The research has been conducted in order to exhibit: systems and network planning structures which are applied within the organization, to define internal and external factors that affects organization operational efficiency, to evaluate the ways and principles of DHL labour, physical, financial and digital resources planning and their organization methods. It is also has been aimed to represent organization‘s monitoring and controlling schemes of separate processes and projects with regard to company‘s targets, its customers and employees.
In the report, it is structurally presented different insights, indicators, tendencies and results about enterprise effectiveness and administration. Moreover, understanding of the strategies impelented, goals that are established in the short or long tems, different perspectives of growth and maintenance, separate resources arrangement and management of overall functions of DHL are clearly provided. 1. DESCRIPTION OF THE ORGANISATION DHL is present in over 220 countries and territories across the globe, making it the most international company in the world.
With a workforce exceeding 285,000 employees, we provide solutions for an almost infinite number of logistics needs. DHL is part of the world’s leading postal and logistics Group, Deutsche Post DHL and encompasses four divisions: DHL Express, DHL Global Forwarding, Freight and DHL Supply Chain. DHL‘s mission and vision In 2009, company laid out goals for the future Strategy 2015, including vision and mission for the company. Its vision emphasizes that organization wants to be The Logistics Company for the World.
This goes beyond the simple fact that, as a global company, DHL present in over 220 countries and territories, or that DHL are often the very first logistics company to enter new markets. It also extends beyond unique ability to offer a wide range of logistics solutions, encompassing everything from international express deliveries, to warehousing, to customs brokerage, to freight forwarding – to mention just a few areas in which company are active. DHL‘s vision stresses that it wants to be the logistics provider people turn to – their first choice not only for all their shipping needs, but also as an employee or investor.
This is further underlined in DHL‘s mission statement, which has four main elements: 1) We want to simplify the lives of our customers 2) We make our customers, employees and investors more successful 3) We make a positive contribution to the world 4) We always demonstrate respect when achieving our results „We are successful when you are“ Company strongly believes that pursuing all of these goals is in its interest and in the interest of all of their stakeholders: customers, employees, investors and the planet as a whole.
However, organization add value to people’s interaction with themselves, whether with excellent services or products, by engaging its employees and nurturing their talents, or by being a solid, long-term investment on the stock market. And, the company shows concern for its world and its communities with its various corporate responsibility programs under the motto of ‘Living responsibility. ’ A company with a purpose DHL are deeply proud of the contribution it makes in daily work. Everything that is moved from one place to another needs the aid of logistics – but behind this simple truth one finds millions of stories.
As the logistics company for the world, it forms the backbone of trade, ensuring that whatever needs to be delivered, gets delivered. A shipment placed in organization‘s trust may include life-saving medicines, or a birthday present from a friend, or hold a company’s entire existence in the form of a prototype. It is not only deliver parcels and packages, and make sure containers arrive at ports: it delivers prosperity, it transports health, it powers growth, it delivers joy. Every day it connects people, improving their lives.
DHL Express‘s organization overview and main economic figures Express deliveries worldwide; freight forwarding with planes, trucks, ships and trains; warehousing services that go beyond just storage, but include everything from packaging to repairs; international mail deliveries; customized and specialized shipping. DHL Express transports urgent documents and goods reliably and on time from door-to-door in more than 220 countries and territories, and operates the most comprehensive global express network. With a fleet of more than 250 aircraft, DHL Express is also one of the largest air carriers worldwide.
Facts and figures: DHL Express Worldwide (2012) Head Office Bonn, Germany Revenue Approx. 12. 8 billion euros Network More than 220 countries and territories served/more than 500 airports served globally Employees Approx. 100,000 Customers Approx. 2. 6 million Aircraft More than 250 dedicated aircraft 1. 1 Organization history and economic development results DHL Express is a division of the German logistics company Deutsche Post DHL providing international express mail services. Deutsche Post is the world’s largest logistics company operating around the world. DHL is a world market leader in sea and air mail.
