PROJECT REPORT

STUDY OF SUPPLY CHAIN MANAGEMENT WITH SPECIAL REFERENCE

TO DHL

















The TABLE OF CONTENT

Abstract
History and background of DHL
The world's largest express and logistics Network
Global Facts and Figures
Project Management by DHL
INTEGRATED LOGISTICS
Inventory Flow
Information flow
Logistical information involves two major types of flows:
Forecasting
Purpose of DHL Web Shipping:
Supply Chain Management
Definition for supply chain management
Explanation:
Supply Chain Optimisation
DHL International Supply Chain
Reverse Logistics
Service logistics
Inbound to Manufacturing
Medical Device Distribution
Distribution to stores management
Extended Supply Chain Services
Implementation Services
Performance Management :
Outsourcing Projects
Innovative Supply Chain Development
TRANSPORTATION
Transport Functionality
Principles
Transport Infrastructure
RAIL NETWORK
Inventory Management and Warehousing.
Warehouse Infrastructure Networks
Multi User Centres
Strategic Part Centres (SPC)
Express Logistics Centres (ELC)
Warehouse Management Solutions
Strategic Inventory Management
Direct Express Inventory Management
Repair Return Inventory Management
Cross Docking
Inventory Optimisation
Shared-user Warehousing
Special Warehouse Solutions
Outsourcing Projects
Technological Electronics/Telecom solutions
Value Added Services
Co-packing
Product Assembly
Other Value Added Services
External Performance Measurement
Conclusion
Suggestion for DHL
SUGGESTIONS & RECOMMODATIONS TO IMPROVE THE LOGISTICS SECTOR
IN INDIA
BIBLIOGRAPHY



















Abstract
Logistics management is increasingly becoming a topic of interest among
academicians and practitioners since it may lead to reduced operational costs,
improved delivery performance and increased customer satisfaction levels.
The global logistics industry is estimated to be worth USD 300 billion. Though most of
the large service providers are headquartered in Europe, the biggest market is the US,
which captures about one-third of the world market. The global logistics industry is
characterized by high costs of operations, low margins, shortage of talent,
infrastructural bottlenecks, demand from clients for investing in technology and
providing one-stop solutions to all their needs, and consolidation through acquisitions,
mergers and alliances. Though, in India, the industry is still in its infancy, there is
immense potential for growth. The Indian logistics industry is currently plagued with
low demand, poor infrastructure, high costs, and government
Regulations etc. However, it is going to turn around on the back of robust GDP growth,
globalization, FDI in logistics and increasing government support. This paper highlights
the current state of the industry, including the dynamics and opportunities for growth,
globally, in general, and in India, in particular, based on findings from surveys of
logistics service providers, and users, of India and other countries.










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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

The world's largest express and logistics Network

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DHL is the global market leader in international express, overland transport and air freight.
It is also the world's number 1 in ocean freight and contract logistics. DHL offers a full
range of customised solutions - from express document shipping to supply chain
management.

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





Global Facts and Figures

Number of Employees: around 285,000
Number of Offices: around 6,500
Number of Hubs, Warehouses & Terminals: more than 450
Number of Gateways: 240
Number of Aircraft*: 420
Number of Vehicles: 76,200
Number of Countries & Territories: more than 220
Shipments per Year: more than 1.5 billion
Destinations Covered: 120,000

The reason for the success of DHL is due to its very effective and efficient way of carrying
out the process of project management. The basic steps in it are as follows:

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Project Management by DHL
DHL manages projects according to a six-step process:
Initiation: The formal start of the project
Design: The formal agreement on how to approach the project and its deliverables
Planning: Following agreement, a detailed plan is created
Execution: After detailed planning and preparation, the project goes 'live'
Closing: Gradually phase out and prepare for handover of the deliverables
Handover: The formal end of the projec















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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 customers flows through the enterprise in the form of
sales activity, forecasts and orders. As products and materials are procured, a value added
inventory flow is initiated that ultimately results in ownership transfer of finished products to
customers. Thus the process is viewed in terms of two inter-related efforts, inventory flow
and information flow.

