Logistics of DHL

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Logistics System in DHL

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PROJECT REPORTON

“LOGISTCS SYSTEM IN DHL”

Bachelor of Management StudiesSemester V

SubmittedIn Partial Fulfillment of the requirements

For the Award of Degree of Bachelor of Management Studies\

By

GROUP I

VPM’ s Joshi Bedekar DEGREE COLLEGE OF B.M.S.College road, THANE(w)

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DECLARATION

We, GROUP-I the student’s of VPM’ s Joshi Bedekar DEGREE COLLEGE OF B.M.S. hereby assure that, we had completed this project on Logistic System In DHL in the academic year 2012-2013, the information submitted is true to the best of our knowledge & belief.

R. no. Name Signature

01. Shahish Gawde

05. Abdul Sattar

06. Abizer Bombaywala

31. Amar ravi

32. Ramesh zurale

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ACKNOWLEDGEMENT

A compendium is never the work of one individual – more a

combination of ideas, suggestion and contribution involving

many hands.

Our debts are too numerous to be acknowledge

individually. A large number of individuals have contributed

directly and indirectly in the completion of this project. We

are extremely thankful to Mrs. Rakhi B.

It is pleasure to express my gratitude for the

assistance received from them. Hence we would like to take

this opportunity to thank them wholehearted for helping us

in preparing this project.

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OBJECTIVE OF THE STUDYThe objectives of the Project are:

PRIMARY OBJECTIVES

To know the effectiveness of logistics management of

DHL and to bench mark the organization with respect to

the industry.

To have a thorough understanding of how logistics system

works in DHL

SECONDARY OBJECTIVE

To know about Logistics Industries

To understand the value of each organization

To know whether the customers are satisfied with the

existing range of service pattern.

SCOPE OF THE STUDY:

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 world’s leading courier Service Company.

The study is done only how Dhl use logistics system effectively.

There are following strength and weakness of DHL

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COMPANY STRENGTHS

Strong Brand Image: In 1997, DHL became the global

express transportation company to obtain simultaneous

system-wide ISO 9001 certification in international quality

standards. DHL has also developed their own quality system

that matches their customer’s standards.

Globalism: DHL operates on a global scale. They operate

in more than 220 countries. They provide services that appeal

to most of the world. They have such a large market in which

to operate, and thus realize tremendous revenues. They can

also achieve global economies of scale.

Services and Technology: DHL uses and continues to

search for new technology. They spend nearly 10% of total

revenues, for information technology. DHL also has excellent

eServices that provide access to systems that ensure customers

have control and visibility of their supply chains at all times.

Products can be tracked, queried and ordered online.

Corporate symbiosis:DHL has developed its own

organizational structure to serve the global market, which it

has called “corporate symbiosis.” This approach encompasses

the empowerment of the DHL personnel at a local level, at the

same time recognizing the interdependence of the parts of

DHL as a corporate whole.

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Smart-Truck Project: It is the programme which allows

DHL to deliver faster. The data are transmitted directly to the

dynamic route planning system, which recalculates the routes,

depending on the current order situation and volume of traffic.

COMPANY WEAKNESS:

High Prices: DHL’s prices are above their competitors.

This can be a weakness if their customers do not perceive a

difference between DHL and its competitors’ services.

Mistakes in Market-Share Estimate: The biggest

weakness is DHL’s market-share estimate. It is difficult to

estimate even when the market is stagnant and contains few

competitors, and all market-share estimates should be viewed

with circumspection.

