12971481-Dhl-Project

Tho TABLE OF CONTENT

Executive summary 3Objective of the project 4Research methodology 5Introduction To Logistics 6History and background of DHL 6

The world's largest express and logistics Network 7Global Facts and Figures 8

Project Management by DHL 8INTEGRATED LOGISTICS 9

Inventory Flow 9Information flow 11Logistical information involves two major types of flows: 11Forecasting 12Purpose of DHL Web Shipping: 13

Supply Chain Management 15Definition for supply chain management 15Explanation: 15

Supply Chain Optimisation 16DHL International Supply Chain 16Reverse Logistics 18Service logistics 18Inbound to Manufacturing 19Medical Device Distribution 20Distribution to stores management 20

Extended Supply Chain Services 21Implementation Services 22

Performance Management : 23Outsourcing Projects 24

Innovative Supply Chain Development 24TRANSPORTATION 27

Transport Functionality 27Principles 29

Transport Infrastructure 30 RAIL NETWORK 30

Inventory Management and Warehousing. 34Warehouse Infrastructure Networks 34

Multi User Centres 35Strategic Part Centres (SPC) 35Express Logistics Centres (ELC) 35

Warehouse Management Solutions 36Strategic Inventory Management 36Direct Express Inventory Management 36Repair Return Inventory Management 37Cross Docking 37

Inventory Optimisation 37Shared-user Warehousing 38

Special Warehouse Solutions 39

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Outsourcing Projects 40Technological Electronics/Telecom solutions 41Value Added Services 44

Co-packing 44 Product Assembly 46

Other Value Added Services 46External Performance Measurement 48

Conclusion 49BIBLIOGRAPHY 50

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Executive summary

3

Objective of the project

Research methodology

4

Introduction To Logistics

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Logistics is concerned with getting the products and services where they are needed when

they are desired. It is difficult to accomplish any marketing or manufacturing without

logistical support. It involves the integration of information, transportation, inventory,

warehousing, material handling, and packaging.

The operating responsibility of logistics is the geographical repositioning of raw materials,

work in process, and finished inventories where required at the lowest cost possible

The formal definition of the word ‘logistics’ is: - it is the process of planning, implementing and controlling the efficient, effective flow and storage of goods, services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements. In order to understand the concepts of logistics in terms of practical usage and to glimpse

into the how a real company or organization uses logistics as a formidable tool to gain

customer satisfaction, reduce overall cost and increase efficiency we selected “DHL” the

worlds leading courier service company. But DHL is multi faceted and offers myriad types

of services.

History and background of DHL

DHL are the first letters of the last names of the three company founders, Adrian Dalsey,

Larry Hillblom and Robert Lynn.

In 1969, just months after the world had marveled at Neil Armstrong's first steps on the

moon, the three partners took another small step that would have a profound impact on the

way the world does business.

The founders began to personally ship papers by airplane from San Francisco to Honolulu,

beginning customs clearance of the ship's cargo before the actual arrival of the ship and

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dramatically reducing waiting time in the harbour. Customers stood to save a fortune.

With this concept, a new industry was born: international air express, the rapid delivery of

documents and shipments by airplane.

The DHL Network continued to grow at an incredible pace. The company expanded

westward from Hawaii into the Far East and Pacific Rim, then the Middle East, Africa and

Europe. By 1988, DHL was already present in 170 countries and had 16,000 employees.

At the beginning of 2002, Deutsche Post World Net became the major shareholder in DHL.

By the end of 2002, DHL was 100% owned by Deutsche Post World Net.In 2003, Deutsche

Post World Net consolidated all of its express and logistics activities into one single brand,

DHL

The world's largest express and logistics Network

DHL is the global market leader in international express, overland transport and air freight.

It is also the world's number 1 in ocean freight and contract logistics. DHL offers a full

range of customised solutions - from express document shipping to supply chain

management.

Below are the global facts and figures that show you the scale of the world's largest

express and logistics network.

Global Facts and Figures

Number of Employees: around 285,000

Number of Offices: around 6,500

Number of Hubs, Warehouses & Terminals: more than 450

Number of Gateways: 240

Number of Aircraft*: 420

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Number of Vehicles: 76,200

Number of Countries & Territories: more than 220

Shipments per Year: more than 1.5 billion

Destinations Covered: 120,000

The reason for the success of DHL is due to its very effective and efficient way of carrying

out the process of project management. The basic steps in it are as follows:

Project Management by DHLDHL manages projects according to a six-step process:

Initiation: The formal start of the project

Design: The formal agreement on how to approach the project and its deliverables

Planning: Following agreement, a detailed plan is created

Execution: After detailed planning and preparation, the project goes 'live'

Closing: Gradually phase out and prepare for handover of the deliverables

Handover: The formal end of the project

INTEGRATED LOGISTICS

Logistics is viewed as the competency that links an enterprise with its customers and

suppliers. Information from and about customers flows through the enterprise in the form of

sales activity, forecasts and orders. As products and materials are procured, a value added

inventory flow is initiated that ultimately results in ownership transfer of finished products to

customers. Thus the process is viewed in terms of two inter-related efforts, inventory flow

and information flow.

