supply chain of dhl

DHL Operations Management 2014

SZABIST Larkana Campus

Introduction to Company

DHL stands for Dalsey, 'Hillblom' and 'Lynn'

Founded in 1969

Head quarters Germany, Bonn

Logistics business

In more than 220 countries

www.dhl.com

World’s largest express company

Up to 500,000 employees

CEO Frank Appel

History

1969 On 25 September, Dalsey, Hillblom and Lynn incorporated DHL.

Door-to-door express delivery service

Documents were transported only between San Francisco, and California

They simultaneously invented the international air express industry.

MISSION & VISION

We want to simplify the lives of our customers and We make our customers, employees and

investors more successful and this will be continued

We make a positive contribution to the world and we always demonstrate respect when

achieving our results

http://www.dhl.com/



SERVICES OFFERED BY DHL

Services offered at DHL are categorized as

DHL Express

DHL Solutions

DHL Global Forwarding

DHL Express

DHL Express service encompasses domestic, international, logistics, and prepaid services . The

advantage of prepaid services is that you can enjoy all-inclusive flat-rate prepaid pricing, free

pickup and a guaranteed delivery by 12 pm of the next business day. And DHL Express is the

leading global provider of international road-, air- and rail-based courier and express services for

business and private customers

DHL Global Forwarding

It provides a wide range of freight solutions irrespective of weight or dimension. This division

includes international air and ocean freight as well as European overland transportation services.

And It offers customized solutions for major logistics projects and comprehensive customs

services.

DHL solutions

The services offered under DHL solutions include supply chain management, warehousing,

value added services like quality control, reverse and return logistics, outbound fulfillment,

distribution, and outsourcing. The brand indeed offers a wide range of services to cater to needs

and requirements.

DHL Global Mail

A fast cost-effective way to send mail nationwide – with DHL GLOBAL MAIL BUSINESS,

there’s no need to run to the post office. On an international level, DHL Global Mail provides



mail and communication services with direct connections to more than 200 countries around the

world as well as offering integrated solutions for corporate communications.

Technology Support

Wireless sensors and internet technologies

Active & Passive cooling packaging options

Exchanging real time information

Radio Frequency Identification Devices (RFID)

Automated Identification and traceability from origin to final destination

Round the clock, real-time visibility into shipments and inventory in motion

Temperature logging as it moves thru the Supply chain using active RFID

Temperature Control Range

Controlled Ambiant: 15 –25 dégrées Drug Transportation –API, Formulations, IPs etc

Chilled Range: 2 –8 degrees Drug Transpiration –NCEs, IPs, Pharma products

Frozen Temperature: -80 to -20 degrees (dry ice) Biological samples

Cryo Temperature (Liquid Nitrogen): -180 degrees Cord Blood Transportation, Storage etc.

WHAT IS DHL SUPPLY CHAIN?

DHL Supply Chain offers customized logistics solutions for your entire supply chain. Complete

perspective from manufacturer/supplier to retailer to consumer enables you to achieve

operational excellence at every stage.

Services range from consulting and design, to management and execution.



DHL Supply Chain has two main businesses: its contract logistics business includes ground-

based supply chain management services such as warehousing and distribution assembly,

and just-in-time services. Its freight management business includes airfreight and ocean freight

forwarding customs brokerage and multimodal services.

Supply Chain Analysis & Design

Many customers come to DHL with a business problem, and not necessarily one in their supply

chain. Through supply chain consulting and network design studies, we help you with the big

picture; what's working and what can be optimized for improved operational efficiency and

better customer service.

Lead Logistics Provider

At DHL, being Lead Logistics Provider (LLP) means instigating and managing change across

your entire supply chain, to meet changing business and customer demands. We do this by

bringing continuous improvement and cost reduction, introducing lean logistics processes and

optimizing logistics networks.

DHL Enviro solutions provide a range of solutions, including:

Waste Management: Global solutions to collect and recycle your waste streams, aiming to

convert cost into revenue streams and support your ‘zero waste’ targets

Extended Producer Responsibility: Data collection, physical recycling, and provision of

evidence to meet complex legislative requirements, allowing you to focus on your core business

Lead Environmental Partner: Our consultancy and support programmers extend across your

entire supply chain, from employee engagement to comprehensive network design, to help you

meet your environmental objectives.



