295710066 Project Report on Logistic System in DHL

MINOR REPORT ON “DHL LOGISTICS SYSTEM”

Submitted In Partial Fulfillment of the requirements For the Award of Degree of MBA By Manas Khanna AUD1834 AMITY UNIVERSITY, DUBAI

I, Manas Khanna, student of Amity University Dubai, hereby assure that, I have completed this project on DHL logistics system

for the partial fulfilment of Maters of Business

Administration and the information submitted is true to the best of my knowledge & belief.

Manas Raj Khanna AUD1834

OBJECTIVE OF THE STUDY Essential: 

To access the viability of logistics administration in DHL and to seat check the association concerning the business.



To have an exhaustive comprehension of how logistics framework functions in DHL

Auxiliary: 

To think about Logistics Industry.



To comprehend the estimation of every association.



To know whether the clients are fulfilled by the current scope of administration.

Extent OF THE STUDY: With a specific end goal to comprehend the ideas of logistics as far as pragmatic use and to witness into the how an organization or association utilizes logistics as an imposing instrument to increase consumer loyalty, decrease general cost and expand proficiency I chose "DHL" the world's driving dispatch Service Company. The study is done just to see how DHL company use logistics framework Viably in their business

COMPANY STRENGTHS 

Strong Brand Image: In 1997, DHL turned into the worldwide express transportation organization to acquire concurrent framework wide ISO 9001 accreditation in global quality benchmarks. DHL has likewise added to their own particular quality framework that matches their client's benchmarks.



Globalism: DHL works on a worldwide scale. They work in more than 220 nations. They give benefits that speak to the greater part of the world. They have such an expansive business sector in which to work, and along these lines acknowledge huge incomes. They can likewise accomplish worldwide economies of scale.



eServices and Technology: DHL utilizes and keeps on scanning for new innovation. They spend almost 10% of aggregate incomes, for data innovation. DHL likewise has brilliant eServices that give access to frameworks that guarantee clients have control and perceivability of their supply chains at all times. Items can be followed, questioned and requested on the web.



Corporate symbiosis: DHL has added to its own authoritative structure to serve the worldwide business sector, which it has called "corporate beneficial interaction." This methodology incorporates the strengthening of the DHL work force at a neighborhood level, in the meantime perceiving the relationship of the parts of DHL as a corporate entity.



Smart-Truck Project: It is the system which permits DHL to convey speedier. The information are transmitted straightforwardly to the dynamic course arranging framework, which recalculates the courses, contingent upon the present request circumstance and volume of activity.

COMPANY WEAKNESS: 

High Prices: DHL's costs are over their rivals. This can be a shortcoming if their clients don't see a contrast in the middle of DHL and its rivals' administrations.



Mistakes in Market-Share Estimate: The greatest shortcoming is DHL's piece of the overall industry gauge. It is hard to assess notwithstanding when the business sector is stagnant and contains couple of

contenders, and all piece of the overall industry evaluations ought to be seen with meticulousness. 

Weak Visibility: It has frail perceivability in the group contrasted and its potential.

INDEX 1

INTODUCTION TO LOGISTICS....................................................1

1.1 1.2 1.3 1.4

Meaning of logistics……………………………………… Origin and Definition of Logistics……………………….. Importance of logistic management……………………… Logistics Management and Supply chain ……………….. 2 2.1 2.2 2.3 2.4

1 3 4 6

BACKGROUND OF DHL.........................................................9 History of DHL......................................................................10 The world's largest express and logistics Network................11 The DHL Indian Profile..........................................................12 Product and services of DHL.................................................14

3. INTEGATED

LOGISTICS

SYSTEM...............................................16

3.1 Inventory Flow..........................................................................17 3.2 Information Flow..................................................................18 Coordination Flow...............................................................18 Operating flow....................................................................20

4. SUPPLY CHAIN 4.1

MANAGEMENT..................................................21

DHL International Supply chain……………………………. Reverse Logistics………………………………………………… Services Logistics………………………………………… ……… Inbound to Manufacturing……………………………………… Medical device Distribution………………………………........ Distribution to store Management………………………….... . Engineering response………………...................................... 4.2 Extended Supply Chain Services……………………………

23 24 25 26 27 27 27

28 4.3 Implementation Services ………………………………….. 29 4.4 Performance Management …………………………………

30

4.5 Outsourcing Projects ………………………………………. 30 4.6 Innovation of Supply Chain development.............................31 4.7 Solution for Customize end to end logistic worldwide ……. 5 TRANSPORTATION ………………………………... 5.1 Transportation functionality ………………………………. 5.2 Principles …………………………………………………..

33 36 37 38

5.3 Transportation Infrastructure ……………………………… 40 5.4 OPTIMIZATION OF LOGISTICS WITH DHLROAD AND RAIL. SOLUTIONS ................................................................................................... 44 5.5 Air and ocean freight solutions.............................................45 6 INVENTORY MANAGEMENT & WAREHOUSING. 6.1 Warehouse Infrastructure Network…………………………. ➢ Multi User Centers …………………………………………….. ➢ Strategic Part Centers (SPC) ………………………………… ➢ Express Logistics Centers (ELC) …………………………… . 6.2 Warehouse Management Solution …………………………. ➢ Warehouse Management Systems……………………………. ➢ Strategic Inventory Management ………............................. ➢ Direct Express Inventory Management…………………... ➢ Repair Return Inventory Management ……………………... ➢ Cross Docking ………………………………………………….

