dhl project on operations

8/8/2019 Dhl project on Operations

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Introduction

Logistics is concerned with getting the products and services where they are needed whenthey 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, implementingand controlling the efficient, effective flow and storage of goods, services and relatedinformation from the point of origin to the point of consumption for the purpose ofconforming to customer requirements.

In order to understand the concepts of logistics in terms of practical usage and to glimpseinto the how a real company or organization uses logistics as a formidable tool to gaincustomer satisfaction, reduce overall cost and increase efficiency we selected DHL theworlds leading courier service company. But DHL is multi faceted and offers myriad typesof 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 themoon, the three partners took another small step that would have a profound impact on theway 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 anddramatically 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 ofdocuments and shipments by airplane.

The DHL Network continued to grow at an incredible pace. The company expandedwestward from Hawaii into the Far East and Pacific Rim, then the Middle East, Africa and


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Handover: The formal end of the project

INTEGRATED LOGISTICS

Logistics is viewed as the competency that links an enterprise with its customers andsuppliers. Information from and about customers flows through the enterprise in the form ofsales activity, forecasts and orders. As products and materials are procured, a value addedinventory flow is initiated that ultimately results in ownership transfer of finished products tocustomers. Thus the process is viewed in terms of two inter-related efforts, inventory flowand information flow.

Inventory Flow

Information Flow

Inventory Flow

The management of logistics is concerned with the movement and storage of materials andfinished products. From the initial purchase of a material or component, the logisticalprocess adds value. By moving inventory when and where needed. Thus the material gainsvalue 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:

Manufacturingsupport

Physicaldistribution

ProcurementSuppliers

Customers


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Physical distribution Manufacturing support Procurement

For DHL:

DHL is completely service oriented therefore it does not have its own material movementbut 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 thematerial 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 thesenders (including papers, documents, physical goods like clothing, household good,chemicals, exotic animals etc) are weighed, checked for condition, and depending upon itsvarious 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 serviceswould 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 haverequirements. Information also integrates the three operating areas. The primary objectiveof developing and specifying requirements is to plan and execute integrated logisticaloperations.

Logistical information involves two major types of flows:

1. Coordination flows2. Operation flows

1. Planning and coordination flows


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Coordination is the backbone of the overall information system.

Strategic objectives:Strategic objectives detail the nature and location of customers, which are matched tothe 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.

ForecastingForecasting utilizes historical data, current activity levels, and planning assumptions topredict future activity levels. Logistical forecasting is generally concerned with relativelyshort term predictions.

The overall purpose of information planning/coordination flow is to integrate specificactivities within a firm and to facilitate overall integrated performance.

For DHL

DHLs whole business is dependent on the vital point of timely delivery. Based on thedistance to the final receiver, the accessibility, the documentations and procedures thatneed to be handled etc they have fine tuned the process of delivery. They canaccurately 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 toreceive, process, and ship inventory as required supporting customer and purchasingorders. Operational requirements deal with

Order management Order processing Distribution operations


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Inventory management Transportation and shipping ProcurementFor DHL:

DHL owns its success for the efficiency with which the operations are carried out. Here notonly the company but the sender and sometimes the receiver can track the goods throughtheir information center. They are given a certain password which they can use to trace viaonline or their customer service helpline.

DHL WEB SHIPPING is the on-line express shipping tool that helps customers preparedocuments, book pick-ups, store contact details and track their deliveries. Ideal for busyoffice managers, business travelers or receptionists, DHL WEB SHIPPING needs no specialsoftware 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, checkservice availability or track your shipments from any location, in real time, direct from yourwireless laptop.


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Supply Chain Management

Definition for supply chain management

Supply chain management is the management of upstream and downstream relationshipswith 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 anddownstream linkages, in the different processes and activities that produce value in the formof products and services in the hands of ultimate consumer.

For DHL:

Supply Chain OptimisationGood design is at the heart of an effective supply chain solution. DHL has developed areputation for consistently developing innovative solutions that streamline operations andimprove control. Their in-house teams have contributed to the solutions design of some ofthe world's leading brands and enabled to win key contacts.

