Submitted under the guidance of Prof.

Rajesh Pandey, By: GROUP 10 Name Shashank Ayyala Anirudh G Shruti Jain Gopalakrishnan Harish Mohan Raghaw Mundhra Deepikaa S S Roll No 1 18 27 28 33 36 52

DHL Distribution Network

Executive Summary Logistics and supply chain management (SCM) as an area of research has been getting increasing attention from academicians and practitioners over the last two decades since it may lead to reduced operational costs, improved delivery performance and increased customer satisfaction levels, thereby making an organization more competitive in terms of cost, quality, delivery and flexibility. The importance of logistics and SCM is increasing also due to globalization as more and more multi-national companies (MNC) are sourcing, manufacturing and distributing on a global scale, making their supply chains very complex to manage. While SCM deals more with the linkages in the chain, contracts and relationships, supplier selection, information and financial flows besides materials flows, creating new facilities such as plants, warehouses and distribution centres, and broader issues such as society, economy, government and environment, the scope of logistics is more or less confined to the routine job of transportation and storage of goods. However, if one deeply ponders, one may realize that logistics is the core of SCM, and if logistics fails, the whole chain snaps. Though logistics deals with mundane vehicles, warehouses, layouts, material handling equipment, Motor, Vehicles Act, toll tax, sales tax, documentation etc., efficient management of it has the potential to make the chain taut and agile. Therefore, there is growing interest in logistics, and hence in SCM, around the world. With fierce competition in todays global markets, the introduction of products with shorter life cycles, and the heightened expectations of customers have forced business enterprises to invest in, and focus attention on, their supply chains. This, together with continuing advances in communications and transportation technologies (e.g., mobile communication, Internet, and overnight delivery), has motivated the continuous evolution of the supply chain and of the techniques to manage it effectively. DHL has been one of the leading logistics providers in the world mainly because of their efficient supply chain network. Any logistic player's key to successful operation is how well synergized their supply chain is and how they are able to gel together their warehousing and distribution. It is here that DHL has got a very effective and an efficient distribution and warehousing system. We will analyze their distribution system in detail as it plays a critical role in logistics. Introduction about DHL: DHL was founded by 3 Entrepreneurs: Larry Hillblom, Adrian Dalsey and Robert Lynn in the year 1969 in San Francisco. DHL derives its name from the Initials of its founders and delivered only documents and important papers initially. The company expanded its operations quickly in Japan, Hong Kong, Australia and Singapore. In 1979, DHL started delivering packages apart from documents. DHL established many International Distribution centres (Brussels, Cincinnati) across the Globe in the 80s. In 2002, Deutsche Post acquired DHL and absorbed it into its Express Division. In 2004, DHL Express became the major stakeholder in the Indian domestic courier, Blue Dart. Deutsche Post acquired
Page 2

