LOGISTIC SYSTEM IN DHL

Submitted in partial fulfillment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
IN
OPERATIONS MANAGEMENT

Submitted By
AP RAJESH ARYA(A31001914071)
Under the esteemed guidance of
Professor Mr. VINOD KUMAR
Department of MBA, AGBS, Chennai-86

ACKNOWLEDGEMENT

I owe great appreciation to many people who have helped and supported me during
my Internship.
I express my gratitude to Dr E. Illamathian and Dr. Vengadamani for their guidance
and support.
It is a pleasure of mine to find myself penning down these lines to express my
sincere thanks to my coordinators to give me this opportunity of preparing this project,
to enhance my professional as well as my technical practice. I express my deep sense of
gratitude to my PROJECT OFFICER Mr. VINOD KUMAR to give me knowledge about
the topic and the concept related to this project. Without this guidance I could not even
imagine to complete my project on time.
My deepest gratitude to all my coordinators and the teachers for always boosting my
moral and providing me encouraging environment.

BONAFIDE CERTIFICATE
This is certify that the report is a record of original work done by AP RAJESHARYA of
II year MBA, Registration no A31001914071, based on the training endured during the
period 12th June to 31st July, 2015 at PATROIT SHIPPING SERVICE Chennai on the
subject A STUDY ON THE CUSTOM CLEARANCE OPERATIONS WITH RESPECT TO
PATROIT SHIPPING in partial fulfillment for the award of MBA gradation.

Faculty:
Date:
Submitted and examination held on:
AMITY GLOBAL BUSINESS SCHOOL,Chennai.

DECLARATION
I AP RAJESHARYA, studying in II year MBA program at Amity Global Business
School, Cathedral Road, Chennai, hereby declares that this report is an original work of
mine and I have not verbatim copied / duplicated any material excepting some vital
company information / statistics, which are provided by the company itself.

Signature of the Student

Date:
Place:

OBJECTIVE OF THE STUDY

The objectives of the Project are:
PRIMARY OBJECTIVES

To know the effectiveness of logistics management of DHL and to bench mark the
organization with respect to the industry

To have a thorough understanding of how logistics system works in DHL

SECONDARY OBJECTIVES

To know about Logistics Industries

To understand the value of each organization

To know whether the customers are satisfied with the existing range of service
pattern.

SCOPE OF THE STUDY:

In order to understand the concepts of logistics in terms
of practical usage and to glimpse into the how a real company or organization uses logistics
as a formidable tool to gain customer satisfaction, reduce overall cost and increase efficiency
I selected DHL the worlds leading courier Service Company.
The study is done only how Dhl use logistics system effectively. There are following strength
and weakness of DHL

COMPANY STRENGTHS
Strong Brand Image:
In 1997, DHL became the global express transportation company to obtain
simultaneous system-wide ISO 9001 certification in international quality standards.DHL has
also developed their own quality system that matches their customers standards.
Globalism:
DHL operates on a global scale. They operatein more than 220 countries.
They provide services that appeal to most of the world. They have such a large market in
which to operate, and thus realize tremendous revenues. They can also achieve global
economies of scale.
eServices and Technology:
DHL uses and continues to search for new technology. They spend nearly
10% of total revenues, for information technology. DHL also has excellent Services that
provide access to systems that ensure customer shave control and visibility of their supply
chains at all times. Products can be tracked, queried and ordered online.
Corporate symbiosis:
DHL has developed its own organizational structure to serve the global
market, which it has called corporate symbiosis. This approach encompasses the
empowerment of the DHL personnel at a local level, at the same time recognizing the
interdependence of the parts of DHL as a corporate whole.
Smart-Truck Project:
It is the programme which allows DHL to deliver faster. The data are
transmitted directly to the dynamic route planning system, which recalculates the routes,
depending on the current order situation and volume of traffic.

COMPANY WEAKNESS:
High Prices:
DHLs prices are above their competitors.This can be a weakness if their customers
do not perceive a difference between DHL and its competitorsservices.
Mistakes in Market-Share Estimate:
The biggest weakness is DHLs market-share estimate. It is difficult to estimate even
when the market is stagnant and contains few competitors, and all market-share estimates
should be viewed with circumspection.
Weak Visibility:
It has weak visibility in the community compared with its potential
Not Well-known in USA as UPS and Fedex.

TABLE OF CONTENT
Chapter No
1

Title

Page No

INTODUCTION TO LOGISTICS

1.1 Meaning of logistics

10

1.2 Origin and Definition of logistics

11

1.3 Importance of Logistics Management

13

1.4 Logistics management and Supply Chain

2

BACKGROUND OF DHL

17

2.1 History of DHL

18

2.2 The Worlds Largest Express and logistics network

28

2.3 The DHL Indian Profile

2.4 Product and Services of DHL
3

INTEGRATED LOGISTICS SYSTEM

30

3.1 Inventory Flow

31

3.2 Information Flow

Coordination flow
Operating flow
4

SUPPLY CHAIN MANAGEMENT

61

4.1 DHL International Supply Chain

62

Reverse Logistics

63

Service Logistics
Inbound to Manufacturing

66

Medical device Distribution

Distribution to Store Management
Engineering Response
4.2 Extended Supply Chain Services
4.3 Implementation Service
4.4 Performance Management
4.5 Outsourcing Projects
4.6 Innovation of Supply Chain Development
4.7 Solution for Customize End to End Logistic
5

TRANPORTATION

67

5.1 Transportation Functionality

68

5.2 Principles
5.3 Transportation Infrastructure
5.4 Optimization of Logistics With DHL road and Rail
solutions
5.5 Air And Ocean Freight Solutions

INVENTORY MANAGEMENT &WAREHOUSING

6.1 Warehouse Infrastructure Network
Multi User Centers
Strategic Part Center (SPC)
Express Logistics Centyres(ELC)
6.2 Warehouse Management Solution
Warehouse Management Systems
Strategic Inventory Management
Direct Express Inventory Management
Repair Return Inventory Management
Cross Docking
6.3 Inventory Optimization
6.4 Special Warehouse Solution
6.5 Outsourcing Projects

VALUE-ADDED SERVICES
7.1 Co-Packaging
7.2 Product Assembly
7.3 Other-Value Added Service
7.4 External Performance Measurement