Weak Visibility: It has weak visibility in the community

compared with its potential

Not Well-known in USA as UPS and Fedex

Table of contents

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1 INTODUCTION TO LOGISTICS……………… 10

1.1 Meaning of logistics……………………………10

1.2 Origin and Definition of Logistics…………………..12

1.3 Importance of logistic management………………131.4 Logistics Management and Supply chain …………..15

2 BACKGROUND OF DHL………………………….18

2.1 History of DHL ………………………………………..19

2.2 The world's largest express and logistics Network ……20

2.3 The DHL Indian Profile ……………………………….21

2.4 Product and services of DHL ………………………….23

3. INTEGATED LOGISTICS SYSTEM………………25 3.1 Inventory Flow …………………………………………26

3.2 Information Flow ……………………………………….27

Coordination Flow………………………………………….28

Operating flow………………………………………………29

4. SUPPLY CHAIN MANAGEMENT…………………30 4.1 DHL International Supply chain…………………………32

Reverse Logistics……………………………………………..33 Services Logistics……………………………………………..34 Inbound to Manufacturing…………………………………..35 Medical device Distribution…………………………….......36 Distribution to store Management………………………....36 Engineering response………………...................................36

4.2 Extended Supply Chain Services…………………… 37

4.3 Implementation Services ……………… 38

4.4 Performance Management ……………………………… 39

4.5 Outsourcing Projects …………………… 39

http://www.dhl.com/publish/g0/en/services/logistics/supplychain/management.high.html#aPar0026



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4.6 Innovation of Supply Chain development ……………… 40

4.7 Solution for Customize end to end logistic worldwide … 42

5 TRANSPORTATION ………………………………45

5.1 Transportation functionality ………………………......…46

5.2 Principles ……………………………………………..….47

5.3 Transportation Infrastructure ………………………….…49

5.4 OPTIMIZATION OF LOGISTICS WITH DHLROAD AND RAIL. SOLUTIONS ……………………………………………535.5 Air and ocean freight solutions …………………………..54

6 INVENTORY MANAGEMENT & WAREHOUSG 56

6.1 Warehouse Infrastructure Network……………………...57

Multi User Centers ………………………………… ….57

Strategic Part Centers (SPC) …………………………58

Express Logistics Centers (ELC) …………………….58

6.2 Warehouse Management Solution …………………..59

Warehouse Management Systems…………………..…59 Strategic Inventory Management ………..................59

Direct Express Inventory Management……….…….59

Repair Return Inventory Management ……………60

Cross Docking …………………………………..……60

6.3 Inventory Optimization ……………………..……..616.4 Special Warehouse solution ……………………… 636.5 Outsourcing Projects. ………………………………64

7 VALUE-ADDED SERVICES …………………..…..657.1 Co-Packaging ……………………………………..…65 7.2 Product Assembly ……………………………...…677.3 Other-Value added Service …………………….....68

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7.4 External Performance Measurement …………..…69

7.5 Customer Perception Measurement ………………69

8 Worldwide Parcel Express ……………………...…70

9. Recommendation …………………………………..72

10 Conclusions ………………………………………..73

11 Bibliographies ……………………………………..74

INTRODUCTION

MEANING OF LOGISTICS:

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Logistics is concerned with getting the products and services where they

are needed and 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.Logistics is practiced for ages

since organized activity began. Without logistics support no activity can

be performed to meet defined goal. The current

challenge is to perform logistics scientifically in

order to optimize benefits to the organization.

Logistics is a planning function of management.

Logistics function is concerned with taking

products and services where they are needed and

when they are needed.

LOGISTICS MANAGEMENTS:

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Logistics management is that part of the supply chain which plans,

implements and controls the efficient, effective, forward and backward

(reverse) flow and storage of goods, services and information between

the point of origin and the point of consumption in order to meet

customers' requirements rather to the customers’ delight. A professional

working in the field of logistics management is called a logistician.

Logistics, as a business concept, evolved only in the 1950s. This was

mainly due to the increasing complexity of supplying one's business

with materials, and shipping out products in an increasingly globalize

supply chain, calling for experts in the field who are called Supply

Chain Logisticians. This can be defined as having the right item in the

right quantity at the right time at the right place for the right price and to

the right target customers (consumer);and it is the science of process

having its presence in all sectors of the industry. The goal of logistics

work is to manage the fruition of project life cycles, supply chains and

resultant efficiencies. Logistics is Concerned with getting (or

transmitting) the products and services where they are needed or 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.

