Discuss about the Global Logistics Transport and Distribution Management.
The transport and distribution management department of DHL plays a vital role in developing the potential of the business. DHL is a logistics company operating in 220 countries and territories and they have made a notable presence in the global business of logistics and shipping (DHL Express | Shipping, Tracking and Courier Delivery Services, 2017). The company DHL has achieve various organizational goals with creative operation methods and attractive solutions for their customers. DHL is a part of the world’s leading postal and logistics company Deutsche Post DHL Group (DHL Express | Shipping, Tracking and Courier Delivery Services, 2017).
The essay covers the incoterms of DHL, the carrier selection criteria and relationship management process with those carriers of DHL. The DHL use to give express services to its all customers and clients (MyDHL offers solutions for shipping, tracking, billing and more. Sign up as an account holder or new user, 2017). The firm has expertise in international shipping and courier delivery services (DHL Express | Shipping, Tracking and Courier Delivery Services, 2017). The MyDHL offers the customers to use online shipping solutions. Whereas, the Express shipping gives advice to their customers regarding the fuel charges, surcharges, packaging tips, import guidelines and Waybill Tips. All sort of customer support is provided by DHL in all the countries along with Singapore. However, they have various advanced shipping solutions provided by the entire distribution network (DHL | Monitor Shipments | English, 2017). The essay discusses various contemporary objectives of DHL.
The study of incoterms selection of DHL needs the supportive theoretical background of ‘Incoterms’. The ‘Incoterms’ are various trade terms published by the International Chamber of Commerce (ICC) (Waters & Rinsler, 2014). The Incoterms are international commercial terms which are used to make international trading easier between two companies operating in two countries. The first Incoterms were developed in the year 1936 and it gets updated every 10 years by ICC. The word ‘Incoterms’ can be simplifies as ‘in’, ‘co’ and ‘terms’, which implies, a contract between two companies with few terms. The terms are classified in 13 terms regarding excise duty and other charges applied by the governments of the two countries regarding the shipment of the goods.
The incoterms introduced by ICC can be classified in two types – “Collect” terms and “Prepaid” terms. The “Collect” terms are Ex Works (EXW), Free Carrier (FCA), Free On Board (FOB) and Free Alongside Ship (Ocean freight only) (FAS). The “prepaid” terms are Cost and Freight (Ocean freight only) (CFR), cost Insurance and Freight (Ocean freight only) (CIF), Carriage Paid to (CPT), Carriage and Insurance Paid to (CIP), Delivered at Terminal (DAT), Delivered at Place (DAP), Delivered Duty Paid (DDP).
The company DHL uses to provide various customs brokerage services like Import Export Declaration Filling, Security Filling, Duties and taxes advancement and other permits and licensing services to its clients. Along with that, the additional services like Foreign Trade Zone, Bonded Warehouse, Duty Drawback Processing and Fiscal Representations are provided by DHL (DHL | Monitor Shipments | English, 2017).
The shipping company DHL has potential in the transport operations. The company has introduced DHL ProView for their clients through the facilities of online tracking services. They offer the real-time shipment assurance for the products (Dhl-usa.com, 2017). The company has achieved the title of global market leader with the unparalleled expertise services to its clients. Along with that, they have always focused on their sustainability. DHL has a very good presence in the Logistics sector of Singapore and other countries (DHL | Press | English, 2017).
The strategy of the company is to focus on their goals and connect with their clients in transparent way and grow to the optimum level of service. The company has always focused on the improvement of the lives of their customers (DHL | Press | English, 2017). However, they believe to deliver Joy, Prosperity and Trust among the business clients and the partners.
The DHL services assure their clients with the protection value during shipment. The company compensates all the misconducts during the shipping of goods. Along with that, they cover the freight against loss or damage due to any external cause. Whereas, other shipping companies use to overlook these things during transportation (DHL | Press | English, 2017). The company has Ad-hoc protection Policy and Annual Protection Policy. DHL have various freight security services too for their clients. These services are the incoterms chosen by DHL for the overseas clients (DHL | Monitor Shipments | English, 2017).
DHL has sufficient transportation capabilities. It is recommended to DHL to improve their services by applying few offers in the payment of custom duties and this will give them competitive advantage in the market (Mangan, Lalwani & Lalwani, 2016).
DHL has achieved the success through various business strategies. The DHL believes that, a transportation company plays a major role in connecting people of two different countries. The vision of DHL is to improve the lives of the people (DHL Express | Shipping, Tracking and Courier Delivery Services, 2017). The service quality of delivering a product is the main criteria to get success in the business. The company DHL uncompromisingly delivers customer centric excellence in day to day business operations. The company focuses to build a better society, happier employees and good relationship with all the investors (DHL Express | Shipping, Tracking and Courier Delivery Services, 2017).
The company believes that, knowledge and expertise can connect the people of two organizations. However, every significant step taken by the people of this organization plays a major role in connecting people of the two organizations. DHL works diligently to find new ideas to build and maintain the global family of business in easier way (DHL Express | Shipping, Tracking and Courier Delivery Services, 2017). The organization has started specialized training program for the entire workforce to pursue the goal of connect across organization.
