Logistics System in DHL

1
PROJECT REPORT ON LOGISTCS 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 Pandey9426
J.V.M s DEGREE COLLEGE OF B.M.S.
Plot No.6, Sec-1, Airoli Node, Navi Mumbai-708

DECLARATION
I, Mr. KAMLESH PANDEY the student of J.V.Ms 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, TYB.M.S.

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.HemaKadukar.
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
OBJECTIVE OF THE STUDY
The objectives of the Project are:
PRIMARY OBJECTIVES
To know the effectiveness of logistics management of DHL and to bench mark the organization with
respect to the industry.
To have a thorough understanding of how logistics system works in DHL
SECONDARY OBJECTIVE
To know about Logistics Industries

To understand the value of each organization

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 DHL
the worlds leading courier Service Company. The study is done only how Dhl use logistics system
effectively. There are following strength and weakness of DHL
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 customers standards.
Globalism:
DHL operates on a global scale. They operatein 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 Services that provide access to systems that ensure
customer shave 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
corporate symbiosis. This approach encompasses the empowerment of the DHL personnel at a
local level, at thesame time recognizing the interdependence of the parts of DHL as a corporate whole

Logistics System in DHL

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: DHLs prices are above their competitors.This can be a weakness if their customers do not
perceive a difference between DHL and its competitorsservices.
Mistakes in Market-Share Estimate:
The biggest weakness is DHLs 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

Table of contents
1INTODUCTION TO LOGISTICS 1
1.1Meaning of logistics 1
1.2Origin and Definition of Logistics.. 3
1.3Importance of logistic management 4
1.4Logistics Management and Supply chain .. 6
2BACKGROUND OF DHL.. 9
2.1History 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 Logistics24
Services Logistics25
Inbound to Manufacturing26
Medical device Distribution........27
Distribution to store Management.... 27
Engineering response......................................27
4.2Extended Supply Chain Services28
4.3Implementation Services..29
4.4 Performance Management 30
4.5OutsourcingProjects.30
4.6 Innovation of Supply Chain development . 31
4.7 Solution for Customize end to end logistic worldwide . 33
5TRANSPORTATION ... 36
5.1 Transportation functionality . 37
5.2 Principles .. 38
5.3 Transportation Infrastructure 40
5.4 OPTIMIZATIONOF LOGISTICS WITH DHLROAD AND
RAILS O LU T I O N S . . . . 4 4
5.5Air 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
W arehouse 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

Logistics System in DHL

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
7.5Customer Perception Measurement ... 60
8 Worldwide Parcel Express . 61
9.Recommendation ... 63
10 Conclusions 64
11 Bibliographies 65

Logistics System in DHL

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.

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.
ORIGIN & DEFINITION OF LOGISTICS:
The term "logistics" originates from the ancient Greek ""("logos""ratio, 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 Byzantineempires,
there were military officers with the title Logistikas who were responsible for financial and
distribution of supplies. The
Oxford English dictionary
defines logistics asThe 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.
Importance of logistics managements:
1. Logistics is the bed rock of trade and business.
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.
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
4.Leads to customer satisfaction
Through superior customer service. Organizational objectives of P[Productivity],Q
[Quality],C [Cost],D [Delivery],E [EmployeeMorale],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
British lost American war of independence due to poor logistics
Rommel was beaten in the desert by superior logistics of Allies
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
Supply chainmanagement 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, thirdparty service
providers, andcustomers. In essence, Supply Chain Management integrates supply
and demand management within and across companies Supplychains encompassthe
companies and the business activities needed to design RFDn, make,deliver, and use a
product or service. Businesses depend on their supplychains to provide them with what
they need
tosurviveandthrive.Every business fits into one or more supply chains and has a role to
play ineach of them. The pace of change and the uncertainty about howmarkets will evolve
has made it increasingly important for companies to be aware of the supply
chains they participate in and to understand theroles that they play. Those companies
that learn how to
buildand participate in strong supply chains will have a substantial competitiveadvant
age in their markets. Supply chain management is thecoordination of production,
inventory, location, and transportationamong the participants in a supply chain to
achieve the best mix of responsiveness and efficiency for the market being served.

