FACILITY LOCATION OF DHL :

Selecting The Leipzig/ Halle Site And Building operations

Facilities.
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INTRODUCTION
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DHLs decision to relocate its European hub from

Brussels, Belgium to Leipzig/Halle in Germany
What triggered them to set up its hub in Leipzig?
Challenges faced by DHL
Basic strategy of DHL Creating a win-win
situation

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COMPANY BACKGROUND
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Originally founded in 1969 to deliver documents between

San Francisco and Honolulu.
Founders- Larry Hillblom, Adrian Dalsey & Robert Lynn
By 2010, DHL had operating hubs in 220 countries over
32300 service points, customer base of 2.3 million &
62000 vehicles for delivery
Major competitors
Major operating hubs.
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ESTABLISHING THE HUB AT LEIPZIG

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2005 approved for construction.

Due to ban of night flight in Brussels.
Advantages of moving to Leipzig : regional
government support , attractive package,
incentives , fast approval .
2006 commencement of project , project
manager Michael Reinbooth

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EXHIBIT
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FOUR PHASES
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1st phase BUILDING PHASE

2ND phase HUB BUILDING

COMPLETE

3RD phase 3 MONTHS OF

TESTING

4TH phase MORE THAN 60

DAILY FLIGHTS

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ECONOMIC ATTRACTIVENESS OF
THE REGION
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DHL aviation hub has an adequate capacity to handle the amplified

volume of shipment this capacity aced as logistic calling card
Various sectors benefited due to DHL : pharmaceuticals , chemical,
automobile

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EMPHASIS ON TECHNOLOGY
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Dynamic route planning Telematic

Sorting facility & its basic operations:
1. Apron to the hub
2. Sorting selection
3. Flyer sorting
4. Reloading the parcels and documents
5. Customs and hospital selection
. Protection of environment
1. Cogeneration unit.
2. Photovoltaic System.

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TRANSPORT FACILITY
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1. Aircraft available
2.Optimization of transport facility

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CRITICISM FACED
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Published by die welt , German newspaper in 2008

Lack of well-trained handling staff & work force
delivery handling (loading & unloading )
Increase cost due to delay of shipment

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FUTURE EXPECTATIONS
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2007 - Aerologic was established as a freight company in partnership with

Lufthansa cargo
Trade with Bahrain UK, America , Hong Kong ,UAE ,India ,Germany etc
Superior life quality and huge market of 7 million people living in Leipzig
hub

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LEARNINGS FROM THE CASE

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Implementing A CORPORATE Strategy

Network design in supply chain
management
Optimal use of location and services
available and transport facility .
Role of facility layout in performance of
the company

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CONCLUSION
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EXCELLENCE . SIMPLY . DELIVERED

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