7.5 Customer Perception Measurement

8

WORLDWIDE PARCEL EXPRESS

RECOMMENDATION

10

CONCLUSIONS

69

11

BIBILOGRAPHIES

72

INTRODUCTION
1.1 MEANING OF LOGISTICS:
Logistics is concerned with getting the products and services where they are needed and when they are
desired. It is difficult to accomplish any marketing or manufacturing without logistical support. It involves the
integration of information, transportation, inventory, warehousing ,material handling, and
packaging. The operating responsibility of logistics is the geographical repositioning of raw materials, work
in process, and finished inventories where required at the lowest cost possible. Logistics is
practiced for ages since organized activity began. Without logistics support no activity can be
performed to meet defined goal. The current challenge is to perform logistics scientifically in order to
optimize benefits to the organization. Logistics is a planning function of management. Logistics
function is concerned with taking products and services where they are needed and when they are needed.
LOGISTICS MANAGEMENTS:
Logistics management is that part of the supply chain which plans ,implements and controls the
efficient, effective, forward and backward(reverse) flow and storage of goods, services and
information between the point of origin and the point of consumption in order to meet customers'
requirements rather to the customers delight. A professional working in the field of logistics
management is called a logistician. Logistics, as a business concept, evolved only in the 1950s. This was
mainly due to the increasing complexity of supplying one's business with materials, and shipping out
products in an increasingly globalize supply chain, calling for experts in the field who are called
Supply Chain Logisticians. This can be defined as having the right item in the right quantity at the right time
at the right place for the right price and to the right target customers (consumer);and it is the science of
process having its presence in all sectors of the industry. The goal of logistics work is to manage
the fruition of project life cycles, supply chains and resultant efficiencies. Logistics is Concerned with getting
(or transmitting) the products and services where they are needed or when they are desired. It is difficult to
accomplish any marketing or manufacturing without logistical support. It involves the integration
of information, transportation, inventory, warehousing, material handling, and packaging. The
operating responsibility of logistics is the geographical repositioning of raw materials, work in process, and
finished inventories where required at the lowest cost possible.

1.2 ORIGIN & DEFINITION OF LOGISTICS:

The term "logistics" originates from the ancient Greek ""("logos""ratio, word, calculation,
reason, speech, oration"). Logistics is considered to have originated in the military's need to supply
themselves

with

arms,

ammunition

and

rations

as

they

moved

their base to a forward position. In ancient Greek, Roman and Byzantineempires,

there

from
were

military officers with the title Logistikas who were responsible for financial and distribution of supplies.
TheOxford English dictionary defines logistics asThe branch of military science having to do
with
to do with procuring, maintaining and transporting material, personnel and facilities. The American coun
American Council of Logistics Management defines logistics as the process of planning,
implementing and controlling the efficient and effective flow, and storage of goods, services and related
information from the point of origin to the point of consumption for the Purpose of conforming
to customer requirements.

Importance of logistics managements:

Logistics is the bed rock of trade and business.

Without selling and or buying there can be no trade and business.Buying and or selling takes place only
when goods are physically moved into and or away from the market.
Take away logistical support trade and business will collapse

Integrates logistical activities

In conventional management environment, various activities of logistics work in isolation under different
management functions. Each pocket trying to sub optimizes its objectives at the cost of overall organizational
objectives. Purchasing trying to purchase at minimum price at the cost of what is needed by operations.
Operations produce large quantities at minimum production cost ignoring demand leading to doom
inventory. Logistics function of management brings all such functions under one umbrella pulling down inter
departmental barriers.

Competitive edge:

In the fiercely competitive environment logistics provides the edge. Due to technological revolution most of
the products are moving into commodity markets. In a commodity market where price is
controlled by competition, where there is no product differentiation in terms of quality
parameters like performance & reliability. where brands are almost irrelevant, competitive edge
is that of availability of product and service in terms of time, place and quantity.

Leads to customer satisfaction

Through superior customer service. Organizational objectives of P[Productivity],Q

[Cost],D

[Delivery],E

[EmployeeMorale],F

[Flexibility],S

[Quality],C

[Safety],H

[Health],E

[Environment] are set to meet customer expectations.

Supports critical functions like operations and marketing

Strong logistics support enables a company to move towards JUST IN TIME production system
for survival in a highly competitive market

Logistics wins or loses wars

British lost American war of independence due to poor logistics

Rommel was beaten in the desert by superior logistics of Allies.

Logistics Managements and Supply Chain:

SCM and logistics management, the definitions made by the Council of Supply Chain Management
Professionals,CSCMP(former Council of Logistics Management, CLM) SCM is defined as
Supply chainmanagement encompasses the planning and management of all activities involved in sourcing
and procurement. All Logistics Management activities. Importantly, it also included coordination
and collaboration with channel partners, which can be suppliers, intermediaries, third-party service
providers, andcustomers. In essence, Supply Chain Management integrates supply and deman
d management within and across companies Supplychains encompassthe companies and the business
activities needed to design RFDn, make,deliver, and use a product or service. Businesses depend
on

their

supplychains

to

provide

them

with

what

they

need

tosurviveandthrive.Every business fits into one or more supply chains and has a role to play ineac
h of them. The pace of change and the uncertainty about howmarkets will evolve has made it
increasingly important for companies to be aware of the supply chains they participate
in and to understand

theroles

that

they

play.

Those

companies

that

learn

how

to

buildand participate in strong supply chains will have a substantial competitiveadvantage in their
markets. Supply chain management is thecoordination of production, inventory, location, and
transportationamong the participants in a supply chain to achieve the best mix
of responsiveness and efficiency for the market being served. There is adifference between the
concept of supply chain management and thetraditional concept of logistics. Logistics typically refers to
activitiesthat occur within the boundaries of a single organization and supplychains refer to networks
of companies that work together and coordinate their actions to deliver a product to market. Also in

Also traditional logisticsfocuses its attention on activities such as procurement,

distribution,maintenance, and inventory management. Supply chain managementacknowledges all of
traditional logistics and also includes activities suchas marketing, new product development,
finance, and customer service.In the wider view of supply chain thinking, these additional activitiesare now
seen as part of the work needed to fulfill customer requests.Effective supply chain management requires
simultaneousimprovements in both customer service levels and the internal operatingefficiencies of the
companies in the supply chain. Customer service atits most basic level means consistently high order
fill rates, high on-timedelivery rates, and a very low rate of products returned by customers for whatever
reason. Internal efficiency for organizations in a supply chainmeans that these organizations get an attractive
rate of return on their investments in inventory and other assets and those they find ways tolower
their operating and sales expenses.

2. BACKGROUND OF DHL
DHL is the global leader in logistics - with more highly experienced professionals at more locations in
more countries than any other provider. His goal is to build strong, long-term partnerships
with customers by providing world class services, across all our operations. In India, they have
formed a new joint venture - DHL Lemuir Logistics, which consolidates their position as the leader in
International

Freight

Forwarding,

Supply

Chain

Management,

Project

Transport

and

CustomsBrokerage. They are the first choice for companies looking for endto end logistics solutions
and high quality servicing capabilities. After joining forces with Excel in 2005, they are now
also the sector's leading innovator - providing the extraordinary range of cutting-edge solutions. His
logistics customers include over 75% of the worlds largest quoted non-financial enterprises.
These organizations trust us with their brands and reputations not simply because they are the world
market leader,

but because they strive to deliver globally consistent services of the

highest

quality.
2.1 HISTORY OF DHL
DHL are the first letters of the last names of the three companyfounders, Adrian Dalsey, Larry
Hillblom and Robert Lynn. In 1969, just months after the world had marveled at Neil Armstrong'sfirst steps
on the moon, the three partners took another small step thatwould have a profound impact on the way the
world does business. The founders began to personally ship papers by airplane from SanFrancisco to
Honolulu, beginning customs clearance of the ship's cargo before the actual arrival of the ship and
dramatically reducing waitingtime in the harbour. Customers stood to save a fortune. With thisconcept, a
new industry was born: international air express, the rapiddelivery of documents and shipments by airplane.
The DHL Network continued to grow at an incredible pace. Thecompany expanded westward from Hawaii
into the Far East and PacificRim, then the Middle East, Africa and Europe. By 1988, DHL wasalready present
in 170 countries and had 16,000 employees. At the beginning of 2002, Deutsche Post World Net became the
major shareholder in DHL. By the end of 2002, DHL was 100% owned byDeutsche Post World Net. In
2003, Deutsche Post World Netconsolidated all of its express and logistics activities into one single brand,
DHL.

