Adrian Dalsey, Larry Hillblom and Robert Lynn founded DHL company the vision of DHL company is to provide postal services in Germany and act as a logistics company across the world. The company aims at attracting people across the world and being the original choice to people not only in shipping but also provide a background for investment opportunities. Mission of the company is to foster the success the customers, investors and employees. DHL company improves the lives of its customers by making the world a better home. The strategic goals are to focus, grow and to connect the company’s plan for the future.
The key products categories that are managed by procurement department include logistic solutions that are provided in contract. The solutions are based on worldwide standardized and integrated components which include transport, warehousing and value-added amenities. Basically, the value chain involved focuses on packaging, returns, planning, sourcing and recycle services. The company is focusing on automotive, technology, healthcare and life science. Deutsche post DHL is the only logistics company that is structurally positioned with an intention of benefiting from the trends in the market (Blanchard, 2010). Significantly, the recent trends that has greatly impacted DHL include outsourcing, emerging markets and globalization of the existing markets. Customer services is built on a long-term partnership in fifty countries.
The company offer sector proficiency, consistent solutions and relevant services to develop the existing contracts and new customers. In addition, sourcing items is beneficial because the company can note the optimum supplier base and reduce the cost of transactions (Burnson, 2017). Furthermore, a better understanding on the type of purchase, the buyer, the supplier, the quantity, frequency of purchase the cost of items tend to assist drive process and improvements which reduces the cost of businesses. Supplier selection in DHL company is based on the competition both locally and internationally where the company profit and honor competition by other companies (Carbone, Moatti & Wood, 2012). To evaluate its suppliers, the company uses DHL Resilience 360 machine to analyze online suppliers and detect the interruptions on the company’s supply chain. Moreover, the company has established supplier development program that aims at fostering the competitiveness of its suppliers.
DHL company is in the forefront because of its sales market strategies. As a result, the company experiences improved customer sales and service provision globally. The company provides relevant information about emerging and existing products through TV commercials and advertisements on magazines and newspapers (Haraburda, 2017). To reach a large number of people, the company offer its services through the internet and in their various locations worldwide (DHL Supply Chain ,2018). Consequently, the company provides door to door transport. Positive relationship between the customer and the company foster customer loyalty, profits and sales. The key customers to DHL company are corporations who operate in various industries. The government organizations and individual people looking for logistics solution.
The customers are present in more than 220 countries making the company popular and competitive. DHL company uses a quantitative technique to forecast the demand of its products. It uses the historical information to predict the demand level and determine the cost the product (Kamalahmadi & Mellat-Parast, 2016). Also, extrinsic techniques are applied especially in automotive industry to make relevant decisions and control the number of suppliers. The company has a web based inventory that joins the company’s suppliers and streamlining of information making the inventory easy to manage. The use of web based inventory helps in providing a framework used for maintainable achievements in supply change (Kildow, 2011). Importantly, has reduced transportation and improved supplier’s time management. Major problems associated with inventory management in DHL involve misplacement of items in the warehouse or in the store. Competition is a major challenge that affect the demand of engineering and manufacturing products and services (Lee and Katzorke, 2010). Sometimes, the use of computers to assess stock might bring inaccurate information which causes confusion.
Bullwhip effect alters the information as it is transmitted across the chain. The distorted information in all the level of supply chain causes vital inefficiencies. As a result, there would be extreme inventory investment, lost revenues, poor consumer service and unproductive transportation of materials (Mentzer, 2004). In DHL company, lack of coordination by the suppliers and interruptions on manufacturing besides procurement contributes to bullwhip effect. The remedy to end bull-whip that is applied by DHL company is the improvement of communication and information across supply chain which enables the company to forecast demand (New & Westbrook, 2004). In addition, delays are reduced and the cost of products and services are maintained. DHL is leveraging the logistic management software with an aim of improving its productivity. Moreover, the software ensures monitoring of various warehouses and reducing the burden of distribution.