There is adifference between the concept of supply chain management and thetraditional
concept of logistics. Logistics typically refers to activitiesthat occur within the boundaries of a
single organization and supplychains refer to networks of companies that work together and
coordinate
their actions to deliver a product to market. Also traditional logisticsfocuses its
attention on activities such as procurement, distribution,maintenance, and inventory
management. Supply chain managementacknowledges all of traditional logistics and
also includes activities suchas marketing, new product development, finance, and customer
service.In the wider view of supply chain thinking, these additional activitiesare now seen as
part of the work needed to fulfill customer requests.Effective supply chain management
requires simultaneousimprovements in both customer service levels and the internal
operatingefficiencies of the companies in the supply chain. Customer service atits most basic
level means consistently high order fill rates, high on-timedelivery rates, and a very low
rate of products returned by customers for whatever reason. Internal efficiency for organizations
in a supply chainmeans that these organizations get an attractive rate of return on
their investments in inventory and other assets and those they find ways tolower
their operating and sales expenses.
Company profile
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, longterm 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
CustomsBrokerage. They are the first choice for companies looking for endto end logistics
solutions and high quality servicing capabilities. After 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 thehighest
quality,
History and background of D H L
DHL are the first letters of the last names of the three companyfounders, Adrian
Dalsey, Larry Hillblom and Robert Lynn.
In 1969, just months after the world had marveled at Neil Armstrong'sfirst steps on the moon,
the three partners took another small step thatwould have a profound impact on the way the
world does business.
The founders began to personally ship papers by airplane from SanFrancisco to Honolulu,
beginning customs clearance of the ship's cargo before the actual arrival of the ship and
dramatically reducing waitingtime in the harbour. Customers stood to save a fortune. With
thisconcept, a new industry was born: international air express, the rapiddelivery of documents
and shipments by airplane.

The DHL Network continued to grow at an incredible pace. Thecompany expanded westward
from Hawaii into the Far East and PacificRim, then the Middle East, Africa and Europe. By 1988,
DHL wasalready 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 byDeutsche Post World Net. In 2003, Deutsche Post
World Netconsolidated all of its express and logistics activities into one single brand, DHL.
The world's largest express and logistics Network
DHL is a global expertise in express, air and ocean freight, overlandtransport and logistics
solutions; DHL combines worldwide coveragewith an in-depth understanding of local
markets.Below are the global facts and figures that show you the scale of theworld's largest
express and logistics network.
DH L 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
DH L Logistics in figures
DHL logistics worldwide
Employees * more than 162,500
DHL Global Forwarding
Countries and territories 150
Terminals, warehouses, offices813
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
D H L 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 50,000customers serviced through DHL's national
network with its 1,000strong 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 initiatives,
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
Facilities:
DHL India has an outstanding reputation in the market for providing are liable, fast and easyto-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 in to and out of the country.
Products and services of DHL:
DH L Document Express (DOX):
This service is ideal for shipments that are not subjected to Customsdeclaration at destinations,
or have no commercial value or do notrequire a license.
DH L 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 subjectedto Customs inspection at destinations and may be
taxable or dutiable.
Jumbo Pack and JumboJunior:
This service makes exporting easy. One box dispatched for one flat fee,anywhere in
the world. DHL Jumbo Box is for shipments under 25kgand Jumbo Junior for shipments less than
10kg.
Import Express:
This service is a single window solution for all importing needs. DHLI mport 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.
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 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.
INTEGRATED LOGISTICS
Logistics is viewed as the competency that links an enterprise with its customers and
suppliers. Information from and about customers flows through the enterprise in the form of
sales activity, forecasts and orders. As products and materials are procured, a value added
inventory flow is initiated that ultimately results in ownership transfer of
finished products to customers. Thus the process is viewed in terms of two interrelated efforts, inventory flow and information flow. Inventory flow Information flow
Inventory flow
Suppliers

Physicaldistribution

Manufacturing support

Customers

Inventory Flow
The management of logistics is concerned with the movement andstorage of materials and
finished products. From the initial purchase of amaterial or component, the logistical
process adds value. By movinginventory when and where needed. Thus the material gains value
at eachstep. 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 ownmaterial movement but that
of the customers the sender, the receiver
andalso the intermediateries. That means it only involves physicaldistribution and
procurement. Procurement also includes the materialneeded for packaging such as
paper, moulded trays and boxes, woodencrates, standard containers wraps, plastic inlays
etc. The materials
or thegoods collected from the senders (including papers, documents, physical goods like
clothing, household good, chemicals, exotic animalsetc) are weighed, checked for
condition, and depending upon its variouscharacteristics it is packed. The goods are then
dispatched to their destinations. There is no value addition to the material itself but it
isdone 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
about 2 days whereas as a super fast delivery would be done in about 9hours)
Information flow