47 48 48 49 49 50 50 50 50 51 51

6.3 Inventory Optimization …………………………………….

52

6.4 Special Warehouse solution ……………………………….. 54 6.5 Outsourcing Projects. …………………………………….... 55

7

VALUE-ADDED SERVICES...............................................................56 7.1 Co-Packaging.........................................................................56 7.2 Product Assembly..................................................................58 7.3 Other-Value added Service ………………………………... 59 7.4 External Performance Measurement.....................................60 7.5 Customer Perception Measurement.......................................60 8 Worldwide Parcel Express …………………………………. 61 9. Recommendation …………………………………………... 63 10 Conclusions............................................................................64 11 Bibliographies ……………………………………………… 65

INTRODUCTION LOGISTICS Meaning: The expression "logistics" starts from the old Greek "Zóyoç" ("logos"— "proportion, word, computation, reason, discourse, speech"). Logistics is considered to have begun in the military's have to supply themselves with arms, ammo and proportions as they moved from their base to a forward position. In old Greek, Roman and Byzantine realms, there were military officers with the title "Logistikas" who were in charge of monetary and dispersion of supplies. Logistics is related with getting the items and administrations where they are required and when they are fancied. It is hard to fulfill any advertising or producing without logistical backing. It includes the incorporation of data, transportation, inventory, warehousing, material taking care of, and bundling. The working obligation of logistics is the land repositioning of crude materials, work in procedure, and completed inventories where required at the most reduced cost possible. Logistics is drilled for a very long time subsequent to sorted out movement started. Without logistics bolster no movement can be performed to meet characterized objective. The present test is to perform logistics experimentally so as to streamline advantages to the association. Logistics is an arranging capacity of administration. Logistics capacity is worried with taking items and administrations where they are required and when they are required. LOGISTICS Management: Logistics administration is that part of the production network which arranges, executes and controls the proficient, compelling, forward and in reverse (converse) stream and capacity of merchandise, administrations and data between the purpose of birthplace and the purpose of utilization keeping in mind the end goal to meet clients' prerequisites rather to the clients'

enjoyment. An expert working in the field of logistics administration is known as a logistician. Logistics, as a business idea, advanced just in the 1950s. This was for the most part because of the expanding multifaceted nature of supplying one's business with materials, and shipping out items in an inexorably globalize store network, calling for specialists in the field who are called Supply Chain Logisticians. This can be characterized as having the right thing in the right amount at the perfect time at the ideal spot at the right cost and to the right target clients (consumer); and it is the exploration of procedure having its vicinity in all areas of the business. The objective of logistics work is to deal with the fulfillment of venture life cycles, supply chains and resultant efficiencies. Logistics is Concerned with getting (or transmitting) the items and administrations where they are required or when they are wanted. It is hard to fulfill any advertising or fabricating without logistical backing. It includes the mix of data, transportation, stock, warehousing, material taking care of, and bundling. The working obligation of logistics is the geological repositioning of crude materials, work in procedure, and completed inventories where required at the most minimal cost conceivable. Significance of logistics administrations: 1.

Logistics is the bed rock of exchange and business: 

Without offering as well as purchasing there can be no exchange and business. Purchasing as well as offering happens just when products are

 2.

physically moved into as well as far from the business sector. Take away logistical backing exchange and business will crumple. Integrates logistical exercises:



In ordinary administration environment, different exercises of logistics work in disengagement under various administration capacities. Every pocket attempting to sub improves its targets at the expense of general

authoritative goals. Buying attempting to buy at least cost at the expense of what is required by operations. Operations create expansive amounts at least generation cost overlooking interest prompting fate stock. Logistics capacity of administration brings every such capacity under one umbrella pulling down entomb departmental obstructions. 3.

Competitive edge: 

In the wildly focused environment logistics gives the edge. Because of mechanical unrest the vast majority of the items are moving into product markets. In an item market where cost is controlled by rivalry, where there is no item separation regarding quality parameters like execution and unwavering quality, where brands are verging on immaterial, focused edge is tha t of accessibility of item and administration as far as time, spot and amount.

4.

Leads to consumer loyalty: 

Through prevalent client administration. Authoritative destinations of P [Productivity],Q [Quality],C [Cost],D [Delivery],E [Employee Morale],F [Flexibility],S [Safety],H [Health],E [Environment] are set to meet client desires.

5.

Supports basic capacities like operations and showcasing: 

Solid logistics support empowers an organization to move towards JUST IN TIME generation framework for survival in an exceedingly focused business sector

6.