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Inventory Flow

Information Flow

Inventory Flow

The management of logistics is concerned with the movement and storage of materials

and finished products. From the initial purchase of a material or component, the logistical

process adds value. By moving inventory when and where needed. Thus the material

gains value at each step.

For a large manufacturer, logistical operations may consist of thousands of movements,

which ultimately culminate in the delivery of the product to an industrial user, wholesaler,

dealer or customer.

In order to understand logistics it is useful to divide it into three areas:

Physical distribution

Manufacturing support

Procurement

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Manufacturing support

Physical distribution

ProcurementSuppliers

Customers

For DHL:

DHL is completely service oriented therefore it does not have its own material movement

but that of the customers both the sender, the receiver and also the intermediateries.

That means it only involves physical distribution and procurement. Procurement also

includes the material needed for packaging such as paper, moulded trays and boxes,

wooden crates, standard containers wraps, plastic inlays etc. The materials or the goods

collected from the senders (including papers, documents, physical goods like clothing,

household good, chemicals, exotic animals etc) are weighed, checked for condition, and

depending upon its various characteristics it is packed. The goods are then dispatched to

their destinations. There is no value addition to the material itself but it is done to the

service which is provided ( eg if there has to be a certain package delivered from India to

UK the normal services would take about 2 days whereas as a super fast delivery would be

done in about 9 hours)

Information flow

Information flow identifies specific locations within a logistical system that have

requirements. Information also integrates the three operating areas. The primary objective

of developing and specifying requirements is to plan and execute integrated logistical

operations.

Logistical information involves two major types of flows:

1. Coordination flows

2. Operation flows

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1. Planning and coordination flows

Coordination is the backbone of the overall information system.

Strategic objectives:

Strategic objectives detail the nature and location of customers, which are matched to

the required products and services to be performed.

For DHL

It implies estimating the time requires for collecting the goods from the door step of the

sender and then estimating the time for the goods to reach the final customer.

Forecasting

Forecasting utilizes historical data, current activity levels, and planning assumptions to

predict future activity levels. Logistical forecasting is generally concerned with relatively

short –term predictions.

The overall purpose of information planning/coordination flow is to integrate specific

activities within a firm and to facilitate overall integrated performance.

For DHL

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DHL’s whole business is dependent on the vital point of timely delivery. Based on

the distance to the final receiver, the accessibility, the documentations and procedures

that need to be handled etc they have fine tuned the process of delivery. They can

accurately gauge how much time it will take for the goods to reach its end destination.

2. Operational flows

The second aspect of information requirements is concerned with directing operations

to receive, process, and ship inventory as required supporting customer and

purchasing orders. Operational requirements deal with

Order management

Order processing

Distribution operations

Inventory management

Transportation and shipping

Procurement

For DHL:

DHL owns its success for the efficiency with which the operations are carried out. Here not

only the company but the sender and sometimes the receiver can track the goods through

their information center. They are given a certain password which they can use to trace via

online or their customer service helpline.

DHL WEB SHIPPING is the on-line express shipping tool that helps customers prepare

documents, book pick-ups, store contact details and track their deliveries. Ideal for busy

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office managers, business travelers or receptionists, DHL WEB SHIPPING needs no

special software or training.

Purpose of DHL Web Shipping: DHL WEB SHIPPING's new, simplified navigation guides customers, quickly and easily,

through the entire process. So they can respond to any shipping request within minutes.

With a click of a mouse customers can:

Select the right shipping and value-added services for each shipment

Prepare air waybills and customs documentation on-line

Get the latest service bulletins and customs information

Book collections and track shipments on-line

Save up to 300 customer addresses

Access shipment records for 99 days

Alert recipients and other interested parties

DHL WEB SHIPPING is also perfect for telecommuters. You can order a pick-up, check

service availability or track your shipments from any location, in real time, direct from your

wireless laptop.

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Supply Chain Management

Definition for supply chain management

“Supply chain management is the management of upstream and downstream relationships

with suppliers and customers to deliver superior customer value at less cost to the supply

chain as a whole.”

Explanation:

The supply chain is the network of organizations that are involved through upstream and

downstream linkages, in the different processes and activities that produce value in the

form of products and services in the hands of ultimate consumer.

For DHL:

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Supply Chain Optimisation

Good design is at the heart of an effective supply chain solution. DHL has developed a

reputation for consistently developing innovative solutions that streamline operations and

improve control. Their in-house teams have contributed to the solutions design of some of

the world's leading brands and enabled to win key contacts.