Procurement Services

DHL's procurement specialists can deliver substantial cost savings on a wide range of non-core

products; everything from promotional materials and consumables, to work wear, operational

spare parts and other goods not-for-resale. By leveraging DHL's global reach and supply chain

expertise, we can effectively manage the risks associated with global sourcing.

Raw Materials Warehousing

Whatever your industry sector, DHL provides raw materials warehousing services to streamline

the flow of raw materials into your production facility. By understanding your production

processes and anticipating your business and logistics needs, you can rely on the knowledge and

expertise of DHL’s people to work with you to provide robust solutions that will drive value for

your business.

DHL's raw materials warehousing services complement our materials

transport solutions, and include:

Unloading

Sorting, combining and consolidation

Storage

Order-processing

Inventory management and optimization

Pick, pack and dispatch

In-plant logistics - replenishment (just-in-time and kanban)

Customs brokerage and declarations

Quality control/QC testing

Vendor hubs



Inbound to Manufacturing (I2M)

DHL ensures the right components are delivered to the right manufacturing point at the right

time. Our solutions provide complete end-to-end logistics management of inventories, facilities,

and labor associated with the inbound flow of materials.

Our inbound to manufacturing services include:

Network, transportation and facility design

Supplier management

Transport and freight management

Customs brokerage

Supplier parks

Inventory optimization

Vendor managed inventory

In-plant logistics, including just-in-time and kanban replenishment of raw

materials/components to manufacturing.

Finished Goods Warehousing

Designing and operating a customized warehouse that delivers bottom-line benefits is at the heart

of all our solutions. By outsourcing your fulfillment to DHL, you can make your people more

productive, your organization more efficient, and your business more competitive. Our focus on

operational excellence means you get consistent quality across your fulfillment operations.

Our finished goods warehouse services include:

Warehouse/distribution centre design and consultancy

Shared-user and dedicated operations

Ambient, chilled, frozen and composite operations

Customs/bonded warehousing

Rail-connected warehousing



Automation and auto-sortation systems

Cross-docking

Provision of IT solutions (e.g. WMS and interfacing)

Inventory management and optimization

Receipt and put-away

Bar-coding, RFID tagging and labeling

Storage

Picking (unit, case and pallet), packing and dispatch

Value-added services (e.g. labeling and packaging services)

Returns processing

Recycling of packaging, End-Of-Life (EOL) products and waste materials

Re-usable transit equipment management

Assembly and Packaging Services (Value Added Services)

DHL finished goods warehousing solutions are not just about holding stock. There are a wide

range of additional services that we offer as part of an overall solution that can improve the

performance of your supply chain.

From sub-assembly, packaging services, customization, postponement, kitting, sequencing to

pre-retail activities across all industry sectors, we help you reduce costs, reduce inventories, and

better match supply with demand.

Reverse Logistics

The key to a successful supply chain is not only planning how to distribute your product, but

how to bring back both customer returns and obsolete products. Managing returns effectively lets

you recapture value, reduce write-offs and keep your customers happy.

Services Include:

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.

Freight transportation

A logistics partner big enough to deliver freight of any kind, to any place via air, ocean, road or

rail, but capable of giving its customers the personal attention they need.

Ocean freight

• DHL Global Forwarding’s worldwide network enables door-to-door movement, visibility

and control of all international ocean freight.

• DHL Global Forwarding is not only a leading Ocean Freight forwarder but through

Dammar Lines, our own NVOCC (Non Vessel Operating Common Carrier) we can act as

your virtual carrier for both LCL and FCL.

• DHL can consolidate your LCL (Less than Container Load) shipments or arrange for

your FCL (Full Container Load) needs.

• DHL’s tracking & tracing system provides full transparency along the entire supply chain

• DHL Global Forwarding’s worldwide team uses the latest freight forwarding shipping

tools, which you can rely on to manage your shipments’ specific needs.