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ORIGIN & DEFINITION OF LOGISTICS:

The term "logistics" originates from the ancient Greek "λόγος"

("logos"—"ratio, word, calculation, reason, speech, oration"). Logistics

is considered to have originated in the military's need to supply

themselves with arms, ammunition and rations as they moved from their

base to a forward position. In ancient Greek, Roman and Byzantine

empires, there were military officers with the title ‘Logistikas’ who

were responsible for financial and distribution of supplies.

The Oxford English dictionary defines logistics as: “The branch of

military science having to do with procuring, maintaining and

transporting material, personnel and facilities.”

The American Council of Logistics Management defines logistics as”

the process of planning, implementing and controlling the efficient and

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.”

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Importance of logistics managements:

1.Logistics is the bed rock of trade and business.

Without selling and or buying there can be no trade and business.

Buying and or selling takes place only when goods are physically

moved into and or away from the market.

Take away logistical support trade and business will collapse

2. Integrates logistical activities

In conventional management environment, various activities of logistics

work in isolation under different management functions. Each pocket

trying to sub optimizes its objectives at the cost of overall

organizational objectives. Purchasing trying to purchase at minimum

price at the cost of what is needed by operations. Operations produce

large quantities at minimum production cost ignoring demand leading to

doom inventory. Logistics function of management brings all such

functions under one umbrella pulling down inter departmental barriers.

3. Competitive edge :

In the fiercely competitive environment logistics provides the edge. Due

to technological revolution most of the products are moving into

commodity markets. In a commodity market where price is controlled

by competition, where there is no product differentiation in terms of

quality parameters like performance & reliability, where brands are

almost irrelevant, competitive edge is that of availability of product and

service in terms of time, place and quantity.

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4.Leads to customer satisfaction

Through superior customer service. Organizational objectives of P

[Productivity],Q [Quality],C [Cost],D [Delivery],E [Employee

Morale],F [Flexibility],S [Safety],H [Health],E [Environment] are set to

meet customer expectations.

5.Supports critical functions like operations and marketing

Strong logistics support enables a company to move towards JUST IN

TIME production system for survival in a highly competitive market

6.Logistics wins or loses wars

British lost American war of independence due to poor logistics

Rommel was beaten in the desert by superior logistics of Allies

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Logistics Managements and Supply Chain:

SCM and logistics management, the definitions made by the Council of

Supply Chain Management Professionals, CSCMP (former Council of

Logistics Management, CLM) SCM is defined as “Supply chain

management encompasses the planning and management of all

activities involved in sourcing and procurement, conversion, and all

Logistics Management activities. Importantly, it also included

coordination and collaboration with channel partners, which can be

suppliers, intermediaries, third-party service providers, and customers.

In essence, Supply Chain Management integrates supply and demand

management within and across companies “Supply chains encompass

the companies and the business activities needed to design RFDn,

make, deliver, and use a product or service. Businesses depend on their

supply chains to provide them with what they need to survive and

thrive. Every business fits into one or more supply chains and has a role

to play in each of them. The pace of change and the uncertainty about

how markets will evolve has made it increasingly important for

companies to be aware of the supply chains they participate in and to

understand the roles that they play. Those companies that learn how to

build and participate in strong supply chains will have a substantial

competitive advantage in their markets. Supply chain management is

the coordination of production, inventory, location, and transportation

among the participants in a supply chain to achieve the best mix of

responsiveness and efficiency for the market being served. There is a

difference between the concept of supply chain management and the

traditional concept of logistics. Logistics typically refers to activities

that occur within the boundaries of a single organization and supply

chains refer to networks of companies that work together and coordinate

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their actions to deliver a product to market. Also traditional logistics

focuses its attention on activities such as procurement, distribution,

maintenance, and inventory management. Supply chain management

acknowledges all of traditional logistics and also includes activities

such as marketing, new product development, finance, and customer

service. In the wider view of supply chain thinking, these additional

activities are now seen as part of the work needed to fulfill customer

requests. Effective supply chain management requires simultaneous

improvements in both customer service levels and the internal operating

efficiencies of the companies in the supply chain. Customer service at

its most basic level means consistently high order fill rates, high on-

time delivery rates, and a very low rate of products returned by

customers for whatever reason. Internal efficiency for organizations in a

supply chain means that these organizations get an attractive rate of

return on their investments in inventory and other assets and those they

find ways to lower their operating and sales expenses.

