Project report on logistic system in dhl 163176466

Logistics System in DHL
1
PROJECT REPORT
ON
³LOGISTCS SYSTEM IN DHL´
Bachelor of Management Studies
Semester V
Submitted
In Partial Fulfillment of the requirements
For the Award of Degree of Bachelor of Management Studies
By
Kamlesh Pandey
9426
J.V.M s DEGREE COLLEGE OF B.M.S.
Plot No.6, Sec-1, Airoli Node, Navi Mumbai-708

2
DECLARATION
I, Mr. KAMLESH PANDEY the student of J.V.M¶s
Degree college of BMS hereby assure that, I have
completed this project on Logistic System In DHL in
the academic year 2009-2010, the information
submitted is true to the best of my knowledge & belief.
Signature
Kamlesh Pandey
Roll - 9426, TY
B.M.S.

3
ACKNOWLEDGEMENT
A compendium is never the work of one individual ±
more a combination of ideas, suggestion and
contribution involving many hands.
My debts are too numerous to be acknowledge
individually. A large number of individuals have
contributed directly and indirectly in the completion of
this project. I am extremely thankful to Ms. Hema
Kadukar.
It is pleasure to express my gratitude for the
assistance received from them. Hence I would like to
take this opportunity to thank them wholehearted for
helping me in preparing this project.
Kamlesh Pandey

4
OBJECTIVE OF THE STUDY
The objectives of the Project are:
PRIMARY OBJECTIVES
y To know the effectiveness of logistics management of
DHL and to bench mark the organization with respect to
the industry.
y To have a thorough understanding of how logistics system
works in DHL
SECONDARY OBJECTIVE
y To know about Logistics Industries
y To understand the value of each organization
y To know whether the customers are satisfied with the
existing range of service pattern.
SCOPE OF THE STUDY:
In order to understand the concepts of logistics in terms of
practical usage and to glimpse into the how a real company or
organization uses logistics as a formidable tool to gain customer
satisfaction, reduce overall cost and increase efficiency I
selected ³DHL´ the world¶s leading courier Service Company.
The study is done only how Dhl use logistics system effectively.
There are following strength and weakness of DHL

5
COMPANY STRENGTHS
Strong Brand Image: In 1997, DHL became the global
express transportation company to obtain simultaneous system-
wide ISO 9001 certification in international quality standards.
DHL has also developed their own quality system that matches
their customer¶s standards.
Globalism: DHL operates on a global scale. They operate
in more than 220 countries. They provide services that appeal
to most of the world. They have such a large market in which
to operate, and thus realize tremendous revenues. They can
also achieve global economies of scale.
eServices and Technology: DHL uses and continues to
search for new technology. They spend nearly 10% of total
revenues, for information technology. DHL also has excellent
eServices that provide access to systems that ensure customers
have control and visibility of their supply chains at all times.
Products can be tracked, queried and ordered online.
Corporate symbiosis:DHL has developed its own
organizational structure to serve the global market, which it has
called ³corporate symbiosis.´ This approach encompasses the
empowerment of the DHL personnel at a local level, at the
same time recognizing the interdependence of the parts of DHL
as a corporate whole.

6
Smart-Truck Project: It is the programme which allows
DHL to deliver faster. The data are transmitted directly to the
dynamic route planning system, which recalculates the routes,
depending on the current order situation and volume of traffic.
COMPANY WEAKNESS:
High Prices: DHL¶s prices are above their competitors.
This can be a weakness if their customers do not perceive a
difference between DHL and its competitors¶ services.
Mistakes in Market-Share Estimate: The biggest
weakness is DHL¶s market-share estimate. It is difficult to
estimate even when the market is stagnant and contains few
competitors, and all market-share estimates should be viewed
with circumspection.
Weak Visibility: It has weak visibility in the community
compared with its potential
Not Well-known in USA as UPS and Fedex