Inventory Flow








Information Flow







Manufacturing
support
Physical
distribution
Procurement Suppliers
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

Procurement

For DHL:

DHL is completely service oriented therefore it does not have its own material movement
but that of the customers both the sender, the receiver and also the intermediateries.
That means it only involves physical distribution and procurement. Procurement also
includes the material needed for packaging such as paper, moulded trays and boxes,

wooden crates, standard containers wraps, plastic inlays etc. The materials or the goods
collected from the senders (including papers, documents, physical goods like clothing,
household good, chemicals, exotic animals etc) are weighed, checked for condition, and
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depending upon its various characteristics it is packed. The goods are then dispatched to
their destinations. There is no value addition to the material itself but it is done to the
service which is provided ( eg if there has to be a certain package delivered from India to
UK the normal services would take about 2 days whereas as a super fast delivery would be
done in about 9 hours)
Information flow

Information flow identifies specific locations within a logistical system that have
requirements. Information also integrates the three operating areas. The primary objective
of developing and specifying requirements is to plan and execute integrated logistical
operations.

Logistical information involves two major types of flows:

1. Coordination flows
2. Operation flows

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.

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For DHL
It implies estimating the time requires for collecting the goods from the door step of the
sender and then estimating the time for the goods to reach the final customer.
Forecasting

Forecasting utilizes historical data, current activity levels, and planning assumptions to
predict future activity levels. Logistical forecasting is generally concerned with relatively
short term predictions.
The overall purpose of information planning/coordination flow is to integrate specific
activities within a firm and to facilitate overall integrated performance.

For DHL
DHLs whole business is dependent on the vital point of timely delivery. Based on
the distance to the final receiver, the accessibility, the documentations and procedures
that need to be handled etc they have fine tuned the process of delivery. They can
accurately gauge how much time it will take for the goods to reach its end destination.

2. Operational flows
The second aspect of information requirements is concerned with directing operations
to receive, process, and ship inventory as required supporting customer and
purchasing orders. Operational requirements deal with
Order management
Order processing
Distribution operations
Inventory management
Transportation and shipping
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Procurement

For DHL:

DHL owns its success for the efficiency with which the operations are carried out. Here not
only the company but the sender and sometimes the receiver can track the goods through
their information center. They are given a certain password which they can use to trace via
online or their customer service helpline.



DHL WEB SHIPPING is the on-line express shipping tool that helps customers prepare
documents, book pick-ups, store contact details and track their deliveries. Ideal for busy
office managers, business travelers or receptionists, DHL WEB SHIPPING needs no
special software or training.
Purpose of DHL Web Shipping:
DHL WEB SHIPPING's new, simplified navigation guides customers, quickly and easily,
through the entire process. So they can respond to any shipping request within minutes.

With a click of a mouse customers can:
Select the right shipping and value-added services for each shipment
Prepare air waybills and customs documentation on-line
Get the latest service bulletins and customs information
Book collections and track shipments on-line
Save up to 300 customer addresses
Access shipment records for 99 days
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Alert recipients and other interested parties

DHL WEB SHIPPING is also perfect for telecommuters. You can order a pick-up, check
service availability or track your shipments from any location, in real time, direct from your
wireless laptop.



Supply Chain Management

Definition for supply chain management
Supply chain management is the management of upstream and downstream relationships
with suppliers and customers to deliver superior customer value at less cost to the supply
chain as a whole.
Explanation:
The supply chain is the network of organizations that are involved through upstream and
downstream linkages, in the different processes and activities that produce value in the
form of products and services in the hands of ultimate consumer.


For DHL:
Supply Chain Optimisation
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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


DHL International Supply Chain

DHLs international supply chain management solutions are focused on helping customers
take increased control of international inbound supply chain to maximise the value of
international and global sourcing.

DHL helps customers :
Give visibility of the upstream supply chain, and enable earlier decision making
Create a more agile supply chain, better able to respond to changes in consumer
demand
Reduce lead times, inventories, and associated storage costs
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Customer-focused solutions are built up from the following core services:
Origin management, including: vendor management; supplier collections; customs
brokerage; consolidation services and value-added services
Global forwarding, including: air/ocean/road/rail freight forwarding and management;
European managed transport
Destination management, including: port and demurrage management; customs
brokerage; de-consolidation and pre-retail services; port to distribution centre
transportation; direct store delivery (US only)
Supply chain visibility and management, including: purchase order management; RFID
product tracking; exception management; planning and forecasting; inventory
management.
Global forwarding services are provided across all major routes.

Logistical services that are offered.
Reverse Logistics
Service Logistics
Inbound to Manufacturing
Medical Device Distribution
Distribution to Stores Management
Engineering Response



Reverse Logistics

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DHLs 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 products


Service logistics

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 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
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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.

