Global Operations Management: A Case Study Of DHL Express

Description on Operations, markets, customers, suppliers and key products or service of DHL Express

Discuss about the Global Operations Management: A Case Study of DHL Express.

Operation management is referred as the administration of the business practices in order to create the highest level of effectiveness possible within the organization. Present study deals with the operations, markets, customers, suppliers as well as key products or service of DHL Express, a renowned courier service organization. In addition, articulation of the operation strategy and the steps involved in the process, factors that lead to have a flow time for distinctive processing time are explained along with presenting process flow diagram.

Operations of DHL Express

Rushton, Croucher and Baker, P. (2014) stated that DHL Express is a division of the German logistics organization named as Deutsche Post DHL that provides international courier, parcel as well as express mail services. The mother company of DHL Express is considered as the largest logistic companies across the world, processing its operations through sea as well as air mail (Dhl.com, 2017). Even since FedEx has acquired unexpected success, DHL Express has supported the market and expanded to some of the countries like Australia, New Zealand. It has made life easier by sending and receiving packages across counties as well as continents. Some of counties like Soviet Union, Iran, Iraq, China, Vietnam and Cuba. At present days, DHL Express caters services to global audience and has developed headquarters in several parts of the world in order to facilitate easier functioning.

Markets of DHL Express

Competing with FedEx as well as UPS at international level, the organization has its market trends of the organization fulfill the demands of customers (Dhl.com, 2017). The company has customer relationship management system as well as marketing campaigns in order to attract more number of customers and retain customer for long time (Schönsleben, 2016). On the other hand, in contemporary world, the organization acquires contracts based on e-commerce that results coming of the packages in abundant amount. In addition, DHL Express has made collaboration with different governmental entities as well as organizations in order to work for betterment of countries along with acquiring popularity with the help of the events. 

Custimers of DHL Express

Offshore sourcing is one of the key strategies in encountering the increasing demands for products (Dhl.com, 2017). However, managing of the realities of the global logistics including security, international require partners through which the organization can enhance their services. There are list of suppliers of DHL explained as followed (Dhl.com, 2017). DHL has implemented Disaster Response Team to Haiti along with the organization. Datalogic supplies DHL with the package sorting stations.  Volkswagen and BP have extended relationship with DHL. In addition, Cyroport as well as DHL Partner for providing Cryogenic Logistic Solutions for Life Sciences along with health.

Articulation of the Operation Strategy

Suppliers of DHL Express

 DHL offers a broad range of services that are designed in order to cater for shipping requirements. All export as well as importing services of DHL in Australia as well as across the world offer secured door-to-door delivery with full tracking visibility. DHL Express offers wide range of deliveries by the end of next possible working day. In addition, DHL offers more economical option for less urgent cases (Fernie & Sparks, 2014).

Key Productss of DHL Express

The company offers heavier deliveries to Europe. Even through, DHL has specialization in international deliveries, it offers fast as well as reliable delivery within the UK. Along with these, DHL Domestic Express offers next working day delivery to 98% of the UK businesses. The import services of DHL enable bringing shipments into the UK from 214 countries. Moreover, the company offers wide range of services for complementing the standard delivery services. If any customer needs additional peace of mind, the Shipment Insurance service covers events like losing and damaging of the products.

Service operation management concerns with practical insight that enables the organization effectively implementing their operations. DHL Express has a clear integral strategic vision that fulfills its two sub-dimensional operations in business (Dhl.com, 2017). It is based on the targeted market as well as customer agents along with the notion of service concept as complicated product bundle as well as designing service for effective delivery systems.

There are two sub-dimension of operational strategy such as exporting service operational strategy and importing service operational strategy. The organization satisfies its service users through offering a broad range of quality services. On the other hand, the company focuses on satisfaction of the staffs through providing an array of exciting opportunities for career (Dhl.com, 2017). As a part of the organization, the staffs are devoted to deliver quality services as well as solutions for the service users (Grant, Wong & Trautrims, 2017). With the help of several on-site trainings and mylearningworld.net, online learning portal of DHL Express, wide range of scopes for enhancing services are provided to the employees of the organization.