Originally founded in 1969 to deliver documents between San Francisco and Honolulu, the company expanded its service throughout the world by the late 1970s. The company was primarily interested in offshore and inter-continental deliveries, but the success of FedEx prompted their own intra-U. S. expansion starting in 1983. DHL aggressively expanded to countries that could not be served by any other delivery service, including the Soviet Union, Eastern Bloc, Iraq, Iran, China, Vietnam and North Korea. In 1998, Deutsche Post began to acquire shares in DHL. It finally reached majority ownership in 2001, and completed the purchase in 2002.
Deutsche Post then effectively absorbed DHL into its Express division, while expanding the use of the DHL brand to other Deutsche Post divisions, business units and subsidiaries. Today, DHL Express shares its well-known DHL brand with other Deutsche Post business units, such as DHL Global Forwarding and DHL Supply Chain. The company started expanding their service through the early 1970s, first to the Philippines, then Japan, Hong Kong, Singapore and Australia. For lower-volume routes the company hired couriers on a one-off basis, trading airline tickets for the delivery.
This simple expedient repeatedly saved the company many legal hassles in the future, when would-be investigators took them up on the open offer and make a delivery while taking their family on vacation. The first was when the FBI was tipped off about the groups of briefcase-carrying young men making repeated trips to Hawaii, and when they investigated and found nothing amiss, several agents became regular couriers for the company. 1. 2 Nature and types of products (services) and their tendency in change DHL has 5 main divisions: DHL Express, DHL Global Forwarding, DHL Freight, DHL Global Mail, DHL Supply Chain.
However, products and services of the company are arranged between these divisions. DHL Express: The Express division transports courier, express and parcel shipments internationally, combining air and ground transport, under the DHL brand. It is divided into business units along regions: Europe, Asia Pacific, Americas, Europe, the Middle East and Africa. DHL offers worldwide services, including deliveries to countries such as Iraq, Afghanistan and Burma. As it is German-owned, DHL is not affected by U. S. embargoes or sanctions and will ship to Cuba and North Korea.
However there are strict codes for delivering to North Korea, as the country has shaky relations with the West. The only country currently not being serviced by DHL is Turkmenistan. As DHL is not a US company, it is not allowed to make domestic flights between U. S. airports. DHL contracts these services to other providers. DHL Global Forwarding: Formerly known as DHL Danzas Air & Ocean, is a division of Deutsche Post DHL providing air and ocean freight forwarding services. It also plans and undertakes major logistics projects under the brand name DHL Industrial Projects.
Together with DHL Freight, it forms Deutsche Post’s Freight/Forwarding department. The Forwarding division carries goods by rail, road, air and sea under the DHL brand. DHL Global Forwarding handles global air and ocean freight. DHL Freight: DHL Freight is a division of Deutsche Post DHL providing road and rail freight services across Europe, parts of the Commonwealth of Independent States (CIS), North Africa and the Middle East. Together with DHL Global Forwarding (formerly DHL Danzas), it forms Deutsche Post’s Freight/Forwarding business division.
It runs a groundbased freight network covering Europe, Russia and traffic into the Middle East. DHL Global Mail: The Mail division delivers approximately 70 million letters in Germany, six days a week and provides mail services including production facilities at central hubs, sales offices and production centers on four continents, as well as direct connections to more than 200 countries. The Mail division inherits most of the traditional mail services formerly offered by the state-owned monopoly, for which it uses the Deutsche Post brand.
Its exclusive right to deliver letters under 50 grams in Germany expired on 1 January 2008, following the implementation of European legislation. A number of companies are vying to challenge Deutsche Post’s near monopolistic hold on letter deliveries, including Luxembourg-based PIN Group and Dutch-owned TNT Post. As of January 2008, the Mail division is subdivided into the following business units: •Mail Communication handles domestic mail service as well as international mail from Germany •Press Services handles domestic distribution of print products (newspapers and magazines).
•Retail Outlets operates domestic retail outlets (post offices), which offer a complete array of letter mail, and parcel. •Dialogue Marketing provides services for direct marketing such as market research and address verification. •Parcel Germany handles the domestic, non-express parcel service, including the Pack station network. It was changed over to the DHL umbrella brand when it was temporarily assigned to the Express division. •Global Mail handles international mail and domestic mail in other countries under the DHL umbrella brand.