DHL solutions design team offers a wide portfolio of expertise and services, from logistics

network strategy, transport design, warehouse design and simulation, through to

operational improvement and inventory analysis.

International Supply Chain

Extended Supply Chain Services

Implementation Services

Outsourcing Projects

DHL International Supply Chain

DHL’s international supply chain management solutions are focused on helping customers

take increased control of international inbound supply chain to maximise the value of

international and global sourcing.

DHL helps customers :

Give visibility of the upstream supply chain, and enable earlier decision making

Create a more agile supply chain, better able to respond to changes in consumer

demand

Reduce lead times, inventories, and associated storage costs

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Customer-focused solutions are built up from the following core services:

Origin management, including: vendor management; supplier collections; customs

brokerage; consolidation services and value-added services

Global forwarding, including: air/ocean/road/rail freight forwarding and management;

European managed transport

Destination management, including: port and demurrage management; customs

brokerage; de-consolidation and pre-retail services; port to distribution centre

transportation; direct store delivery (US only)

Supply chain visibility and management, including: purchase order management; RFID

product tracking; exception management; planning and forecasting; inventory

management.

Global forwarding services are provided across all major routes.

Logistical services that are offered.

Reverse Logistics

Service Logistics

Inbound to Manufacturing

Medical Device Distribution

Distribution to Stores Management

Engineering Response

Reverse Logistics

DHL’s reverse logistics solutions help customers plan, implement and control flow of

materials and manage related information, back up the supply chain to recapture values

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and ensure the safe disposal of goods. Items include the recovery of obsolete or non-

operational white goods such as refrigerators, plus the removal of old furniture on delivery

of new or replacement products.

Services include:

Roll in Management: de-installation of finished goods at the customer's site

Returns Management: receiving, sorting, verifying and managing returned products

Express Delivery: Exchange of Dead On Arrival products

Service logistics

Service and replacement parts

DHL’s service and replacement parts service involves the management of manufacturers'

replacement parts delivered to and from customers according to pre-defined service levels

or warranty agreements on a one-, two-, four- or eight-hour and next-day basis, 24 hours a

day, seven days a week.

DHL works closely with customers to overcome common issues such as:

Poor parts availability

High inventory investment

Long lead times, accentuated by global sourcing

High levels of customer returns

Poor visibility, reporting and control

Cost control of the demand chain

Key services include:

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International freight forwarding

Domestic and regional inbound deliveries

Inventory planning, forecasting, procurement and analysis

Distribution centre operations

Outbound delivery

The entire process is underpinned by a web-enabled electronic order processing and order

monitoring tool.

Inbound to Manufacturing

Inbound to manufacturing is the complete end-to-end logistics management of inventories,

facilities and labour associated with the inbound flow of materials from vendors and

supplier origins to consumption points in manufacturers production lines.

The service encompasses:

Network, transportation and facility design

Inventory optimisation

Supplier management

Transportation management

In-plant services

Key to the service is integrating manufacturers' forecasting, order management and supply

chain execution processes with their component suppliers. DHL implements warehouse

management and supply chain event management systems to manage just-in-time

deliveries and allow supply chain participants to exchange forecast requirements in real

time.

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Value is created for manufacturers and component suppliers throughout the world by:

Enabling a robust and cost-effective supply chain

Providing the necessary visibility so that the location of all components within the

supply chain is known to all supply chain participants

Reduce inventory and investment costs

Improve delivery times

Co-ordinate multiple components more efficiently

Medical Device Distribution

DHL country-based warehouses for a number of manufacturers to service a local

customer base. This includes the receipt of product from local or global manufacturing sites

and downstream distribution to hospitals.

Distribution to stores management

DHL distribution to store services are focused on helping retailers create efficient

and flexible supply chains to deliver product to retail outlets at high levels of service.

These solutions are built from several core services: reverse logistics collections; sortation;

processing; repair/refurbishment; value recovery; disposal and compliance.

Engineering Response

Through our Engineering Response services, we manage the materials supply chain from

works planning and inbound goods through to on-site works, delivering stock out to

engineers, builders and construction workers in the field.

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Extended Supply Chain Services

DHL not only provides physical logistics services but also manages other enhanced supply

chain services, improving efficiencies and reducing costs.

Order Management

Receipt, management, execution, sequencing and dispatch of orders in a timely manner.

Call Centre Management

A Call Centre manages orders, monitors sales activities, provides customer services and

functions as a Help-desk.

Global Inventory Management

DHL gives the customer a global view of inventory, thus enabling informed decisions

regarding the disposition of stock.

Consolidated Billing Services

The creation of a consolidated and categorized invoice, based on all services performed

in a specific time-period by more than one service provider, made available in an agreed

format.