Logistics wins or loses wars:  

British lost American war of autonomy because of poor logistics Rommel was beaten in the desert by predominant logistics operations

Company Profile DHL is the worldwide pioneer in logistics - with all the more exceedingly experienced experts at a bigger number of areas in a larger number of nations than some other supplier. They are the first decision for organizations searching for end to end logistics arrangements and fantastic overhauling capacities. In the wake of uniting with Excel in 2005, they are currently additionally the division's driving trendsetter - giving the phenomenal scope of forefront arrangements. They are the overall business sector pioneer since they endeavor to convey all around steady administrations of the most astounding quality. History and foundation of DHL: 

DHL are the first letters of the last names of the three organization



authors, Adrian Dalsey, Larry Hillblom and Robert Lynn. In 1969, the three accomplices made little stride that would profoundly



affect the way the world works together. The authors started to ship by boat papers via plane from San Francisco to Honolulu, starting traditions leeway of the boat's freight before the real entry of the boat and significantly evoking holding up time in the harbor. Clients remained to spare a fortune. With this idea, another



industry

was

conceived:

global

air

express,

the

fast

conveyance of records and shipments via plane. The DHL Network kept on developing at an extraordinary pace. The organization extended westbound from Hawaii into the Far East and Pacific Rim, then the Middle East, Africa and Europe. By 1988, DHL was



at that point present in 170 nations and had 16,000 workers. At the start of 2002, Deutsche Post World Net turned into the real shareholder in DHL. Before the end of 2002, DHL was 100% claimed by Deutsche Post World Net. In 2003, Deutsche Post World Net combined the greater part of its express and logistics exercises intoDHL. DHL Express worldwide Employees

more than 124,000

Countries and territories Hubs Bases Vehicles Aircraft Pack stations (only Germany)

more than 220 36 4700 72,000 350 900

DHL INDIA: DHL Worldwide Express (India) Pvt Ltd is the No.1 global air express administrations supplier in India, a position it has held since it started its India operations in 1979. Today, DHL offers its clients the whole range of express administrations from universal air express to top of the line logistics arrangements including repair and return, key stock administration and coordinate express stock. DHL India has more than 50,000 clients adjusted through DHL's national system with its 1,000 in number ground staff, armada of 400 vehicles and die hard loyalty focuses in Ahmadabad, Bangalore, Chennai, Cochin, Jaipur, Hyderabad, Kolkata, Mumbai, New Delhi, Pune and Tripura. Items and administrations of DHL: 1. DHL Document Express (DOX):  This administration is perfect for shipments that are not subjected to Customs affirmation at destinations, or have no business esteem or don't require a permit. 2. DHL Express Worldwide Package (WPX):  This administration is utilized for shipments with business esteem or those, which should be pronounced for Customs assessment. They might be subjected to Customs review at destinations and might be assessable or dutiable. 3. Kind sized Pack and Jumbo Junior:



This administration makes sending out simple. One box dispatched for one level expense, anyplace on the planet. DHL Jumbo Box is for shipments under 25kg and Jumbo Junior for shipments under 10kg.

4. Import Express:  This administration is a solitary window answer for everything importing needs. DHL Import Express is an one window, one rate, and one record, one cash benefit that empowers a shipment got from the supplier's doorstep abroad and conveyed specifically to the client anyplace on the planet. 5. Fashion First:  It encourages the import and fare of shipments providing so as to weigh 20kg or more noteworthy reserve funds with an extensive variety of imaginative and adaptable entryway - to-entryway arrangements. Another component of Fast Forward is Trade Automated Services (TAS), an online stage that gives thorough exchange and traditions data in 50 key nations around the world, computes absolute landed expenses of a shipment (counting obligation, charge and different traditions related charges), creates import and trade documentation, screens senders and recipients against government records relating to embargoes and authorizes, and looks at a thing's fare and import freedom costs and regulations to empower qualifying sourcing choice.

Supply Chain Management Definition: "Production network administration is the administration of upstream and downstream associations with suppliers and clients to convey better client esteem at less cost than the inventory network all in all." The store network is the system of associations that are involved through upstream and downstream linkages, in the distinctive procedures and exercises that create esteem as items and administrations in the hands of extreme shopper. Great configuration is at the heart of a powerful store network arrangement. DHL has built up a notoriety for reliably creating imaginative arrangements that streamline operations and enhance control. T beneficiary in-house groups have added to the arrangements outline of a portion of the world's driving brands and empowered to win key contacts. DHL arrangements plan group offers a wide arrangement of ability and administrations, from logistics system technique, transport design, distribution center configuration and reenactment, through to operational change and stock investigation.

1. Global Supply Chain: DHL's universal inventory network administration arrangements are centered around offering clients some assistance with taking expanded control of worldwide inbound store network to augment the estimation of worldwide and worldwide sourcing. DHL helps clients: 

Give perceivability of the upstream inventory network, and empower



prior choice making Create a more spry store network, better ready to react to changes in



purchaser request Reduce lead times, inventories, and related capacity costs

Client centered arrangements are developed from the accompanying center administrations: 

Origin

administration,

including:

seller

administration;

supplier

accumulations; traditions business; union administrations and esteem 

included administrations Global sending, including:



administration; European oversaw transport Destination administration, including:

air/sea/street/rail

cargo

port

and

sending

and

demurrage

administration; traditions business; de-solidification and pre-retail benefits; port to dissemination focus transportation; direct store 

conveyance (US just) Supply chain perceivability and administration, including: buy request administration; RFID item following; special case administration;



arranging and determining; stock administration. Global sending administrations are given over every significant course.