Information flow identifies specific locations within a logistical systemthat have

requirements. Information also integrates the three operatingareas. The primary objective of
developing and specifying requirementsis 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, whichare matched to
the required products and services to be performed
For DHL
It implies estimating the time requires for collecting the goods from thedoor step of the sender
and then estimating the time for the goods toreach the final customer

Forecasting
Forecasting utilizes historical data, current activity levels, and planning assumptions
to predict future activity levels. Logistical forecasting is generally concerned with
relatively short term predictions. The overall purpose of information planning/coordination flow
is to integrate specific activities within a firm and to facilitate overall integrated performance.
For DHL
DHLs whole business is dependent on the vital point of timely delivery. Based on the
distance to the final receiver, the accessibility, the documentations and procedures that
need to be handled etc they have fine tuned the process of delivery. They can accurately gauge
how much time it will take for the goods to reach its end destination
2.
Operational flows
The second aspect of information requirements is concerned withdirecting operations to
receive, process, and ship inventory as requiredsupporting customer and purchasing
orders. Operational requirementsdeal 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.
Supply Chain Management
Definition for supply chain management

Supply chain management is the management of upstream anddownstream 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 involvedthrough upstream
and downstream linkages, in the different processesand activities that produce value in
the form of products and services inthe hands of ultimate consumer.( in detail mention above)
For DHL:
Supply chain Optimization.

Good design is at the heart of an effective supply chain solution. DHLhas developed a reputation
for consistently developing innovativesolutions that streamline operations and improve
control. Their in-houseteams have contributed to the solutions design of some of the
world'sleading brands and enabled to win key contacts.DHL solutions design team offers a wide
portfolio of expertise andservices, from logistics network strategy, transport design,
warehousedesign and simulation, through to operational improvement andinventory analysis
International Supply Chain
Extended Supply Chain Services

Implementation Services
Outsourcing Projects

1 International Supply Chain:

DHLs international supply chain management solutions are focused onhelping customers take
increased control of international inboundsupply chain to maximize the value of international and
global sourcing.
DHL helps customers:
Give visibility of the upstream supply chain, and enable earlier decisionmaking
Create a more agile supply chain, better able to respond to changes inconsumer demand
Reduce lead times, inventories, and associated storage costs
Customer-focused solutions are built up from the following coreservices:
Origin management, including: vendor management; supplier collections; customs
brokerage; consolidation services and value-addedservices
Global forwarding, including: air/ocean/road/rail freight forwarding andmanagement;
European managed transport
Destination management, including: port and demurrage management;customs brokerage;
de-consolidation and pre-retail services; port todistribution centre transportation;
direct store delivery (US only)
Supply chain visibility and management, including: purchase order management; RFID product
tracking; exception management; planningand forecasting; inventory management.
Global forwarding services are provided across all major routes.
Logistical services that are offered.
Reverse Logistics
Services Logistics
Inbound to Manufacturing
Medical device distribution
Distribution to stores Management
Engineering Response
a . ) Reverse Logistics
DHLs reverse logistics solutions help customers plan, implement andcontrol flow of materials
and manage related information, back up thesupply chain to recapture values and ensure the

safe disposal of goods.Items include the recovery of obsolete or non-operational white