Freight & Customs Solutions

DHL's many years of experience with international trade requirements and formalities,

combined with the European Competence Centre and country expertise, gives customers

the leading edge in service, quality and management in cross border transactions.

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Implementation Services

Implementation and Project Management

Implementation starts by defining project aims, setting the targets and describing the

deliverables in detail. The major topics in implementation include business processes,

engineering, real estate, IT systems, migration, HR, finance and legal considerations.

Quality Management

Total Quality Management is a management strategy that integrates quality orientation

into the whole structure and workflow of a company by using methods and techniques of

quality management

Corporate Policy for Quality, Environment, Health and Safety (QEHS) is based on five corporate values:

Customer satisfaction: Providing our customers and their customers with

excellent, high value logistics solutions

Employee motivation: Building on the know-how and stimulation of individual

potential in multi-cultural teams

Operational excellence: Continuous improvement of processes and services to

fulfil or exceed expectations

Corporate citizenship: Acting as a responsible corporate citizen in all countries

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Shareholder reward: Developing a sustainable business to provide increasing

shareholder value

Globally, DHL management systems are certified according to the international standard for quality management systems ISO 9000 in almost every operating unit.

Performance Management :

Performance management is a key part of the supply chain. Measured elements are

reviewed as a system, as each component interacts with all the other parts around it.

Performance measuring not only records historical performance but also provides early

indication of any service slippage. In this second role, the measures provide a valuable

contribution to DHL's Continuous Improvement Programme.

Outsourcing Projects

Outsourcing involves DHL taking over and managing previous in-house logistics

operations, including:

Distribution centres

Transport operations

Back-office functions

Supply chain management functions

After sales services

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Innovative Supply Chain Development

Supply Chain Management services are delivered across industry sectors and provide

expertise, knowledge and resources in terms of personnel and supply chain tools. All

services are targeted at optimising logistical operations in both process and strategy, and

are aligned to the client's commercial expectations.

The services are as follows:

Strategic Logistics Consulting

Lead Logistics Provider

Consulting and providing Transport optimisation: Route-Pro and Trans-Pro

Consulting and providing Supply Chain Design

Consulting and providing Transportation

Engineering, optimisation and re-engineering

Implementation and Project Management

Process Management

Outsourcing

DHL’s consulting services also offer re-organisation of customer facilities, project

management for customers, implementation of new IT Systems, creation of tender

documents and tender processing.

Supply Chain Re-engineering

DHL works with customers to review supply chain efficiencies. One of the main tasks is to

evaluate cost efficiency to ensure that costs are being driven down throughout the

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contract duration. Data analysis allows DHL to provide customers with 'what if modeling'

or the impact of changing the business rules.

After Sales Optimisation

Optimising return logistics and spare parts logistics as well as maintenance and repair

services.

Ve hicle Management Services

Our vehicle management services focus on the management of sales and marketing

support programmes for automotive manufacturers. Combining a range of services and

systems to deliver a global response, we help you overcome challenges at the end of the

automotive supply chain.

Distribution to Stores Management

DHL’s distribution to store solutions are focused on helping retailers create efficient and

flexible supply chains to deliver product to retail outlets at high levels of service.

These solutions are built from several core services including reverse logistics:

logistics network strategy

warehouse design and simulation

transport modelling.

After Sales Optimisation

Optimising return logistics and spare parts logistics as well as maintenance and repair

services.

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Ve hicle Management Services

Our vehicle management services focus on the management of sales and marketing

support programmes for automotive manufacturers. Combining a range of services and

systems to deliver a global response, we help you overcome challenges at the end of the

automotive supply chain.

Distribution to Stores Management

DHL’s distribution to store solutions are focused on helping retailers create efficient and

flexible supply chains to deliver product to retail outlets at high levels of service.

These solutions are built from several core services including reverse logistics:

logistics network strategy

warehouse design and simulation

transport modelling.

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TRANSPORTATION

Transport Functionality

Transportation is one of the most visible elements of logistics operations. Transportation

provides 2 major functions: product movement & product storage.

Product Movement

Whether the product is in the form of materials, components, assemblies, work-in-process,

or finished goods, transportation is necessary to move it to the next stage of the

manufacturing process or physically closer to the ultimate consumer. A primary

transportation function of product movement is moving up and down the value chain. Since

transportation utilizes temporal, financial, and environmental resources, it is important

that items be moved only when it truly enhances the product value.

Transportation involves the use of temporal resources because product is inaccessible

during the transportation process. Such product, commonly referred to as in-transit

inventory, is becoming a significant consideration as a variety of supply chain strategies

such as just – in – time and quick response practices reduce manufacturing and

distribution center inventories.

Transportation uses financial resources because internal expenditures are necessary for

private fleets or external expenditures are required for commercial or public transportation.

Transportation uses environment resources both directly and indirectly.