7
Table of contents
1 INTODUCTION TO LOGISTICS«««««««« 1
1.1 Meaning of logistics««««««««««««««« 1
1.2 Origin and Definition of Logistics«««««««««.. 3
1.3 Importance of logistic management««««««««« 4
1.4 Logistics Management and Supply chain ««««««.. 6
2 BACKGROUND OF DHL«««««««««««.. 9
2.1 History of DHL «««««««««««««««««.. 10
2.2 The world's largest express and logistics Network «««« 11
2.3 The DHL Indian Profile ««««««««««««««. 12
2.4 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 MANAGEMENT«««««««« 21
4.1 DHL International Supply chain«««««««««««. 23
Reverse Logistics««««««««««««««««««« 24
Services Logistics«««««««««««««««« ««« 25
Inbound to Manufacturing««««««««««««««« 26
Medical device Distribution««««««««««««........ 27
Distribution to store Management««««««««««..... 27
Engineering response««««««...................................... 27
4.2 Extended Supply Chain Services«««««««««««

8
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 ««. 33
5 TRANSPORTATION ««««««««««««... 36
5.1 Transportation functionality ««««««««««««. 37
5.2 Principles «««««««««««««««««««.. 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. 47
6.1 Warehouse Infrastructure Network««««««««««. 48
Multi User Centers «««««««««««««««««.. 48
Strategic Part Centers (SPC) ««««««««««««« 49
Express Logistics Centers (ELC) «««««««««««. 49
6.2 Warehouse Management Solution ««««««««««. 50
Warehouse Management Systems«««««««««««. 50
Strategic Inventory Management «««............................. 50
Direct Express Inventory Management«««««««... 50
Repair Return Inventory Management ««««««««... 51
Cross Docking «««««««««««««««««««. 51
6.3 Inventory Optimization ««««««««««««««. 52

9
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

10
INTRODUCTION
MEANING OF LOGISTICS:
Logistics is concerned with getting the products and services where they
are needed and when they are desired. It is difficult to accomplish any
marketing or manufacturing without logistical support. It involves the
integration of information, transportation, inventory, warehousing,
material handling, and packaging.
The operating responsibility of logistics is the
geographical repositioning of raw materials, work in
process, and finished inventories where required at
the lowest cost possible.Logistics is practiced for ages
since organized activity began. Without logistics
support no activity can be performed to meet defined
goal. The current challenge is to perform logistics
scientifically in order to optimize benefits to the organization. Logistics
is a planning function of management. Logistics function is concerned
with taking products and services where they are needed and when they
are needed.

11
LOGISTICS MANAGEMENTS:
Logistics management is that part of the supply chain which plans,
implements and controls the efficient, effective, forward and backward
(reverse) flow and storage of goods, services and information between
the point of origin and the point of consumption in order to meet
customers' requirements rather to the customers¶ delight. A professional
working in the field of logistics management is called a logistician.
Logistics, as a business concept, evolved only in the 1950s. This was
mainly due to the increasing complexity of supplying one's business
with materials, and shipping out products in an increasingly globalize
supply chain, calling for experts in the field who are called Supply
Chain Logisticians. This can be defined as having the right item in the
right quantity at the right time at the right place for the right price and to
the right target customers (consumer);and it is the science of process
having its presence in all sectors of the industry. The goal of logistics
work is to manage the fruition of project life cycles, supply chains and
resultant efficiencies. Logistics is Concerned with getting (or
transmitting) the products and services where they are needed or when
they are desired. It is difficult to accomplish any marketing or
manufacturing without logistical support. It involves the integration of
information, transportation, inventory, warehousing, material handling,
and packaging. The operating responsibility of logistics is the
geographical repositioning of raw materials, work in process, and
finished inventories where required at the lowest cost possible.