Deutsche Post offers a service called a Garagenvertrag (literally “garage agreement” in English) to its German customers. The postman can leave packets and parcels in a specified place (such as the garage, or a neighbor’s house) if the addressee is not at home to receive them. This on the one hand saves the recipient a trip to the post office to pick up their mail. On the other hand, any item left at the specified place is regarded as “delivered” and hence not covered by Deutsche Post’s insurance anymore. DHL Supply Chain: is a division of Deutsche Post DHL.
The SUPPLY CHAIN division comprises two business units – Supply Chain and Williams Lea. In the Supply Chain business, DHL provides contract logistics solutions along the entire supply chain for customers from a wide variety of sectors. Williams Lea is a global provider of business process outsourcing and a specialist in corporate information solutions, the management of companies’ information and communication processes. In Canadian and USA markets DHL Supply Chain operates under the name Exel. DHL Supply Chain has around 130,000 employees and is headquartered in Bonn, Germany.
Deutsche Post DHL is the world’s leading mail and logistics services group. The Deutsche Post and DHL corporate brands represent a one-of-a-kind portfolio of logistics (DHL) and communications (Deutsche Post) services. The Group provides its customers with both standardized products as well as solutions ranging from dialogue marketing to industrial supply chains. Deutsche Post DHL has about 470,000 employees in more than 220 countries and territories. The Supply Chain/Corporate Information Solutions provides contract logistics and corporate information solutions tailor-made for customers.
It consists of two main business units: •DHL Supply Chain provides warehousing and warehouse transport services as well as value-added services for customers. •Corporate Information Solutions handles documents (collection, digitalisation, printing, storage, archival) of all types. 1. 3. Structural departments of the organisation, their types and functions Four operating divisions The Group is organised into four operating divisions, each of which is under the control of its own divisional headquarters and is subdivided into business units for reporting purposes.
The company are the only provider of universal postal services in Germany. In its MAIL division, company delivers domestic and international mail and parcels and specializing in dialogue marketing, nationwide press distribution services and all the electronic services associated with mail delivery. Furthermore, with its E-Postbrief product, company are the first in the market to offer secure, user-identified written communication on the internet. EXPRESS division offers courier and express services to business customers and consumers in more than 220 countries and territories, the most comprehensive network in the world.
GLOBAL FORWARDING, FREIGHT division handles the carriage of goods by rail, road, air and sea. Comany are the world’s number one air freight operator, number two ocean freight operator and one of the leading overland freight forwarders in Europe. SUPPLY CHAIN division is the global market leader in contract logistics, providing warehousing, managed transport and value-added services at every link in the supply chain for customers in a variety of industries. It also offers solutions for corporate information and communications management tailored precisely to the needs of our customers.
The company consolidate the internal services that support the entire Group, including Finance, IT and Procurement, in our Global Business Services. This allows to make even more efficient use of organization resources whilst reacting flexibly to the rapidly changing demands of its business and its customers. Group management functions are centralised in the Corporate Center. Organisational structure of Deutsche Post DHL CORPORATE CENTER (CEO’S BOARD DEPARTMENT, FINANCE AND PERSONNEL) MAIL EXPRESS GLOBAL FORWARDING, FREIGHT SUPPLY CHAIN Mail Communication Dialogue Marketing Press Services
Value-Added Services Parcel Germany Retail Outlets Global Mail Pension Service Europe Americas Asia Pacific EEMEA (Eastern Europe, the Middle East and Africa) Global Forwarding Freight Supply Chain Williams Lea 1. 4 Organization of the technical level of investment in innovation and economic efficiency Solutions & Innovation (S&I) – Logistics of Tomorrow. The department of Solutions & Innovation is part of the DHL Customer Solutions & Innovation organization. Emphasis placed on the development and marketing of industry tailored solutions designed to simplify the lives of DHL customers.
Solutions & Innovation performs research on tomorrow’s logistics solutions and works with the various DHL units to develop solutions from start to finish – from the initial concept to market readiness. Focusing on innovation projects and demonstrating DHL’s innovation capability while driving innovation excellence across the company are key tasks of S&I. The Innovation projects are either Product Development based, with the aim of delivering new short-term solutions and services to the current needs of customers, or Research & Development (R&D) based.