DHL Distribution Network

many companies and used the brand name of DHL in all its subsidiaries; Deutsche Post was also renamed as Deutsche Post DHL. In 2007, Aerologic, a new Cargo airline was established under the collaboration of DHL Express and Lufthansa Airlines. Then a state of the art Hub in Leipzig, Germany was opened which helped in expanding its international reach. In 2009, DHL made an exit from the US domestic courier market leaving it to FedEx and UPS. It also has a tie-up with the USPS (United States Postal Service) for local deliveries. DHL has now grown by leaps and bounds into a powerful brand known for personal commitment, proactive solutions and local strength. DHL operates under four specialized divisions: EXPRESS DIVISION: DHL Express is the global market leader in the international express business. It serves over 500 airports in Europe, Asia Pacific, Latin America, Middle East and Africa. With such an extensive global coverage and density, their air network is unparalleled in the express industry. Their headquarters is in Bonn, Germany with revenue of 11.8 Billion Euros. DHL Express has a dedicated fleet of 250 aodern Aircrafts, 100,000 employees, 31,000 vehicles and 3 global hubs at Leipzig, Hongkong and Cincinnati. It also has partnered with many global Airlines such as Aerologic, Kalitta Air, Polar Air Cargo and Southern Air to serve in more than 200 countries. In India, DHL Express has a strong presence offering 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 distribution. DHL Express India has many firsts to its credit, including Indias first and only 24 -hour customer service call centre in the express industry, the first to introduce customised solutions such as DHL EXPRESS EASY JUMBO for customers as well as the first to provide track-and-trace services via email, SMS, Internet and WAP phones. FREIGHT DIVISION: DHL Global Forwarding, freight division transports goods and merchandise to an agreed destination, at a customer specific agreed delivery time and price, providing customized solutions for major logistics projects, as well as comprehensive customs services. It provides perishable goods, Full Container Load (FCL) and Less-than-Container Load (LCL) shipments across all continents. State of the Art Communication Technologies are used: Communication of shipment information, such us shipping instructions to the carrier, is conducted via EDI in paperless form. Multimodal transport is also provided to reduce expense and quicken delivery: DHL SEAIR is the perfect match and combines ocean and air freight, this multimodal solution best serves import and exports with Asia. It is quicker than ocean freight and cheaper than air freight. DHL DOOR-TO-MORE unlocks the potential of direct distribution allowing customers to reduce their time to market and improving their cash cycles. DHL picks up the goods, transfers them to an export facility and from there transports them via air or ocean freight before clearing them through customs and distributing
Page 3

DHL Distribution Network

them to multiple end-users at destination. It eliminates the need for intermediate warehousing and speeds up the customers order-to-delivery cycle. SUPPLY CHAIN DIVISION: DHL provides support in many stages of Supply Chain such as Planning stage, Sourcing, Manufacturing, Delivery and Reverse Logistics. Planning: DHL helps its customers in Supply Chain analysis & design, Supply chain management and as a Logistics Provider. It helps in reducing costs associated with supply chain and increasing its efficiency. Sourcing: By leveraging DHL's global reach and supply chain expertise, they can effectively manage the risks associated with global sourcing. DHL provides a range of services, from procurement consulting and outsourcing, to an integrated service combining procurement and logistics management to ensure that procured products are delivered when and where they are required. It also provides warehousing facilities, transportation services for raw materials to ensure that customer gets all the raw materials at the right time at the right place. Manufacturing & Delivery: DHL has specialised knowledge and expertise in moving huge machinery and outsized cargos. It also provides consultancy services on In-plant logistics and inbound to manufacturing. Inbound to manufacturing is maintained by managing the flow of goods into production. Warehousing and packing facilities for finished goods are also provided. Reverse Logistics: DHL helps in managing returns and product recall effectively allowing its customers to recapture value or reduce write-offs. This helps the DHLs clients to save time and satisfy their customers. MAIL: DHL Global Mail is a specialist in International Business Mail, B2C Parcel and Hybrid or fully Digital Services. With international postal solutions, DHL makes its customers' lives easier. A good example of Digital Service is Bayer: DHL Global Mail collects the invoices at Bayers locations in Asia and transports them to their scan centres in Hong Kong and Shanghai, where the invoices are bar-coded and scanned. The scanned invoices are hosted on a DHL Global Mails server and transferred to the Bayer ERP system every working day. Supply Chain Model: A supply chain is the flow of goods, information and finance. It typically starts by sourcing raw materials or semi-finished goods, which are scheduled and transported into factories to be made into finished product shown in the diagram. These then pass through warehouses or distribution centres and are delivered to retailers, wholesalers or direct to consumers' premises. Finally, aftermarket activities involve the maintenance and repair, or the return and recycling, of products at the end of their life. Supply chain planning optimises overall flows
Page 4

DHL Distribution Network

and inventories, by balancing resources with demand at all times.