12
ORIGIN DEFINITION OF LOGISTICS:
The term logistics originates from the ancient Greek ȜȩȖȠȢ
(logos²ratio, word, calculation, reason, speech, oration). Logistics
is considered to have originated in the military's need to supply
themselves with arms, ammunition and rations as they moved from their
base to a forward position. In ancient Greek, Roman and Byzantine
empires, there were military officers with the title µLogistikas¶ who were
responsible for financial and distribution of supplies.
The Oxford English dictionary defines logistics as: ³The branch of
military science having to do with procuring, maintaining and
transporting material, personnel and facilities.´
The American Council of Logistics Management defines logistics as´
the process of planning, implementing and controlling the efficient and
effective flow, and storage of goods, services and related information
from the point of origin to the point of consumption for the Purpose of
conforming to customer requirements.´

13
Importance of logistics managements:
1.Logistics is the bed rock of trade and business.
y Without selling and or buying there can be no trade and business.
Buying and or selling takes place only when goods are physically
moved into and or away from the market.
y Take away logistical support trade and business will collapse
2. Integrates logistical activities
In conventional management environment, various activities of logistics
work in isolation under different management functions. Each pocket
trying to sub optimizes its objectives at the cost of overall organizational
objectives. Purchasing trying to purchase at minimum price at the cost
of what is needed by operations. Operations produce large quantities at
minimum production cost ignoring demand leading to doom inventory.
Logistics function of management brings all such functions under one
umbrella pulling down inter departmental barriers.
3. Competitive edge:
In the fiercely competitive environment logistics provides the edge. Due
to technological revolution most of the products are moving into
commodity markets. In a commodity market where price is controlled
by competition, where there is no product differentiation in terms of
quality parameters like performance reliability, where brands are
almost irrelevant, competitive edge is that of availability of product and
service in terms of time, place and quantity.

14
4.Leads to customer satisfaction
Through superior customer service. Organizational objectives of P
[Productivity],Q [Quality],C [Cost],D [Delivery],E [Employee
Morale],F [Flexibility],S [Safety],H [Health],E [Environment] are set to
meet customer expectations.
5.Supports critical functions like operations and marketing
Strong logistics support enables a company to move towards JUST IN
TIME production system for survival in a highly competitive market
6.Logistics wins or loses wars
y British lost American war of independence due to poor logistics
y Rommel was beaten in the desert by superior logistics of Allies

15
Logistics Managements and Supply Chain:
SCM and logistics management, the definitions made by the Council of
Supply Chain Management Professionals, CSCMP (former Council of
Logistics Management, CLM) SCM is defined as ³Supply chain
management encompasses the planning and management of all
activities involved in sourcing and procurement, conversion, and all
Logistics Management activities. Importantly, it also included
coordination and collaboration with channel partners, which can be
suppliers, intermediaries, third-party service providers, and customers.
In essence, Supply Chain Management integrates supply and demand
management within and across companies ³Supply chains encompass
the companies and the business activities needed to design RFDn, make,
deliver, and use a product or service. Businesses depend on their sup ply
chains to provide them with what they need to survive and thrive. Every
business fits into one or more supply chains and has a role to play in
each of them. The pace of change and the uncertainty about how
markets will evolve has made it increasingly important for companies to
be aware of the supply chains they participate in and to understand the
roles that they play. Those companies that learn how to build and
participate in strong supply chains will have a substantial competitive
advantage in their markets. Supply chain management is the
coordination of production, inventory, location, and transportation
among the participants in a supply chain to achieve the best mix of
responsiveness and efficiency for the market being served. There is a
difference between the concept of supply chain management and the
traditional concept of logistics. Logistics typically refers to activities
that occur within the boundaries of a single organization and supply
chains refer to networks of companies that work together and coordinate

16
their actions to deliver a product to market. Also traditional logistics
focuses its attention on activities such as procurement, distribution,
maintenance, and inventory management. Supply chain management
acknowledges all of traditional logistics and also includes activities such
as marketing, new product development, finance, and customer service.
In the wider view of supply chain thinking, these additional activities
are now seen as part of the work needed to fulfill customer requests.
Effective supply chain management requires simultaneous
improvements in both customer service levels and the internal operating
efficiencies of the companies in the supply chain. Customer service at
its most basic level means consistently high order fill rates, high on-time
delivery rates, and a very low rate of products returned by customers for
whatever reason. Internal efficiency for organizations in a supply chain
means that these organizations get an attractive rate of return on their
investments in inventory and other assets and those they find ways to
lower their operating and sales expenses.