2.2 THE WORLDS LARGEST EXPRESS AND LOGISTICS NETWORK

DHL is a global expertise in express, air and ocean freight, overlandtransport and logistics solutions;
DHL combines worldwide coveragewith an in-depth understanding of local markets.Below are the
global facts and figures that show you the scale of theworld's largest express and logistics network.
DH L Express worldwide
Employees more than 124,000 ,Countries and territories more than 220 ,Hubs 36 ,Bases 4700 ,Vehicles
72,000 ,Aircraft 350 ,Pack stations (only Germany) 900
DH L Logistics in figures
DHL logistics worldwide
Employees * more than 162,500
DHL Global Forwarding
Countries and territories 150
Terminals, warehouses, offices813
Air freight volume 4,409,000 tones
Ocean freight volume TEU ** 2,764,000
DHL Excel Supply Chain
Countries and territories 59
Centers, warehouses, terminals 2500
Storage area sqm 23,000,000
DHL Freight
Countries and territories more than 30
Full truckload movements p.a. 2,000,000
Terminals more than 160

2.3 D H L INDIA CORPORATE PROFILE

DHL Worldwide Express (India) Pvt Ltd is the No.1 international air express services provider in India, a
position it has held since it began its India operations in 1979. Today, DHL offers 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. DHL India has over 50,000customers
serviced through DHL's national network with its 1,000strong ground staff, fleet of 400 vehicles and
dedicated service centers in Ahmadabad, Bangalore, Chennai, Cochin, Jaipur, Hyderabad, Kolkata, Mumbai,

New Delhi, Pune and Tripura. Acknowledged for its innovative solutions and pioneering initiatives,
DHL India has many firsts to its credit including India's first and only 24-hour
customer service call center, the first to introduce customized solutions such as Jumbo Box, Junior Jumbo,
Import Express and Fashion First for customers in the air express industry, as well as the first to provide
track and trace services in India via email, via SMS or via the Internet and WAP phones
Facilities:
DHL India has an outstanding reputation in the market for providing are liable, fast and easy-to-use
service.DHL offers-Highly trained and professional staff, committed to being responsive to all customers
needs Customer Service Agents, available round-the-clock, 365 days of the year, to serve
customers whenever and wherever they need them Electronic pre-clearance of shipments through Customs
Five international gateways providing direct-to-air networks and faster sorting of inbound and
outbound shipments DHL India is a proven facilitator of trade, across the globe. His strength lies in our global
network and the know-how of our people. Backed by strategic alliances with world-class partners
and the innovative use of technology, they strive to continuously improve the quality of our service. Our
services range from fast, responsive and cost effective express deliveries toe-commerce fulfillment
and intelligent logistics solutions. DHL Core Services consist of door-to-door air express
delivery of documents and parcels of all sizes (and weight), both in to and out of the country.
2.3 PRODUCTS AND SERVICES OF DHL
DH L Document Express (DOX):
This service is ideal for shipments that are not subjected to Customsdeclaration at destinations,
or have no commercial value or do notrequire a license.
DH L Express Worldwide Package (WPX)
This service is used for shipments with commercial value or those,which must be declared for
Customs evaluation. They may be subjectedto Customs inspection at destinations and may be taxable or
dutiable.
Jumbo Pack and Jumbo Junior:
This service makes exporting easy. One box dispatched for one flat
fee,anywhere in the world. DHL Jumbo Box is for shipments under 25kgand Jumbo Junior for shipments
less than 10kg.

Import Express:
This service is a single window solution for all importing needs. DHLI mport Express is a one
window, one rate, and one account, one currency service that enables a shipment picked up from the supplier's
doorstep overseas and delivered directly to the customer anywhere in the world. And what's more, it allows
the customer to maintain total control of your importing costs.
Fashion First:
Fast Forward is the revolutionary new service of DHL for moving heavy goods that brings
increased efficiency and delivers greater cost savings for Indian importers and exporters. It facilitates
the import and export of shipments weighing 20kg and above by providing significant savings with a wide
range of innovative and flexible door-to-door solutions .Another feature of Fast Forward is Trade
Automated Services (TAS), an online platform that provides comprehensive trade and customs information in
50 key countries worldwide, calculates total landed costs of a shipment (including duty, tax and other customs
related charges),generates import and export documentation, screens senders and receivers against
government lists pertaining to embargoes , and compares an item's export and import clearance costs
and regulations to enable qualifying sourcing decision. Fast Forward is specially developed after extensive
research and designed to meet the unique needs of industries such as Automobiles, Electronics, Heavy
Engineering, Publishing and Textiles.

3. INTEGRATED LOGISTICS SYSTEM

Logistics is viewed as the competency that links an enterprise with its customers and suppliers.
Information from and about customers flows through the enterprise in the form of sales activity, forecasts and
orders. As products and materials are procured, a value added inventory flow is initiated that ultimately
results in ownership transfer of finished products to customers. Thus the process is viewed
in terms of two inter-related efforts, inventory flow and information flow. Inventory flow Information
flow
Inventory flow
Suppliers

Physicaldistribution

Manufacturing support

Customers

3.1 INVENTORY FLOW

The management of logistics is concerned with the movement andstorage of materials and
finished products. From the initial purchase of amaterial or component, the logistical process adds
value. By movinginventory when and where needed. Thus the material gains value at eachstep. For a large
manufacturer, logistical operations may consist of thousands of movements, which ultimately culminate in the
delivery of the product to an industrial user, wholesaler, dealer or customer.In order to understand logistics it is
useful to divide it into three areas:
Physical distribution

Manufacturing support

Procurement

For DHL:
DHL is completely service oriented therefore it does not have its ownmaterial movement but that of the
customers

the

sender,

the

receandalso the intermediateries. That means it only involves physicaldistribution and procurement.
Procurement also includes the materialneeded for packaging such as paper, moulded trays and boxes,
woodencrates,

standard

containers

wraps,

plastic inlays

etc.