Reverse Logistics:

DHL's converse logistics arrangements offer clients some assistance with planning, execute and control stream of materials and oversee related data, go down the store network to recover values and guarantee the sheltered transfer of merchandise. Things incorporate the recuperation of outdated or non - operational white merchandise, for example, fridges, in addition to the evacuation of old furniture on conveyance of new or substitution items. Administrations include:  Roll in Management: de-establishment of completed products at the client's site  Returns Management: getting, sorting, checking and overseeing returned items  Express Delivery: Exchange of Dead On Arrival item Service logistics: Administration and

new

parts

DHL's

administration

and

new

parts

administration includes the administration of makers' new parts conveyed to and from clients as indicated by pre-characterized administration levels or guarantee concurrences on an one, two, four or eight-hour and following day premise, 24 hours a day, seven days a week. DHL works intimately with clients to overcome normal issues, for example,      

Poor parts accessibility High stock venture Long lead times, complemented by worldwide sourcing High levels of client returns Poor perceivability, reporting and control Cost control of the interest chain

Key administrations include:     

International cargo sending Domestic and provincial inbound conveyances Inventory arranging, determining, obtainment and examination Distribution focus operations Outbound conveyance

The whole process is supported by a web-empowered electronic request handling and arrange checking instrument.

Medical Device Distribution:  DHL nation based distribution centers for various makers to benefit a nearby client base. This incorporates the receipt of item from nearby or worldwide assembling destinations and downstream dissemination to healing centers. Distribution to stores administration:  DHL conveyances to store administrations are centered around offering retailers some assistance with creating proficient and adaptable supply binds to convey item to retail outl ets at large amounts of administration. These arrangements are manufactured from a few center administrations: reverse logistics accumulations; sortation; preparing;

repair/renovation;

esteem

recuperation;

transfer

and

consistence. 2. Augmented store network administrations: DHL gives physical logistics administrations as well as oversees other upgraded store network administrations, enhancing efficiencies and diminishing expenses. Order Management:  Receipt, administration, execution, sequencing and dispatch of requests in an auspicious way. Call Center Management:  A Call Center oversees orders, screens deals exercises, gives client benefits and works as a Help-work area. Global Inventory Management  DHL gives the client a worldwide perspective of stock, subsequently empowering educated choices in regards to the mien of stock.

Consolidated Billing Services  The production of a united and ordered receipt, taking into account all administrations performed in a particular time-period by more than one administration supplier, made accessible in a concurred design.

Freight and Customs Solutions  DHL's numerous years of involvement with global exchange prerequisites and conventions, joined with the European Competence Center and nation ability, gives clients the main edge in administration, quality and administration in cross fringe exchanges. 3. Implementation Services: Implementation and Project Management:  Execution begins by characterizing venture points, setting the objectives and portraying the deliverables in subtle element. The significant points in usage incorporate business forms, building, land, IT frameworks, movement, HR, money and legitimate contemplations. Quality Management:  Complete Quality Management is an administration system that coordinates quality introduction into the entire structure and work process of an organization by utilizing routines and methods of value administration Execution Management:  Execution administration is a key part of the store network. Measured components are checked on as a framework, as every segment collaborates with the various parts around it. Execution measuring records chronicled execution as well as gives early sign of any administration slippage. In this second part, the measures give a valuab le commitment to DHL's Continuous Improvement Program. Outsourcing Projects: Outsourcing includes DHL assuming control and overseeing past in-house logistics operations, including:  Distribution focuses  Transport operations  Back-office capacities  Supply chain administration capacities  After sales

DHL Solutions

DHL Solutions offers altered logistics answers for your whole store network. Our complete review – from maker supplier to retailer to shopper – empowers you to accomplish operational magnificence at each stage. Administrations range from counseling and plan to administration and execution. They give industry-particular skill and long haul encounter that enhance your business. DHL Solutions sets the pace in Supply Chain Management with cutting edge advancements, conveying redid business arrangements. Driving edge frameworks guarantee consistent mix and ensure full straightforwardness and control all through the whole production network. Supply Chain Management Warehousing Value Added Services Outsourcing Distribution

Investigation, plan and building. Lead Logistics Provider (LLP) and Lead Service Provider (LSP) administrations. Building, outline and administration. Seller administration, without a moment to spare. Request administration, quality control, outbound satisfaction, invert and return logistics and different administrations. Industry-particular local and transnational. Arrange and armada arranging and Assume control and administration of in-house logistics including conveyance, transport, backoffice, store network and after deals.

DHL Supply Chain Corporate Information Solutions: This division comprises of agreement logistics administrations and Corporate Information Solutions. Both specialty units concentrate on tailor-made client arrangements. The specialty unit Supply Chain gives warehousing and transportation administrations and in addition esteem included arrangements along the whole inventory network for clients from different segments of industry, including the key car, life sciences, innovation, quick - moving purchaser products, retail, and mold divisions. The backup Williams Lea is the heart of the specialty unit Corporate Information Solutions. The master for report based outsourcing arrangements accumulates, digitalizes, prints, stores, sorts, addresses, conceals, dispatches and files records of various kinds. Williams Lea is likewise the right purpose of call for electronic invoicing and showcasing administrations.