Inbound to Manufacturing

Inbound to manufacturing is the complete end-to-end logistics management of inventories,
facilities and labour associated with the inbound flow of materials from vendors and
supplier origins to consumption points in manufacturers production lines.

The service encompasses:
Network, transportation and facility design
Inventory optimisation
Supplier management
Transportation management
In-plant services

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

Medical Device Distribution

DHL country-based warehouses for a number of manufacturers to service a local
customer base. This includes the receipt of product from local or global manufacturing sites
and downstream distribution to hospitals.

Distribution to stores management

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

These solutions are built from several core services: reverse logistics collections; sortation;
processing; repair/refurbishment; value recovery; disposal and compliance.

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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.


Extended Supply Chain Services

DHL not only provides physical logistics services but also manages other enhanced supply
chain services, improving efficiencies and reducing costs.
Order Management
Receipt, management, execution, sequencing and dispatch of orders in a timely
manner.
Call Centre Management
A Call Centre manages orders, monitors sales activities, provides customer services
and functions as a Help-desk.
Global Inventory Management
DHL gives the customer a global view of inventory, thus enabling informed decisions
regarding the disposition of stock.


Consolidated Billing Services
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The creation of a consolidated and categorized invoice, based on all services
performed in a specific time-period by more than one service provider, made available
in an agreed format.

Freight & Customs Solutions
DHL's many years of experience with international trade requirements and formalities,
combined with the European Competence Centre and country expertise, gives
customers the leading edge in service, quality and management in cross border
transactions.


Implementation Services

Implementation and Project Management
Implementation starts by defining project aims, setting the targets and describing the
deliverables in detail. The major topics in implementation include business processes,
engineering, real estate, IT systems, migration, HR, finance and legal considerations.
Quality Management
Total Quality Management is a management strategy that integrates quality orientation
into the whole structure and workflow of a company by using methods and techniques
of quality management
Corporate Policy for Quality, Environment, Health and Safety (QEHS) is based on
five corporate values:
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Customer satisfaction: Providing our customers and their customers with
excellent, high value logistics solutions
Employee motivation: Building on the know-how and stimulation of individual
potential in multi-cultural teams
Operational excellence: Continuous improvement of processes and services to
fulfil or exceed expectations



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

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




Performance Management :

Performance management is a key part of the supply chain. Measured elements are
reviewed as a system, as each component interacts with all the other parts around it.
Performance measuring not only records historical performance but also provides early
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indication of any service slippage. In this second role, the measures provide a valuable
contribution to DHL's Continuous Improvement Programme.


Outsourcing Projects

Outsourcing involves DHL taking over and managing previous in-house logistics
operations, including:
Distribution centres
Transport operations
Back-office functions
Supply chain management functions
After sales services

Innovative Supply Chain Development
Supply Chain Management services are delivered across industry sectors and provide
expertise, knowledge and resources in terms of personnel and supply chain tools. All
services are targeted at optimising logistical operations in both process and strategy, and
are aligned to the client's commercial expectations.



The services are as follows:
Strategic Logistics Consulting
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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 tender
documents and tender processing.
Supply Chain Re-engineering
DHL works with customers to review supply chain efficiencies. One of the main tasks is
to evaluate cost efficiency to ensure that costs are being driven down throughout the
contract duration. Data analysis allows DHL to provide customers with 'what if
modeling' or the impact of changing the business rules.
After Sales Optimisation
Optimising return logistics and spare parts logistics as well as maintenance and repair
services.
Vehicle Management Services
Our vehicle management services focus on the management of sales and marketing
support programmes for automotive manufacturers. Combining a range of services and
systems to deliver a global response, we help you overcome challenges at the end of
the automotive supply chain.
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Distribution to Stores Management

DHLs distribution to store solutions are focused on helping retailers create efficient and
flexible supply chains to deliver product to retail outlets at high levels of service.

These solutions are built from several core services including reverse logistics:
logistics network strategy
warehouse design and simulation
transport modelling.

After Sales Optimisation
Optimising return logistics and spare parts logistics as well as maintenance and repair
services.
Vehicle Management Services
Our vehicle management services focus on the management of sales and marketing
support programmes for automotive manufacturers. Combining a range of services and
systems to deliver a global response, we help you overcome challenges at the end of
the automotive supply chain.

Distribution to Stores Management

DHLs distribution to store solutions are focused on helping retailers create efficient and
flexible supply chains to deliver product to retail outlets at high levels of service.
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These solutions are built from several core services including reverse logistics:
logistics network strategy
warehouse design and simulation
transport modelling.
TRANSPORTATION

Transport Functionality
Transportation is one of the most visible elements of logistics operations. Transportation
provides 2 major functions: product movement & product storage.