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Company Profile

INFORMATION

DHL is the global leader in logistics - with more highly experienced

professionals at more locations in more countries than any other

provider. His goal is to build strong, long-term partnerships with

customers by providing world class services, across all our operations.

In India, they have formed a new joint venture - DHL Lemuir

Logistics, which consolidates their position as the leader in International

Freight Forwarding, Supply Chain Management, Project Transport and

Customs Brokerage. They are the first choice for companies

looking for end to end logistics solutions and high quality servicing

capabilities. After joining forces with Excel in 2005, they are now also

the sector's leading innovator - providing the extraordinary range of

cutting-edge solutions.

His logistics customers include over 75% of the worlds largest quoted

non-financial enterprises. These organizations trust us with their brands

and reputations not simply because they are the worldwide market leader,

but because they strive to deliver globally consistent services of the

highest quality,

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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 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

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The world's largest express and logistics Network

DHL is a global expertise in express, air and ocean freight, overland transport and logistics solutions; DHL combines worldwide coverage with an in-depth understanding of local markets.

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

DHL Express worldwide

Employees more than 124,000

Countries and territories more than 220

Hubs 36

Bases 4700

Vehicles 72,000

Aircraft 350

Pack stations (only Germany) 900

DHL Logistics in figures

DHL logistics worldwide Employees * more than 162,500

DHL Global Forwarding Countries and territories 150

Terminals, warehouses, offices 813Air freight volume 4,409,000 tonesOcean freight volume TEU ** 2,764,000DHL Excel Supply Chain Countries and territories 59Centers, warehouses, terminals 2500Storage area sqm 23,000,000DHL Freight Countries and territories more than 30Full truckload movements p.a. 2,000,000Terminals more than 160

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DHL INDIA CORPORATE PROFILE

DHL Worldwide Express (India) Pvt Ltd is the No.1 international air

express services provider in India, a position it has held since it began

its India operations in 1979. Today, DHL offers its customers the entire

spectrum of express services from international air express to high end

logistics solutions including repair and return, strategic inventory

management and direct express inventory. DHL India has over 50,000

customers serviced through DHL's national network with its 1,000

strong ground staff, fleet of 400 vehicles and dedicated service centers

in Ahmadabad, Bangalore, Chennai, Cochin, Jaipur, Hyderabad,

Kolkata, Mumbai, New Delhi, Pune and Tripura. Acknowledged for its

innovative solutions and pioneering initiatives, DHL India has many

firsts to its credit including India's first and only 24-hour customer

service call center, the first to introduce customized solutions such as

Jumbo Box, Junior Jumbo, Import Express and Fashion First for

customers in the air express industry, as well as the first to provide track

and trace services in India via email, via SMS or via the Internet and

WAP phones.

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Facilities:

DHL India has an outstanding reputation in the market for providing a

reliable, fast and easy-to-use service. DHL offers-

Highly trained and professional staff, committed to being responsive to

all customers’ needs

Customer Service Agents, available round-the-clock, 365 days of the

year, to serve customers whenever and wherever they need them

Electronic pre-clearance of shipments through Customs

Five international gateways providing direct-to-air networks and

faster sorting of inbound and outbound shipments

DHL India is a proven facilitator of trade, across the globe. His strength

lies in our global network and the know-how of our people. Backed by

strategic alliances with world-class partners and the innovative use of

technology, they strive to continuously improve the quality of our

service. Our services range from fast, responsive and cost effective

express deliveries toe-commerce fulfillment and intelligent logistics

solutions. DHL Core Services consist of door-to-door air express

delivery of documents and parcels of all sizes (and weight), both into

and out of the country.

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Products and services of DHL:

DHL Document Express (DOX):

This service is ideal for shipments that are not subjected to Customs

declaration at destinations, or have no commercial value or do not

require a license.