TRANSPORTATION Transportation is the most noticeable of all elements of logistics and high supporter to logistics cost. We can see trucks, holders and wagonloads of material being moved from spot to put as an action specifically connected with exchange and business. We ought to likewise welcome this is a movement that adds most elevated measure of expense to the action of making inputs and yields accessible to purchasers. Transportation capacity moves the items to meet client desires at least cost. Transportation is a standout amongst the most noticeable components of logistics operations. Transportation gives 2 noteworthy capacities: Item development and Item stockpiling. Item Movement: Whether the item is as materials, segments, gatherings, work-in-procedure, or completed merchandise, transportation is important to move it to the following phase of the assembling process or physically closer to a definitive purchaser. An essential transportation capacity of item development is climbing and down the worth chain. Since transportation uses transient, money related, and ecological assets, it is vital that things moved just when it genuinely improves the item esteem. Transportation includes the utilization of worldly assets since item is difficult to reach amid the transportation process. Such item, ordinarily alluded to as in-travel stock, is turning into a noteworthy thought as an assortment of store network procedures, for example, only – in – time and speedy reaction rehearses decrease producing and conveyance focus inventories. Transportation utilizes monetary assets in light of the fact that inner uses are essential for private armadas or outside uses are required for business or open transportation. The significant target is to move item from a cause area to an endorsed destination while minimizing worldly, monetary and ecological asset costs. Misfortune and harm costs should likewise be minimized. In the meantime the development must happen in such a way, to the point that takes care of client requests with respect to conveyance execution and shipment data accessibility. Item Storage: Provisional capacity in stationary vehicles or Vehicles continued proceeding onward a circumlocutory course - Product stockpiling is costly in a vehicle. Be that as it may, once in a while remembering general cost this is embraced.  When emptying and stacking is more costly than capacity  When storage room is constrained.

Principles: There are two major standards directing transportation administration and operations. They are economy of scale and economy of separation. Economy of scale alludes to the trademark that transportation cost per unit of weight abatements when the measure of the shipment increments. E.g. truckload shipments cost less per pound than less - than-truckload shipments. It is additionally for the most part genuine that bigger limit transportation vehicles, for example, rail or water are less costly per unit of weight than littler limit vehicles like engine or air. Transportation economies of scale exist in light of the fact that settled costs connected with moving a heap can be spread over the heap's weight. The altered costs incorporate managerial expenses of taking the request; time to position the vehicle for stacking or emptying, invoicing and gear cost. These expenses are altered on the grounds that they don't change with shipment volume. E.g. assume the expense to oversee a shipment is $ l0.00. At that point the lpound shipment has a for every unit of weight expense of $l0.00, while the l,000 pound shipment has a for every unit of weight expense of $0.0l. In this manner, it can be said that an economy of scale exists for the l000 - pound shipment. Economy of separation alludes to the trademark that transportation cost per unit of separation declines as separation increments. E.g. a shipment of 800 miles will cost under two shipments (of the same joined weight) of 400 miles. Transportation economy of separation is additionally alluded to a se decreasing rule since rates or accuses decrease of separation. The method of reasoning of separation economies is like that for economies of scale. Longer separations permit the altered costs to be spread over more miles, bringing about lower general per mile charge. These standards are essential contemplations while assessing elective transportation methodologies or working practices. The goal is to expand the measure of the heap and the separation that is dispatched while as yet meeting client administration desires.

Transport Infrastructure Transportation foundation comprises of the privileges of-ways, vehicles, and transporter associations that offer transportation administrations on a forcontract or inside premise. The way of the base likewise decides an assortment of legitimate and financial qualities for every mode or multimodal framework. A mode distinguishes the essential transportation strategy or structure. RAIL NETWORK Following time long past times, railways have taken care of the biggest number of ton - miles. As an aftereffect of the early foundation of a complete rail system interfacing every one of the urban communities and towns, railroads ruled the intercity cargo tonnage till World War II and sometimes of Europe, Asia and Africa they even associated the nations. This early prevalence empowered railroads over transport extensive shipments financially. Engine CARRIERS Expressway transportation has expanded quickly since the end of Wor ld War II. This is on the grounds that Motor transporter industry results from way toentryway working adaptability and velocity of intercity development. They are even adaptable in light of the fact that they can work on every last sort of roadways. In correlation to railways, engine carrie rs have generally little altered interests in terminal offices and work on openly looked after interstates. Despite the fact that the expense of permit charges, client charges, and tolls are impressive, these costs are straightforwardly identified with the quantity of over - the-street units and miles worked. The variable expense per mile for engine transporters is high in light of the fact that a different force unit and driver are required for every trailer or blend of coupled trailers. Work prerequisites are additionally high in light of driver wellbeing limitations and the requirement for significant dock work. Engine transporters are most appropriate to handle little shipments moving short separations. WATER TRANSPORT It is the most established method of transportation. To begin with it was the cruising vessels, which was supplanted by steamboats in mid 1800's and by diesel power in the 1920's. Household water transportation – includes the Great Lakes, waterways, and traversable streams. In each nation, less framework miles exist for inland water than whatever other transportation mode.

