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Managing International Businesses And Supply String Management Essay

The company's name DHL is made by the first letters of the last titles of the three founders of the business, Adrian Dalsey, Larry Hillblom and Robert Lynn in 1969. It includes its headquarters Bonn, Germany.

DHL is one of the global market market leaders in international exhibit, air freight and overland move. It also tops the desk standing as the world's #1 1 in sea freight and contract logistics. DHL Exhibit shares using its well-known DHL brand and with other Deutsche Post business units such as DHL Global Forwarding and DHL Express Supply String. DHL offers a complete range of customised alternatives from express report shipping to provide string management.

Its global network is spread in more than 220 countries and territories and about 500, 000 employees working worldwide to provide customers superior service quality to fulfill customers supply chain requirements.

DHL accepts its communal responsibility by promoting climate protection, devastation management and education. DHL is part of Deutsche Post DHL. The Group produced revenue greater than 46 billion Euros in '09 2009 and it has already reached about 24 billion Euros till June 2010.

Global Facts and Numbers:

Number of Employees: around 500, 000

Number of Office buildings: around 6, 500

Number of Gateways: 240

Number of Hubs, Warehouses & Terminals: more than 450

Number of Vehicles: 76, 200

Number of Airplane*: 420

Number of Countries & Territories: more than 220

Shipments each year: more than 1. 5 billion

Destinations Covered: 120, 000


The definition of 'logistics' is: -"Logistics management is the fact that part of source string management that programs, implements and controls the efficient, effective, onward and reserve circulation and safe-keeping of goods, services and related information between the point of source and the point of consumption in order to meet customer's requirements. "(www. cscmp. org)

Logistics is concerned with getting the products and services at the right place and at the required time. It's very difficult to carry out any marketing or making without the support of logistics. It requires the combo of information, inventory, transport, materials handling, warehousing and product packaging.

The operational obligation of logistics is the physical movement of raw materials and completed inventories wherever required at the cheapest cost possible with the right time.

DHL itself being truly a Logistics and supply chain company has grown enormously because of international trade. As the international trade has become easy between most of the countries the trade move has increased and the utilization of Logistics Company like DHL make it making the trade more easy, safe and fast.

Due to globalisation it's now easy to get things from one country to some other through these logistics companies.

Logistics PROVIDERS:

LSPs are companies who deal with other companies' carry and distribution sites. Recognising the cost-effective leads in international transportation and logistics entails dedication and resources (Rushton et al 2008). Thus, many businesses outsource the transport of raw materials and completed products to LSPs and give attention to their own main competences to save lots of resources and increase earnings (Mangan et al 2008).

Some companies, on the other hand, provide its own transportation and distribution services. While some others come together as businesses to organise their logistics needs, in doing so getting the services at cheaper rates (Mangan et al 2008).

DHL itself being a logistics company they have many clients who do the import and export of these products through DHL. Its some main clients are Car Business, Gernal Electrics, Telecome Companies, etc.

Supply Chain Management:

"The management of upstream and downstream human relationships with suppliers and customers to deliver superior customer value at less cost to provide chain as overall". Martin Christopher, Logistics and offer string management, 2005.

Supply String Strategy:

Supply chain management, on the other side, is the "management of upstream and downstream connections with suppliers and customers to provide superior customer value at less cost to the supply chain all together" (Christopher 2004).

To have an efficient supply string solution a good design and strategy is very important. DHL has developed a position for developing new and innovative solutions that makes the businesses easy and boosts control every once in awhile. Their internal groups also donate to the solutions design of a few of the world's leading brands and helps those to win key associates.

The strategies used by DHL are as follows:

Top-down perspective on strategy

Corporate Strategy:

Continuous Improvement

DHL aspires to ensure constant service quality worldwide as they build on their achievements in purchasing and on-going quality way of measuring. Cost Leadership is intended to substantially reduce both immediate and indirect costs and manage so that it does increase the overall profitability of the company. Organisational Capability helps to develop leadership features and develop staff commitment.

Profitable Growth

DHL has recognized three initiatives with an eyes towards further development:

In Sales Efficiency, they continuously improve the performance of these sales by increasing sales techniques and customer care which helps them to earn more profits.

In Strategic Product Replication, DHL grows and reproduces alternatives which are useful to simplify their customer's business procedures as per their requirements.

In Sector Emphasis, DHL constantly strengthen their potential in key areas of Consumer, Retail, Technology, Life Sciences & Professional medical, Automotive and Energy.

Business Unit Strategy:

Give presence of the upstream source chain, and allow to take the decisions earlier.

Create a more agile supply chain strategy which can better have the ability to react to the change in consumer requirements accordingly.

Reduce source times, cost on inventories, and associated storage space (warehouse) costs.

Functional Strategy:

Customer-focused solutions are designed up from the following core services:

Global forwarding, including: air/ocean/road/rail freight forwarding and management to provide the material in line with the customer needs and requirements.

Destination management including: port and demurrage management; customs brokerage; de-consolidation and pre-retail services; port to circulation centre transportation; immediate 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 surrounding the world.