The

materials

or thegoods collected from the senders (including papers, documents, physical goods like clothing,
household good, chemicals, exotic animalsetc) are weighed, checked for condition, and depending
upon its variouscharacteristics it is packed. The goods are then dispatched to their destinations. There is no

value addition to the material itself but it isdone to the service which is provided (e.g. if there has to be
a certain package delivered from India to UK the normal services would take
about 2 days whereas as a super fast delivery would be done in about 9hours)
3.2 INFORMATION FLOW
Information flow identifies specific locations within a logistical systemthat have requirements.
Information also integrates the three operatingareas. The primary objective of developing and specifying
requirementsis to plan and execute integrated logistical operations
Logistical information involves two major types of flows:
1.Coordination flows
2.Operation flows
1. Planning and coordination flows
Coordination is the backbone of the overall information system.
Strategic objectives:
Strategic objectives detail the nature and location of customers, whichare matched to the
required products and services to be performed
For DHL
It implies estimating the time requires for collecting the goods from thedoor step of the sender and
then estimating the time for the goods toreach the final customer
Forecasting
Forecasting utilizes historical data, current activity levels, and planning assumptions
to predict future activity levels. Logistical forecasting is generally concerned with relatively short
term predictions. The overall purpose of information planning/coordination flow is to integrate specific
activities within a firm and to facilitate overall integrated performance.
For DHL
DHLs whole business is dependent on the vital point of timely delivery. Based on the distance
to the final receiver, the accessibility, the documentations and procedures that need to be handled etc
they have fine tuned the process of delivery. They can accurately gauge how much time it will take for
the goods to reach its end destination
2.Operational flows
The second aspect of information requirements is concerned withdirecting operations to receive,
process, and ship inventory as requiredsupporting customer and purchasing orders. Operational
requirementsdeal with

Order management
Order processing
Distribution operations
Inventory management
Transportation and shipping
Procurement
For DHL:
DHL owns its success for the efficiency with which the operations are carried out. Here not only the company
but the sender and sometimes the receiver can track the goods through their information center. They are given
a certain password which they can use to trace via online or their customer service helpline.
4. SUPPLY CHAIN MANAGEMENT
Definition for supply chain management
Supply chain management is the management of upstream anddownstream relationships with
suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole.
Explanation:
The supply chain is the network of organizations that are involvedthrough upstream and
downstream linkages, in the different processesand activities that produce value in the form of
products and services inthe hands of ultimate consumer.( in detail mention above)
For DHL:
Supply chain Optimization.

Good design is at the heart of an effective supply chain solution. DHLhas developed a reputation for
consistently developing innovativesolutions that streamline operations and improve control. Their
in-houseteams have contributed to the solutions design of some of the world'sleading brands and enabled to
win key contacts.DHL solutions design team offers a wide portfolio of expertise andservices, from
logistics network strategy, transport design, warehousedesign and simulation, through to operational
improvement andinventory analysis
International Supply Chain
Extended Supply Chain Services
Implementation Services
Outsourcing Projects
1.INTERNATIONAL SUPPLY CHAIN
DHLs international supply chain management solutions are focused onhelping customers take increased
control of international inboundsupply chain to maximize the value of international and global sourcing.
DHL helps customers:
Give visibility of the upstream supply chain, and enable earlier decisionmaking
Create a more agile supply chain, better able to respond to changes inconsumer demand
Reduce lead times, inventories, and associated storage costs
Customer-focused solutions are built up from the following coreservices:

Origin management, including: vendor management; supplier collections; customs brokerage;

consolidation services and value-addedservices
Global forwarding, including: air/ocean/road/rail freight forwarding andmanagement; European
managed transport
Destination management, including: port and demurrage management;customs brokerage; deconsolidation and pre-retail services; port todistribution centre transportation; direct store
delivery (US only)
Supply chain visibility and management, including: purchase order management; RFID product tracking;
exception management; planningand forecasting; inventory management.
Global forwarding services are provided across all major routes.
Logistical services that are offered.
Reverse Logistics
Services Logistics
Inbound to Manufacturing
Medical device distribution
Distribution to stores Management
Engineering Response
a ) Reverse Logistics
DHLs reverse logistics solutions help customers plan, implement andcontrol flow of materials and manage
related information, back up thesupply chain to recapture values and ensure the safe disposal of goods.Items
include the recovery of obsolete or non-operational white goodssuch as refrigerators, plus the
removal of old furniture on delivery of newor replacement products.
Services include:
Roll in Management: de-installation of finished goods at the customer'ssite
Returns Management: receiving, sorting, verifying and managingreturned products
Express Delivery: Exchange of Dead On Arrival product.

b.)Service logistics
Service and replacement parts DHLs service and replacement parts service involves the management of
manufacturers' replacement parts delivered to and from customers according to pre-defined service levels or
warranty agreements on a one, two, four or eight-hour and next-day basis, 24 hours a day, seven days a
week.DHL works closely with customers to overcome common issues such as:

Poor parts availability

High inventory investment

Long lead times, accentuated by global sourcing

High levels of customer returns

Poor visibility, reporting and control

Cost control of the demand chain

Key services include:

International freight forwarding

Domestic and regional inbound deliveries
Inventory planning, forecasting, procurement and analysis
Distribution centre operations

Outbound delivery The entire process is underpinned by a web-enabled electronic order processing and
order monitoring tool.
c) Inbound to Manufacturing
Inbound to manufacturing is the complete end-to-end logistics management of inventories,
facilities and labour associated with the inbound flow of materials from vendors and supplier origins to
consumption points in manufacturers production lines .The service encompasses:
Network, transportation and facility design

Inventory optimization

Supplier management
Transportation management

In-plant services Key to the service is integrating manufacturers' forecasting, order management and supply
chain execution processes with their component suppliers. DHL implements warehouse management and
supply chain event management systems to manage just-in-time deliveries and allow supply
chain participants to exchange forecast requirements in real time
Value is created for manufacturers and component suppliers throughout the world by:
i.
ii.

Enabling a robust and cost-effective supply chain

Providing the necessary visibility so that the location of all components within the supply

iii.
iv.
v.

chain is known to all supply chain participants

Reduce inventory and investment costs
Improve delivery times
Co-ordinate multiple components more efficiently

d ) Medical Device Distribution

DHL country-based warehouses for a number of manufacturers to service a local customer base.
This includes the receipt of product from local or global manufacturing sites and downstream distribution to
hospitals.
e.)Distribution to stores management
DHL distributions to store services are focused on helping retailers create efficient and flexible
supply chains to deliver product to retail outlets a thigh levels of service. These solutions are built
from several core services: reverse logistics collections; sortation; processing; repair/refurbishment;
value recovery; disposal and compliance.
f.)Engineering Response
Through our Engineering Response services, we manage the materials supply chain from works
planning and inbound goods through to on-site works, delivering stock out to engineers, builders and
construction workers in the field.
2.EXTENDED SUPPLY CHAIN SERVICES
DHL not only provides physical logistics services but also manages other enhanced supply chain
services, improving efficiencies and reducing costs.
a ) Order Management
Receipt, management, execution, sequencing and dispatch of orders in a timely manner.
b ) Call Center Management

A Call Centre manages orders, monitors sales activities, provides customer services and functions as a
Help-desk.
c ) Global Inventory Management
DHL gives the customer a global view of inventory, thus enabling informed decisions regarding the
disposition of stock.
d ) Consolidated Billing Services
The creation of a consolidated and categorized invoice, based on all services performed in a specific timeperiod by more than one service provider, made available in an agreed format.
e) Freight & Customs Solutions
DHL's many years of experience with international trade requirements and formalities, combined with the
European Competence Centre and country expertise, gives customers the leading edge in service, quality and
management in cross border transactions.
4.3 IMPLEMENTATION SERVICES :
a. Implementation and Project Management
Implementation starts by defining project aims, setting the targets and describing the
deliverables in detail. The major topics in implementation include business processes, engineering,
real estate, IT systems, migration, HR, finance and legal considerations.
b. Quality Management
Total Quality Management is a management strategy that integrates quality orientation into the
whole structure and workflow of a company by using methods and techniques of quality
management
Corporate Policy for
Quality, Environment, Health and Safety
(QEHS) is based on five corporate values:
Customer satisfaction: Providing our customers and their customers with excellent, high
value logistics solutions.
Employee motivation: Building on the know-how and stimulation of individual potential in multicultural teams.
Operational excellence: Continuous improvement of processes and services to fulfill or exceed
expectations.
Corporate citizenship: Acting as a responsible corporate citizen in all countries
Shareholder reward: Developing a sustainable business to provide increasing shareholder value