DHL Express Worldwide Package (WPX)

This service is used for shipments with commercial value or those,

which must be declared for Customs evaluation. They may be subjected

to Customs inspection at destinations and may be taxable or dutiable.

Jumbo Pack and Jumbo Junior:

This service makes exporting easy. One box dispatched for one flat fee,

anywhere in the world. DHL Jumbo Box is for shipments under 25kg

and Jumbo Junior for shipments less than 10kg.

Import Express:

This service is a single window solution for all importing needs. DHL

Import Express is a one window, one rate, and one account, one

currency service that enables a shipment picked up from the supplier's

doorstep overseas and delivered directly to the customer anywhere in

the world. And what's more, it allows the customer to maintain total

control of your importing costs.

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Fashion First:

Fast Forward is the revolutionary new service of DHL for moving

heavy goods that brings increased efficiency and delivers greater cost

savings for Indian importers and exporters. It facilitates the import and

export of shipments weighing 20kg and above by providing significant

savings with a wide range of innovative and flexible door-to-door

solutions. Another feature of Fast Forward is Trade Automated Services

(TAS), an online platform that provides comprehensive trade and

customs information in 50 key countries worldwide, calculates total

landed costs of a shipment (including duty, tax and other customs

related charges), generates import and export documentation, screens

senders and receivers against government lists pertaining to embargoes

and sanctions, and compares an item's export and import clearance costs

and regulations to enable qualifying sourcing decision. Fast Forward is

specially developed after extensive research and designed to meet the

unique needs of industries such as Automobiles, Electronics, Heavy

Engineering, Publishing and Textiles.

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INTEGRATED LOGISTICS

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

customers and suppliers. Information from and about customer’s 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.

Inventory flow

Information flow

Suppliers Physical distribution

Manufacturing support

Customers

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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

ProcurementFor DHL:

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

material movement but that of the customers 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 (e.g. if there has to be a certain

package delivered from India to UK the normal services would take

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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

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.

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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

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.

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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.

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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.( in detail mention above)

For DHL:

Supply chain Optimization

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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





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1. International Supply Chain:

DHL’s international supply chain management solutions are focused on

helping customers take increased control of international inbound

supply chain to maximize 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

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.

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Logistical services that are offered.

Reverse Logistics

Services Logistics

Inbound to Manufacturing

Medical device distribution

Distribution to stores Management

Engineering Response

a) 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 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 product

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a.) 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:

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.

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b.) 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 optimization

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

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

c.) Medical Device Distribution

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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.

d.) Distribution to stores management

DHL distributions 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.

e.) 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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2. Extended supply chain services

DHL not only provides physical logistics services but also manages

other enhanced supply chain services, improving efficiencies and

reducing costs.

a.) Order Management

Receipt, management, execution, sequencing and dispatch of orders in a

timely manner.

b.) Call Center Management

A Call Centre manages orders, monitors sales activities, provides

customer services and functions as a Help-desk.

c.) Global Inventory Management

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

informed decisions regarding the disposition of stock.

d.) 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.

e) 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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2. Implementation Services:

a. 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.

b. 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 fulfill or exceed expectations

Corporate citizenship: Acting as a responsible corporate citizen in all

countries

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.

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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 involves DHL taking over and managing previous in-house

logistics operations, including:

Distribution centers

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 optimizing

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 optimization: Route-Pro and

Trans-Pro

Consulting and providing Supply Chain Design

Consulting and providing Transportation

Engineering, optimization and re-engineering

Implementation and Project Management

Process Management

Outsourcing

DHL’s consulting services also offer re-organization of customer

facilities, project management for customers, implementation of new IT

Systems, creation of tender documents and tender processing.

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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 contract duration. Data analysis

allows DHL to provide customers with 'what if modeling' or the impact

of changing the business rules.

After Sales Optimization

Optimizing 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,

they 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 services

These solutions are built from several core services including reverse

logistics:

logistics network strategy

warehouse design and simulation

Transport modeling.

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DHL Solution

Solution for customizedEnd-to-end logistics worldwide.

Solution for customizedEnd-to-end logistics worldwide.