The components of operational strategy represent basic values on which the organization is developed as well as the level of integration (Dhl.com, 2017). The customer-focused elements are properly integrated and have a positive impact on making profitability of the organization. It is important to have a proper logic underlying the articulation of operational strategy. Customer market needs to be focused as well as delivery system that meet satisfaction of the customers with services and improve purchasing experience (Jaber, 2016). It returns improved customer satisfaction that reflects on loyalty of customers as well as profitability of DHL Express. With the conceptual relationship, customer-focused behavior as well as profitability is linked.  In addition, it is required to redefine customer alignment as well as explain the sequence activities along with techniques needed to develop strategic vision within DHL Express.

Explanation of each of the steps in the operation process

Without adequate vision, it is difficult maintaining constant enhancement plans as well as elevate the business (Wang et al. 2016). There are several procedures included in articulating operation strategy of DHL Express that can be described as followed.

Step 1: Identifying the area to be focused

 At the first step of articulating operation strategy, it is important to develop vision for operations and set the scope of area required to focus.

Step 2: Analyzing time frame

After setting the area for focus, it is important to develop and analyze timeframe that helps to set the works in different schedule and leads to systematic process of work.

Step 3: Addressing average processing time

Typical timeframe for developing operational vision is necessary. It helps to get beyond of the immediate issues (Swink et al. 2014). In addition, calculating average processing time for the service delivered by DHL Express is required to calculate.

Step 4: Remembering past success

 It is significant to remember the past success when formulating operational vision. It assists to pause and recall success within the organization.

Step 5: Documenting the draft plan

 Documenting the draft plan is the vital part in establishing draft plan for the organization that helps to take future orientation.

Step 6: Soliciting feedback and input

Utilizing care as well as consideration, selecting appropriate personnel to provide feedback on the operation strategy developed by the organization.

Step 7: Review and revise

After getting the feedback, it is important to solicit the feedback as well as get inputs from others. It is require reviewing the work as well as revising if required.

Step 8: Sharing the vision

After developing the operation strategy, it is significant to ensure that there is well communication within the operations of the organization to different functional departments, which depends on the input needs of the operations department of DHL Express.

There are different factors responsible that leads different flow time for distinctive processing time of the organization. The flow rate is considered as one of the most vitat performance measures for DHL Express. The number of flow units is going through the procedure of business per unit time (Peng, Peng & Chen, 2014). For an example, served customers of DHL Express per hour   or generated parts per time. The flow rate is generally referred as average rate.

On the other hand, flow time is one of the major factors responsible in this aspect.  The amount of a flow unit can spend in a process of business from beginning to the end is understood as total processing time (Meixell& Luoma, 2015). In addition, inventory has an impact on different processing time of DHL Express. The number of flow units is presently handled by the process of business such as the number of services processed by the organization.

In order to perform the process in DHL Express, it is required to calculate total processing time and flow time as well as capacity of the organization along with addressing the bottleneck of the process. It is defined as the procedure step in the flow diagram. However, the bottleneck is the process step having long processing tine. It is vital to look at the capacities in order to make judgment for it (Özdamar & Ertem, 2015). Bottlenecks are generally helpful for piling up and workers in later stages stand under the process of setting.  For an example, line capacity of the organization is 500 units per hour, while bottleneck operates 250 units in every hour.

Operations managers act a leading role in order to manage raw materials as well as personnel along with operational management activities. In this aspect, oversight of the inventory, buying as well as supplies is the central to the job. It is important to include determining requirements and overseeing the process of queuing and waiting for the customers.Operations managers involve in planning of budgeting and controlling costs along with keeping the organization on proper track financially (Monczka et al. 2015). The management of supply chain as well as other resources assists in minimizing costs of the production. They use methods like cost-benefit analysis can be helpful to improve efficiency. In addition, modern operations management includes sustainability in the process of financial equation. Thus, effective operation strategy is helpful for this perspective.