The primary point of preference of water transportation is the ability to move to a great degree vast shipments. Water transport utilizes 2 sorts of vessels. Profound water vessels, which are for the most part intended for Ocean and Great Lakes use, and are confined to profound water ports for access. Conversely, diesel-towed freight boats, which by and large work on waterways and channels, have extensively more adaptability. Water transport positions in the middle of rail and engine transporter in the settled cost angle. In spite of the fact that water transporters must create and work their own terminals, the privilege of-way is produced and kept up by the legislature and results in moderate altered expenses when contrasted with railroads and parkways. The fundamental detriment of water transport is the constrained scope of operation and speed. Unless the beginning and destination are adjacent, supplement pull by rail or truck is required. The ability to convey high payload at a to a great degree low variable expense puts this method of transport sought after when low cargo rates are coveted and speed of travel is an auxiliary thought. AIR TRANSPORT Air transport is the freshest and the slightest used method of transport. Its significant favorable position being its rate, which is joined by high expenses. An across the nation shipment through air requires just a couple of hours complexity to days taken by other mean of transportation. The high cost of transport can be exchanged off for rapid, which permits different components of logistical configuration, for example, warehousing, stock to be lessened or wiped out. Yet air transport stays even more a potential open door than a reality since it is all that much underutilized. The high cost of plane flying machine, combined with unpredictable nature of cargo interest, has constrained the task of devoted planes to all - cargo operations. However premium bearers give planes devoted to cargo operations. This premium administration began off with records and has moved onto huge packages, which is a perfect administration for firms with countless quality items and time-touchy administration necessities. FOR DHL: DHL utilizes every one of the methods of transportations that is  Airways  Roadways  Waterways  Rail cargo

DHL has its own armada of planes and engine vans. Contingent on the last destination where the merchandise need to at long last reach and the sort of bundle the client has paid for, DHL utilizes the individual methods of transport or a blend of both of these or all. At the end of the day the land area and how quick the merchandise must be conveyed are the variables for the last determination of methods of transportation. The idea of economies of scale and economies of separation are both thought about if there should be an occurrence of bigger dispatches where DHL gives a proper logistical arrangement which helps in decreasing the general expense for the customers.

DHL ROAD AND RAIL SOLUTIONS: DHL Freight is a pioneer in European overland transport. Our mainland wide system and extensive scope of items and administrations ensure dependable transport. DHL Freight offers you normal administrations for gathering age and a full scope of transport administrations for part-and full-load shipments by street, rail and multi-purpose transportation. They give extraordinary taking care of and transportation to perishables, furniture, exchange reasonable or occasion hardware, and in addition customized traditions leeway administrations in more than 350 workplaces crosswise over Europe. Cutting edge IT frameworks give you adds up to shipment perceivability and higher conveyance effectiveness. Our industry-particular ability and long haul experience can enhance your profitability and streamline your operations. An effective, high-bore organization with DHL Freight gives all of you the focal points you have to streamline your logistics.

Air and sea cargo arrangements: Whether you have to forward way to-entryway, air terminal to-air terminal or port-to-port cargo, DHL Danzas Air and Ocean offers an exhaustive scope of administrations regardless of the size, weight or measurements of your products. Consolidated with a broad toolbox of data administration frameworks and a worldwide system of devoted control towers, our accomplished groups far and wide can make the right logistics answer for your business. DHL Danzas Air and Ocean is in post position to lead the eventual fate of air and sea cargo logistics and sets exclusive requirements in quality and security.

Inventory Management and Warehousing. Inventory is an unused asset, which lies in stock without participating in value adding process. Unused equipment, raw material, WIP and Finished goods, consumables, spare parts, bought out parts, tools and tackles, gauge and fixtures etc. In India 9 to 12 months of sales quantity lies in the form of Inventory [R/M, WIP, Bought out parts and Finished goods] as against a few days in Japan and a month in the US and Europe. In our country inventory is always viewed as asset [working capital], in fact, though it is called an asset, it is a big liability Warehousing was a customer’s function conventionally anywhere in the world. Customer to protect himself from shortages at the time of inclement weather always used to store provisions and other utilities in his house. Consumer’s own stores were underground cellars, smoke houses to store variety of items. Poor communication infrastructure was mainly the cause for this storage by customer. Producers and tradesmen conveniently shrugged off their responsibility for storage and passed it on to the customer who was left with no option. Traditional concept of warehouse as store or godown has undergone major change now. Warehouse is considered a value adding facility now, playing a remarkable role as a function of logistical management. ➢ ➢ ➢ ➢

➢ Warehouse Infrastructure Network Warehouse Management Solution Inventory Optimization Special warehouse solution Outsourcing Projects

1. Warehouse Infrastructure Networks DHL warehouse service supports inbound logistics, distribution and aftermarket services in a way that improves inventory management, reduces total operating costs and improves cycle times. DHL facilities offer our customers warehousing that is fully integrated into the wider supply chain and meets demanding service levels. This encompasses the design implementation and operation for both dedicated and multi user sites. Benefits include improvements in: ➢ ➢ ➢ ➢ ➢

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

a. Multi User Centers We provide a network of multi-user

warehouses,

enabling

manufacturers to hold inventory at local level, whilst avoiding expensive, dedicated storage solutions. These facilities can receive products from both local and global manufacturing sites, providing downstream distribution.