In direct terms, it is one of the largest consumers of energy (fuel and oil) in the

domestic United States economy. In fact, it accounts for close to 67% of all domestic oil

use.

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Indirectly, transportation creates environmental expense through congestion, air

pollution and noise pollution.

The major objective is to move product from an origin location to a prescribed destination

while minimizing temporal, financial and environmental resource costs. Loss and damage

expenses must also be minimized. At the same time the movement must take place in

such a manner that meets customer demands regarding delivery performance and

shipment information availability.

Principles

There are two fundamental principles guiding transportation management and operations. They are economy of scale and economy of distance.

Economy of scale refers to the characteristic that transportation cost per unit of weight

decreases when the size of the shipment increases.

E.g. truckload shipments cost less per pound than less-than-truckload shipments. It is also

generally true that larger capacity transportation vehicles such as rail or water are less

expensive per unit of weight than smaller capacity vehicles like motor or air. Transportation

economies of scale exist because fixed expenses associated with moving a load can be

spread over the load’s weight. The fixed expenses include administrative costs of taking

the order; time to position the vehicle for loading or unloading, invoicing and equipment

cost. These costs are fixed because they do not vary with shipment volume.

E.g. suppose the cost to administer a shipment is $ 10.00. Then the 1-pound shipment has

a per unit of weight cost of $10.00, while the 1,000 pound shipment has a per unit of weight

cost of $0.01. Thus, it can be said that an economy of scale exists for the 1000-pound

shipment.

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Economy of distance refers to the characteristic that transportation cost per unit of

distance decreases as distance increases.

e.g. a shipment of 800 miles will cost less than two shipments (of the same combined

weight) of 400 miles. Transportation economy of distance is also referred to a se tapering

principle since rates or charges taper with distance. The rationale of distance economies is

similar to that for economies of scale.

Longer distances allow the fixed expenses to be spread over more miles, resulting in lower

overall per mile charge.

These principles are important considerations when evaluating alternative transportation

strategies or operating practices. The objective is to maximize the size of the load and the

distance that is shipped while still meeting customer service expectations.

Transport Infrastructure

Transportation infrastructure consists of the rights-of-ways, vehicles, and carrier

organizations that offer transportation services on a for-hire or internal basis. The nature of

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the infrastructure also determines a variety of legal and economic characteristics for each

mode or multimodal system. A mode identifies the basic transportation method or form.

RAIL NETWORK

Since olden times, railroads have handled the largest number of ton-miles. As a result of

the early establishment of a comprehensive rail network connecting almost all the cities

and towns, railways dominated the intercity freight tonnage till World War II and in some

cases of Europe, Asia and Africa they even connected the countries. This early superiority

enabled railways to transport large shipments very economically.

MOTOR CARRIERS

Highway transportation has increased rapidly since the end of World War II. This is

because Motor carrier industry results from door-to-door operating flexibility and speed of

intercity movement. They are even flexible because they can operate on each and every

kind of roadways.

In comparison to railroads, motor carriers have relatively small fixed investments in

terminal facilities and operate on publicly maintained highways. Although the cost of

license fees, user fees, and tolls are considerable, these expenses are directly related to

the number of over-the-road units and miles operated.

The variable cost per mile for motor carriers is high because a separate power unit and

driver are required for each trailer or combination of tandem trailers. Labor requirements

are also high because of driver safety restrictions and the need for substantial dock labor.

Motor carriers are best suited to handle small shipments moving short distances.

WATER TRANSPORT

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It is the oldest mode of transportation. First it was the sailing vessels, which was replaced

by steamboats in early 1800’s and by diesel power in the 1920’s.

Domestic water transportation – involves the Great Lakes, canals, and navigable rivers. In

every country, fewer system miles exist for inland water than any other transportation

mode.

The main advantage of water transportation is the capacity to move extremely large

shipments. Water transport employs 2 types of vessels. Deep-water vessels, which are

generally designed for Ocean and Great Lakes use, & are restricted to deep-water ports

for access. In contrast, diesel-towed barges, which generally operate on rivers and canals,

have considerably more flexibility.

Water transport ranks between rail and motor carrier in the fixed cost aspect. Although

water carriers must develop and operate their own terminals, the right-of-way is developed

and maintained by the government and results in moderate fixed costs as compared to

railways and highways.

The main disadvantage of water transport is the limited range of operation and speed.

Unless the origin and destination are adjacent, supplement haul by rail or truck is

required. The capability to carry very high cargo at an extremely low variable cost places

this mode of transport in demand when low freight rates are desired and speed of transit

is a secondary consideration.

AIR TRANSPORT

Air transport is the newest and the least utilized mode of transport. Its major advantage

being its speed, which is accompanied by high costs. A coast-to-coast shipment via air

requires only a few hours contrast to days taken by other mean of transportation. The high

cost of transport can be traded off for high speed, which allows other elements of logistical

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design, such as warehousing, inventory to be reduced or eliminated. But still air transport

remains more of a potential opportunity than a reality because it is very much under

utilized.