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


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network strategy, transport design, warehouse design and simulation, through to operationalimprovement and inventory analysis.

International Supply ChainExtended Supply Chain Services

Implementation ServicesOutsourcing Projects

International Supply Chain

DHLs international supply chain management solutions are focused on helping customerstake increased control of international inbound supply chain to maximise the value ofinternational 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; customsbrokerage; consolidation services and value-added services

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


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Destination management, including: port and demurrage management; customsbrokerage; de-consolidation and pre-retail services; port to distribution centretransportation; direct store delivery (US only)

Supply chain visibility and management, including: purchase order management; RFID product tracking; exception management; planning and forecasting; inventorymanagement.

Global forwarding services are provided across all major routes.

Logistical services that are offered.

Reverse LogisticsService LogisticsInbound to ManufacturingMedical Device DistributionDistribution to Stores ManagementEngineering Response

Reverse Logistics

DHLs reverse logistics solutions help customers plan, implement and control flow ofmaterials and manage related information, back up the supply chain to recapture values andensure the safe disposal of goods. Items include the recovery of obsolete or non-operationalwhite goods such as refrigerators, plus the removal of old furniture on delivery of new orreplacement 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


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Service and replacement parts

DHLs service and replacement parts service involves the management of manufacturers'replacement parts delivered to and from customers according to pre-defined service levelsor warranty agreements on a one-, two-, four- or eight-hour and next-day basis, 24 hours aday, 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 ordermonitoring 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 supplierorigins to consumption points in manufacturers production lines.

The service encompasses:

Network, transportation and facility design Inventory optimisation Supplier management


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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 warehousemanagement and supply chain event management systems to manage just-in-timedeliveries and allow supply chain participants to exchange forecast requirements in realtime.

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 localcustomer base. This includes the receipt of product from local or global manufacturing sitesand downstream distribution to hospitals.

Distribution to stores management

DHL distribution to store services are focused on helping retailers create efficientand flexible supply chains to deliver product to retail outlets at high levels of service.


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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 fromworks planning and inbound goods through to on-site works, delivering stock out toengineers, builders and construction workers in the field.

Extended Supply Chain Services

DHL not only provides physical logistics services but also manages other enhanced supplychain 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 andfunctions as a Help-desk.

Global Inventory Management

DHL gives the customer a global view of inventory, thus enabling informed decisionsregarding the disposition of stock.

Consolidated Billing Services

The creation of a consolidated and categorized invoice, based on all services performedin a specific time-period by more than one service provider, made available in an agreedformat.


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Freight & Customs SolutionsDHL's many years of experience with international trade requirements and formalities,combined with the European Competence Centre and country expertise, givescustomers the leading edge in service, quality and management in cross border

transactions.

Implementation Services

Implementation and Project Management

Implementation starts by defining project aims, setting the targets and describing thedeliverables 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 orientationinto the whole structure and workflow of a company by using methods and techniques ofquality management

Corporate Policy for Quality, Environment, Health and Safety (QEHS) is based on fivecorporate 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 individualpotential in multi-cultural teams

Operational excellence: Continuous improvement of processes and services to fulfilor exceed expectations

Corporate citizenship: Acting as a responsible corporate citizen in all countries Shareholder reward: Developing a sustainable business to provide increasing

shareholder value


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

Performance Management :

Performance management is a key part of the supply chain. Measured elements arereviewed as a system, as each component interacts with all the other parts around it.Performance measuring not only records historical performance but also provides earlyindication of any service slippage. In this second role, the measures provide a valuablecontribution 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

Innovative Supply Chain Development

Supply Chain Management services are delivered across industry sectors and provideexpertise, knowledge and resources in terms of personnel and supply chain tools. Allservices are targeted at optimising logistical operations in both process and strategy, and

are aligned to the client's commercial expectations.


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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

DHLs consulting services also offer re-organisation of customer facilities, project

management for customers, implementation of new IT Systems, creation of tenderdocuments and tender processing.

Supply Chain Re-engineering

DHL works with customers to review supply chain efficiencies. One of the main tasks isto evaluate cost efficiency to ensure that costs are being driven down throughout thecontract duration. Data analysis allows DHL to provide customers with 'what if modeling'or the impact of changing the business rules.