Product Movement

Whether the product is in the form of materials, components, assemblies, work-in-process,
or finished goods, transportation is necessary to move it to the next stage of the
manufacturing process or physically closer to the ultimate consumer. A primary
transportation function of product movement is moving up and down the value chain. Since
transportation utilizes temporal, financial, and environmental resources, it is important
that items be moved only when it truly enhances the product value.

Transportation involves the use of temporal resources because product is inaccessible
during the transportation process. Such product, commonly referred to as in-transit
inventory, is becoming a significant consideration as a variety of supply chain strategies
such as just in time and quick response practices reduce manufacturing and
distribution center inventories.

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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.

Transportation uses environment resources both directly and indirectly.

In direct terms, it is one of the largest consumers of energy (fuel and oil) in the
domestic United States economy. In fact, it accounts for close to 67% of all domestic oil
use.

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

The major objective is to move product from an origin location to a prescribed destination
while minimizing temporal, financial and environmental resource costs. Loss and damage
expenses must also be minimized. At the same time the movement must take place in
such a manner that meets customer demands regarding delivery performance and
shipment information availability.

Principles

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

Economy of scale refers to the characteristic that transportation cost per unit of weight
decreases when the size of the shipment increases.
E.g. truckload shipments cost less per pound than less-than-truckload shipments. It is also
generally true that larger capacity transportation vehicles such as rail or water are less
expensive per unit of weight than smaller capacity vehicles like motor or air. Transportation
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economies of scale exist because fixed expenses associated with moving a load can be
spread over the loads 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.

Economy of distance refers to the characteristic that transportation cost per unit of
distance decreases as distance increases.
e.g. a shipment of 800 miles will cost less than two shipments (of the same combined
weight) of 400 miles. Transportation economy of distance is also referred to a se tapering
principle since rates or charges taper with distance. The rationale of distance economies is
similar to that for economies of scale.
Longer distances allow the fixed expenses to be spread over more miles, resulting in lower
overall per mile charge.

These principles are important considerations when evaluating alternative transportation
strategies or operating practices. The objective is to maximize the size of the load and the
distance that is shipped while still meeting customer service expectations.
Transport Infrastructure

Transportation infrastructure consists of the rights-of-ways, vehicles, and carrier
organizations that offer transportation services on a for-hire or internal basis. The nature of
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.
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RAIL NETWORK

Since olden times, railroads have handled the largest number of ton-miles. As a result
of the early establishment of a comprehensive rail network connecting almost all the
cities and towns, railways dominated the intercity freight tonnage till World War II and in
some cases of Europe, Asia and Africa they even connected the countries. This early
superiority enabled railways to transport large shipments very economically.
MOTOR CARRIERS

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

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

The variable cost per mile for motor carriers is high because a separate power unit and
driver are required for each trailer or combination of tandem trailers. Labor
requirements are also high because of driver safety restrictions and the need for
substantial dock labor. Motor carriers are best suited to handle small shipments moving
short distances.



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WATER TRANSPORT

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

The high cost of jet aircraft, coupled with erratic nature of freight demand, has limited
the assignment of dedicated planes to all-freight operations. However premium carriers
provide planes dedicated for freight operations. This premium service started off with
documents and has moved onto large parcels, which is an ideal service for firms with a
large number of high-value products and time-sensitive service requirements.
FOR DHL:
DHL uses all the modes of transportations that is
airways
roadways
waterways
rail freight
DHL has its own fleet of airplanes and motor vans. Depending upon the final destination
where the goods have to finally reach and the type of package the customer has paid for,
DHL uses the individual modes of transport or a combination of either of these or all. Once
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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.


Inventory Management and Warehousing.

Warehouse Infrastructure Networks
Warehouse Management Solutions
Inventory Optimisation
Special Warehouse Solutions
Outsourcing Projects

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
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Stock accuracy
Lead times
Redundant stock costs
Productivity responsiveness to a company's strategic needs

Multi User Centres
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.
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 the
receipt, handling and storage of products and orders in a warehouse environment. The
WMS also accurately records the location of inventory whilst stored in the warehouse.

Our Prologs WMS manages all critical processes in the warehouse, and is also an
important support for varied transport and distribution concepts (planning, time
controlling, booking of transport capacity, communication with customs and other
authorities).