The high cost of jet aircraft, coupled with erratic nature of freight demand, has limited the

assignment of dedicated planes to all-freight operations. However premium carriers

provide planes dedicated for freight operations. This premium service started off with

documents and has moved onto large parcels, which is an ideal service for firms with a

large number of high-value products and time-sensitive service requirements.

FOR DHL:

DHL uses all the modes of transportations that is

airways

roadways

waterways

rail freight

DHL has its own fleet of airplanes and motor vans. Depending upon the final destination

where the goods have to finally reach and the type of package the customer has paid for,

DHL uses the individual modes of transport or a combination of either of these or all. Once

again the geographical location and how fast the goods have to be delivered are the

factors for the final selection of modes of transportation .

The concept of economies of scale and economies of distance are both taken into

consideration in case of larger consignments where DHL provides an appropriate logistical

solution which helps in reducing the overall cost for the customers.

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Inventory Management and Warehousing.

Warehouse Infrastructure NetworksWarehouse Management SolutionsInventory OptimisationSpecial Warehouse SolutionsOutsourcing Projects

Warehouse Infrastructure NetworksDHL warehouse service supports inbound logistics, distribution and aftermarket services in

a way that improves inventory management, reduces total operating costs and improves

cycle times.

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DHL facilities offer our customers warehousing that is fully integrated into the wider supply

chain and meets demanding service levels. This encompasses the design implementation

and operation for both dedicated and multi user sites.

Benefits include improvements in:

Customer service levels

Stock accuracy

Lead times

Redundant stock costs

Productivity responsiveness to a company's strategic needs

Multi User CentresWe provide a network of multi-user warehouses, enabling manufacturers to hold inventory

at local level, whilst avoiding expensive, dedicated storage solutions. These facilities can

receive products from both local and global manufacturing sites, providing downstream

distribution.

Strategic Part Centres (SPC)Our Strategic Part Centers (SPCs) are in-country facilities offering:

1, 2 and 4 hour order fulfillment

stock optimisation across the complete network of SPCs

guaranteed performance against agreed business rules

Express Logistics Centres (ELC)Our Express Logistics Centres (ELCs) are regional centralised facilities offering:

order processing

outsourced repair facilities

custom final assembly

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kitting services

Warehouse Management Solutions

Warehouse Management Systems

The Warehouse Management System (WMS) records all events and actions in the

receipt, handling and storage of products and orders in a warehouse environment. The

WMS also accurately records the location of inventory whilst stored in the warehouse.

Our Prologs WMS manages all critical processes in the warehouse, and is also an

important support for varied transport and distribution concepts (planning, time

controlling, booking of transport capacity, communication with customs and other

authorities).

Strategic Inventory ManagementStrategic Inventory Management (SIM) has been created to deliver urgent shipments to

main business areas within a 2 to 4 hour time frame, usually time critical spare parts with

a high value and high impact on business.

Direct Express Inventory ManagementDirect Express Inventory (DEI) allows customers to centralise stock in one warehouse and

use express distribution to deliver components the next day. Entire management is done

by DHL.

Repair Return Inventory ManagementReturn & Repair Inventory (RRI) manages the physical flows for Return material

authorisation. In this case, DHL will be responsible for picking up the broken part, sending

a new one, bringing the broken part to a repair centre and moving repaired parts back into

stock.

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Cross DockingCross-dock operations are facilities where shipments are received from one mode of

transport and transferred to another mode, or where shipments complete one leg of a

journey prior to commencement of another journey. Shipments are consolidated or

deconsolidated. Product received into the facility is not taken into inventory.

Inventory OptimisationThrough effective inventory management, inefficiencies can be driven out of the supply

chain, overall costs reduced and high service levels achieved. We optimize inventory at a

line-item level at every stage of the supply chain.

DHL focuses on driving results in:

Supplier management

Expediting

Order replenishment

Demand forecasting

Safety stock setting

Order pipeline monitoring

Excess stock management

Inventory optimisation is supported by inventory management software that calculates 'line

item risk profiles' that measure the variability of demand and supply for each line item

within a customers inventory.

DHL offers:

Average of 20% inventory reduction and 8% improvement in product availability

Reduced inventory and overhead costs

Improved sales, profitability and return on investment

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High service standards

Better matching of supply with demand

More streamlined and responsive supply chain

Shared-user WarehousingOur shared-user facilities are designed to meet the needs of organisations of any size.

Currently, we provide shared-user services to leading manufacturers and retailers of

medical supplies, consumer products, industrial equipment, chemicals and technology.

Through sharing of DHL's resources, such as space, labour, equipment and

transportation, customers benefit from synergies that considerably reduce supply chain

costs.