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Best-in-class solutions that deliverValue to your supply chain.

Customized Logistics Solutions.

Supply Chain Management

Warehousing

Value Added Services

Distribution

Outsourcing

Analysis, design and engineering. Lead Logistics Provider (LLP) and Lead Service Provider (LSP) services.

Engineering, design and management. Vendor management, just in time.

Order management, quality control, outbound fulfillment, reverse and return logistics and other services.

Industry-specific local and transnational. Network and fleet planning and optimization

Take-over and management of in-house logistics including distribution, transport, back-office, supply chain and after sales.

DHL Solutions offers customized logistics solutions for your entire supply chain. Our complete overview – from manufacturer/supplier to retailer to consumer – enables you to achieve operational excellence at every stage. Services range from consulting and design to management and execution. They provide industry-specific expertise and long-term experience that add value to your business. DHL Solutions sets the pace in Supply Chain Management with state-of-the-art technologies, delivering customized business solutions. Leading edge IT systems ensure seamless integration and guarantee full transparency and control throughout the entire supply chain.

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DHL Supply Chain, Corporate Information Solutions

This division consists of contract logistics services

and Corporate Information Solutions (Williams Lea).

Both business units focus on tailor-made customer

solutions.

The business unit Supply Chain provides

warehousing and transportation services as well as

value-added

solutions along the entire supply chain for customers from various

sectors of industry, including the key automotive, life sciences,

technology, fast-moving consumer goods, retail, and fashion sectors. The

subsidiary Williams Lea is the heart of the business unit Corporate

Information Solutions. The expert for document-based outsourcing

solutions gathers, digitalizes, prints, stores, sorts, addresses, envelops,

dispatches and archives documents of all types. Williams Lea is also the

right point of call for electronic invoicing and marketing services.

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TRANSPORTATION

Transportation is the most visible of all functions of logistics and high

contributor to logistics cost. We can see trucks, containers and

wagonloads of material being moved from place to place as an activity

directly associated with trade and business. We should also appreciate

that this is an activity that adds highest amount of cost to the activity of

making inputs and outputs available to consumers. Transportation

function moves the products to meet customer expectations at minimum

cost. 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.

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Transportation uses financial resources because internal expenditures

are necessary for private fleets or external expenditures are required for

commercial or public transportation.

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.

Product Storage:

Temporary storage in stationary vehicles or Vehicles kept moving

on a circuitous route - Product storage is expensive in a transport

vehicle. But sometimes keeping overall cost in mind this is adopted.

A. When unloading and loading is more expensive than storage

B. When storage space is limited. [Situation when inventory levels are

very high]

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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.

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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 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

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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

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.

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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 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 underutilized.

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.

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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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OPTIMIZATION OF LOGISTICS WITH DHLROAD AND RAIL SOLUTIONS.

DHL Freight is a leader in European overland transport. Our continent-

wide network and comprehensive range of products and services

guarantee reliable transport. DHL Freight offers you regular services for

group age and a full range of transport services for part- and full-load

shipments by road, rail and intermodal transportation. They provide

special handling and transportation for perishables, furniture, trade fair

or event equipment, as well as tailored customs clearance services in

more than 350 offices across Europe. State-of-the-art IT systems give

you totals shipment visibility and higher delivery efficiency. Our

industry-specific expertise and long-term experience can improve your

productivity and streamline your operations. A successful, high-caliber

partnership with DHL Freight gives you all the advantages you need to

optimize your logistics.

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Air and ocean freight solutions for a competitive advantage

Whether you need to forward door-to-door, airport-to-airport or port-to-port freight, DHL Danzas Air & Ocean offers a comprehensive range of services no matter the size, weight or dimensions of your goods.Combined with an extensive tool kit of information management systems and a global network of dedicated control towers, our experienced teams around the world can create the right logistics solution for your business.DHL Danzas Air & Ocean is in pole position to lead the future of air and ocean freight logistics and sets high standards in quality and security

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Air FreightDHL Danzas Air & Ocean offers a range of fast and cost-effective airfreight services for our most time-sensitive freight with door-to-door or airport-to-airport services, fixed schedules on all main routes and reliable connections to all other destinations.