Supply Chain model Supply Chain of DHL: Regardless of whether customer operates in the healthcare, technology/aerospace, automotive/industrial or retail/consumer/fashion sectors, DHL can handle all of complex, global logistics tasks: DHL Supply Chain provides customer with customized, IT-based solutions along the entire supply chain. Also with core procurement logistics, warehousing and sales logistics operations, DHL offers top-flight value-added services such as finishing, co-packing, price labelling, billing, order processing - all the way to sales promotion and financial services. DHLs vision for the future is nothing less than to transform the logistics industry and to deliver beyond customers expectations wherever and whenever they need - by offering the most comprehensive suite of services and becoming the only genuine one-stop source for logistics solutions, globally. Shipment Movement Process

Booking

Dispatch

Pick Up

O/Bound

Export

Transfer

Import

I/Bound

Delivery

Four main functional teams of DHL staff are involved during these 9 stages to capture the various checkpoints which provide information on a shipments status. They are Courier, Gateway, Operations and Hub. Courier: Couriers have direct contact with the DHL customers and therefore their interaction with the customers is either during the pick-up of a shipment or during the

Page 5

DHL Distribution Network

delivery of a shipment. As soon as a shipment is picked up from the customer, the courier scans the shipment to capture the PU Shipment Pickup checkpoint. Supply Chain Structure of DHL in India:

Page 6

DHL Distribution Network

DHL Supply Chain Scenario in India: DHL Supply Chain, which started operations in India in 1997, currently has more than 103 warehouses spread across more than 50 cities. Indian logistics firms had grown at over 25% in fiscal 2011-12 led by large-scale outsourcing of logistics services by manufacturing and services sector and a steady rise in rural consumption. The growth comes at time when the sector has been witnessing a paradigm shift with many small-scale and large-scale firms trying to improve their presence in the 3PL (third party logistics) market. 3PL players are outsourced to provide an integrated end-to-end logistics solutions such as warehousing, transportation and inventory management ensuring safe delivery and storage of goods. Logistics giants have also shown interest in the domestic logistics sector with foreign firms acquiring Indian companies in the past few years. DHL Supply Chain, a division of global logistics provider DHL, will invest more than Rs 680 crore (100 million euros) in India as part of its expansion drive. According to the company, DHL Supply Chain will invest in developing an additional 5 million square feet of warehousing space across India and eight world class multi-client sites across the country. Multi-client sites are large scale warehousing spaces at strategic locations to help different companies. It will also invest in improving its transportation business.

Distribution System and its importance: The distribution channel moves goods and services from producers to consumers. It overcomes the major time, place, and possession gaps that separate goods and services from those who would use them. Members of the marketing channel perform many key functions. Some help to complete transactions:

Information: gathering and distributing marketing research and intelligence information about actors and forces in the marketing environment needed for planning and aiding exchange. Promotion: developing and spreading persuasive communications about an offer. Contact: finding and communicating with prospective buyers. Matching: shaping and fitting the offer to the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging. Negotiation: reaching an agreement on price and other terms of the offer so that ownership or possession can be transferred.

Page 7

DHL Distribution Network

Others help to fulfill the completed transactions:

Physical distribution: transporting and storing goods. Financing: acquiring and using funds to cover the costs of the channel work. Risk taking: assuming the risks of carrying out the channel work.

Distribution channels can be described by the number of channel levels involved. The below figure shows several consumer distribution channels of different lengths.

Channel 1, called a direct marketing channel, has no intermediary levels. It consists of a company selling directly to consumers. For example, Avon, Amway, and Tupperware sell their products door to door or through home and office sales parties; Lands' End and Fingerhut sell products direct through mail order, telephone, or at their Web sites; and Singer sells its sewing machines through its own stores. The remaining channels in the above figure are indirect marketing channels. Channel 2 contains one intermediary level. In consumer markets, this level is typically a retailer. For example, the makers of televisions, cameras, tires, furniture, major appliances, and many other products sell their goods directly to large retailers such as Wal-Mart and Sears, which then sell the goods to final consumers. Channel 3 contains two intermediary levels, a wholesaler and a retailer. This channel is often used by small manufacturers of food, drugs, hardware, and other products. Channel 4 contains three intermediary levels. In the meatpacking industry, for example, jobbers buy from wholesalers and sell to smaller retailers who generally are not served by larger wholesalers. Distribution channels with even more levels are sometimes found, but less often. From the producer's point of view, a greater number of levels means less control and greater channel complexity.