Globally, DHL management systems are certified according to the international standard for quality
management systems ISO 9000 in almost every operating unit.
4.4 PERFORMANCE MANAGEMENT
Performance management is a key part of the supply chain. Measuredelements are reviewed as a system, as
each component interacts with allthe other parts around it. Performance measuring not only recordshistorical
performance but also provides early indication of any serviceslippage. In this second role, the
measures provide a valuablecontribution to DHL's Continuous Improvement Programme.
4.5 OUTSOURCING PROJECTS
Outsourcing

involves

DHL taking

over

and managing

previous

in-houselogistics

operations, including:
Distribution centers
Transport operations
Back-office functions
Supply chain management functions
After sales services
4.6 INNOVATION OF SUPPLY CHAIN DEVELOPMENT
Supply Chain Management services are delivered across industry sectors and provide expertise, knowledge
and resources in terms of personnel and supply chain tools. All services are targeted
at optimizinglogistical operations in both process and strategy, and are aligned to theclient's commercial
expectations.
The services are as follows:
Strategic Logistics Consulting
Lead Logistics Provider
Consulting and providing Transport optimization: Route-Pro and Trans-Pro
Consulting and providing Supply Chain Design
Consulting and providing Transportation
Engineering, optimization and re-engineering
Implementation and Project Management
Process Management
Outsourcing

DHLs consulting services also offer re-organization of customer facilities, project

management for customers, implementation of new IT Systems, creation of tender documents and
tender processing.
Supply Chain Re-engineering
DHL works with customers to review supply chain efficiencies. One of the main tasks is to evaluate
cost efficiency to ensure that costs
are being driven down throughout the contract duration. Data analysisallows DHL to provide
customers with 'what if modeling' or the impact of changing the business rules.
After Sales Optimization
Optimizing return logistics and spare parts logistics as well as maintenance and repair services.
Vehicle Management Services
Our vehicle management services focus on the management of sales and marketing support programmes for
automotive manufacturers. Combining a range of services and systems to deliver a global response ,they help
you overcome challenges at the end of the automotive supply chain.
Distribution to Stores Management
DHLs distribution to store solutions are focused on helping retailers create efficient and flexible supply chains
to deliver product to retail outlets at high levels of services These solutions are built from several core services
including reverse logistics:
logistics network strategy
warehouse design and simulation
Transport modeling.
Solution for customizedEnd-to-end logistics
Worldwide

Best-in-class solutions that deliver Value to your supply chain.

Customized Logistics Solutions

Supply ChainManagement Analysis, design and engineering.Lead Logistics Provider (LLP)
andLead Service Provider (LSP) services
.Warehousing
Engineering, design and management.Vendor management, just in time.
Value AddedServices Order management, quality control,outbound fulfillment, reverse
andreturn logistics and other services
Distribution
Take-over and management of in-house logistics including distribution,transport, back-office,
supply
Chain and after sales.
Outsourcing
Industry-specific local andtransnational. Network and fleet planning and optimization
DHLSolutions offers customized logisti cs solutions for your entire supply
chain . O ur complete overview from manufa cturer/supplier to retailer to consumer
enables you to a chieve operational ex cellen ce at every stage Services range from c
onsulting and design to management and execution .They provide industryspe cifi ce
xpertise and long- term experien ce that addvalue to your business
.
DHLSolutions sets the pace in SupplyChain M anagement with state-of-theart technologies,deliveringcustomized business solutions Leading e d g e IT systems
ensure seamless integration andguarantee full transparency andcontrol throughout t
he entire supply chain.
DHL Supply Chain, Corporate Information SolutionsThis division consists of contract
logistics services and Corporate Information Solutions (Williams Lea).Both business units focus on
tailor-made customer solutions .The business unit Supply Chain provides warehousing and
transportation services as well as value- added solutions along the entire supply chain for customers from
various sectors of industry, including the key automotive, life sciences, technology, fast-moving
consumer goods, retail, and fashion sectors. The subsidiary Williams Lea is the heart of the business
unit Corporate Information Solutions. The expert for document-based outsourcing solutions gathers,
digitalizes, prints, stores, sorts, addresses, envelops, dispatches and archives documents of all
types. Williams Lea is also the right point of call for electronic invoicing and marketing services.

5.TRANSPORTATION
Transportation is the most visible of all functions of logistics and high contributor to logistics cost. We
can see trucks, containers and wagon loads of material being moved from place to place as an activity
directly associated with trade and business. We should also appreciate that this is an activity
that adds highest amount of cost to the activity of making inputs and outputs available to consumers.
Transportation function moves the products to meet customer expectations at minimum cost.
Transportation is one of the most visible elements of logistics operations. Transportation provides 2
major functions:
Product movement & product storage.
Product Movement
Whether the product is in the form of materials, components ,assemblies, work-in-process, or finished
goods, transportation is

necessary to move it to the next stage of the manufacturing process

or physically closer to the ultimate consumer. A primary transportationfunction

of

product

movement is moving up and down the value chain. Since transportation utilizes temporal, financial,
and environmental resources, it is important that items be moved only when it truly enhances
the product value. Transportation involves the use of temporal resources because product is inaccessible during
thetransportation process. Such product, commonly referred to as intransit inventory, is becomin
g a significant consideration as a variety of supply chainstrategies such as just in time and quick
response practices reduce manufacturing and distribution center inventories
Transportation uses financial resources because internal expenditures are necessary for private fleets or
external expenditures

are required

for commercial

or public

transportation.