DHL Air Freight products include:

Air First

Air Premier

Air Value

Combine the speed of airfreight and the lower cost of ocean freight – and you’ll benefit from our strength and experience in both. Plus, real-time tracking at every step of the way.

Part and Full Charter

Sea/Air

Creative routing solutions via major gateways can save you even more money while adding only 1-2 days over our Air Premier Service.

Chartering additional airfreight capacity is part of everyday business – especially if there is limited commercial lift, for new product launches, during peak seasons or for oversized cargo. Our specialists create solutions to get your goods through on time.

Whether door-to-door or airport-to-airport, Air First guarantees priority on the first flight out and forwarding within two days – 24-hours a day, 7-days a week, and 365-days a

Combines price and time considerations for both door-to-door and airport-to-airport service. Your shipment will arrive at the airport of any major marketplace around the world within only three days.

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Inventory Management and Warehousing.

Inventory is an unused asset, which lies in stock without participating in

value adding process. Unused equipment, raw material, WIP and

Finished goods, consumables, spare parts, bought out parts, tools and

tackles, gauge and fixtures etc. In India 9 to 12 months of sales quantity

lies in the form of Inventory [R/M, WIP, Bought out parts and Finished

goods] as against a few days in Japan and a month in the US and

Europe. In our country inventory is always viewed as asset [working

capital], in fact, though it is called an asset, it is a big liability

Warehousing was a customer’s function conventionally anywhere in the

world. Customer to protect himself from shortages at the time of

inclement weather always used to store provisions and other utilities in

his house. Consumer’s own stores were underground cellars, smoke

houses to store variety of items. Poor communication infrastructure

was mainly the cause for this storage by customer. Producers and

tradesmen conveniently shrugged off their responsibility for storage and

passed it on to the customer who was left with no option. Traditional

concept of warehouse as store or godown has undergone major change

now. Warehouse is considered a value adding facility now, playing a

remarkable role as a function of logistical management.

Warehouse Infrastructure Network

Warehouse Management Solution

Inventory Optimization

Special warehouse solution


http://www.dhl.com/publish/g0/en/services/logistics/warehouse.high.html#aPar0018

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1. Warehouse Infrastructure Networks

DHL warehouse service supports inbound logistics, distribution and

aftermarket services in a way that improves inventory management,

reduces total operating costs and improves cycle times.

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

a. Multi User Centers

We 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.


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b. Strategic Part Centers (SPC)

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

1, 2 and 4 hour order fulfillment

Stock optimization across the complete network of SPCs

Guaranteed performance against agreed business rules

c. Express Logistics Centers (ELC)

Our Express Logistics Centers (ELCs) are regional centralized facilities

offering:

order processing

outsourced repair facilities

custom final assembly

kitting services

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2. Warehouse Management Solutions :

a) 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).

b) Strategic Inventory Management

Strategic 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.

c) Direct Express Inventory Management

Direct Express Inventory (DEI) allows customers to centralize stock in

one warehouse and use express distribution to deliver components the

next day. Entire management is done by DHL.


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d) Repair Return Inventory Management

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

Return material authorization. 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.

e) Cross Docking

Cross-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.

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3. Inventory Optimization:

Through effective inventory management, inefficiencies can be driven

out of the supply chain, overall costs reduced and high service levels

achieved. They 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 optimization 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 customer’s

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

High service standards

Better matching of supply with demand

More streamlined and responsive supply chain

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Shared-user Warehousing

Our shared-user facilities are designed to meet the needs of

organizations 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 capitalize on similar distribution channels,

minimize 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.

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2. Special Warehouse Solutions

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 Centers

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

organizations 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 involves DHL taking over and managing previous in-house

logistics operations, including:

Distribution centers

Transport operations

Back-office functions

Supply chain management functions

After sales services


7


Value Added Services

Co packing

Product assembly

Other value added services

1. 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 utilization

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

unique set of services and capabilities for customers that include:

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a. 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)

b. Dedicated facility services:

Turnkey manufacturing solutions including:

Site selection/development

Facility and systems design

New facility start-up and operation

c. 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

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2. Product Assembly

Postponement, quick response and mass customization are

breakthrough business strategies enabled via packaging services.