Page 8

DHL Distribution Network

A distribution channel consists of firms that have banded together for their common good. Each channel member is dependent on the others. Conflicts like horizontal conflict and vertical conflict keep occurring and it needs a strong distribution network to handle them and fix the same in time to ensure no bottlenecks in the system. DHL's Warehousing and Distribution System DHL offers every combination of warehousing & distribution solution that the supply chain might require: Ambient. Temperature-controlled Bonded Raw Materials Finished goods Automated DHLs finished goods warehouse services include: Warehouse/distribution center design & consultancy Ambient, chilled, frozen & composite operations Customs/bonded warehousing Rail-connected warehousing Automation & Auto-sorting system Provision of IT services Inventory management & optimization Bar-coding, RFID tagging & labeling Value-added services (labeling & co-packing) Recycling of packaging, End-of-Life (EOL) products & waste materials Two critical issues in a companys distribution strategy are the sales channels design and t he institutions that are involved. In determining the channel of distribution for products, a company must decide whether the products will be delivered directly to the end customer or whether other companies like retail businesses acting as sales agents are to be used. The question of how sales are to be organized must be addressed as well - by a companys own sales agents, such as members of the management and traveling representatives, or by thirdparty sales agents like commercial representatives and brokers. A close relationship between
Page 9

DHL Distribution Network

distribution logistics and sales outlets results from the fact that the sales-outlet decision determines the number of points of receipt that are to be served by the logistics system - e.g., few wholesalers or many retailers. A close link may be created between the sales force and distribution logistics e.g., when the members of the sales force assume logistics functions related to order processing. Distribution logistics has various types of flow. In general terms, a distinction can be drawn between the physical flow of goods - the so-called logistics channel - and the flow of ownership and the flow of rights to goods - the so-called contracting channel. In the process, it is not necessary for all types of flow to pass through the same groups.

The members of a sales channel must coordinate their logistics systems for the distribution of goods. To prevent shortages, integrated information systems are set up in the context of efficient consumer-response - or ECR - programs. Based on retailings merchandise management systems and scanner cash registers, sales and point-of-sales-data are reported to the retailers central warehouse and then are passed to the manufacturer along with inventory data. As a result, the manufacturer has an overview of the sales and inventory of his products and can continuously modify his sales projections and production. An important module of ECR is the continuous replenishment program (CRP). In this program, the manufacturer assumes responsibility for the retailers supply availability by handling inventory management in the central warehouse. ECR requires manufacturers and retailers to work closely together. It must coordinate the data-processing systems, and the deliveries must be worked out by both partners. In addition, joint teams between retailers and manufacturers must be formed. These teams will handle logistics issues and develop joint marketing strategies, e.g., product introductions and sales promotions. Both sides profit from this partnership. The manufacturers receive improved information, can base their production levels on demand, strengthen customer loyalty and have a larger say about sales promotion activities. Retailers, in turn, can lower their warehousing costs and capacities, and profit from optimized availability of products. The transportation and distribution system of DHL are two of the cornerstones for the continued success of DHL. DHL transportation management solutions are built from the following core services:

Page 10

DHL Distribution Network

Supplier collections Linehaul and trunking Store delivery Reverse logistics Track-and-trace/Electronic Data Interface (EDI) visibility solutions Cross-docking and merge-in-transit Home delivery (integrated with e-fulfillment warehousing services) Managed transport services Air, ocean, rail and road freight forwarding services Express parcel delivery services Supply chain consultancy, including logistics network strategy and transport modeling Carrier management Control Tower services.