Outsourcing Projects:

DHL involves overtaking and managing previous in-house logistics procedures and outsourcing it to other providers. Outsourcing includes,

Distribution centres

After sales services

Back-office functions

Supply chain management functions

Transport operations

The above outsourcing work occurs by different DHL suppliers so as it will help in decreasing the extra inventory cost.

Inventory, warehousing and materials management:

Inventory Flow

Manufacturing support

Physical distribution




Information Flow

Inventory Flow

The logistics office of DHL is concerned with the activity and storage space of materials and done products from time to time with the right place at a given time. Every logistical process brings value to the materials or component from its primary level of purchase by moving inventory when and where required. Thus there is a climb in value of the material at each step and it leads to the rise in cost of last product.

Large manufacturers have a large number of logistical businesses, which ultimately end in the delivery of the merchandise to an industrial user, merchant, seller or customer.

In order to comprehend logistics it is useful to divide it into three areas:

Physical distribution

Manufacturing support


For DHL:

DHL is completely service oriented company so that it does not have its own materials movement. This means it is merely engaged in physical distribution and procurement. Procurement also contains the material which is required for product packaging such as paper, trays and containers, solid wood crates, standard storage containers wraps, vinyl etc. The materials or the products collected from the senders are weighed, examined for condition to ensure that it's in good condition and depending upon its various characteristics it is dispatched for further packing. The cargos are then dispatched because of their destinations and transferred to send it to the ultimate destination.

Through the use of inventory management, inefficiencies can be removed from the supply string, overall costs are reduced and high service levels are achieved. DHL optimise inventory at a line-item level at every level of the resource chain.

DHL focuses on driving ends up with:

Supplier management

Order replacement

Demand forecasting

Safety stock setting

Order pipeline monitoring

Excess stock management

Inventory optimisation is reinforced by inventory management software that calculates 'collection item risk profiles' that gauge the variability of demand and offer for each brand item inside a customer's inventory.

DHL offers:

8% improvement in product availableness and average of 20% inventory reduction

Reduced inventory and day-to-day expenditure.

Improved sales, profitability and come back on investment

To keep a good stream of supply according to the upsurge in demand

Maintain high service standards

More even and responsive source chain

Warehouse Management Systems

The Warehouse Management System (WMS) reports all types of procedures and activities in the receipt, controlling and storage of products and requests in a warehouse environment. The WMS effectively records the location of inventory while it is stored in the warehouse.

DHL's WMS handles all crucial techniques in the warehouse, and it is also an important support for different circulation and transport concepts (planning, time controlling, booking of transfer capacity, communication with customs and other delivery government bodies).

DHL warehouse service helps inbound logistics, circulation and after sales services in a manner that it enhances inventory management and reduces its operating costs as well as enhances its routine time.

Benefits include improvements in:

Customer and quality service

Lead times

Stock accurateness

Reduction in stock costs

Productivity responsiveness to the company's strategic needs

Transport planning:

DHL uses following modes for transportations:


DHL will be the global innovator in air freight, carrying 12% of the full total worldwide market. Its businesses are supervised over 150 countries which give a personalised service to and from all key marketplaces.

DHL can organise slated plane tickets and chartered planes from a variety of major providers for travel, as well as they offer competitive services on their own carrier, so that it is adaptable enough to help their customers from first-time shippers to regular importers and exporters of freight.

Roadways and Railways-

DHL Freight is versatile partner for overland carry across European countries, North Africa, elements of the Commonwealth of Individual Areas (CIS) and the Middle East. They assure reliable and experienced home and international transport for customers of all sizes.

DHL overland travelling service comprises of more than 170 street terminals in more than 40 countries, over 3, 500 every week international departures, door-to-door tariffs and full traffic monitoring capability, all recognized by customs experts in more than 275 offices around.


One of the greatest Ocean Freight providers for Full Box Insert (FCL) and Less-than-Container Fill (LCL) shipments, DHL currently handle in excess of 2. 7 million TEU's and more than 2 million cubic meters of LCL freight annually, across all over the continents.

DHL designs a solution that leverages multiple settings of move. DHL carrier sourcing experience really helps to work in securing and handling the best possible combination of service providers. Cold chain move always helps to keep up with the perishable goods are save and discover that shipment finds the lowest landed cost.

Continuous traffic monitoring is a key to product security. With key vehicles solution a leading-edge Transport Management System (TMS) is configured and deployed to customer's technical specs.


Logistics is one the main and important part of any organisations strategy and function. When the logistical process is completed appropriately then not only the company reduces the production cost but also enhances its efficiency and customer satisfaction. Logistics management is very important for today's highly competitive world.

DHL gets the world's largest exhibit and logistics Network. Which has a network spanning about 220 countries and using its private fleet of airplanes, mobile vans, cargo ship carriers & even railway automotives in a few countries. Competitors have come and eliminated but DHL has been able to keep its No 1 position undamaged. This is because of its dynamic nature and frame of mind of preserving good customer relationships and serving good quality work. Logistics management is important for each and every organisation.

We have tried out to include all the areas of logistics which supercharge DHL to be the best delivery and carriage-service surrounding the world.

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