b. Strategic Part Centers (SPC) Our Strategic Part Centers (SPCs) are in-country facilities offering: ➢ 1, 2 and 4 hour order fulfillment ➢ Stock optimization across the complete network of SPCs ➢ Guaranteed performance against agreed business rules c. Express Logistics Centers (ELC) Our Express Logistics Centers (ELCs) are regional centralized facilities offering: ➢ ➢ ➢ ➢

order processing outsourced repair facilities custom final assembly kitting services

2. Warehouse Management Solutions: a) Warehouse Management Systems The Warehouse Management System (WMS) records all events and actions in the receipt, handling and storage of products and orders in a warehouse environment. The WMS also accurately records the location in

the

of

inventory

whilst

stored

warehouse. Our Prologs WMS manages all

critical processes in the warehouse, and is also an important support for varied transport and distribution concepts (planning, time

controlling,

booking

of

transport

capacity,

communication with customs and other authorities). b)Strategic Inventory Management Strategic Inventory Management (SIM) has been created to deliver urgent shipments to main business areas within a 2 to 4 hour time frame, usually time critical spare parts with a high value and high impact on business. c) Direct Express Inventory Management Direct Express Inventory (DEI) allows customers to centralize stock in one warehouse and use express distribution to deliver components the next day. Entire management is done by DHL.

d)Repair Return Inventory Management Return & Repair Inventory (RRI) manages the physical flows for Return material authorization. In this case, DHL will be responsible for picking up the broken part, sending a new one, bringing the broken part to a

repair centre and moving

repaired parts back int o stock. e)Cross Docking Cross-dock operations are facilities where shipments are received from one mode of transport and transferred to another mode, or where shipments complete one leg of a journey prior to commencement of another journey. Shipments are consolidated or deconsolidated. Product received into the facility is not taken into inventory.

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3. Inventory Optimization: Through effective inventory management, inefficiencies can be driven out of the supply chain, overall costs reduced and high service levels achieved. They optimize inventory at a line-item level at every stage of the supply chain. DHL focuses on driving results in: ➢ ➢ ➢ ➢ ➢ ➢ ➢

Supplier management Expediting Order replenishment Demand forecasting Safety stock setting Order pipeline monitoring Excess stock management Inventory optimization is supported by

inventory

management software that calculates 'line item risk profiles' that measure the variability of demand and supply for each line item within a customer’s inventory. DHL offers: Average of 20% inventory reduction and 8% improvement in product availability ➢ ➢ ➢ ➢ ➢

Reduced inventory and overhead costs Improved sales, profitability and return on investment High service standards Better matching of supply with demand More streamlined and responsive supply chain

□

Shared-user Warehousing Our shared-user facilities are designed to meet the needs of organizations of any size. Currently, we provide shared-user services to leading manufacturers and retailers of medical supplies, con sumer products, chemicals

and

resources,

such

transportation,

industrial

equipment,

technology. Through sharing of DHL's as

space,

customers

labour,

benefit

from

equipment

and

synergies

that

considerably reduce supply chain costs. This environment returns significant value to

a small business requiring

distribution operations without

long

commitments,

or

a

large

term lease or capital

enterprise

handling

a

new

acquisition, product launches or seasonal overflow. □

Campus Solutions We

pioneered

the

campus

model

to

provide

regional

customers with a flexible solution designed to capitalize on similar distribution channels, minimize labour costs, and increase specialized equipment utilization. Campuses are strategically located at key distribution points in North and South America, Europe and select locations in Asia, allowing for

expedited

consumers.

transit

times

to

large

concentrations

of

2. Special Warehouse Solutions □ Vendor Hubs warehousing and delivery of service parts, based on demand pull. Vendor hubs are usually located in close proximity to the manufacturing facility.

□ Reverse Centers specially designated facilities for the receipt and handling of returned parts for repair, recycling or disposal.

□ Bonded Warehousing Bonded warehouses provide secure environments in which customers' products can be held without immediate payment of local duties and taxes. □

Shared-user Warehousing Our shared-user facilities are designed to meet the needs of organizations of any size. Currently, we provide shared-user services to leading manufacturers and retailers of medical supplies, consumer products, chemicals

and

resources,

such

transportation,

industrial

equipment,

technology. Through sharing of DHL's as

space,

customers

labour,

benefit

from

equipment

and

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.

Outsourcing Projects Outsourcing involves DHL taking over and managing previous in -house logistics operations, including: ➢ ➢ ➢ ➢ ➢

Distribution centers Transport operations Back-office functions Supply chain management functions After sales services

Value Added Services ➢ ➢ ➢

Co packing Product assembly Other value added services 1. Co-packing We offer a comprehensive selection of manufacturing and packaging services through Power Packaging a DHL Company. By integrating manufacturing and packaging operations within their supply chains, our customers can: ➢ ➢ ➢ ➢ ➢

Add flexibility Improve service levels Reduce costs Accelerate time to mark Increase asset utilization

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

include:

a. Beverage manufacturing: Blending, mixing and filling of hot and cold fill beverages and concentrates in the following types of containers: ▪

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

▪

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

b. Dedicated facility services: Turnkey manufacturing solutions including: ➢ Site selection/development ➢ Facility and systems design ➢ New facility start-up and operation c. Other services: ➢ Packaging and raw material sourcing, procurement and asse mbly ➢ Batch/quality control tracking via digital easy -to-trace coding system ➢ Full range of secondary packaging services