goodssuch as refrigerators, plus the removal of old furniture on delivery of newor replacement
products.
Services include:
Roll in Management: de-installation of finished goods at the customer'ssite
Returns Management: receiving, sorting, verifying and managingreturned products
Express Delivery: Exchange of Dead On Arrival product.
b.)Service logistics
Service and replacement parts DHLs service and replacement parts service involves the
management of manufacturers' replacement parts delivered to and from customers according
to pre-defined service levels or warranty agreements on a one, two, four or eight-hour and nextday 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.
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 justin-time deliveries and allow supply chain participants to exchange forecast requirements in
real time
Value is created for manufacturers and component suppliers throughout
the world by:
Enabling a robust and cost-effective supply chain
Providing the necessary visibility so that the location of all components within
the supply chain is known to all supply chain participants
Reduce inventory and investment costs
Improve delivery times
Co-ordinate multiple components more efficiently
. ) Medical Device Distribution
DHL country-based warehouses for a number of manufacturers to service a local customer
base. This includes the receipt of product from local or global manufacturing sites and
downstream distribution to hospitals.
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 a thigh 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.
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
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.
Performance Management:
Performance management is a key part of the supply chain. Measuredelements are reviewed as
a system, as each component interacts with allthe other parts around it. Performance measuring
not only recordshistorical performance but also provides early indication of any serviceslippage.
In this second role, the measures provide a valuablecontribution to DHL's Continuous
Improvement Programme.
Outsourcing Projects
Outsourcing involves DHL taking over and managing previous in-houselogistics
operations, including:
Distribution centers
Transport operations
Back-office functions
Supply chain management functions

After sales services

Innovative Supply Chain Development
Supply Chain Management services are delivered across industry sectors and provide expertise,
knowledge and resources in terms of personnel and supply chain tools. All services are
targeted at optimizinglogistical operations in both process and strategy, and are aligned to
theclient'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
DHLs 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.

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 analysisallows 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
DHLs distribution to store solutions are focused on helping retailers create efficient and flexible
supply chains to deliver product to retail outlets at high levels of services These solutions are built
from several core services including reverse logistics:
logistics network strategy
warehouse design and simulation
Transport modeling.
Solution for customizedEnd-to-end logistics
Worldwide

Best-in-class solutions that deliver Value to your supply chain.

Customized Logistics Solutions.

Supply ChainManagement Analysis, design and engineering.Lead Logistics Provider

(LLP) andLead Service Provider (LSP) services
.
Warehousing
Engineering, design and management.Vendor management, just in time.
Value AddedServices Order management, quality control,outbound fulfillment,
reverse andreturn logistics and other services
Distribution
Take-over and management of in-house logistics including distribution,transport,
back-office, supply
Chain and after sales.
Outsourcing
Industry-specific local andtransnational. Network and fleet planning and
optimization
DHLSolutions offers customized logisti cs solutions for your entire supply
chain . O ur complete overview from manufa cturer/supplier to retailer to consumer
enables you to a chieve operational ex cellen ce at every stage Services range from con
sulting and design to management and execution . They provide industryspe cifi cexpertise and long- term experien ce that addvalue to your business
.
DHl Solutions sets the pace in Supply Chain M anagement with state-of-theart technologies,delivering
customized business solutions Leading e d g e IT systems ensure seamless integration
and guarantee full transparency and control throughout the entire supply chain.

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 valueadded 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.
TRANSPORTATION
Transportation is the most visible of all functions of logistics and high contributor to logistics cost.
We can see trucks, containers and wagon loads 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 transportationfunction 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 intransit inventory, is becoming a significant consideration as a variety of supply chai
nstrategies such as just in time and quick response practices reduce manufacturing and
distribution center inventories
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 andenvironmental
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]
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. truck load 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 loads weight. The fixed expenses
include administrative costs of taking the order; time to position the vehicle
for loading or unloading, invoicing and equipment cost. These costs are fixed because they do
not vary with shipment volume .E.g. suppose the cost to administer a shipment is $
10.00. Then the 1- pound shipment has a per unit of weight cost of $10.00, while
the 1,000 pound shipment has a per unit of weight cost of $0.01. Thus, it can
be said that an economy of scale exists for the 1000-pound shipment.
Economy of distance