17
Company Profile

18
INFORMATION
DHL is the global leader in logistics - with more highly experienced
professionals at more locations in more countries than any other provider.
His goal is to build strong, long-term partnerships with customers by
providing world class services, across all our operations. In India,
they have formed a new joint venture - DHL Lemuir Logistics, which
consolidates their position as the leader in International Freight
Forwarding, Supply Chain Management, Project Transport and Customs
Brokerage. They are the first choice for companies looking for end
to end logistics solutions and high quality servicing capabilities. Aft er
joining forces with Excel in 2005, they are now also the sector's leading
innovator - providing the extraordinary range of cutting-edge solutions.
His logistics customers include over 75% of the worlds largest quoted
non-financial enterprises. These organizations trust us with their brands
and reputations not simply because they are the worldwide market leader,
but because they strive to deliver globally consistent services of the
highest quality,

19
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 r educing 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 pac e. 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

20
The world's largest express and logistics Network
DHL is a global expertise in express, air and ocean freight, overland
transport and logistics solutions; DHL combines worldwide coverage
with an in-depth understanding of local markets.
Below are the global facts and figures that show you the scale of the
world's largest express and logistics network.
DHL Express worldwide
Employees more than 124,000
Countries and territories more than 220
Hubs 36
Bases 4700
Vehicles 72,000
Aircraft 350
Pack stations (only Germany) 900
DHL Logistics in figures
DHL logistics worldwide
Employees * more than 162,500
DHL Global Forwarding
Countries and territories 150
Terminals, warehouses, offices 813
Air freight volume 4,409,000 tones
Ocean freight volume TEU ** 2,764,000
DHL Excel Supply Chain
Countries and territories 59
Centers, warehouses, terminals 2500
Storage area sqm 23,000,000
DHL Freight
Countries and territories more than 30
Full truckload movements p.a. 2,000,000
Terminals more than 160

21
DHL INDIA CORPORATE PROFILE
DHL Worldwide Express (India) Pvt Ltd is the No.1 international air
express services provider in India, a position it has held since it began
its India operations in 1979. Today, DHL offers its customers the entire
spectrum of express services from international air express to high end
logistics solutions including repair and return, strategic inventory
management and direct express inventory. DHL India has over 50,000
customers serviced through DHL's national network with its 1,000
strong ground staff, fleet of 400 vehicles and dedicated service centers
in Ahmadabad, Bangalore, Chennai, Cochin, Jaipur, Hyderabad,
Kolkata, Mumbai, New Delhi, Pune and Tripura. Acknowledged for its
innovative solutions and pioneering initiative s, DHL India has many
firsts to its credit including India's first and only 24-hour customer
service call center, the first to introduce customized solutions such as
Jumbo Box, Junior Jumbo, Import Express and Fashion First for
customers in the air express industry, as well as the first to provide track
and trace services in India via email, via SMS or via the Internet and
WAP phones.

22
Facilities:
DHL India has an outstanding reputation in the market for providing a
reliable, fast and easy-to-use service. DHL offers-
Highly trained and professional staff, committed to being responsive to
all customers¶ needs
Customer Service Agents, available round-the-clock, 365 days of the
year, to serve customers whenever and wherever they need them
Electronic pre-clearance of shipments through Customs
Five international gateways providing direct-to-air networks and
faster sorting of inbound and outbound shipments
DHL India is a proven facilitator of trade, across the globe. His strength
lies in our global network and the know-how of our people. Backed by
strategic alliances with world-class partners and the innovative use of
technology, they strive to continuously improve the quality of our
service. Our services range from fast, responsive and cost effective
express deliveries toe-commerce fulfillment and intelligent logistics
solutions. DHL Core Services consist of door-to-door air express
delivery of documents and parcels of all sizes (and weight), both into
and out of the country.