2. Product Assembly Postponement, quick response and mass customization are breakthrough business strategies enabled via services. centers

packaging

Integrating packaging operations into distribution streamlines

fulfillment

reducing

cost,

enhancing

product visibility and control, and improving speed-to-market and

flexibility

in

the

supply

chain. Packaging

services include: ➢ Postponement packaging -

primary, secondary and

specialty components ➢ Co-packing, kitting, assembly and repackaging ➢ Retail-ready, point-of-purchase displays ➢ Lot control via variable digital and laser printing ➢ Machinery system engineering - labeling, bagging, carton filling, club store packs, clamshells and printed and unprinted film over -wraps ➢ Make-to-order pallets ➢ Product rework/redress

3. Other Value Added Services a.Kitting/Pre-Assembling Kitting is the addition of items such as accessories and batteries to the product pack. Pre-assembling is completion of a finished product from component parts or pre-programming of products.

b.

Re-Working/Re-Packing

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

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

d.

QA Control

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

Labeling/Merchandising

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

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 illustrate d below.

Customer Perception Measurement To succeed in any activities of business one has to always cater to and satisfy the needs of the customer. To do so, it is essential for one to know how the customer thinks in order to meet his needs in a more satisfying manner. Therefore, an important component of leading edge logistical performance is the regular measurement of customer perceptions. Such measures can be obtained through surveys or by systematic order follow up. These surveys can be company - or industry – sponsored. Such surveys ask questions regarding the firm’s and the competitor’s performance in general or for a specific order

in

particular.

Most

of

the

surveys

incorporates

measurement of customer perceptions regarding availability, performance-cycle

time,

information

availability,

problem

resolution and product support. The survey may be developed and administered by the firm itself or by consultants, delivery agents or industry organizations.

Worldwide Parcel Express. International express door-to-door delivery overnight or by the end of the next possible business day for goods subject to Customs clearance. One, reliable company makes international shipping easy . Need to get products, samples, or spares to someone fast? Then trust DHL’s Worldwide Parcel Express to expedite urgent shipments from your door, through customs direct to the receiver - virtually anywhere in the world. One company means you eliminate all the hassles of international shipping. You never lose sight of your shipments. And with DHL’s customs expertise, you get instant advice regarding local regulations and customs documentation, ensuring the smooth clearance of your goods. When it comes to delivering your company’s time - critical shipments – and your reputation, rely on DHL’s Worldwide Parcel Express.

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One company to keep your business moving. When you need to get your goods delivered quickly, you don’t need the hassle of brokers or guessing the answers on customs forms. With Worldwide Parcel express, international shipping couldn't be easier. Benefit from the largest international express network and more in-house customs expertise than anyone else Experienced DHL personnel ensure delivery overnight in most locations or by the end of the next possible day One price for door-to-door delivery eliminates hidden costs so you can avoid surprises for your customers and your Finance Manager. Never lose sight of your goods. Access tracking and delivery details from virtually anywhere via the Internet, email, WAP, SMS or phone Gain greater control over your business. ne company to handle your shipments ➢ More efficient processes ➢ Customs experience and advice to ensure smooth clearance ➢ Shorter lead times through direct distribution ➢ Ability to invoice quicker and improve cash flow.

➢O

RECOMMENDATION

1. ENHANCE THE SMART-TRUCK PROJECT Because of the stage of recession and high the companies need to make

competition,

difference to have

new

customers and increase their market share. To invent completely new product can be very expensive and take very much time. So, making little difference on the current product or service can be better. At this time, we need to talk about innovation. As a CEO of DHL Logistics, enhancing the SmartTruck Project is going to be my first strategy. This project will allow our company to deliver faster and cut cost by using less fuel. To achieve this goal, we will follow some steps: a. Increase the budget of R&D 10%. b. Prepare an office for a new innovation team and assign a leader to work on this project. c. Also pay premium for new and creative ideas whoever gives it (even juniors). So this will provide us innovative atmosphere 2. AQUIRE SMALL - SIZE LOGISTICS COMPANIES: By acquiring small local companies in different countries like China, India, USA, will give us precense in that countries. Also, this will decrease the threat of restrictions in those companie. Even they are small companies; they can have creative solutions to different problems. So we are acquiring new brains at the same time. We can get some ideas from them to improve

our skills. I mean we are not firing people who were working there actually; we are hiring them to work with us.

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 a lso improves the efficiency and customer satisfaction. Overall logistics management is very important for today’s highly competitive and cut - throat corporate world. DHL has the world’s largest express and logistics Network. Over

the past decades it had turned delivering goods into a

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

Logistics

management

is

important

for

every

organization but more so DHL. We have tried to incorporate all the facets of logistics which propel DHL to be the best delievery and carriage -service

around the world. No wonder that DHL is head and shoulders above all of its competitors!

a) b) c) d)

Logistics and Supply Chain Management- Written by Martin Christopher Indian Logistics Industry” (2008) published by Cushman & Wakefield BUSINESS LOGISTICS – BARDI Elements of Logistics Management- S.D.APHALE

Websites: 1. www.google.com 2. www.logisticmanagement.com 3. www.about.com 4. www.dhl.com 5. http://www.dpdhl.com/en/about_us/corporate_divisions/supply_chain.htm l

6.