DHL transports via:

Shared- and multi-user transport networks Dedicated fleets Carrier management Time-defined services Transport scheduling and dispatch Shuttle services Mode transfer (e.g. bulk rail to truck or export container) Customs clearance Freight forwarding and Express parcel network

Home Delivery Services: Nothing makes consumers happier than getting what they ordered, delivered to their door, right on time, as promised. By combining distribution centre operations with our home and office delivery operations, DHL helps you service your customers more efficiently and effectively than ever before. Though delivery is the focus, DHL also offer responsive reverse logistics solutions for big-ticket items, to maximize the total asset recovery and safeguard the customer relationships. These services include the recovery of obsolete or non-operational white goods and the removal of old goods on delivery of new or replacement products. DHL E-commerce Fulfillment Services:

Network design including determining where to locate facilities, justifying economics of supplementing the network with fast moving, bulk and/or seasonal operations Process modeling and optimization including determining the ideal level of mechanization for the operation Facility design and layout including working with racking, material handling equipment and automation vendors during implementation

Page 11

DHL Distribution Network

Systems setup and integration including installation support, configuration and modifications Peak season planning including ramp-up, outside storage operations and leveraging DHL's campuses. DHL In-store Logistics Service:

Focused on the last leg of the supply chain with distribution from distribution centers to stores and all related in-store activities Supports in-store operations by creating efficiencies including inventory optimization, labor productivity and promoting stock availability Activities include splitting down totes, separating products by department, removing packaging, moving stock to point of use to support merchandisers Operational cover is provided to Non-Trading activity loading bay, sales floor recovery, returns It incorporates consolidation, stockroom and shelf replenishment management Inputs innovation to store processes Improvement in supply chain visibility to support buyers and merchandisers in their decision making Increased stock availability, while reducing quantities of needless stock Ultimate goal of improving customer service while targeting cost reductions

Service Parts Logistics: When you need critical spare parts delivered to your customers within an agreed timescale, DHLs Service Parts Logistics (SPL) solutions can meet your needs. DHL designs and maintains systems that not only get your customers the parts they need quickly, but also help you to anticipate and prepare for that demand. Its all managed by an end-to-end model, integrating transportation, warehousing, and repair-cycle management. We support all types of service: repair and return, product exchanges, advanced replacements and on-site repair. Services Include:

Express logistics Reverse logistics Returns logistics Exchange logistics Transportation management

Reverse Logistics: DHL will help you design, plan and implement a reverse supply chain that supports your profit goals and maximizes your assets value. Whether DHL is handling your product returns to help you recapture value, or managing your recycling processes to help you safely dispose off your goods, it will provide a better experience for your business. Services Include:
Page 12

DHL Distribution Network

De-installation of finished goods at the customer's site Returns management, receiving, sorting, verifying and managing returned products Express delivery, exchange of "dead on arrival" products DHL EDI: DHL EDI Solutions help you link the marketplace, distribution network, manufacturing processes and purchasing activities. DHL EDI Solutions upgrade shipping from being an "outside service" to a vital, fully-manageable link within your total business flow. DHL EDI Solutions allow customers to exchange business information between computer systems using industry-standard EDI messaging. Such close integration allows better support and reengineering of business processes to achieve greater speed, reliability, control, and cost savings. DHL Multishipping: DHL Multishipping uses the internet technology. Without any installation of software DHL Multishipping simplifies freight management as you can handle the entire freight process from your own PC - and you don't actually need to be in telephone contact with DHL. It automates your booking of a pick-up, helps you search for delivery details, produces the necessary documents and you can print it all on your own laser or label printer. Warehouse Automation: DHL can offer you a variety of automated systems within its warehouse offering, all of which are designed to bring significant efficiencies to your operations. For instance, carousels and automated retrieval systems, although involving relatively high investment costs, can deliver higher efficiency and shorter cycles, thanks to their elimination of human endeavor. The most common example of the carousels application is in electrical spare parts and kit assemblies. From voice picking to complete warehouse automation and sortation systems, DHL has the design, operations, IT and project management skills and experience to deliver the required solution. DHL Automated Services: For goods identification: RFID Tag 2D Barcodes SSCC Labels. Sensor and data capture devices include: Paper picking RFID readers RF guns Voice picking
Page 13