The

major

objectiveprescribed destination while minimizing temporal, financial andenvironmental resource

costs. Loss and damage expenses must also be minimized. At the same time the movement must take place in
such a manner that meets customer demands regarding delivery performance and shipment information
availability.
Product Storage: Temporary storage in stationary vehicles or Vehicles kept moving on a
circuitous route Product storage is expensive in a transport vehicle. But sometimes keeping overall cost in mind this is
adopted.
A. When unloading and loading is more expensive than storage
B. When storage space is limited. [Situation when inventory levels are very high]

5.2Principles
There are two fundamental principles guiding transportation management and
operations. They are economy of scale and economy of distance.
Economy of scale
refers to the characteristic that transportation cost per unit of weight decreases when the size of the
shipment increases .E.g. truck load shipments cost less per pound than less-than-truckload
shipments. It is also generally true that larger capacity transportation vehicles such as rail or water are less
expensive per unit of weight than smaller capacity vehicles like motor or air. Transportation economies
of scale exist because fixed expenses associated with moving a load can be spread over the loads
weight. The fixed expenses include administrative costs of taking the order; time to position the
vehicle for loading or unloading, invoicing and equipment cost. These costs are fixed because they do not
vary with shipment volume .E.g. suppose the cost to administer a shipment is $ 10.00. Then the
1- pound shipment has a per unit of weight cost of $10.00, while
the 1,000 pound shipment has a per unit of weight cost of $0.01. Thus, it can be said that
an economy of scale exists for the 1000-pound shipment.
Economy of distance
refers to the characteristic that transportation cost per unit of distance decreases as distance increases .E.g. a
shipment of 800 miles will cost less than two shipments (of the same combined weight) of 400 miles.
Transportation economy of distance is also referred to a se tapering principle since rates or chargest a per
with distance. The rationale of distance economies is similar to that for economies of scale.
Longer distances allow the fixed expenses to be spread over more
miles,resulting in lower overall per mile charge. These principles are important considerations when
evaluating alternative transportation strategies or operating practices. The objective is to maximize
the size of the load and the distance that is shipped while still meeting customer service expectations.
5.3Transport Infrastructure
Transportation infrastructure consists of the rights-of-ways, vehicles,and carrier organizations
that offer transportation services on a for-hireor internal basis. The nature of the infrastructure also
determines avariety of legal and economic characteristics for each mode or multimodal system. A mode
identifies the basic transportation methodor form.
RAIL NETWORK
Since olden times, railroads have handled the largest number of ton-miles. As a result of the early
establishment of a comprehensive rail network connecting almost all the cities and towns, railways dominated
the intercity freight tonnage till World War II and in some cases of Europe, Asia and Africa they
even connected the countries. This early superiority enabled railways to transport large shipments very
economically.
MOTOR CARRIERS
Highway transportation has increased rapidly since the end of World War II. This is because
Motor carrier industry results from door-to-door operating flexibility and speed of intercity movement. They
are even flexible because they can operate on each and every kind of roadways .In comparison to rail
roads, motor carriers have relatively small fixed investments in terminal facilities and operate on
publicly maintained highways. Although the cost of license fees, user fees, and tolls are considerable, these
expenses are directly related to the number of over-the-road units and miles operated. The variable
cost per mile for motor carriers is high because a separate power unit and driver are required for each trailer
or combination of tandem trailers. Labor requirements are
also high because of driver safety restrictions and the need for substantial dock labor. Motor carriers are
best suited to handle small shipments moving short distances.
WATER TRANSPORT

It is the oldest mode of transportation. First it was the sailing vessels, which was replaced by steamboats
in early 1800s and by diesel power in the 1920s. Domestic water transportation involves the Great
Lakes, canals, andnavigable rivers. In every country, fewer system miles exist for inland water than any other
transportation mode.
The main advantage of water transportation is the capacity to move extremely large
shipments. Water transport employs 2 types of vessels. Deep-water vessels, which are generally designed for
Ocean and Great Lakes use, & are restricted to deep-water ports for access. In contrast, dieseltowed barges, which generally operate on rivers and canals, have considerably more flexibility. Water
transport ranks between rail and motor carrier in the fixed cost aspect. Although water carriers must develop
and operate their own terminals, the right-of-way is developed and maintained by the government and results
in moderate fixed costs as compared to railways and highways.
The main disadvantage of water transport is the limited range of operation and speed. Unless the origin
and destination are adjacent, supplement haul by rail or truck is required. The capability to carry very
high cargo at an extremely low variable cost places this mode of transport in demand when low freight rates
are desired and speed of transit is a secondary consideration.
AIR TRANSPORT
Air transport is the newest and the least utilized mode of transport. Its major advantage being its speed, which
is accompanied by high costs. A coast-to-coast shipment via air requires only a few hours contrast todays taken
by other mean of transportation. The high cost of transport can be traded off for high speed, which allows other
elements of logistical design, such as warehousing, inventory to be reduced or eliminated. But still air
transport remains more of a potential opportunity than a reality because it is very much underutilized.
The high cost of jet aircraft, coupled with erratic nature of freight demand, has limited the
assignment of dedicated planes to all-freight operations. However premium carriers provide planes
dedicated for freight operations. This premium service started off with documents and has moved onto large
parcels, which is an ideal service for firms with a large number of high-value products and timesensitive service requirements.
FOR DHL:
DHL uses all the modes of transportations that is
Airways
roadways
waterways
rail freight
DHL has its own fleet of airplanes and motor vans. Depending upon the final destination where the goods
have to finally reach and the type
of package the customer has paid for, DHL uses the individual modes of transport or a
combination of either of these or all. Once again the geographical location and how fast the goods have to be
delivered are the factors for the final selection of modes of transportation. The concept of economies of scale
and economies of distance are both taken into consideration in case of larger consignments where DHL
provides an appropriate logistical solution which helps in reducing the overall cost for the customers.

5.4OP T I M I Z ATI O N O F L O G I S T I C S W I T H
DHL
R O A D AN D R A I L S O L U T I O N S
.
DHL Freight is a leader in European overland transport. Our continent-wide network and comprehensive
range of products and services guarantee reliable transport. DHL Freight offers you regular services for group
age and a full range of transport services for part- and full-load shipments by road, rail and
intermodal transportation. They provide special handling and transportation for perishables, furniture, trade
fair or event equipment, as well as tailored customs clearance services in more than 350
offices across Europe. State-of-the-art IT systems give you totals shipment visibility and higher
delivery efficiency. Our industry-specific expertise and long-term experience can improve
your productivity and streamline your operations. A successful, high-caliber partnership wit
h DHL Freight gives you all the advantages you need to optimize your logistics.
Whether you need to forward door-to-door,airport-to-airport or port-to-port freight,
DHL Danzas Air & Ocean offers a comprehensiverange of services no matter the size, weight
or dimensions of your goods.Combined with an extensive tool kit of information management
systems and a global network of dedicated control towers, our experienced teams around the
world can createthe right logistics solution for your business. DHL Danzas Air & Ocean is in
pole positionto lead the future of air and ocean freight logistics and sets high standards in
quality and security

5.5 Air Freight and ocean freight solutions

DHL Danzas Air & Ocean offers a range of fast and cost-effectiveairfreight services for your
most time-sensitive freight with door-to-door or airport-to-airport services, fixed schedules on all main
routes andreliable connections to all other destinations

DHL Air Freight products include:

