking system to compete with the
competitors.

Possible improvements/solutions
For improving and solving the issues of the company, they can adopt the 3PL model in
performing the outsourcing activities which are associated to distribution and logistics. The
adopting of 3PL model helps in providing the vast resource network, scalability, and flexibility,
it provides continuous improvement and it helps in saving the cost and time. 3PL helps in
providing the services and perform the task so that the company can focus on the other tasks
which are related to the marketing sales and business development. In DHL, the adoption of drop
shipping method will help in delivering the goods to the customers directly and they do not pass
through with the distributing channels (Ittmann, 2015). It helps in saving the time and cost of
warehousing, inventory, shipping and administration fee. In DHL, there are future prospects for
the logistics and supply chain management. Change in the management of the logistics company
helps in progressing in the market. Changes that are required in the future logistics and supply
chain process of DHL Company. The focus of DHL on logistics helps the company in improving
the advancement of the national financial framework. In future the logistics will helps in e-
trading and helps in developing new ways for entering into new business prospects. DHL has to
majorly consider the four elements of supply chain management which are supply, operations,
logistics, and operations (Seuring and Reiner, 2005).
The implantation of geographic information systems in DHL helps in capturing, storing,
manipulating, analyzing, managing and presenting the data. It helps in creating the interactive
queries in different locations and analyzing the spatial information and presents the data of all
the operations in system. Global position system which is a GPS in logistics management as it
helps the customers in tracking the parcels (Cosimato and Troisi, 2014). Solution for the tracking
issue is to update the technology in system and use the latest technique for tracking the place of
order.
In the supply chain, business intelligence improves the internal efficiencies and accountability to
save cost and time and also eliminates the various costs which are driven during the change
management and decision making. It makes the management in predicting the performance of
the business. To increase the profitability, implementation of business intelligence in
transportation and logistics will make the analysis in the services and can make the network

portfolio for the benefits of customers, suppliers and at every step of the logistics chain
(Srivastava, 2007).
New process for effective logistics will include the various transportation strategy which can be
implemented in the domestic and international process. DHL company requires the supply chain
which involves the efficient and uninterrupted movement of products to transfer from vendor to
manufacturer to customers. Implementation of transportation program will help in meeting the
needs of the customers. In logistics and supply chain management(SCM), the aspects of time and
service are essential for transportation. It is the responsibility of the company to move the
shipments on time and customers require the shipments to be delivered on time on the needed
data and the proper shipping method must be implemented for competing the order and delivery
of the order (Ballard, et al., 2007). FocalScope is adopted for DHL express, as it helps in solving
the problems and earlier the system was managing the operational and they successfully
migrated the staff for the new implementation of system (Sarkis, 2011). For the integration of the
system, focal scope helps in solving the major problems which include assigning the ticket
number to the emails which are raised by the customers and references will be given to the
concerned staff. It helps in giving the information about the audit trail for the raised tickets in the
system and make the constant awareness to the staff for handling the raised tickets. The support
of staff in DHL express can be searched by the reference numbers, number of bookings, invoive
numbers of the raised problems for quickly assisting the customers in their queries (Hazen, et al.,
2018). Foculscope method is very simple to use and can be used as a reporting tool for
monitoring and tracking the performance of the team. POP3/SMTP is used by the focal scope
which is used for connecting with the DHL server of Microsoft exchange and it helps in making
the compatibility perfect with the mail server which exists. in DHL express, there is no option for
replacing the server of email. In Foculscope, the customer data can be fed directly with the help
of interaction in websites. It helps in enabling the information of shipping request and their
location and it does not require the manual efforts (Christopher, 2016).
Proposal for a new procedure or change
It is stated by Sara Arrhenius that DHL has its customers all around the work and they accept the
delivery requirement of any kind of customer. The competitors of DHL are the UPS, FedEx and

the TNT. It is essential for DHL to provide better services to customers at fewer prices than
competitors to retain and attract new customers. DHL can implement the GOGREEN program
for measuring the impact of environment. In this program, the main objectives for the company
will be achieving the transparency of impact of environment as it will focus on the carbon
footprints of the company which will include subcontracted transportation. It may improve
efficiency in operations and minimize the impact on environment. The company can produce
value by offering green solutions for customers and help them in achieving environmental goals.
The implementation of environmental management systems will help the company in managing
the impact on environment more efficiently (Van der Vorst, et al., 2002).
In DHL services, there are six factors which influence the customers to avail their services are a
technological process, types of equipment, organizations system, knowledge and skills and
working condition and testing and measurements. In supply chain management(SCM), Airfreight
logistics is becoming a major factor in the organization. Supply chain management includes
demand management, acquisition management, logistics management, disposal, and risk
management. To implement new techniques proper training is required for employees to make
the effective use of system and increase the efficiency of the system.
In DHL, the influence of green innovation in supply chain helps in increasing competitiveness
and sustainability. The green SCM and emerging technologies as the green supply, production,
and sales logistics will help in optimizing the transport ways and building a strong green sales
network. Green supply chain management includes the various policies which includes the
relationships and actions for responding to the concern in designing, acquisition, production,
distribution and reuse the goods and services of the company. In the case of logistics
competitiveness and sustainability, innovation is necessary but must represent the fundamental
drivers in competitive enhancements. The innovative process in logistics helps in representing
the research for improving the services effectively and efficiently. The various functions can be
included in the green supply chain, as the first function is inbound function in which the factors
like holding awareness about the contractors and suppliers will be done by implementing the best
practice of learning, sharing and improving relationships (Brewer, et al., 2008). DHL can adopt
the strategy to guide the suppliers for setting up the environmental programs and in this required
action is the supplier's code of conduct. DHL can adopt the strategy by informing the suppliers