23
Products and services of DHL:
DHL Document Express (DOX):
This service is ideal for shipments that are not subjected to Customs
declaration at destinations, or have no commercial value or do not
require a license.
DHL Express Worldwide Package (WPX)
This service is used for shipments with commercial value or those,
which must be declared for Customs evaluation. They may be subjected
to Customs inspection at destinations and may be taxable or dutiable.
Jumbo Pack and Jumbo Junior:
This service makes exporting easy. One box dispatched for on e flat fee,
anywhere in the world. DHL Jumbo Box is for shipments under 25kg
and Jumbo Junior for shipments less than 10kg.
Import Express:
This service is a single window solution for all importing needs. DHL
Import Express is a one window, one rate, and one account, one
currency service that enables a shipment picked up from the supplier's
doorstep overseas and delivered directly to the customer anywhere in
the world. And what's more, it allows the customer to maintain total
control of your importing costs.

24
Fashion First:
Fast Forward is the revolutionary new service of DHL for moving heavy
goods that brings increased efficiency and delivers greater cost savings
for Indian importers and exporters. It facilitates the import and export of
shipments weighing 20kg and above by providing significant savings
with a wide range of innovative and flexible door -to-door solutions.
Another feature of Fast Forward is Trade Automated Services (TAS), an
online platform that provides comprehensive trade and customs
information in 50 key countries worldwide, calculates total landed costs
of a shipment (including duty, tax and other customs related charges),
generates import and export documentation, screens senders and
receivers against government lists pertaining to embargoes and
sanctions, and compares an item's export and import clearance costs and
regulations to enable qualifying sourcing decision. Fast Forward is
specially developed after extensive research and designed to meet the
unique needs of industries such as Automobiles, Electronics, Heavy
Engineering, Publishing and Textiles.

25
INTEGRATED LOGISTICS
Logistics is viewed as the competency that links an enterprise with its
customers and suppliers. Information from and about customer¶s 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
Suppliers Physical
distribution
Manufacturing
support
Customers

26
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 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 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 (e.g. if there has to be a certain
package delivered from India to UK the normal services would take

27
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 .
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.

28
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
DHL¶s 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 desti nation.

29
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
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.

30
Supply Chain Management
Definition for supply chain management
³Supply 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 inv olved
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.( in detail mention above)
For DHL:
Supply chain Optimization

31
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

32
1. International Supply Chain:
DHL¶s international supply chain management solutions are focused on
helping customers take increased control of international inbound
supply chain to maximize 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
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.

33
Logistical services that are offered.
Reverse Logistics
Services Logistics
Inbound to Manufacturing
Medical device distribution
Distribution to stores Management
Engineering Response
a.)Reverse Logistics
DHL¶s 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 product

34
b.) Service logistics
Service and replacement parts DHL¶s 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
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.

35
c.)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 optimization
Supplier management
Transportation management
In-plant services
Key to the service is integrating manufacturers' forecasting, order
management and supply chain execution processes with their component
suppliers. DHL implements 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

36
d.) 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.
e.) Distribution to stores management
DHL distributions 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.
f.) 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.

37
2. Extended supply chain services
DHL not only provides physical logistics services but also manages
other enhanced supply chain services, improving efficiencies and
reducing costs.
a.)Order Management
Receipt, management, execution, sequencing and dispatch of orders in a
timely manner.
b.)Call Center Management
A Call Centre manages orders, monitors sales activities, provides
customer services and functions as a Help-desk.
c.)Global Inventory Management
DHL gives the customer a global view of inventory, thus enabling
informed decisions regarding the disposition of stock.
d.)Consolidated Billing Services
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.
e) 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.

38
2. Implementation Services:
a. 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.
b. 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:
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 fulfill 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.