Air FirstWhether door-to-door or airport-to-airport,Air First guarantees priority on the first flightout and
forwarding within two days 24-hours a day, 7-days a week, and 365-days a
Air Premier Combines price and time considerations for both door-to-door and airport-toairportservice. Your shipment will arrive at theairport of any major marketplace around theworld within
only three days.
Air Value Creative routing solutions via major gatewayscan save you even more money while addingonly
1-2 days over our Air Premier Service
Part and FullCharter Combine the speed of airfreight and the lower cost of ocean freight and youll
benefit fromour strength and experience in both. Plus,real-time tracking at every step of the way.
Sea/Air Chartering additional airfreight capacity is part of everyday business especially if thereis
limited commercial lift, for new productlaunches, during peak seasons or for oversized cargo. Our specialists
createsolutions to get your goods through on time.
6.Inventory Management and Warehousing
.
Inventory is an unused asset, which lies in stock without participating invalue adding process. Unused
equipment, raw material, WIP andFinished goods, consumables, spare parts, bought out parts, tools
andtackles, gauge and fixtures etc. In India 9 to 12 months of sales quantitylies in the form of
Inventory [R/M, WIP, Bought out parts and Finishedgoods] as against a few days in Japan and a month in the
US andEurope.
In our country inventory is always viewed as asset [workingcapital], in fact, though it is called an asset, it is a
big liabilityWarehousing was a customers function conventionally anywhere in theworld. Customer to protect
himself from shortages at the time of inclement weather always used to store provisions and other utilities
inhis house. Consumers own stores were underground cellars, smokehouses to store variety of
items. Poor communication infrastructure wasmainly the cause for this storage by customer. Producers and
tradesmenconveniently shrugged off their responsibility for storage and passed iton to the
customer who was left with no option. Traditional concept of warehouse as store or godown has undergone
major change now.Warehouse is considered a value adding facility now, playing aremarkable role
as a function of logistical management.
Warehouse Infrastructure Network
Warehouse Management Solution
Inventory Optimization
Special warehouse solution
Outsourcing Projects
.
6.1Warehouse Infrastructure Networks
DHL warehouse service supports inbound logistics, distribution andaftermarket services in a way that
improves inventory management,reduces total operating costs and improves cycle times.DHL facilities
offer our customers warehousing that is fully integratedinto the wider supply chain and meets
demanding service levels. Thisencompasses the design implementation and operation for bothdedicated and
multi user sites.
Benefits include improvements in:

Customer service levels

Stock accuracy
Lead times
Redundant stock costs
Productivity responsiveness to a company's strategic needs
a. Multi User Centers
We provide a network of multi-user warehouses, enablingmanufacturers to hold inventory at local
level, whilst avoidingexpensive, dedicated storage solutions. These facilities can
receive products from both local and global manufacturing sites, providingdownstream
distribution
Strategic Part Centers (SPC)
Our Strategic Part Centers (SPCs) are in-country facilities offering:
1, 2 and 4 hour order fulfillment
Stock optimization across the complete network of SPCs
Guaranteed performance against agreed business rules
c. Express Logistics Centers (ELC)
Our Express Logistics Centers (ELCs) are regional centralized facilitiesoffering:
order processing
outsourced repair facilities
custom final assembly
kitting services
6.2 Warehouse Management Solutions:
a)Warehouse Management Systems
The Warehouse Management System (WMS) records all events andactions in the receipt, handling and
storage of products and orders in awarehouse environment. The WMS also accurately records the locationof
inventory whilst stored in the warehouse.Our Prologs WMS manages all critical processes in the warehouse,
and isalso an important support for varied transport and distribution concepts(planning, time
controlling, booking of transport capacity,communication with customs and other authorities).
b)Strategic Inventory Management
Strategic Inventory Management (SIM) has been created to deliver urgent shipments to main business areas
within a 2 to 4 hour time frame,usually time critical spare parts with a high value and high impact
on business.
c)Direct Express Inventory Management
Direct Express Inventory (DEI) allows customers to centralize stock inone warehouse and use express
distribution to deliver components thenext day. Entire management is done by DHL.
d)Repair Return Inventory Management
Return & Repair Inventory (RRI) manages the physical flows for Returnmaterial authorization. In this
case, DHL will be responsible for pickingup the broken part, sending a new one, bringing the broken
part to arepair centre and moving repaired parts back into stock.
e)Cross Docking
Cross-dock operations are facilities where shipments are received fromone mode of transport and transferred
to another mode, or whereshipments complete one leg of a journey prior to commencement of another
journey. Shipments are consolidated or deconsolidated. Productreceived into the facility is not taken into
inventory
6.3 Inventory Optimization:
Through effective inventory management, inefficiencies can be drivenout of the supply chain, overall
costs reduced and high service levelsachieved. They optimize inventory at a line-item level at
every stage of the supply chain.
DHL focuses on driving results in:

Supplier management
Expediting
Order replenishment
Demand forecasting
Safety stock setting
Order pipeline monitoring
Excess stock management
Inventory optimization is supported by inventory managementsoftware that calculates 'line item risk profiles'
that measure thevariability of demand and supply for each line item within a customers inventory.
DHL offers: Average of 20% inventory reduction and 8% improvement in product availability
Reduced inventory and overhead costs
Improved sales, profitability and return on investment
High service standards
Better matching of supply with demand
More streamlined and responsive supply chain
Shared-user Warehousing
Our shared-user facilities are designed to meet the needs of organizations of any size. Currently, we
provide shared-user services toleading manufacturers and retailers of medical supplies,
consumer products, industrial equipment, chemicals and technology.Through sharing of DHL's
resources, such as space, labour, equipmentand transportation, customers benefit from synergies that
considerablyreduce supply chain costs. This environment returns significant value toa small business
requiring distribution operations without long termlease or capital commitments, or a large enterprise
handling a newacquisition, product launches or seasonal overflow.
Campus Solutions
We pioneered the campus model to provide regional customers with aflexible solution designed to
capitalize on similar distribution channels,minimize labour costs, and increase specialized equipment
utilization.Campuses are strategically located at key distribution points in Northand South America, Europe
and select locations in Asia, allowing for expedited transit times to large concentrations of consumers.
6.4Special Warehouse Solutions
Vendor Hubs
warehousing and delivery of service parts, based on demand pull.Vendor hubs are usually located in close
proximity to the manufacturingfacility.
Reverse Centers
specially designated facilities for the receipt and handling of returned parts for repair, recycling or
disposal.
Bonded Warehousing
Bonded warehouses provide secure environments in which
customers' products can be held without immediate payment of local duties andtaxes.
Shared-user Warehousing
Our shared-user facilities are designed to meet the needs of organizations of any size. Currently, we
provide shared-user services toleading manufacturers and retailers of medical supplies,
consumer products, industrial equipment, chemicals and technology.Through sharing of DHL's
resources, such as space, labour, equipmentand transportation, customers benefit from synergies that
considerablyreduce supply chain costs. Consequently, the customer can increaseefficiencies throughout
their distribution network and maintain a higher level of service to their customers
6.5Outsourcing Projects

Outsourcing involves DHL taking over and managing previous in-houselogistics

operations, including:
Distribution centers
Transport operations
Back-office functions
Supply chain management functions
After sales services

7.Value Added Services

Co packing
Product assembly
Other value added services
7.1Co-packing
We offer a comprehensive selection of manufacturing and packaging services through Power Packaging a
DHL Company .By integrating manufacturing and packaging operations within their supply chains, our
customers can:
Add flexibility
Improve service levels
Reduce costs
Accelerate time to mark
Increase asset utilization
In addition to these core packaging services, Power Packaging brings a unique set of services and capabilities
for customers that include:
a.Beverage manufacturing:
Blending, mixing and filling of hot and cold fill beverages andconcentrates in the following types of
containers:
Plastic bottles (PET) and glass containers (10 oz up to 128 oz)
Shelf-stable containers (paperboard, plastic cup and bag-in-a-box)
b.Dedicated facility services:
Turnkey manufacturing solutions including:
Site selection/development
Facility and systems design
New facility start-up and operation
c.Other services:
Packaging and raw material sourcing, procurement and assembly
Batch/quality control tracking via digital easy-to-trace coding system
Full range of secondary packaging services
7.2 Product Assembly
Postponement, quick response and mass customization are
breakthrough business strategies enabled via packaging services. Integrating packaging operati
ons into distribution centers streamlines fulfillmentreducing cost, enhancing product visibility and
control, and improvingspeed-to-market and flexibility in the supply chain.
Packaging services include:
Postponement packaging - primary, secondary and specialtycomponents