The technological tools embraced by DHL involve radio technology that provides Radio Frequency identification (RFID) chips helps to monitor products during production and supply period. It allows the employees to correct mistakes before it ruins the whole process in supply chain. The company uses social media to open many channels that helps the company to reach more stakeholders and communicate changes in the cost of products and services (Rand & Van Wasssenhove, 2012). Computerized supply chain and data analytics improves the experience of the customers and lower the mistakes that made during the process (Robben & Probert, 2015). DHL company protects the profit margins, keep inventories and improve customer services by working together with partners, intermediaries and logistics providers. logistics provider work hand in hand with customers to foster demand forecasting and pool financial flows that aim in balancing supply and demand.
The first step is to get rid of wastes and maintain the value of goods. DHL company, suppliers work hand in hand with the supply chain management to ensure that the products are provided on time. Considering technological tools is the second step which enhances technological investments (Samson, 2010). For instance, DHL company uses RFID chip to detect the problems incurred during production of products. In addition, the company also uses GPS device to track the all the freights. The customer usage is made visible to all people involved in supply chain (Siegel, 2018). The flow is determined by the customer and the company is able to forecast the demand of a particular product. The company uses lead time by decreasing outbound and inbound transport logistics which enhances flexibility and decrease overproduction of products.
DHL company achieves the fourth step by embracing a computerized inventory system. The fifth step involve the levelling of flow of materials which reduces the waste of materials. Employment of Kanban software system ensure easy planning and reduce overproduction of products. To fulfil the customer needs, through increasing velocity, use of throughput and reducing variations of products. DHL company, deliver reduced shipments which improved velocity hence creating throughput (Sehgal, 2011). It has led to reduced inventory and adjust deliveries. Value Stream Mapping (VSM) has allowed the DHL company to rebuild its supply chai process effectively. Lastly, there is need to focus on total cost to fulfill the customer expectation at a lower cost (Samson, 2010). DHL company make decisions that favor al the customers in the stream. To improve the visibility of the customers, the company embraces agility by improving the collaboration between suppliers and the design of the product (Simchi-Levi,2010). The use of adaptability by DHL company enhances creating a network which responds to the needs of the customers. The use of alignment strategy ensures that the firm puts the interest of their firm into consideration.
The company employs procurement and supply chain practices that provides opportunities to assimilate various sustainability parameters. There are various approaches that are employed by the company (Samson, 2010). The use of sustainable logistics has decreased the load of transportations and environmental related burdens. Similarly, employment of reverse logistics practices fosters business opportunities and enhance the recycling of goods and materials that comprise the post-sale item activities. DHL company develops a sustainable supplier and merchant management which focuses on justifiable supplier selection, their performance and supplier development. The sustainable internal operation management that is protecting the internal programs of the company. They include; inventory management material exchange, modification processes and core operations of the company. (Yawar, 2015) postulates that organizations that develop their sustainability programs upon materiality analysis always receive greater benefits. DHL company’s interest in sustainability of the company has provide a mainstream of innovation and rapid growth for its customers and business associates.
DHL company has implemented sustainability through reporting the status and development of the sustainable programs. Basing on the triggers model, DHL company has developed new tactics to make the services provided by the company to stick in the minds of the customers. The implementation of sustainability programs in the company creates desire which foster customer loyalty (Mentzer, 2004). The company attaches the services they provide to the customers daily practices and emotions. Sustainability is an approach that create a unique outcome in the company’s reputation. Many customers are attracted to DHL company because of its responsibility and discipline in terms of decision making.
The procurement experts of DHL are able to offer considerable cost reserves on the wide variety of non-fundamental products. Therefore, they deliver all the products that are from promotional provisions and consumables in the working operations. In the same context, because some of the goods may wear the company is still able to provide the operational spare parts including other goods which are not intended to be resold (Haraburda, 2017). Consequently, according to the research, it is evidenced that through leveraging the company’s universal supply chain and reach specialists, DHL can manage all the risks related to global sourcing.