39
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 indication of any service
slippage. In this second role, the measures provide a valuab le
contribution to DHL's Continuous Improvement Programme.
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

40
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 optimizing
logistical operations in both process and strategy, and are aligned to the
client's commercial expectations.
The services are as follows:
Strategic Logistics Consulting
Lead Logistics Provider
Consulting and providing Transport optimization: Route-Pro and
Trans-Pro
Consulting and providing Supply Chain Design
Consulting and providing Transportation
Engineering, optimization and re-engineering
Implementation and Project Management
Process Management
Outsourcing
DHL¶s consulting services also offer re-organization of customer
facilities, project management for customers, implementation of new IT
Systems, creation of tender documents and tender processing.

41
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 Optimization
Optimizing 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,
they help you overcome challenges at the end of the automotive supply
chain.
Distribution to Stores Management
DHL¶s 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 services
These solutions are built from several core services including reverse
logistics:
logistics network strategy
warehouse design and simulation
Transport modeling.

42
DHL Solution
Solution for customized
End-to-end logistics
worldwide.

43
Best-in-class solutions that deliver
Value to your supply chain.
Customized Logistics Solutions.
Supply Chain
Management
Warehousing
Value Added
Services
Distribution
Outsourcing
Analysis, design and engineering.
Lead Logistics Provider (LLP) and
Lead Service Provider (LSP) services.
Engineering, design and management.
Vendor management, just in time.
Order management, quality control,
outbound fulfillment, reverse and
return logistics and other services.
Industry-specific local and
transnational. Network and fleet
planning and optimization
Take-over and management of in-
house logistics including distribution,
transport, back-office, supply chain
and after sales.
DHL Solutions offers customized logistics solutions for your
entire supply chain. Our complete overview ± from
manufacturer/supplier to retailer to consumer ± enables you
to achieve operational excellence at every stage. Services
range from consulting and design to management and
execution. They provide industry-specific expertise and long-
term experience that add value to your business. DHL
Solutions sets the pace in Supply Chain Management with
state-of-the-art technologies, delivering customized business
solutions. Leading edge IT systems ensure seamless
integration and guarantee full transparency and control
throughout the entire supply chain.

44
DHL Supply Chain, Corporate Information Solutions
This division consists of contract logistics services
and Corporate Information Solutions (Williams Lea).
Both business units focus on tailor-made customer
solutions.
The business unit Supply Chain provides
warehousing and transportation services as well as
value-added
solutions along the entire supply chain for customers from various sectors
of industry, including the key automotive, life sciences, technology, fast -
moving consumer goods, retail, and fashion sectors. The subsidiary
Williams Lea is the heart of the business unit Corporate Information
Solutions. The expert for document-based outsourcing solutions gathers,
digitalizes, prints, stores, sorts, addresses, envelops, dispatches and
archives documents of all types. Williams Lea is also the right point of
call for electronic invoicing and marketing services.

45
TRANSPORTATION
Transportation is the most visible of all functions of logistics and high
contributor to logistics cost. We can see trucks, containers and
wagonloads of material being moved from place to place as an activity
directly associated with trade and business. We should also appreciate
that this is an activity that adds highest amount of cost to the activity of
making inputs and outputs available to consumers. Transportation
function moves the products to meet customer expectations at minimum
cost. 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.

46
Transportation uses financial resources because internal expenditures
are necessary for private fleets or external expenditures are required for
commercial or public transportation.
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.
Product Storage:
Temporary storage in stationary vehicles or Vehicles kept moving
on a circuitous route - Product storage is expensive in a transport
vehicle. But sometimes keeping overall cost in mind this is adopted.
A. When unloading and loading is more expensive than storage
B. When storage space is limited. [Situation when inventory levels are
very high]

47
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 economies of
scale exist because fixed expenses associated with moving a load can be
spread over the load¶s 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.

48
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.

49
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.
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 Wor ld
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

50
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.
WATER TRANSPORT
It is the oldest mode of transportation. First it was the sailing vessels,
which was replaced by steamboats in early 1800¶s and by diesel power
in the 1920¶s. 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 adjac ent,
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.