This environment returns significant value to a small business requiring distribution

operations without long term lease or capital commitments, or a large enterprise handling

a new acquisition, product launches or seasonal overflow.

Campus Solutions

We pioneered the campus model to provide regional customers with a flexible solution

designed to capitalise on similar distribution channels, minimise labour costs, and

increase specialized equipment utilization.

Campuses are strategically located at key distribution points in North and South America,

Europe and select locations in Asia, allowing for expedited transit times to large

concentrations of consumers.

Special Warehouse Solutions

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Vendor Hubs

Warehousing and delivery of service parts, based on demand pull. Vendor hubs are

usually located in close proximity to the manufacturing facility.

Reverse Centres

Specially designated facilities for the receipt and handling of returned parts for repair,

recycling or disposal.

Bonded Warehousing

Bonded warehouses provide secure environments in which customers' products can be

held without immediate payment of local duties and taxes.

Shared-user Warehousing

Our shared-user facilities are designed to meet the needs of organisations of any size.

Currently, we provide shared-user services to leading manufacturers and retailers of

medical supplies, consumer products, industrial equipment, chemicals and technology.

Through sharing of DHL's resources, such as space, labour, equipment and

transportation, customers benefit from synergies that considerably reduce supply chain

costs. Consequently, the customer can increase efficiencies throughout their distribution

network and maintain a higher level of service to their customers.

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Outsourcing Projects

Outsourcing involves DHL taking over and managing previous in-house logistics

operations, including:

Distribution centres

Transport operations

Back-office functions

Supply chain management functions

After sales services

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Technological Electronics/Telecom solutions

Electronics/Telecom

Core and Value-added Technology Solutions

Inbound to Manufacturing

Service Parts Logistics

Technical Distribution

Technical Services

Electronics/Telecom Technology

Manufacturers have some of the most complicated supply chain requirements of any

industry because of the nature of the products: complex, high value and rapid

obsolescence.

Our logistics solutions help technology companies reduce inventory and cycle time, while

providing control and visibility through to final delivery. This is achieved by focusing on

product availability and optimisation of product flows and supply chain costs. For optimum

flexibility and speed, you can outsource your entire logistics operation, including

distribution centers, transport, back-office, supply chain management and after sales, to

DHL.

Electronics/Telecom

DHL provides the know-how to optimize flows and drive down supply chain costs. You

reduce stock but not quality, and maintain flexibility to meet market needs. Services

include:

Modular networks consisting of warehouses and hubs, downstream links enabling

merge-in-transit, and delivery capabilities for any size, speed and dimension

Inbound logistics (VMI or JIT)

Electronics Distribution Network (EDN)

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Reverse logistics

After sales logistics - spare parts

Lead Logistics Provider (SCM) - integrated supply chain services from DHL, whether

end-to-end solutions or management of partial supply chain solutions

Complete outsourcing, including transfer of staff, infrastructure financing, business

optimisation and supply chain integration

Core and Value-added Technology Solutions

Responding to customer needs, we provide a range of core and value-added services that

reduce cycle times and improve performance. These include:

inbound logistics to production facilities, including vendor managed inventory hubs

kitting, assembly and light manufacturing operations

order fulfillment and finished goods distribution

integrated freight management and contract logistics services

product delivery and installation, including reverse logistics

aftermarket and critical service parts logistics

Inbound to Manufacturing

Our Inbound to Manufacturing service enables our customers to more effectively manage

the inbound flow of materials from collection points at their component suppliers' facilities

to consumption points in their production lines. We help address the constant challenge for

both finished goods manufacturers and component and sub-assembly suppliers who must

adapt to shorter product lifecycles and the migration of production facilities to developing

countries.

Service Parts Logistics

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Our Service Parts Logistics service involves the management of technology manufacturers'

replacement parts delivered to and from customers according to pre-defined service levels

or warranty agreements on a one-, two-, four- or eight-hour and next-day basis, 24 hours a

day, seven days a week.

Technical Distribution

Supporting companies in a wide range of industries including computer equipment and

peripherals, medical equipment, vending equipment, office equipment and

telecommunications, our technical distribution service meets the challenges associated

with the effective and safe movement of high-value goods.

Technical Services

Technology manufacturers expect every link in the supply chain to have capabilities to add

value to their product or process. Our tailor-made solutions can be integrated into existing

customer operations at our warehouses. The strength is the integrated approach with other

segments of the business which improves time-to-market and reduces the cost for the

customer.

Value Added Services

Co packing

Product assembly

Other value added services

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Co-packing

We offer a comprehensive selection of manufacturing and packaging services through

Power Packaging a DHL Company.