refers to the characteristic that transportation cost per unit of distance decreases as distance
increases .E.g. a shipment of 800 miles will cost less than two shipments (of the same combined
weight) of 400 miles. Transportation economy of distance is also referred to a se tapering
principle since rates or chargest a per with distance. The rationale of distance
economies is similar to that for economies of scale.
Longer distances allow the fixed expenses to be spread over more
miles,resulting in lower overall per mile charge. These principles are important considerations
when evaluating alternative transportation strategies or operating practices. The
objective is to maximize the size of the load and the distance that is shipped while still
meeting customer service expectations.
Transport Infrastructure
Transportation infrastructure consists of the rights-of-ways, vehicles,and carrier
organizations that offer transportation services on a for-hireor internal basis. The nature
of the infrastructure also determines avariety of legal and economic characteristics for each
mode or multimodal system. A mode identifies the basic transportation methodor 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 World War II. This is
because Motor carrier industry results from door-to-door operating flexibility and speed of
intercity movement. They are even flexible because they can operate on each and every kind of
roadways .In comparison to rail roads, motor carriers have relatively small fixed
investments in terminal facilities and operate on publicly maintained highways. Although the cost
of license fees, user fees, and tolls are considerable, these expenses are directly related
to the number of over-the-road units and miles operated. The variable cost per mile
for motor carriers is high because a separate power unit and driver are required for each trailer
or combination of tandem trailers. Labor requirements are
also high because of driver safety restrictions and the need for substantial dock labor. Motor
carriers are best suited to handle small shipments moving short distances.
WATER TRANSPORT
It is the oldest mode of transportation. First it was the sailing vessels, which was replaced by
steamboats in early 1800s and by diesel power in the 1920s. Domestic
water transportation involves the Great Lakes, canals, andnavigable rivers. In every country,
fewer system miles exist for inland water than any other transportation mode.
The main advantage of water transportation is the capacity to move extremely
large shipments. Water transport employs 2 types of vessels. Deep-water vessels, which are
generally designed for Ocean and Great Lakes use, & are restricted to deep-water ports
for access. In contrast, diesel-towed barges, which generally operate on rivers and canals,
have considerably more flexibility. Water transport ranks between rail and motor carrier in the
fixed cost aspect. Although water carriers must develop and operate their own terminals, the
right-of-way is developed and maintained by the government and results in moderate fixed costs
as compared to railways and highways.
The main disadvantage of water transport is the limited range of operation and speed.
Unless the origin and destination are adjacent, supplement haul by rail or truck is

required. The capability to carry very high cargo at an extremely low variable cost places this
mode of transport in demand when low freight rates are desired and speed of transit is a
secondary consideration.
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 todays 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.
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.

OP T I M I Z AT I O N O F LO G I S T I C S W I T H
DHL
R O A D A N D R A I L S O LU T I O N S
.
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. Stateof-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 partne
rship with DHL Freight gives you all the advantages you need to optimize your
logistics.
Whether you need to forward door-to-door,airport-to-airport or port-to-port freight,
DHL Danzas Air & Ocean offers a comprehensiverange 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 createthe right logistics
solution for your business. DHL Danzas Air & Ocean is in pole positionto lead the
future of air and ocean freight logistics and sets high standards in quality
and security

Air Freight
DHL Danzas Air & Ocean offers a range of fast and cost-effectiveairfreight services
for your most time-sensitive freight with door-to-door or airport-to-airport services, fixed
schedules on all main routes andreliable connections to all other destinations

DHL Air Freight products include:

Air FirstWhether door-to-door or airport-to-airport,Air First guarantees priority on the first
flightout and forwarding within two days 24-hours a day, 7-days a week, and 365-days a
Air Premier Combines price and time considerations for both door-to-door and airport-toairportservice. Your shipment will arrive at theairport of any major marketplace around theworld
within
o n l y t h re e d a y s .
Air Value Creative routing solutions via major gatewayscan save you even more money while
addingonly 1-2 days over our Air Premier Service
Part and FullCharter Combine the speed of airfreight and the lower cost of ocean freight and
youll benefit fromour strength and experience in both. Plus,real-time tracking at every step of
the way.
Sea/Air Chartering additional airfreight capacity is part of everyday business especially
if thereis limited commercial lift, for new productlaunches, during peak seasons or for oversized
cargo. Our specialists createsolutions to get your goods through on time.
Inventory Management and Warehousing
.
Inventory is an unused asset, which lies in stock without participating invalue adding process.
Unused equipment, raw material, WIP andFinished goods, consumables, spare parts, bought out
parts, tools andtackles, gauge and fixtures etc. In India 9 to 12 months of sales
quantitylies in the form of Inventory [R/M, WIP, Bought out parts and Finishedgoods] as against
a few days in Japan and a month in the US andEurope.
In our country inventory is always viewed as asset [workingcapital], in fact, though it is called an
asset, it is a big liabilityWarehousing was a customers function conventionally anywhere in
theworld. Customer to protect himself from shortages at the time of inclement weather always
used to store provisions and other utilities inhis house. Consumers own stores were underground
cellars, smokehouses to store variety of items. Poor communication infrastructure wasmainly
the cause for this storage by customer. Producers and tradesmenconveniently shrugged off
their responsibility for storage and passed iton 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 aremarkable role as
a function of logistical management.
Warehouse Infrastructure Network
Warehouse Management Solution
Inventory Optimization
Special warehouse solution
Outsourcing Projects
.
Warehouse Infrastructure Networks