Integrating packaging operations into distribution centers 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 - labeling, 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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3. Other Value Added Services

a.Kitting/Pre-Assembling

Kitting 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.

b. Re-Working/Re-Packing

Repacking for a specific customer can include repalletisation.

Reworking is the modification of products to suit a local market.

c. 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.

d. QA Control

Quality control ensures that product is received into and dispatched

from the warehouse in a suitable condition, free from faults and defects.

e. Labeling/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.

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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

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.

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International express door-to-door delivery overnight or by the

end of the next possible business day for goods subject to

Customs clearance.

One, reliable company makes international shipping easy.

Need to get products, samples, or spares to someone fast? Then trust

DHL’s Worldwide Parcel Express to expedite urgent shipments from

your door, through customs direct to the receiver - virtually anywhere in

the world. One company means you eliminate all the hassles of

international shipping. You never lose sight of your shipments. And

with DHL’s customs expertise, you get instant advice regarding local

regulations and customs documentation, ensuring the smooth clearance

of your goods. When it comes to delivering your company’s time-

critical shipments – and your reputation, rely on DHL’s Worldwide

Parcel Express.

Worldwide Parcel Express.

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One company to keep your business moving.When you need to get your goods delivered quickly, you don’t need the hassle of brokers or guessing the answers on customs forms. With Worldwide Parcel express, international shipping couldn't be easier.Benefit from the largest international express network and more in-house customs expertise than anyone else Experienced DHL personnel ensure delivery overnight in most locations or by the end of the next possible dayOne price for door-to-door delivery eliminates hidden costs so you can avoid surprises for your customers and your Finance Manager. Never lose sight of your goods. Access tracking and delivery details from virtually anywhere via the Internet, e-mail, WAP, SMS or phone

One company to handle your shipments More efficient processes Customs experience and advice to ensure

smooth clearance Shorter lead times through direct

distribution Ability to invoice quicker and improve

cash flow.

Gain greater control over your business.

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RECOMMENDATION

1. ENHANCE THE SMART-TRUCK PROJECT

Because of the stage of recession and high competition, the

companies need to make difference to have new customers and

increase their market share. To invent completely new product can be

very expensive and take very much time. So, making little difference

on the current product or service can be better. At this time, we need

to talk about innovation.

As a CEO of DHL Logistics, enhancing the Smart-Truck

Project is going to be my first strategy. This project will allow our

company to deliver faster and cut cost by using less fuel.To achieve

this goal, we will follow some steps:

a. Increase the budget of R&D 10%.

b. Prepare an office for a new innovation team and assign a leader to

work on this project.

c. Also pay premium for new and creative ideas whoever gives it

(even juniors). So this will provide us innovative atmosphere

2. AQUIRE SMALL - SIZE LOGISTICS COMPANIES:

By acquiring small local companies in different countries like China,

India, USA, will give us precense in that countries. Also, this will

decrease the threat of restrictions in those companie. Even they are small

companies, they can have creative solutions to different problems. So we

are acquiring new brains at the same time. We can get some ideas from

them to improve our skills. I mean we are not firing people who were

working there actually, we are hiring them to work with us.

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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 world’s 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 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 has that with international network there come 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 matters is

delivering well 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

organization 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

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world. No wonder that DHL is head and shoulders above all of its

competitors!

BIBLIOGRAPHY

a) Logistics and Supply Chain Management- Written by Martin

Christopher

b) Indian Logistics Industry” (2008) published by Cushman &

Wakefield

c) BUSINESS LOGISTICS – BARDI

d) Elements of Logistics Management- S.D.APHALE

Websites:

1. www.google.com

2. www.logisticmanagement.com

3. www.about.com

4. www.dhl.com

http://www.dhl.com/

http://www.logisticmanagement.com/

http://www.google.com/

Documents

Logistics of DHL