By integrating manufacturing and packaging operations within their supply chains, our

customers can:

Add flexibility

Improve service levels

Reduce costs

Accelerate time to mark

Increase asset utilisation

In addition to these core packaging services, Power Packaging brings a unique set of

services and capabilities for customers that include:

Dry foods manufacturing:Blending and production of complex, multi-component products

Carton, pouch and canister filling in the following types of containers

Rigid containers (composite and plastic canisters, metal cans, glass or plastic jars)

Flexible containers (form fill and seal pouches, cartons, slim-sticks and

standup/recloseable pouches)

Beverage manufacturing:

Blending, mixing and filling of hot and cold fill beverages and concentrates in the following

types of containers:

Plastic bottles (PET) and glass containers (10 oz up to 128 oz)

Shelf-stable containers (paperboard, plastic cup and bag-in-a-box)

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Dedicated facility services:

Turnkey manufacturing solutions including:

Site selection/development

Facility and systems design

New facility start-up and operation.

Other services: Packaging and raw material sourcing, procurement and assembly

Batch/quality control tracking via digital easy-to-trace coding system

Full range of secondary packaging services

Product Assembly

Postponement, quick response and mass customisation are breakthrough business

strategies enabled via packaging services. Integrating packaging operations into

distribution centres streamlines fulfillment reducing cost, enhancing product visibility and

control, and improving speed-to-market and flexibility in the supply chain.

Packaging services include:

Postponement packaging - primary, secondary and specialty components

Co-packing, kitting, assembly and repackaging

Retail-ready, point-of-purchase displays

Lot control via variable digital and laser printing

Machinery system engineering - labelling, bagging, carton filling, club store packs,

clamshells and printed and unprinted film over-wraps

Make-to-order pallets

Product rework/redress

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Other Value Added Services

Kitting/Pre-AssemblingKitting is the addition of items such as accessories and batteries to the product pack. Pre-

assembling is completion of a finished product from component parts or pre-programming

of products.

Sequencing/Linefeeding

Sequencing is the consolidation, pre-assembly and sequencing of material flows. Line

feeding covers the delivery of assembled components to a production line.

Re-Working/Re-Packing

Repacking for a specific customer can include repalletisation. Reworking is the

modification of products to suit a local market.

Packaging/Bundling

Packaging includes packing of products into suitable media for transportation and retail

display. Bundling is the assembly of a number of pre-packaged products to make up an

integrated product offering.

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QA Control

Quality control ensures that product is received into and dispatched from the warehouse in

a suitable condition, free from faults and defects.

Labelling/Merchandising

The application of labels either to the product or to the packaging. Merchandising can

include the addition of price stickers or promotional items ready for retail display.

External Performance Measurement

While internal measures are important for detailed organizational monitoring, external

performance measures are also necessary to monitor, understand and maintain a focused

customer perspective and to gain innovative insights from other industries. The topics of

customer perception measurement and best practice benchmarking, which address these

requirements, are discussed and illustrated below.

Customer Perception Measurement

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To succeed in any activities of business one has to always cater to and satisfy the needs of the

customer. To do so, it is essential for one to know how the customer thinks in order to meet his

needs in a more satisfying manner. Therefore, an important component of leading edge

logistical performance is the regular measurement of customer perceptions. Such measures

can be obtained through surveys or by systematic order follow up. These surveys can be

company - or industry – sponsored.

Such surveys ask questions regarding the firm’s and the competitor’s performance in general

or for a specific order in particular. Most of the surveys incorporates measurement of customer

perceptions regarding availability, performance-cycle time, information availability, problem

resolution and product support. The survey may be developed and administered by the firm

itself or by consultants, delivery agents or industry organizations.

Conclusion

Logistics is one the most important and integral part of any organisations strategy

and function. When the logistical process is carried out accurately then not only the

company reduces the production cost but also improves the efficiency and customer

satisfaction. Overall logistics management is very important for today’s highly competitive

and cut- throat corporate world.

DHL has the worlds largest express and logistics Network. Over the past decades

it had turned delivering goods into a finely oiled process. Be it a book, pen, WIP material,

drugs, hazardous chemicals, clothes, documents, wild animals and any other thing under

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the sun DHL delivers it . With a network spanning 200 countries and with its private fleet of

airplanes, mobile vans, cargo ship carriers & even rail way automotives in some countries

DHL can handle any type of goods. Not only that with international network there comes

the hassle of documentation and paperwork, standard packaging and other formalities to

adhere to. But DHL has its own department which looks into the international laws and

other formalities. In the end what maters is delivering good in good condition at the door

step of the customer. A happy and satisfied customer makes the business grow.

Competitors have come and gone but DHL has been able to keep its No 1 position intact.

This is because of its dynamic nature and attitude of maintaining good customer relations.

Logistics management is important for every organisation but more so DHL.

We have tried to incorporate all the facets of logistics which propel DHL to be the

best delievery and carriage-service around the world. No wonder that DHL is head and

shoulders above all of its competitors!

BIBLIOGRAPHY

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