DHL warehouse service supports inbound logistics, distribution andaftermarket 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 integratedinto the
wider supply chain and meets demanding service levels. Thisencompasses the design
implementation and operation for bothdedicated 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, enablingmanufacturers to hold
inventory at local level, whilst avoidingexpensive, dedicated storage solutions. These
facilities can
receive products from both local and global manufacturing sites, providingdownstrea
m distribution
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 facilitiesoffering:
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 andactions in the receipt,
handling and storage of products and orders in awarehouse environment. The WMS also
accurately records the locationof inventory whilst stored in the warehouse.Our Prologs WMS
manages all critical processes in the warehouse, and isalso 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 inone warehouse and use
express distribution to deliver components thenext day. Entire management is done by DHL.
d)Repair Return Inventory Management
Return & Repair Inventory (RRI) manages the physical flows for Returnmaterial authorization.
In this case, DHL will be responsible for pickingup the broken part, sending a new one,
bringing the broken part to arepair centre and moving repaired parts back into stock.
e)Cross Docking

Cross-dock operations are facilities where shipments are received fromone mode of transport
and transferred to another mode, or whereshipments complete one leg of a journey prior to
commencement of another journey. Shipments are consolidated or deconsolidated.
Productreceived into the facility is not taken into inventory
3. Inventory Optimization:
Through effective inventory management, inefficiencies can be drivenout of the supply
chain, overall costs reduced and high service levelsachieved. 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 managementsoftware that calculates 'line item
risk profiles' that measure thevariability of demand and supply for each line item within
a customers inventory.
DHL offers: Average of 20% inventory reduction and 8% improvement in product availability
Reduced inventory and overhead costs
Improved sales, profitability and return on investment
High service standards
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 toleading manufacturers and retailers of
medical supplies,
consumer products, industrial equipment, chemicals and technology.Through sharing
of DHL's resources, such as space, labour, equipmentand transportation, customers benefit
from synergies that considerablyreduce supply chain costs. This environment returns
significant value toa small business requiring distribution operations without long
termlease or capital commitments, or a large enterprise handling a newacquisition, product
launches or seasonal overflow.
Campus Solutions
We pioneered the campus model to provide regional customers with aflexible 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
Northand South America, Europe and select locations in Asia, allowing for expedited transit times
to large concentrations of consumers.
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 manufacturingfacility.
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 andtaxes.
Shared-user Warehousing
Our shared-user facilities are designed to meet the needs of organizations of any size.
Currently, we provide shared-user services toleading manufacturers and retailers of
medical supplies,
consumer products, industrial equipment, chemicals and technology.Through sharing
of DHL's resources, such as space, labour, equipmentand transportation, customers benefit from
synergies that considerablyreduce supply chain costs. Consequently, the customer can
increaseefficiencies 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-houselogistics
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 andconcentrates 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 assembly
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 packaging services. Integrating packagi
ng operations into distribution centers streamlines fulfillmentreducing cost, enhancing
product visibility and control, and improvingspeed-to-market and flexibility in the supply chain.
Packaging services include:
Postponement packaging - primary, secondary and specialtycomponents
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, clubstore 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 fromcomponent
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 dispatchedfrom 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 promotionalitems ready for retail display.
External Performance Measurement
While internal measures are important for detailed organizationalmonitoring, external
performance measures are also necessary tomonitor, understand and maintain a focused
customer perspective and togain innovative insights from other industries. The topics of
customer perception measurement and best practice benchmarking, which
addressthese requirements, are discussed and illustrated below.
Customer Perception Measurement