R&D projects focus on emerging trends within the industry, to develop advanced solutions to pre-emptively tackle future challenges. Additionally company concentrates on Thought Leadership topics here as it has a big interest in the world. Based at the Innovation Campus in Troisdorf, the innovation team incorporates new technologies for future projects and combines existing approaches and solutions to utilize them more effectively in the marketplace. Solutions & Innovation aims to harness the potential of Innovation at DHL and offer cross-divisional, integrated solutions to customers worldwide.
Discovering Trends for Tomorrow’s Logistics. Research & Development is the central team of the Group for identifying future customer and sector challenges. Compared to Product Development it takes on a long term focus. With the help of applied research, it designs prototypes, pilots and protects the next generation of products and solutions. By that the base for sustainable product development is built and DHL’s thought leader status in logistics is protected. For DHL, thought leadership is an essential component of being prepared for the future.
By understanding and evaluating trends and early indicators it helps to develop innovative projects that have a real impact on our growth and competitiveness. To secure this position Corporate Patent Management is another part of the team dealing with all patent applications for DPDHL worldwide. On the pages below you can find out more about the Research & Development projects currently being undertaken by Solutions & Innovation. Tailor-made Solutions for our Customers. The main aim of company Product Development projects is to create solutions which can be deployed within business units across multiple sectors.
Here, innovations arise from the direct needs of customers and are led by a team of experts from S&I through the entire process, from the initial idea right up to the final product launch in a maximum of 2 years. By that Solutions & Innovation not only generates value-added services for customers but also makes sure that daily business is kept up to date with the logistics industry. Find out how use RFID technology to track the goods of customers along the entire supply chain. See how the SmartTruck uses the latest navigation systems to enable automated route planning for its couriers.
Discover the SmartSensor that allows to check on the condition of goods – anytime, anywhere. DHL – Thought Leader in Logistics. Innovation Excellence is an important part of Solutions & Innovation that fosters the Innovation Capability of DHL. Three steps are necessary to reach this objective. The first one is to raise the awareness for the topic of innovation. Not just for the group but also for the logistics industry and customers. This is why we host the DHL Innovation Day, an event to increase the understanding of its customers for the challenges of the future in all kinds of fields, but for logistics in particular.
Company also make logistics tangible with its Showroom. There organization present the ideas, concepts and projects of DHL and Solutions & Innovation to sensitize visitors for the topic. The next step is to develop new value for the group and customers. This happens in tailored Innovation Workshops, in which best practice of innovation methods is used to understand the needs of customers and to react to them in a sufficient way. The last step is to implement or adjust the services that are created by the Innovation Workshops into daily business. This process is accompanied by the organization all along the way.
2. ACTIVITY ANALYSIS OF THE ORGANISATION AND THE INCREASE OF ITS COMPETITIVENESS 2. 1 The planning system applied in the organisation (Systematic logistics links) Logistics networks determine the geographic and logical distribution and networking of transportation, transshipment and warehousing processes as well as the related information processes. Companies choose the network structure that optimally suits their needs in terms of effectiveness and costs. In the process, they also make fundamental decisions that have a large number of secondary and operational effects.
Basic structures of logistics systems Basic structures of logistics networks The logistics chain between procurement and the sales market can be illustrated graphically as a network. The transport, handling and warehousing processes related to the movement and storage of goods and the associated information processes are implemented through this network. The chart above illustrates the basic structures of such logistics systems. The logistics network strategy helps shape the basic structure of the logistics system and the related logistics capacity for the logistics processes.
One-stage system In a one-stage system, the movement and storage involve a direct flow of goods between the supply point, or source, and the receiving point, or destination. In this system, the goods are made available at the supplier site and used at the receiving point. The strength of the one-stage system is that the flow of goods is not interrupted. No other warehousing and transport processes are required to send the goods in another direction. Multi-stage system In a multi-stage system, the movement and storage involve an indirect flow of goods between the supply and receiving points.