DHL Distribution Network

Pick/put to light. Handling devices include: Automatic order selectors (AOS) Layer picking technologies Palletizers and robots. Storing devices include: Automated storage and retrieval systems Carousels. Software and visualization services include: WMS Inventory visibility Labor management and task interleaving Yard management WMS simulation software. Data integration services include: EDIFACT RosettaNet SAPidec GS1 XML.

Warehousing and Order Fulfillment: Whether you are outsourcing existing operations or creating new ones, DHL has a regional and global network of best-in-class, strategically located operations for you to leverage. DHL provides comprehensive range of cost and time effective solutions. DHL warehousing and order fulfillment services:

Inbound receipt, inspection and quality control Complete stock management Outbound picking, packing and shipping fulfillment Full audit tracking by part and serial numbers Transportation co-ordination.

Retail: DHL has significant infrastructure and operational presence in most global retail markets, with a portfolio of services that spans everything from supply chain strategy and network design to in-store logistics. DHL works for a wide variety of retailers, from hypermarkets to convenience stores, e-retailers to department stores; DIY, electrical and furniture retailers, to coffee shops. DHL has unmatched worldwide presence to support you across your end-to-end global supply chains, optimizing logistics processes at every stage.

Page 14

DHL Distribution Network

Distribution Centre Management: From tangible functions like securing a location, building the facility, getting systems up and running and generating a workforce, to the intangibles of ensuring accuracy, efficiency and controlled costs, DHL provides a full range of smart, state-of-the-art warehousing and order fulfillment capabilities. From design to implementation, DHL have the people, practices, experience and technologies to handle every aspect of the warehouse development and operations. The services support inbound logistics, distribution and returns capabilities in ways that enhance inventory management, reduce total operating costs and improve cycle times. DHL Distribution Centre Management Services:

Ambient and temperature controlled distribution centers Cross-dock operations Automation and sortation Hanging garment operations Co-packing, processing, and pre-retail services Return goods management Dedicated and shared use facilities Seasonal warehousing.

Distribution to Stores: DHL manages effective transport operations from the own distribution centers or cross-docks to the stores. DHL also manages the return of goods and equipment from store to warehouse. By working with the suppliers, DHL maximizes opportunities for backloads, to reduce empty running and the overall carbon footprint. DHL solutions design specialists help continually optimize the transport and warehousing network to minimize costs, as the characteristics of the business change, through changing product volumes, mix, or store portfolio. And by working with the "upstream" supply chain to deliver the products in a store-friendly format, DHL can streamline your store backroom and shelf-replenishment operations. Distribution to Store Services:

Cross-dock transport operations Distribution centre transport operations Own fleet and carrier management Back-loading Returns goods handling Roll cage and pallet management Customer service desk