In the transportation and shipping business, the safety of the goods is a major factor for the carrier selection. The success of a delivery lies with the safety of the good. DHL always focuses on the safety and security of the goods. For this purpose, the company has started various schemes to support their client in the misconducts in shipping process (DHL | Monitor Shipments | English, 2017). The cost of loss and damage are also be paid by DHL to their clients. Thus, the company draws a potential impact among the criteria of selection of carrier. DHL has established a true security culture in the field of global freight. The company has put an in-house security department (DHL | Monitor Shipments | English, 2017). DHL was the first company who received the ‘Customs Trade Partnership Against Terrorism’ from the US Customs and Border Protection Agency. The company has achieved several accreditations as ‘Best Practice’ by the US authorities (DHL | Monitor Shipments | English, 2017).
The company use to manage the freight security through a global incident reporting room. The entire system controls the security of more than 100 locations and forwards the secure approach for every shipment. DHL uses to do various risk assessment to secure all the assets of the clients (DHL | Freight Transportation | English, 2017).
For the security purposes, the company has introduced various insurance schemes such as Air & Ocean Cargo Insurance, Road Freight Insurance and many more (DHL | Customs Services | English, 2017).
The timeliness is a big factor in the shipping business. DHL always focuses on the timeliness of the delivery of each product. The company believes that, the timeliness is a major quality for selection of a carrier (DHL | Customs Services | English, 2017). Though, there are various similar companies who are the competitors of DHL and they also focuses on the timely. To get various competitive advantages among other similar organizations, DHL has introduced the tracking services for all the goods. The tracking services support the customer by enabling them with the power of knowing the status of their assets (DHL | Freight Transportation | English, 2017).
The transportation strategies of DHL enable the company to achieve their business goals. However, the company can implement few more features like few promotional offers to compensate misconducts along with guaranteed quality of transport will enhance the performance level of the business (Monczka et al., 2015).
There are various transportation goals of DHL which are discussed in the above discussion. However, the company DHL strategically handles all its measured paths to achieve these goals. The tracking and shipping business is a very crucial and tactical business to be handled by the companies like DHL (DHL | Freight Transportation | English, 2017). The quality service lies with the timelines and safety measures. The target customers of DHL always look for the best carrier in the industry. Thus, the process of choosing one particular company depends on the goals and previous achievements of the organization. Along with relationship building and managing the connection with all the clients are also important (DHL | Monitor Shipments | English, 2017).
The company DHL always approaches to build up good connection with all the clients and the business partners. The carriers are the heart of every successful transportation company. Thus, DHL always focus on relationship building with their carriers. The company DHL always give value to its all carrier partners and thus build a very good relationship them (DHL | Monitor Shipments | English, 2017).
The core purpose of any logistics business is to provide end-to-end transport support to its clients. Thus, there is a need of trust and reliability among all the carriers and the company (DHL | Monitor Shipments | English, 2017). DHL use to negotiate rates and schedules with their carriers and build faith in their relationship. However, working together needs to have trust and faithfulness on each other. Henceforth relationship builds among the carriers.
Along with that, the company DHL provides various technological supports to all its transportations solutions. In this way, DHL supports their carriers with all requirements. All the carriers share the technological solutions for betterment of the services.
Apart from that, there is plenty of cooperation among the carriers and the company and its helps in achieving the organizational goals such as timeliness and secure services.
The organization DHL has a global presence over 220 countries. Thus, it has a broad network of supply chain. There are various department for each regions (DHL | Freight Transportation | English, 2017). However, there are so many separate division among the 220 countries’ network chain. Thus, there is a need of cooperation among all the division and departments in the work to maintain the timeliness and other company goals.
The company always thrives for the safety and security of the goods they deliver. Through this transportation safety and security they value the relationship between the company and the carriers. However, the safety and security is also necessary for building good relationship with the clients. The carriers of DHL are quite satisfied by working with the company (DHL | Freight Transportation | English, 2017).
Along with that, the company DHL supports their carriers by providing all the cost involved in the loss or damage of any good during shipment. This strategy actually lowers the burden of the shipment cost for the carriers and hence they become loyal to DHL and continues with further more businesses (DHL | Monitor Shipments | English, 2017).
Conclusion
The company DHL has achieved their business goals by doing appropriates approaches to its carriers, business partners and the clients. The company always focused on building good relationship with all their business partners and the clients. Henceforth, they have achieved their targets every time.
Presently DHL has become a global leader among all other companies and they have achieved remarkable success due to creative business operations and valuing relationship among each other. The approaches like transport insurances and other various safety and security services has made the company a unique identity among other various transport management companies in Singapore. Though they have operations in other various countries, they have made a better presence in the country Singapore due to better service opportunities in the country and thousands of satisfied customers relying on the organization.
References:
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
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DHL | Customs Services | English. (2017). Dhl.com.sg. Retrieved 2 April 2017, from https://www.dhl.com.sg/en/logistics/customs_security_and_insurance/customs_services.html
DHL | Freight Transportation | English. (2017). Dhl.com.ec. Retrieved 2 April 2017, from https://www.dhl.com.ec/en/logistics/freight_transportation.html
DHL | Monitor Shipments | English. (2017). Dhl-usa.com. Retrieved 2 April 2017, from https://www.dhl-usa.com/en/express/tracking/monitor_shipments.html
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