The flow of goods is interrupted at one or more stages. Here, additional storage or transport processes are performed. The objective of this work is to separate or consolidate the flow of goods. Breakbulk point: Large quantities of goods from the supply point arrive at the “breakbulk point,” and small quantities of them leave it bound for various receiving points. Consolidation point: The interruption point in a multi-stage system can be a “consolidation point,” where the goods are consolidated, collect or sorted. Combined system: In combined systems, direct and indirect flows of goods can co-exist.
2. 2 Organization of external relations and their impact on the operational efficiency The corporate and economic environment has changed considerably in recent years. Many factors have had an impact on DHL‘s mail and logistics business. As part of our Strategy 2015, company systematically and continuously review the key factors affecting its business. Company continues to believe that its business is substantially impacted by four long-term trends: 1) Globalisation. Growth in the logistics industry will continue to outpace the growth of national economies in the future.
Trade flows and volume to and from Asia as well as within Asia are seeing further sharp increases, as are those in other emerging regions, such as South America and the Middle East. DHL divisions are in a better position than most in these regions as well as in Europe and North America. Hardly any other company in the industry offers integrated logistics solutions for all means of transport and in all parts of the world as we do. 2) Outsourcing. In times of economic difficulty, companies feel increased pressure to reduce costs and streamline business processes.
Activities that are not considered part of the core business are being outsourced to a greater extent. In addition, supply chains are becoming more complex and are being placed increasingly on an international footing. This makes them more susceptible to potential disturbances as this past year has again demonstrated. Accordingly, customers are demanding integrated solutions that provide a comprehensive range of services and modes of transport and which protect their supply chains. Copmany benefits from this trend due to its leading positions in the express, freight forwarding and contract logistics markets.
3) Digitalisation. The internet continues to fundamentally change the way in which information is exchanged. Physical communication channels are being replaced increasingly by electronic communication, which is leading to a decline in volumes and revenues in the traditional mail business in particular. On the other hand, the internet brings dealers and customers closer together and creates new demand for the transport of goods, advertising materials and contract documents. Demand for secure, confidential and reliable electronic communication is growing on the virtual
market. Company have responded by launching the E-Postbrief product. Furthermore, it is expect to be able to take advantage of increasing digitalisation in other businesses. 4) Climate change. The past year again demonstrated that the heightened awareness of the environment and climate considerably impacts the logistics industry. In all of organization divisions, an ever-increasing number of customers are asking for climate-neutral products. As the world’s leading logistics company, it goes without saying that we shall play part in reducing carbon emissions.
Company offers to its customers an extensive range of energy-saving transport options and climate-neutral products and have set an ambitious climate protection goal. 2. 3. PLANNING OF SEPARATE RESOURCES AND ORGANISATION OF THE ACTIVITY. 2. 3. 1. Planning of sales and manufacture (services) and its arrangement. DHL Express has very active sales and marketing organization that help to present DHL’s brand and build image of quality. It also works on expanding company’s presence into emerging markets. Asset of a company lays in well-established and well-managed brand especially in the service sector.
Good brand also gives a competitive advantage in the labor market. It is important to show the company as an attractive employer to get highly skilled and committed employees. DHL uses modern tools for marketing. As an example can serve an online career portal used as a recruiting tool. DHL also reworked its corporate design and every service employee wears uniform clothing. Employees are educated about their company through Brand manuals. There is multi-lingual internet platform for DHL employees to get consistent information and be aware of the brand image.
Customer retention, customer loyalty and brand recognition are amongst the benchmarks that DHL values to reach success. These innovative programs that DHL is running are expensive for the company. They know that the benefit will not come in short-term. Brand awareness and trust cannot be gained in short-time. However, if it is gained it could have long-lasting. Customer support and customer service is very important in logistics industry because one of the most important factors is customer satisfaction.
Therefore, DHL Express regularly holds customer satisfaction surveys because they help to identify problem of substitute products, help to answer what substitute products customers consider, make better position in the market and among customers, uncover customers’ perceptions, improve customer loyalty and make product improvements. DHL Express knows that loyalty of the customers increase with satisfaction and if customer gets better value or benefit for the same price it could mean lower profit for the company but it is worth it in long-run.