After Sales OptimisationOptimising return logistics and spare parts logistics as well as maintenance and repairservices.

Vehicle Management Services

Our vehicle management services focus on the management of sales and marketingsupport programmes for automotive manufacturers. Combining a range of services andsystems to deliver a global response, we help you overcome challenges at the end ofthe automotive supply chain.


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Distribution to Stores Management

DHLs distribution to store solutions are focused on helping retailers create efficient andflexible 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 repairservices.

Vehicle Management Services

Our vehicle management services focus on the management of sales and marketingsupport programmes for automotive manufacturers. Combining a range of services and

systems to deliver a global response, we help you overcome challenges at the end ofthe automotive supply chain.

Distribution to Stores Management

DHLs distribution to store solutions are focused on helping retailers create efficient andflexible 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. Transportationprovides 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 themanufacturing process or physically closer to the ultimate consumer. A primarytransportation function of product movement is moving up and down the value chain. Sincetransportation utilizes temporal, financial, and environmental resources, it is important thatitems 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-transitinventory, is becoming a significant consideration as a variety of supply chain strategiessuch as just in time and quick response practices reduce manufacturing and distributioncenter inventories.

Transportation uses financial resources because internal expenditures are necessary forprivate 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 thedomestic United States economy. In fact, it accounts for close to 67% of all domestic oiluse.

Indirectly, transportation creates environmental expense through congestion, airpollution and noise pollution.


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The major objective is to move product from an origin location to a prescribed destinationwhile minimizing temporal, financial and environmental resource costs. Loss and damageexpenses must also be minimized. At the same time the movement must take place in sucha manner that meets customer demands regarding delivery performance and shipmentinformation 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 weightdecreases when the size of the shipment increases.E.g. truckload shipments cost less per pound than less-than-truckload shipments. It is alsogenerally true that larger capacity transportation vehicles such as rail or water are lessexpensive per unit of weight than smaller capacity vehicles like motor or air. Transportationeconomies of scale exist because fixed expenses associated with moving a load can bespread over the loads weight. The fixed expenses include administrative costs of taking theorder; 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 weightcost of $0.01. Thus, it can be said that an economy of scale exists for the 1000-poundshipment.

Economy of distance refers to the characteristic that transportation cost per unit of distancedecreases as distance increases.e.g. a shipment of 800 miles will cost less than two shipments (of the same combinedweight) of 400 miles. Transportation economy of distance is also referred to a se taperingprinciple 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 loweroverall per mile charge.

These principles are important considerations when evaluating alternative transportationstrategies or operating practices. The objective is to maximize the size of the load and thedistance 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 ofthe infrastructure also determines a variety of legal and economic characteristics for eachmode 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 ofthe early establishment of a comprehensive rail network connecting almost all the citiesand towns, railways dominated the intercity freight tonnage till World War II and in somecases of Europe, Asia and Africa they even connected the countries. This earlysuperiority enabled railways to transport large shipments very economically.

MOTOR CARRIERS

Highway transportation has increased rapidly since the end of World War II. This isbecause Motor carrier industry results from door-to-door operating flexibility and speedof intercity movement. They are even flexible because they can operate on each andevery kind of roadways.

In comparison to railroads, motor carriers have relatively small fixed investments interminal facilities and operate on publicly maintained highways. Although the cost oflicense fees, user fees, and tolls are considerable, these expenses are directly related tothe number of over-the-road units and miles operated.

The variable cost per mile for motor carriers is high because a separate power unit anddriver are required for each trailer or combination of tandem trailers. Labor requirements


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are also high because of driver safety restrictions and the need for substantial docklabor. 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 wasreplaced by steamboats in early 1800s and by diesel power in the 1920s.

Domestic water transportation involves the Great Lakes, canals, and navigable rivers.In every country, fewer system miles exist for inland water than any other transportationmode.The main advantage of water transportation is the capacity to move extremely largeshipments. Water transport employs 2 types of vessels. Deep-water vessels, which aregenerally designed for Ocean and Great Lakes use, & are restricted to deep-water portsfor access. In contrast, diesel-towed barges, which generally operate on rivers andcanals, have considerably more flexibility.