Strategic Inventory 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.
Direct Express Inventory Management
Direct Express Inventory (DEI) allows customers to centralise stock in one warehouse
and use express distribution to deliver components the next day. Entire management is
done by DHL.
Repair Return Inventory Management
Return & Repair Inventory (RRI) manages the physical flows for Return material
authorisation. In this case, DHL will be responsible for picking up the broken part,
sending a new one, bringing the broken part to a repair centre and moving repaired
parts back into stock.
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
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journey prior to commencement of another journey. Shipments are consolidated or
deconsolidated. Product received into the facility is not taken into inventory.

Inventory Optimisation
Through effective inventory management, inefficiencies can be driven out of the supply
chain, overall costs reduced and high service levels achieved. We optimize inventory at a
line-item level at every stage of the supply chain.

DHL focuses on driving results in:
Supplier management
Expediting
Order replenishment
Demand forecasting
Safety stock setting
Order pipeline monitoring
Excess stock management

Inventory optimisation is supported by inventory management software that calculates 'line
item risk profiles' that measure the variability of demand and supply for each line item
within a customers inventory.
DHL offers:
Average of 20% inventory reduction and 8% improvement in product availability
Reduced inventory and overhead costs
Improved sales, profitability and return on investment
High service standards
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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 of
medical supplies, consumer products, industrial equipment, chemicals and technology.

Through sharing of DHL's resources, such as space, labour, equipment and
transportation, customers benefit from synergies that considerably reduce supply chain
costs.

This environment returns significant value to a small business requiring distribution
operations without long term lease or capital commitments, or a large enterprise
handling a new acquisition, product launches or seasonal overflow.
Campus Solutions
We pioneered the campus model to provide regional customers with a flexible solution
designed to capitalise on similar distribution channels, minimise labour costs, and
increase specialized equipment utilization.


Campuses are strategically located at key distribution points in North and South
America, Europe and select locations in Asia, allowing for expedited transit times to
large concentrations of consumers.

Special Warehouse Solutions

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Vendor Hubs

Warehousing and delivery of service parts, based on demand pull. Vendor hubs are
usually located in close proximity to the manufacturing facility.

Reverse Centres

Specially designated facilities for the receipt and handling of returned parts for repair,
recycling or disposal.



Bonded Warehousing

Bonded warehouses provide secure environments in which customers' products can be
held without immediate payment of local duties and taxes.
Shared-user Warehousing
Our shared-user facilities are designed to meet the needs of organisations of any size.
Currently, we provide shared-user services to leading manufacturers and retailers of
medical supplies, consumer products, industrial equipment, chemicals and technology.

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



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Outsourcing Projects

Outsourcing involves DHL taking over and managing previous in-house logistics
operations, including:
Distribution centres
Transport operations
Back-office functions
Supply chain management functions
After sales services















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Technological Electronics/Telecom solutions

Electronics/Telecom
Core and Value-added Technology Solutions
Inbound to Manufacturing
Service Parts Logistics
Technical Distribution
Technical Services

Electronics/Telecom Technology

Manufacturers have some of the most complicated supply chain requirements of any
industry because of the nature of the products: complex, high value and rapid
obsolescence.

Our logistics solutions help technology companies reduce inventory and cycle time, while
providing control and visibility through to final delivery. This is achieved by focusing on
product availability and optimisation of product flows and supply chain costs. For optimum
flexibility and speed, you can outsource your entire logistics operation, including
distribution centers, transport, back-office, supply chain management and after sales, to
DHL.
Electronics/Telecom
DHL provides the know-how to optimize flows and drive down supply chain costs. You
reduce stock but not quality, and maintain flexibility to meet market needs. Services
include:
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Modular networks consisting of warehouses and hubs, downstream links enabling
merge-in-transit, and delivery capabilities for any size, speed and dimension
Inbound logistics (VMI or JIT)
Electronics Distribution Network (EDN)
Reverse logistics
After sales logistics - spare parts
Lead Logistics Provider (SCM) - integrated supply chain services from DHL, whether
end-to-end solutions or management of partial supply chain solutions
Complete outsourcing, including transfer of staff, infrastructure financing, business
optimisation and supply chain integration


Core and Value-added Technology Solutions
Responding to customer needs, we provide a range of core and value-added services that
reduce cycle times and improve performance. These include:
inbound logistics to production facilities, including vendor managed inventory hubs
kitting, assembly and light manufacturing operations
order fulfillment and finished goods distribution
integrated freight management and contract logistics services
product delivery and installation, including reverse logistics
aftermarket and critical service parts logistics
Inbound to Manufacturing
Our Inbound to Manufacturing service enables our customers to more effectively manage
the inbound flow of materials from collection points at their component suppliers' facilities
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to consumption points in their production lines. We help address the constant challenge for
both finished goods manufacturers and component and sub-assembly suppliers who must
adapt to shorter product lifecycles and the migration of production facilities to developing
countries.