Page 15

DHL Distribution Network

Different Channels: Redistribution channels are identical to distribution channels for target products. Only the direction of the flow is different. A single-stage redistribution channel, in which the end customer returns residual matter directly to the manufacturer, is one option if the residual matter is relatively single line and large amounts of it can be returned. In addition, it must be possible for the end customer to make regular deliveries to the manufacturer in a disposal cycle. In multi-stage redistribution channels, retailers and wholesalers are used as intermediaries. This is the case for the return of empty bottles in standard-sized cases. Residual cycles are designed to ensure the reusability of secondary raw materials. As a result, the residual matter will be recycled in any case. For instance, the manufacturer of the used or worn-out products himself can recycle the residual matter. In this process, disposal-logistics specialists can perform the tasks of warehousing, transport, handling, collection and separation, packing and order processing. In singlestage residual-matter cycles, residual matter is channeled directly from the company where it is created to the site of its further use. In multi-stage residual-matter cycles, the residual-matter stream is disrupted by someone like a recycling company. The reuse can then be initiated by the manufacturer or by another company. Disposal channels manage the residue stream between the residue producer and the facilities that are responsible for the orderly disposal of wastes, e.g., incineration plants or landfills. The single-stage disposal channel is suitable for all residual matter that is created in large amounts and does not have to be separated for disposal. Multistage disposal channels are necessary when residual matter has to be collected for long-distance transport, analyzed or specially processed. Challenges faced by DHL: One of the biggest challenges facing express operators today is infrastructureboth air and surface. Space at airports, airside (the part of an airport directly involved in the arrival and departure of aircraft) and city side infrastructure are often inadequate. In addition, parking bays, airside/city side access and traffic congestion adversely impact costs as well as service quality. Air express companies are constrained by the size of the facilities at the airports, as they have remained the same while the loads have increased manifold. The following are the other challenges faced by DHL 1. Under certain circumstances, due to unavailability of the recipient, several repeat deliveries have to be made leading to higher costs. 2. Lack of own fleet of air fleet in countries like India resulting in delays. 3. International parcels have to pass the custom check before they can be sent to other countries; certain parcels get delayed for more than 24 hours. 4. Shipping volume rises and falls tremendously as the economy climbs and dips.

Page 16

DHL Distribution Network

CONCLUSION Supply chain management is an exploding field, both in research and in practice. Major international consulting firms have developed large practices in the supply chain field, and the number of research papers in the field is growing rapidly. Our treatment covered twelve areas often seen in supply chain research and practice. These areas appear to be somewhat disparate, but they are all linked by the integrated nature of the problems at hand. Firms operate in global environments, deal with multiple suppliers and customers, are required to manage inventories in new and innovative ways, and are faced with possible channel restructuring. The field promises to continue growing as the research advances and as firms continue to apply new knowledge in their global networks. Finally, as the Internet changes fundamental assumptions about business, 22 firms operating in supply chains will be required to understand this new phenomenon and respond accordingly.

RECOMMENDATIONS

The company needs to focus on their core domestic products to expand the market share and consolidate unique and premium position in the Indian market. They should also leverage its vast customer base for global distribution through its alliances. The domestic network should continue to differentiate itself in all areas of our core competencies - supply chain management, logistics and Ecommerce. To fulfil the aims of on organization, some recommendations are suggested by mapping the transit time of surface transportation and Rail transportation. Analyzing the observed routes by comparing beneficial routes of the company with the competitor, we find the routes which are beneficial in terms of cost cutting and time saving. From this we find that the Eastern part of the network is showing desirable response. Ultimately, if the company works on Eastern part of present network, it may prove beneficial, to fulfil the objectives which are defined by the organization. Enhance the smart-truck project Because of the stage of recession and high competition, the companies need to make difference to have new customers and increase their market share. To invent completely new product can be very expensive and take very much time. So, making little difference on the current product or service can be better. This project will allow the company to deliver faster and cut cost by using less fuel. Acquire small-sized local logistics companies By acquiring small local companies in different countries like China, India, USA, will give us presence in that countries. Also, this will decrease the threat of restrictions in those companies. Even they are small companies, they can have creative solutions to different problems.
Page 17

DHL Distribution Network

Bibliography: http://www.dhldiscoverlogistics.com/cms/en/course/processes/distribution_logistics/distribution.jsp www.dhl-innovation.com http://www.dhldiscoverlogistics.com/cms/en/course/management/scm/concept.jsp Supply Chain Management. Implementation issues and research opportunities | Lambert / Copper / Pagh 1998. In: The International Journal of Logistics Management 9(1998)2 The Supply Chain Management Processes | Croxton / Garcia-Dastugue /Lambert / Rogers 2001. In: The International Journal of Logistics Management 12(2001)2

Page 18