To succeed in any activities of business one has to always cater to andsatisfy the
needs of the customer. To do so, it is essential for one toknow how the customer thinks in order to
meet his needs in a moresatisfying manner. Therefore, an important component of leading
edgelogistical performance is the regular measurement of
customer perceptions. Such measures can be obtained through surveys or bysystem
atic order follow up. These surveys can be company - or
industry sponsored. Such surveys ask questions regarding the firms and thecomp
etitors performance in general or for a specific order in particular.Most of the surveys
incorporates measurement of customer perceptionsregarding availability, performancecycle time, information availability, problem resolution and product
support. The survey may be developedand administered by the firm itself or by
consultants, delivery agents or industry organizations

International express door-to-door delivery overnight or by theend of the next possible business
day for goods subject toCustoms clearance
One, reliable company makes international shipping easy
. Need to get products, samples, or spares to someone fast? Then trustDHLs
Worldwide Parcel Express to expedite urgent shipments fromyour door,
through customs direct to the receiver - virtually anywhere inthe world. One company means
you eliminate all the hassles of international shipping. You never lose sight of your shipments.
Andwith DHLs customs expertise, you get instant advice regarding localregulations and
customs documentation, ensuring the smooth clearanceof your goods. When it comes to
delivering your companys time-critical shipments and your reputation, rely on DHLs
WorldwideParcel Express.

One company to keep your business moving.

When you need to get your goods delivered quickly, you dont needthe hassle of
brokers or guessing the answers on customs forms. WithWorldwide Parcel express,
international shipping couldn't be easier.
Benefi t from
the largest international express network andmore in-housecustoms expertise
than anyone else Experienced DHL personnel ensure delivery overnight
inmost locations or by the end of the next possible day One price for door-to-door
delivery eliminates hidden costs so you canavoid surprises for your customers and
your Finance Manager. Never losesight of your goods. Access tracking and
delivery details from virtuallyanywhere via theInternet, e-mail,WAP, SMS or phone
GAIN GREATER CONTROL OVER YOUR BUSINESS
One company to handle your shipmentsMore efficient processes
Customs experience and advice to ensure smoothclearance
Shorter lead times through direct distribution
Ability to invoice quicker and improve cash flow
RECOMMENDATION
1.ENHANCE THE SMART-TRUCK PROJECT
Because of the stage of recession and high competition, thecompanies need to make
difference to have new customers andincrease their market share. To invent completely new
product can bevery expensive and take very much time. So, making little differenceon the
current product or service can be better. At this time, we needto 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
achievethis 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 towork 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 willdecrease the threat of restrictions in those
companie. Even they are smallcompanies, they can have creative solutions to different
problems. So weare acquiring new brains at the same time. We can get some ideas fromthem to
improve our skills. I mean we are not firing people who wereworking there actually, we are hiring
them to work with us.

Conclusion
Logistics is one the most important and integral part of any organisationsstrategy and function.
When the logistical process is carried outaccurately then not only the company reduces
the production cost but alsoimproves the efficiency and customer satisfaction. Overall

logisticsmanagement is very important for todays highly competitive and cut-throat

corporate world.
DHL has the worlds largest express and logistics Network. Over the past decades it had turned
delivering goods into a finely oiled process.Be it a book, pen, WIP material, drugs, hazardous
chemicals, clothes,documents, wild animals and any other thing under the sun DHL deliversit.
With a network spanning 200 countries and with its private fleet of airplanes, mobile
vans, cargo ship carriers & even rail way automotivesin some countries DHL can handle any type
of goods. Not only has thatwith international network there come the hassle of documentation
and paperwork, standard packaging and other formalities to adhere to. ButDHL has its
own department which looks into the international laws andother formalities. In the end what
matters is delivering well in goodcondition at the door step of the customer. A happy and
satisfiedcustomer makes the business grow. Competitors have come and gone butDHL has been
able to keep its No 1 position intact. This is because of itsdynamic nature and attitude of
maintaining good customer relations.Logistics management is important for every organization
but more soDHL.
We have tried to incorporate all the facets of logistics
which propel DHL to be the best delievery and carriage-service around theworld. No
wonder that DHL is head and shoulders above all of its competitors!
BIBLIOGRAPHY
a)Logistics and Supply Chain Management- Written by Martin Christopher
b)Indian Logistics Industry (2008) published byCushman & 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