The places of improvement required in DHL Express can enhance overall operational procedure of the organization. Process improvement is one of the constant parts of the particular way. In order to keep the operations ahead of the curve, it is required to take proven methodology for the process improvement. DMAIC (Define, Measure, Analyze, Implement and Control), is based upon the lean manufacturing as well as six sigma approaches. Thus, it is required to constantly work to detect specific opportunities like raising customer satisfaction or minimizing process defects can be helpful for improvement ofthe process (Waters & Rinsler, 2014). In addition, dedicated team of process enhancement advisors can be helpful by making partnership with DHL. Their role for helping and understanding as well as responding to the different factors can impact on the systems like acquisition or divestment of the business of DHL.

With the pinning in world economy hopes on the markets of emerging for development of power as well as recovery. DHL Express has identified major barriers that have limits to the possible success: high customs costs, slow market liberalization and under-developed distribution channels. In addition, effective operations managers need to implement practices concerning for thepillars of sustainability (Liberatore et al. 2014). It is important to initiate as well as verify the corrective action at the time of outcome of the pillars that becomes jeopardized (Starr & Van Wassenhove, 2014).On the other hand, unethical behavior can significantly contribute to demise of making successful corporations such as Enron, Tyco as well as several varied firms involved in the business of logistics. Being ethical across over all business functions like accounting and human resource management as well as marketing and sales might be the challenges faced by the organizations.

Conclusion

From the above discussion it can be concluded that, operation management plays an important role for an organization that leads to obtain competitive advantages and retain in the business with respective position. DHL offers worldwide services that include deliveries to several countries across the world including New Zealand and Australia. It has a global presence as well as local expertise that provide knowledge as well as relationships to work with the suppliers, customers along with local authorities in the emerging markets in order to enhance and secure smooth operations. Thus, effective operation management would be helpful to achieve success for the organization.

References

Dhl.com (2017). DHL | Global | English.. Retrieved 1 August 2017, from https://www.dhl.com/en.html

Fernie, J., & Sparks, L. (2014). Logistics and retail management: emerging issues and new challenges in the retail supply chain. Kogan page publishers.

Grant, D. B., Wong, C. Y., & Trautrims, A. (2017). Sustainable logistics and supply chain management: principles and practices for sustainable operations and management. Kogan Page Publishers.

Jaber, M. Y. (Ed.). (2016). Learning curves: Theory, models, and applications. CRC Press.

Liberatore, F., Ortuño, M. T., Tirado, G., Vitoriano, B., & Scaparra, M. P. (2014). A hierarchical compromise model for the joint optimization of recovery operations and distribution of emergency goods in Humanitarian Logistics. Computers & Operations Research, 42, 3-13.

Meixell, M. J., & Luoma, P. (2015). Stakeholder pressure in sustainable supply chain management: a systematic review. International Journal of Physical Distribution & Logistics Management, 45(1/2), 69-89.

Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and supply chain management. Cengage Learning.

Özdamar, L., & Ertem, M. A. (2015). Models, solutions and enabling technologies in humanitarian logistics. European Journal of Operational Research, 244(1), 55-65.

Peng, M., Peng, Y., & Chen, H. (2014). Post-seismic supply chain risk management: A system dynamics disruption analysis approach for inventory and logistics planning. Computers & Operations Research, 42, 14-24.

Rushton, A., Croucher, P., & Baker, P. (2014). The handbook of logistics and distribution management: Understanding the supply chain. Kogan Page Publishers.

Schönsleben, P. (2016). Integral logistics management: operations and supply chain management within and across companies. CRC Press.

Starr, M. K., & Van Wassenhove, L. N. (2014). Introduction to the special issue on humanitarian operations and crisis management. Production and Operations Management, 23(6), 925-937.

Swink, M., Melnyk, S. A., Cooper, M. B., & Hartley, J. L. (2014). Managing operations across the supply chain (pp. 248-249). New York, NY: McGraw-Hill/Irwin.

Wang, G., Gunasekaran, A., Ngai, E. W., & Papadopoulos, T. (2016). Big data analytics in logistics and supply chain management: Certain investigations for research and applications. International Journal of Production Economics, 176, 98-110.

Waters, D., & Rinsler, S. (2014). Global logistics: New directions in supply chain management. Kogan Page Publishers.