The DHL procurement has led to the improvement of the services and goods in many businesses in the following ways. First of all, the organization’s deliverance of the cost-effective savings has advocated for the minimized risk, reduced overheads and optimized supply chain processes. The procurement strategies have encouraged business administration to focus on the main operations instead of being concerned with non-basic and indirect purchases. Additionally, the company’s procurement has made the corporation global delivery chain network to acknowledge both customer and suppliers’ approaches in internal and incipient economies (Wasssenhove, 2012). Similarly, through the DHL procurement, the management of the tenders of the individuals and specific projects are achieved on behave of the management board (Yawar, 2015). Moreover, the coordination of the transaction in all stages of supply chain by the company procurement services to ensure reliability and quality adds value to many firm’s operations. The company is adapting to dynamic business environment and bring into line leaders, employees and managers around a compelling strategy as shown in the dynamic alignment model.
According to the research, it is proven that the company’s supply chain is one of the Deutsche Post DHL partition which is associated with the organization Express. The DHL supply chain headquarter is at Bonn and the post is detailed to have approximately five hundred thousand (Haraburda, 2017). The division involves two business components which include William lea tag and supply chain. Therefore, under the delivery chain business, the company gives an agreement logistics resolution for the whole supply strain for customers from many sectors (New & Westbrook, 2004). On the other side, William lea tag globally gives specialist in firm information solution and business process outsourcing. In the same context, the unit provides management of the information used in the business and communication processes. According to the research conducted, the supply chain of DHL in 2016 was initially competing in strategic Healthcare and Life Science, Technology and Automotive segments in the market. Furthermore, DHL supply chain in United States of America and Canadian has worked with the name of Exel up to early 2016 as proved in the research. The studies and research show that the revenue of the DHL supply chain partition went down with 11.6% in 2016 compared to the 2015.
The largest units of DHL supply chain are retail and consumer. The company is in control of the supply chains involving the source of the supply and destination of the customer. As a result, they all give growth potential for the sector. The sector expounds its services to the wide rage including global inbound warehouse and logistics services. Further, value –adding services and packaging are also established by the two sectors. Moreover, it is proven that DHL supply chain has six localities and each is assigned a specialist. Similarly, the experts are responsible for the projects of the customer and they advocate for the establishment of global sector resolutions on the regional level.
DHL Company owes its success to creativity, commitment and expertise an approximation of forty hundred and eighty thousand employees globally. The company’s high level of motivation can be credited to a corporate culture started on trust, openness and mutual respect. Sustainable human and future-oriented resource development is DHL Company’s key to enhance lasting business success. In addition, to ensure a work environment that is attractive free from discrimination and prejudice.
The planned goal behind the program of corporate citizenship is to influence the company’s main competencies and employee capability to bring a positive and encouraging contribution to the society. Corporate citizenship events are intended to an effective, long-term effect, and are fundamental part of the Deutsche Post DHL Company’s corporate strategy.
The GoHelp program assists boost in logistics management practices of the in regions that are prone to disaster and offers support when disasters come. The GoHelp program impacts long-lasting change by boosting educational opportunities and employment chances for youths around the world (New & Westbrook, 2004). The Deutsche Post DHL Company’s again supports wide range of environmental community and social projects strong involvement of employees.
According to “shared value” approach, a contribution to environment and society protection has ensures its business successes. The idea of shared value stands an essential role in DHL company’s environmental protection practices. The company’s climate protection objective aims at improvement in efficiency of carbon of 30% by 2020. To meet this objective, measures have been introduced that improve the carbon efficiency of air and road transport. The approaches enhance environmental responsibility.
Vision states what a company or organization trusts to be ideal conditions for community and society. Mission communicates what the company is going to do, and for what reasons while strategic goals summarizes the objectives of the company. Improvement programs has assisted the DHL Company to achieve its mission, vision and strategic goals (Yawar, 2015)). For instance, the environmental protection program has helped the DHL Company in achieving its vision of 2020 of carbon efficiency. As per the records, the percentage of carbon in the environment has reduced with an approximation seven percent. The company is really working to lower the percentage of carbon in the environment. The company has embraced and supported the environment responsibility.