Service Parts Logistics

Our Service Parts Logistics service involves the management of technology manufacturers'
replacement parts delivered to and from customers according to pre-defined service levels
or warranty agreements on a one-, two-, four- or eight-hour and next-day basis, 24 hours a
day, seven days a week.
Technical Distribution
Supporting companies in a wide range of industries including computer equipment and
peripherals, medical equipment, vending equipment, office equipment and
telecommunications, our technical distribution service meets the challenges associated
with the effective and safe movement of high-value goods.

Technical Services
Technology manufacturers expect every link in the supply chain to have capabilities to add
value to their product or process. Our tailor-made solutions can be integrated into existing
customer operations at our warehouses. The strength is the integrated approach with other
segments of the business which improves time-to-market and reduces the cost for the
customer.





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Value Added Services

Co packing
Product assembly
Other value added services

Co-packing
We offer a comprehensive selection of manufacturing and packaging services through
Power Packaging a DHL Company.
By integrating manufacturing and packaging operations within their supply chains, our
customers can:
Add flexibility
Improve service levels
Reduce costs
Accelerate time to mark
Increase asset utilisation

In addition to these core packaging services, Power Packaging brings a unique set of
services and capabilities for customers that include:

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

Carton, pouch and canister filling in the following types of containers
Rigid containers (composite and plastic canisters, metal cans, glass or plastic jars)
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Flexible containers (form fill and seal pouches, cartons, slim-sticks and
standup/recloseable pouches)

Beverage manufacturing:

Blending, mixing and filling of hot and cold fill beverages and concentrates in the following
types of containers:
Plastic bottles (PET) and glass containers (10 oz up to 128 oz)
Shelf-stable containers (paperboard, plastic cup and bag-in-a-box)



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

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Product Assembly
Postponement, quick response and mass customisation are breakthrough business
strategies enabled via packaging services. Integrating packaging operations into
distribution centres streamlines fulfillment reducing cost, enhancing product visibility
and control, and improving speed-to-market and flexibility in the supply chain.

Packaging services include:
Postponement packaging - primary, secondary and specialty components
Co-packing, kitting, assembly and repackaging
Retail-ready, point-of-purchase displays
Lot control via variable digital and laser printing
Machinery system engineering - labelling, bagging, carton filling, club store packs,
clamshells and printed and unprinted film over-wraps
Make-to-order pallets
Product rework/redress
Other Value Added Services

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.





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Sequencing/Linefeeding

Sequencing is the consolidation, pre-assembly and sequencing of material flows. Line
feeding covers the delivery of assembled components to a production line.

Re-Working/Re-Packing

Repacking for a specific customer can include repalletisation. Reworking is the
modification of products to suit a local market.

Packaging/Bundling

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

QA Control

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

Labelling/Merchandising

The application of labels either to the product or to the packaging. Merchandising can
include the addition of price stickers or promotional items ready for retail display.

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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 firms and the competitors 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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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 todays highly competitive
and cut- throat corporate world.

DHL has the worlds largest express and logistics Network. Over the past decades it
had turned delivering goods into a finely oiled process. Be it a book, pen, WIP material,
drugs, hazardous chemicals, clothes, documents, wild animals and any other thing under
the sun DHL delivers it . With a network spanning 200 countries and with its private fleet of
airplanes, mobile vans, cargo ship carriers & even rail way automotives in some countries
DHL can handle any type of goods. Not only that with international network there comes
the hassle of documentation and paperwork, standard packaging and other formalities to
adhere to. But DHL has its own department which looks into the international laws and
other formalities. In the end what maters is delivering good in good condition at the door
step of the customer. A happy and satisfied customer makes the business grow.
Competitors have come and gone but DHL has been able to keep its No 1 position intact.
This is because of its dynamic nature and attitude of maintaining good customer relations.
Logistics management is important for every organisation but more so DHL.

I have tried to incorporate all the facets of logistics which propel DHL to be the
best delivery and carriage-service around the world. No wonder that DHL is head and
shoulders above all of its competitors!

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