Research & Development and Marketing & Sales organizations have their significant role in After sales. 2. 3. 2. The main resources used, their planning and stocking Efficient management of information and goods Enterprise resource planning ERP is a description of systems that employ innovative information technology to manage all sorts of areas in companies. Major corporations, in particular, could hardly function without tailor-made ERP software. One component of ERP can be a warehouse management system (WMS).
With its assistance, precise warehouse management can be conducted even in the most complex storage and distribution systems. As a result, inventory monitoring can be improved and the entire supply chain can be designed more efficiently. Physical goods movement and information flow in the ERP system The characteristics and application areas of ERP systems One elementary factor in optimizing a company’s important core business processes is the fast and precise retrieval, integration and collection of information.
Enterprise resource planning ERP is a system that uses modern information technology to manage the functions of various company divisions and to create transparency in the process. Through the use of ERP – and, as a result, a single data model for all company-relevant information – significant amounts of internal integration can be achieved. This is an important benefit especially for international companies. But small and mid-sized companies can profit from tailor-made ERP solutions as well.
For the entire supply chain Supply chain, an ERP system with a shared data model is a desirable solution – but the implementation of it is extremely complex. The trend toward outsourcing Outsourcing is also raising the system’s cost because the number of companies in the supply chain continues to expand. Advanced planning systems Advanced planning system (APS) represent an extension of the ERP in terms of relationships with other companies. These systems represent complex logistics structures and processes in a supply chain Supply chain , and facilitate fast responses and optimal inventories and capacities.
For this purpose, APS uses data managed by ERP systems. In the automotive industry, for instance, the supply chain can be mapped all the way to the pre-suppliers of a system supplier. As a result, critical paths can be recognized and supply squeezes prevented at an early point in time. Efficient storage administration through warehouse management systems Warehouse management systems (WMS) represent a further evolutionary step from the inventory management systems (IMS) used in the 1980s and early 1990s.
The traditional IMS only enabled stored items and storage positions to be administered and conveying systems to be managed. But today’s WMS can do much more. Among other things, they permit numerous important indicators to be monitored and develop multifaceted strategies for optimizing the systems in use from these indicators. As a result, complex storage and distribution systems can be easily managed, monitored and optimized. A traditional IMS was generally used as a “black-box system” that was separated from the central company software.
In contrast, the WMS began to be increasingly networked and integrated into the ERP Enterprise resource planning at the end of the 1990s. As modular software, the WMS offers a scalable functional range within the framework of the ERP: The core functions of a WMS support the basic processes in every company’s warehouse area: e. g. , receiving, storage, warehouse management, picking Picking , retrieval, shipping, inventory and forms management. The expanded functions of a WMS include batch/serial number management, management of empty bottles and returns.
Additional modules offer connections to self-contained software packages like RFID Radio frequency identification software or pick-by-voice Pick-by-voice /pick-by-light Pick-by-light systems. One other important function is support that is provided to the management of linked storage facilities. As a result, the inventories of several warehouses can be balanced with one another or particularly high-quality items can be distributed only upon notification from centrally located warehouses. 2. 3. 3. Labour resources, their qualitative and quantitative need, applied types of payroll.
A large part of how organization work revolves around the people who ultimately power its supply chain. Labour represents 30 percent of typical distribution costs in India. Whilst these labour costs may be proportionally less than more mature markets around the world, company still provide the same training and support to ensure they have the right skills and motivation to deliver world-class service and performance. A systematic approach: Flexible Resources In situations where company handles products, workforce is experienced and trained to respond to new challenges.
It has the right mix of employees to cater to sectors such as Retail, Supply Parts Logistics, Health, Automotive, Technology and Consumer Goods. Organization‘s scale allows to bring qualified resources to the task just when clients need them most. Even its infrastructure is engineered to be more efficient – many of its facilities are close to transportation hubs and share pre-trained resources for temporary or start-up needs. Motivated Teams Helping to its people work smarter pays dividends for everyone. Company is able to deliver more volume to its customers and reduce costs. Company