Water transport ranks between rail and motor carrier in the fixed cost aspect. Althoughwater carriers must develop and operate their own terminals, the right-of-way isdeveloped and maintained by the government and results in moderate fixed costs ascompared 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 placesthis mode of transport in demand when low freight rates are desired and speed of transitis a secondary consideration.


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AIR TRANSPORT

Air transport is the newest and the least utilized mode of transport. Its major advantagebeing 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. Thehigh cost of transport can be traded off for high speed, which allows other elements oflogistical design, such as warehousing, inventory to be reduced or eliminated. But still airtransport remains more of a potential opportunity than a reality because it is very muchunder utilized.

The high cost of jet aircraft, coupled with erratic nature of freight demand, has limited theassignment of dedicated planes to all-freight operations. However premium carriers provide planes dedicated for freight operations. This premium service started off withdocuments 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 destinationwhere 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. Onceagain the geographical location and how fast the goods have to be delivered are the factorsfor the final selection of modes of transportation .

The concept of economies of scale and economies of distance are both taken intoconsideration in case of larger consignments where DHL provides an appropriate logisticalsolution 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 Networks

DHL warehouse service supports inbound logistics, distribution and aftermarket services ina way that improves inventory management, reduces total operating costs and improvescycle times.

DHL facilities offer our customers warehousing that is fully integrated into the wider supplychain and meets demanding service levels. This encompasses the design implementationand operation for both dedicated and multi user sites.


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Benefits include improvements in:

Customer service levels Stock accuracy

Lead times Redundant stock costs Productivity responsiveness to a company's strategic needsMulti User Centres

We provide a network of multi-user warehouses, enabling manufacturers to hold inventoryat local level, whilst avoiding expensive, dedicated storage solutions. These facilities canreceive products from both local and global manufacturing sites, providing downstreamdistribution.

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

kitting services

Warehouse Management Solutions


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Warehouse Management Systems

The Warehouse Management System (WMS) records all events and actions in thereceipt, handling and storage of products and orders in a warehouse environment. TheWMS 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 animportant support for varied transport and distribution concepts (planning, timecontrolling, booking of transport capacity, communication with customs and otherauthorities).

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 witha high value and high impact on business.

Direct Express Inventory Management

Direct Express Inventory (DEI) allows customers to centralise stock in one warehouseand use express distribution to deliver components the next day. Entire management isdone by DHL.

Repair Return Inventory Management

Return & Repair Inventory (RRI) manages the physical flows for Return materialauthorisation. 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 repairedparts back into stock.

Cross DockingCross-dock operations are facilities where shipments are received from one mode oftransport and transferred to another mode, or where shipments complete one leg of a journey prior to commencement of another journey. Shipments are consolidated ordeconsolidated. Product received into the facility is not taken into inventory.

Inventory Optimisation


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Through effective inventory management, inefficiencies can be driven out of the supplychain, overall costs reduced and high service levels achieved. We optimize inventory at aline-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 'lineitem risk profiles' that measure the variability of demand and supply for each line item withina 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 High service standards Better matching of supply with demand More streamlined and responsive supply chain

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

Through sharing of DHL's resources, such as space, labour, equipment andtransportation, customers benefit from synergies that considerably reduce supply chaincosts.


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This environment returns significant value to a small business requiring distributionoperations without long term lease or capital commitments, or a large enterprisehandling a new acquisition, product launches or seasonal overflow.

Campus Solutions

We pioneered the campus model to provide regional customers with a flexible solutiondesigned to capitalise on similar distribution channels, minimise labour costs, andincrease 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 tolarge concentrations of consumers.

Special Warehouse Solutions

Vendor Hubs

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


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

Through sharing of DHL's resources, such as space, labour, equipment andtransportation, customers benefit from synergies that considerably reduce supply chaincosts. Consequently, the customer can increase efficiencies throughout their distributionnetwork and maintain a higher level of service to their customers.