51
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 underutilized.
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.

52
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 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.

53
OPTIMIZATION OF LOGISTICS WITH DHLROAD AND
RAIL SOLUTIONS.
DHL Freight is a leader in European overland transport. Our continent-
wide network and comprehensive range of products and services
guarantee reliable transport. DHL Freight offers you regular services for
group age and a full range of transport services for part- and full-load
shipments by road, rail and intermodal transportation. They provide
special handling and transportation for perishables, furniture, trade fair
or event equipment, as well as tailored customs clearance services in
more than 350 offices across Europe. State-of-the-art IT systems give
you totals shipment visibility and higher delivery efficiency. Our
industry-specific expertise and long-term experience can improve your
productivity and streamline your operations. A successful, high-caliber
partnership with DHL Freight gives you all the advantages you need to
optimize your logistics.

54
Air and ocean freight solutions for a
competitive advantage
Whether you need to forward door-to-door,
airport-to-airport or port-to-port freight, DHL
Danzas Air Ocean offers a comprehensive
range of services no matter the size, weight or
dimensions of your goods.
Combined with an extensive tool kit of
information management systems and a global
network of dedicated control towers, our
experienced teams around the world can create
the right logistics solution for your business.
DHL Danzas Air Ocean is in pole position
to lead the future of air and ocean freight
logistics and sets high standards in quality and
security

55
Air Freight
DHL Danzas Air Ocean offers a range of fast and cost-effective
airfreight services for your most time-sensitive freight with door-to-door
or airport-to-airport services, fixed schedules on all main routes and
reliable connections to all other destinations.
DHL Air Freight products include:
Air First
Air Premier
Air Value
Combine the speed of airfreight and the lower
cost of ocean freight ± and you¶ll benefit from
our strength and experience in both. Plus,
real-time tracking at every step of the way.
Part and Full
Charter
Sea/Air
Creative routing solutions via major gateways
can save you even more money while adding
only 1-2 days over our Air Premier Service.
Chartering additional airfreight capacity is
part of everyday business ± especially if there
is limited commercial lift, for new product
launches, during peak seasons or for
oversized cargo. Our specialists create
solutions to get your goods through on time.
Whether door-to-door or airport-to-airport,
Air First guarantees priority on the first flight
out and forwarding within two days ± 24-
hours a day, 7-days a week, and 365-days a
year.
Combines price and time considerations for
both door-to-door and airport-to-airport
service. Your shipment will arrive at the
airport of any major marketplace around the
world within only three days.

56
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

57
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.

58
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

59
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
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).
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.

60
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.

61
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

62
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, 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 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 transit times to large concentrations of consumers.

63
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, 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.

64
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

65
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:

66
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

67
2. Product Assembly
Postponement, quick response and mass customization are breakthrough
business strategies enabled via packaging services. Integrating
packaging operations into distribution centers 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

68
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.

69
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 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.

70
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.
Worldwide Parcel Express.

71
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, e-mail, WAP, SMS or phone
One 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.
Gain greater control over your business.

72
RECOMMENDATION
1. ENHANCE THE SMART-TRUCK PROJECT
Because of the stage of recession and high competi tion, the
companies need to make 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 Smart-Truck
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 RD 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.

73
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!

74
BIBLIOGRAPHY
a) Logistics and Supply Chain Management- Written by Martin Christopher
b) Indian Logistics Industry´ (2008) published by Cushman Wakefield
c) BUSINESS LOGISTICS ± BARDI
d) Elements of Logistics Management- S.D.APHALE
Websites:
1. www.google.com
2. www.logisticmanagement.com
3. www.about.com
4. www.dhl.com

Project report on logistic system in dhl 163176466

More Related Content

What's hot (20)

Similar to Project report on logistic system in dhl 163176466 (20)

More from Hairin Nisa Meor Nordin (10)

Recently uploaded (20)

Project report on logistic system in dhl 163176466