In addition, the program of caring and supporting the employees has contributed a lot in DHL Company achieving its planned goals and vision. Under care by the company, employees fill motivated and credited their rights as workers (Sehgal, 2011). Due to motivation and encouragement, they cooperatively work together and enhance success of the company. Again, when the company show it cares about the employees, there will be a good working relation among the working staff and employers and managers. Good working relationship will result to more output hence high profit. Good working relationship and higher profits is among the company’s intended goals.
Conclusion
Once the process of supply chain is understood, the company is in a position to create a relevant strategy that improve services. Employing computerized system of supply chain management, puts the company in a competitive level hence gaining advantage over other companies in the current challenging economy. Transport solutions optimizes the cost of products and warehousing strategies enhances safety of goods. Transportation logistics and inventory management link the company and its partners. By employing improvement programs, the company achieves its vison, mission and strategic goals. Sustainable logistic s helps the company to avoid external pressures and reduce the burden of environmental issues.
References
Blanchard, D. (2010). Supply Chain Management Best Practices. Hoboken, N.J.: Wiley.
Burnson, P. (2017). Freight Forwarding 2017: Digitization & E-Commerce Continues to Reshape Marketplace. Logistics Management, 56(9), 73s-79s.
Carbone, V., Moatti, V., & Wood, C. H. (2012). Diffusion of Sustainable Supply Chain Management: Toward A Conceptual Framework. Supply Chain Forum: International Journal, 13(4), 26-39.
Dhl Supply Chain (Formerly Exel Inc.) Swot Analysis. (2018). Dhl Supply Chain Swot Analysis, 1-7.
Haraburda, S. S. (2017). Supply Chain Management Maturity Level Assessment. Defense Acquisition Research Journal: A Publication of The Defense Acquisition University, 24(4), 656-681
Kamalahmadi, M., & Mellat-Parast, M. (2016). Developing A Resilient Supply Chain Through Supplier Flexibility and Reliability Assessment. International Journal of Production Research, 54(1), 302-321
Kildow, B. A. (2011). A Supply Chain Management Guide to Business Continuity. New York: Amacom.
Lee, W. And Katzorke, M. (2010). Leading Effective Supply Chain Transformations: A Guide to Sustainable World-Class Capability and Results. J. Ross Publishing.
Mentzer, J. T. (2004). Fundamentals of Supply Chain Management: Twelve Drivers of Competitive Advantage. Thousand Oaks, Calif: Sage Publications, Inc.
New, S. J., & Westbrook, R. (2004). Understanding Supply Chains: Concepts, Critiques, And Futures. Oxford: Oup Oxford.
Rand, G. K., & Van Wasssenhove, L. (2012). Operations Rules: Delivering Customer Value Through Flexible Operations. Interfaces, 42(1), 87-88.
Robben, X., & Probert, C. (2015). Michael Porter’s Value Chain: Unlock Your Company’s Competitive Advantage. Namur [Belgium]: 50minutes.Com.
Samson, R. M. (2010). Supply-Chain Management: Theories, Activities/Functions and Problems. Hauppauge, Ny: Nova Science Publishers, Inc.
Sehgal, V. (2011). Supply Chain as Strategic Asset: The Key to Reaching Business Goals. Hoboken, N.J.: Wiley.
Siegel, M. (2018). Building Resilient Organizations: Proactive Risk Management in Organizations and Their Supply Chains. Journal of Business Continuity & Emergency Planning, 11(4), 373-384.
Simchi-Levi, D. (2010). Operations Rules: Delivering Customer Value Through Flexible Operations. Cambridge, Mass: The Mit Press.
Simchi-Levi, D. (2010). Operations Rules: Delivering Customer Value Through Flexible Operations. Cambridge, Mass: The Mit Press.
Yawar, S. A. (2015). Corporate Social Responsibility in Supply Chains: Relevance of Supplier Development. Kassel: Kassel University Press Gmbh.
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