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

Technological Electronics/Telecom solutions

Electronics/TelecomCore and Value-added Technology SolutionsInbound to Manufacturing


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inbound logistics to production facilities, including vendor managed inventory hubskitting, 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 logisticsInbound to Manufacturing

Our Inbound to Manufacturing service enables our customers to more effectively managethe inbound flow of materials from collection points at their component suppliers' facilities toconsumption points in their production lines. We help address the constant challenge forboth finished goods manufacturers and component and sub-assembly suppliers who mustadapt to shorter product lifecycles and the migration of production facilities to developing

countries.

Service Parts Logistics

Our Service Parts Logistics service involves the management of technology manufacturers'replacement parts delivered to and from customers according to pre-defined service levelsor warranty agreements on a one-, two-, four- or eight-hour and next-day basis, 24 hours aday, 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 andtelecommunications, our technical distribution service meets the challenges associated withthe effective and safe movement of high-value goods.

Technical Services

Technology manufacturers expect every link in the supply chain to have capabilities to addvalue 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 othersegments of the business which improves time-to-market and reduces the cost for thecustomer.

Value Added Services


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Co packingProduct assemblyOther value added services

Co-packingWe offer a comprehensive selection of manufacturing and packaging services throughPower Packaging a DHL Company.

By integrating manufacturing and packaging operations within their supply chains, ourcustomers 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 ofservices 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 followingtypes 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 businessstrategies enabled via packaging services. Integrating packaging operations intodistribution centres streamlines fulfillment reducing cost, enhancing product visibility andcontrol, 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

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


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products.

Sequencing/Linefeeding

Sequencing is the consolidation, pre-assembly and sequencing of material flows. Linefeeding 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 modificationof products to suit a local market.

Packaging/Bundling

Packaging includes packing of products into suitable media for transportation and retaildisplay. Bundling is the assembly of a number of pre-packaged products to make up anintegrated product offering.

QA Control

Quality control ensures that product is received into and dispatched from the warehouse ina suitable condition, free from faults and defects.

Labelling/Merchandising

The application of labels either to the product or to the packaging. Merchandising caninclude 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 focusedcustomer perspective and to gain innovative insights from other industries. The topics ofcustomer perception measurement and best practice benchmarking, which address theserequirements, are discussed and illustrated below.


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Customer Perception Measurement

To succeed in any activities of business one has to always cater to and satisfy the needs of thecustomer. To do so, it is essential for one to know how the customer thinks in order to meet hisneeds in a more satisfying manner. Therefore, an important component of leading edgelogistical performance is the regular measurement of customer perceptions. Such measures

can be obtained through surveys or by systematic order follow up. These surveys can becompany - or industry sponsored.

Such surveys ask questions regarding the firms and the competitors performance in general orfor a specific order in particular. Most of the surveys incorporates measurement of customer perceptions regarding availability, performance-cycle time, information availability, problemresolution and product support. The survey may be developed and administered by the firmitself or by consultants, delivery agents or industry organizations.


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Conclusion

Logistics is one the most important and integral part of any organisations strategyand function. When the logistical process is carried out accurately then not only thecompany reduces the production cost but also improves the efficiency and customersatisfaction. Overall logistics management is very important for todays highly competitiveand cut- throat corporate world.

DHL has the worlds largest express and logistics Network. Over the past decades ithad 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 ofairplanes, mobile vans, cargo ship carriers & even rail way automotives in some countriesDHL can handle any type of goods. Not only that with international network there comes thehassle of documentation and paperwork, standard packaging and other formalities toadhere to. But DHL has its own department which looks into the international laws and otherformalities. In the end what maters is delivering good in good condition at the door step ofthe customer. A happy and satisfied customer makes the business grow. Competitors havecome and gone but DHL has been able to keep its No 1 position intact. This is because ofits dynamic nature and attitude of maintaining good customer relations. Logisticsmanagement is important for every organisation but more so DHL.

We have tried to incorporate all the facets of logistics which propel DHL to be thebest delievery and carriage-service around the world. No wonder that DHL is head andshoulders above all of its competitors!


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dhl project on operations

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