about the technologies and production benefits and it can be done by online and offline
communications. In the green production function, raw material can be used as environmental
friendly where the packaging, paper, site consumables, and energy reduction. In order to
decrease the solid waste and emissions, the process can be optimized which will include the
innovative solution for recycling the 100% raw material, creating awareness about the
environment among the employees. Greening of outbound function will include the factor of
environmental friendly waste management in which the knowledge about technology and
expertise for reverse logistics will be included for collecting the products and recycling the
products (Sarkis, 2003).
The tools which are included in the supply chain management are the order processing toll as it
is an important tool for making the task easier and work more effectively. It processes the
functions like sales order process, order management, order fulfillment, billing and order to cash.
Warehouse management is also essential in the logistics and SCM Company to manage the day-
to-day operations in the warehousing (Kleijnen, 2005). For the solution of supply chain
management (SCM), it provides a wide array of warehouse management capabilities and
specifies the requirements of the company. It provides the solutions in supply chain planning tool
for allowing the user to handle the difficult logistic which are related to receiving and tracking
the products, counting the cycle of process and planning the route of the parcel (Erceg and
Sekuloska, 2019). In case of supplier management, the procurement process must be managed
effectively for includes the features of cost issues and for understanding the supplier's
requirement.
Implementation plan
Implementing any new plan includes the strategies and methods for effective implementation. It
is essential for the company to consider the process for the implementation of the new plan. The
new plan will include the adopting of new strategies and methods for increasing the revenue and
growth in the business. Product assembling is required to be done effectively in DHL and they
can arrange the quick response, mass customization for enabling the business strategies. There
are various services in packaging which are to be considered in the postponement of packaging

are primary, secondary and special components. In the operations of supply chain management
and logistics, inventory and transportation management is essential to consider. By providing the
value-added services to customers will helps in growth of the business. the services can be co-
packaging and product assembly. Outsourcing of projects can be done in DHL by taking over
and managing the services. It includes the distribution centers, transport operations, after-sales
services, functions in supply chain management and transport operations (Graham and Hardaker,
2000). A warehouse management solution can be done in the process by recording all the actions
and events for handling the products and orders in the environment of warehouse. It will help in
accurately recording the inventory location which is stored in the warehouse. In the process, all
the critical issues can be managed by the warehouse management system and it helps in
supporting the distribution and transport systems. Strategic inventory management can be created
for delivering the urgent shipments where the business areas are major can as estimate the time
for the highly impacting and adding value in the business. In the case of direct express inventory
management, it helps in allowing the customers in centralizing the stock in warehouses and can
use the service of express for distributing the components on the next day. it is the process that
can be managed by DHL. In order to build the warehouse infrastructure network, as the
warehouse services help in supporting the logistics, distribution, for improving the inventory
management by reducing the operating cost and times of cycle (van Hoek, et al., 2005).
Conclusion and recommendation
Logistics and supply chain management(SCM) is the essential part of the DHL express. It is
analyzed that it is the leading logistics express across the world. They had implemented the
various effective strategies for supplying the products on time and satisfy the consumers with
their services. For increasing the revenues and profits, logistics costs must be managed
effectively. DHL Company can implement the best practices for the management of supply chain
and logistics effectively. It is suggested for the company for enhancing the project in effecient
and effective way by making the full-load truck strategy to deliver the consignments in a fast
way and helps in cutting the cost of fuel. The new system must be implemented as it can be ERP
system that is helpful in managing the information and tracking the information of products
which will help in keeping the record of clients and make the information accessible for the
clients (Mangan and Lalwani, 2016). ERP system will also help the supply chain and logistics

department to interact with the other departments as it will help to understand the needs and
preferences of the customers. ERP system will help in improving productivity and increasing
efficiencies and decreasing the costs. Implementation of ERP system includes the 3 phases:
discovery, implementation and results. ERP helps in decreasing the managerial and operations
expenditures. The process of manufacturing can be managed by effectively managing the
operations and it can also help in preventing the delays and disruptions. In order to understand
the requirements of customers, ERP system can helps in interacting with the other departments
of the company. With the help of ERP system in product development process, the quality in
providing the services and delivering the products on time can also be improved.
Implications of practices are must in the company. Software system helps in designing the
supply chain management Inbound logistics help in avoiding the delays and making the
communication and information flow better. Implementation of updated technology will help the
company in sharing the information on a large scale. ERP systems are adopted in organization
for managing and tracking the information of products and their location which help in keeping
the record of customers. Competitiveness factors will include factors like improving efficiency,
improvement in quality, productivity improvement and helps in saving costs. An effective Green
Logistics management helps in leading the operational and economic performance improvement.
DHL is one of the most significant and globalized logistics company (Minculete and Olar, 2014).
In logistics, green product and process innovations are even more essential because they help in
giving the quick response to various stakeholders because of the environmental. Because of
green innovation contribution to competitive advantage helps to achieve and make an
organization able to save cost, and provide better quality products and increase their efficiency
and productivity. It helps in reducing the overhead and inventory costs. The sales, ROI, and
profitability can be improved with the help on new implementation of plan in business. in order
to optimize the inventory at every stage of the supply chain, DHL can focus on the forecasting
demand, safety stock setting, order pipeline monitoring, expediting, supplier management and
managing excess stock at the time of peak season.

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