Co-packing, kitting, assembly and repackaging

Retail-ready, point-of-purchase displays
Lot control via variable digital and laser printing
Machinery system engineering - labeling, bagging, carton filling, clubstore packs, clamshells and
printed and unprinted film over-wraps
Make-to-order pallets
Product rework/redress
7.3 Other Value Added Services
a.Kitting/Pre-Assembling
Kitting is the addition of items such as accessories and batteries to the product pack. Preassembling is completion of a finished product fromcomponent parts or pre-programming of
products.
b. Re-Working/Re-Packing
Repacking for a specific customer can include repalletisation.Reworking is the modification of products to
suit a local market.
c. Packaging/Bundling
Packaging includes packing of products into suitable media for transportation and retail display.
Bundling is the assembly of a number of pre-packaged products to make up an integrated product
offering.
d.QA Control
Quality control ensures that product is received into and dispatchedfrom the warehouse in a suitable condition,
free from faults and defects.
e. Labeling/Merchandising
The application of labels either to the product or to the packaging.Merchandising can include the addition of
price stickers or promotionalitems ready for retail display.
7.4 External Performance Measurement
While internal measures are important for detailed organizationalmonitoring, external performance measures
are also necessary tomonitor, understand and maintain a focused customer perspective and togain innovative
insights from other industries. The topics of customer perception measurement and best practice
benchmarking, which addressthese requirements, are discussed and illustrated below.
7.5 Customer Perception Measurement
To succeed in any activities of business one has to always cater to andsatisfy the needs of the
customer. To do so, it is essential for one toknow how the customer thinks in order to meet his needs in a
moresatisfying manner. Therefore, an important component of leading edgelogistical performance is the
regular measurement of
customer perceptions. Such measures can be obtained through surveys or bysystematic order
follow up. These surveys can be company - or
industry sponsored. Such surveys ask questions regarding the firms and thecompetitors
performance in general or for a specific order in particular.Most of the surveys incorporates measurement of
customer perceptionsregarding availability, performance-cycle time, information
availability, problem resolution and product support. The survey may be developedand
administered by the firm itself or by consultants, delivery agents or industry organizations

International express door-to-door delivery overnight or by theend of the next possible business day for goods
subject toCustoms clearance
One, reliable company makes international shipping easy
. Need to get products, samples, or spares to someone fast? Then trustDHLs Worldwide
Parcel Express to expedite urgent shipments fromyour door, through customs direct to the receiver virtually anywhere inthe world. One company means you eliminate all the hassles of international shipping.
You never lose sight of your shipments. Andwith DHLs customs expertise, you get instant advice regarding
localregulations and customs documentation, ensuring the smooth clearanceof your goods. When it
comes to delivering your companys time-critical shipments and your reputation, rely on DHLs
WorldwideParcel Express.

One company to keep your business moving.

When you need to get your goods delivered quickly, you dont needthe hassle of brokers or guessing
the answers on customs forms. WithWorldwide Parcel express, international shipping couldn't be
easier.
Benefit from
the largest international express network andmore in-housecustoms expertise than anyone
else Experienced DHL personnel ensure delivery overnight inmost locations or by the
end of the next possible day One price for door-to-door delivery eliminates hidden costs so
you canavoid surprises for your customers and your Finance Manager. Never losesight of
your goods. Access tracking and delivery details fro m virtuallyanywhere via
theInternet, e-mail,WAP, SMS or phone
GAIN GREATER CONTROL OVER YOUR BUSINESS
One company to handle your shipmentsMore efficient processes
Customs experience and advice to ensure smoothclearance
Shorter lead times through direct distribution

Ability to invoice quicker and improve cash flow

9.RECOMMENDATION
1.ENHANCE THE SMART-TRUCK PROJECT
Because of the stage of recession and high competition, thecompanies need to make difference to
have new customers andincrease their market share. To invent completely new product can bevery expensive
and take very much time. So, making little differenceon the current product or service can be
better. At this time, we needto talk about innovation.As a CEO of DHL Logistics, enhancing the SmartTruck Project is going to be my first strategy. This project will allow our company to deliver faster and cut
cost by using less fuel.To achievethis goal, we will follow some steps:a.
Increase the budget of R&D 10%. b.
Prepare an office for a new innovation team and assign a leader towork on this project.c.
Also pay premium for new and creative ideas whoever gives it(even juniors). So this will provide us
innovative atmosphere
2. AQUIRE SMALL - SIZE LOGISTICS COMPANIES:
By acquiring small local companies in different countries like China,India, USA, will give us precense
in that countries. Also, this willdecrease the threat of restrictions in those companie. Even
they are smallcompanies, they can have creative solutions to different problems. So weare acquiring new
brains at the same time. We can get some ideas fromthem to improve our skills. I mean we are not firing
people who wereworking there actually, we are hiring them to work with us.

10.Conclusion
Logistics is one the most important and integral part of any organisationsstrategy and function. When the
logistical process is carried outaccurately then not only the company reduces the production cost
but alsoimproves the efficiency and customer satisfaction. Overall logisticsmanagement is very
important for todays highly competitive and cut-throat corporate world.
DHL has the worlds largest express and logistics Network. Over the past decades it had turned delivering
goods into a finely oiled process.Be it a book, pen, WIP material, drugs, hazardous chemicals,
clothes,documents, wild animals and any other thing under the sun DHL deliversit. With a network
spanning 200 countries and with its private fleet of airplanes, mobile vans, cargo ship carriers & even
rail way automotivesin some countries DHL can handle any type of goods. Not only has thatwith international
network there come the hassle of documentation
and paperwork, standard packaging and other formalities to adhere to. ButDHL has its own
department which looks into the international laws andother formalities. In the end what matters is delivering
well in goodcondition at the door step of the customer. A happy and satisfiedcustomer makes the business
grow. Competitors have come and gone butDHL has been able to keep its No 1 position intact. This is because
of itsdynamic nature and attitude of maintaining good customer relations.Logistics management is important
for every organization but more soDHL.
We have tried to incorporate all the facets of logistics
which propel DHL to be the best delievery and carriage-service around theworld. No wonder that
DHL is head and shoulders above all of its competitors!
BIBLIOGRAPHY
a)Logistics and Supply Chain Management- Written by Martin Christopher
b)Indian Logistics Industry (2008) published byCushman & Wakefield

c)BUSINESS LOGISTICS- BARDI

d)Elements of Logistics Management- S.D.APHALE
Websites:
1.www.google.com
2.www.logisticmanagement.com
3.www.about.com
4.www.dhl.com