Shipments

Full container load

Less than container load

RAIL AND ROAD FREIGHT

• DHL Freight is your flexible partner for overland transport across Europe, parts of the

Commonwealth of Independent States (CIS), North Africa and the Middle East.

• DHL ensure reliable and efficient domestic and international transportation for customers

of all sizes.



• Our comprehensive overland transportation service comprises more than 170 road

terminals in more than 40 countries, over 3,500 weekly international departures, door-to-

door tariffs and full tracking capability, all supported by customs experts in more than

275 offices.

Cold Chain Road Freight

• DHL COLDCHAIN is a dedicated, fully monitored and temperature controlled service

for volumes of less than truckload (LTL).

• It covers the whole of Europe and is designed to meet everything the Life Sciences and

Health industry requires, in terms of temperature control, security and handling.

• DHL COLDCHAIN services cover the range of refrigerated (2 – 8° Celsius) as well as

controlled ambient products (15 – 25° Celsius).

• Throughout the journey, the temperature of the pharmaceuticals is continuously measured

and transmitted via GPS. With our state of-the-art IT tools,

• The customer is pro-actively informed of the status and temperature of all shipments

during the entire journey.

• All warehouses and cross docking stations are GDP compliant and specifically equipped

to guarantee continuous temperature control.

WAREHOUSE AND DISTRIBUTION

By understanding your issues and anticipating your business and logistics needs, DHL experts

provide robust solutions that will drive value for your business.

Whatever industry sector you operate in, DHL provides dedicated and shared warehousing and

distribution operations to ensure that you can deliver your service promise to your customers

worldwide.



DEDICATED OPREATIONS

the scale, location or complexity of your business requires a dedicated solution, DHL has the

people and expertise you need. Starting with a thorough analysis of your specific business

requirements, our teams design, implement, operate and improve dedicated warehousing and

distribution operations that deliver value to your business.

Our services include:

Solutions design and analysis - to help you improve your bottom line and stay flexible in

the face of changing business needs

Campus locations offering labor balancing and distribution synergies across sites

A range of dedicated and multi-customer transportation solutions to meet your service

needs

Best practice operational processes, controls and management information

DePICT project management methodology to reduce risk, cost and time on start ups

A strong portfolio of warehouse management systems and interface software to drive

productivity and enable faster and more reliable startups

DMAIC process improvement methodology to drive continuous improvement and adapt

to your changing needs.

SHARED OPERATIONS

When you need all the benefits of a bespoke solution, the flexibility and cost advantages of

sharing space, labor, equipment and transportation, and consistently excellent operations, DHL’s

shared warehousing and distribution solutions will meet your requirements.

TRANSPORTATION MAMAGEMENT

Moving products from manufacturing plants to warehouses, between international, national, and

regional facilities and to distributors, can represent more than half of your total logistics costs.

Add international sourcing and final distribution to store or end customer, and those costs can



rocket even higher. Transportation management solutions give you the resources and visibility

you need, at a cost you can manage.

Whether we're managing your carriers, creating a dedicated fleet or a mix of the two, we deliver

high levels of service, reliability and control over your product movement to your customers,

WAREHOUSE MANAGEMENT SYSTEM

At DHL we offer a comprehensive suite of capabilities and work with a range of best-in-class

software partners. Our state-of-the-art systems monitor and control all critical warehouse

processes. They also provide support for transport and distribution operations and communicate

with customs and other authorities. Moreover, unlike many of our competitors, our scale means

we deploy a large number of these systems in any given year, you benefit therefore from this

unrivalled experience and expertise.

Warehouse management systems record all events and activities in the receipt, handling and

storage of products and orders in the warehouse or distribution center, including the location of

inventory.

Customers Benefit from:

Access to, and influence over, leading-edge supply chain technology

Access to best-in-class applications that are platform and database independent –

facilitating standardized business processes

Rapid start-up and reduced risk in global deployment - including project delivery, service

management, supplier management, - integration and hosting

Scalability and repeatability worldwide

Unrivalled expertise in interfacing with your stock control, resource planning and

business information systems

Proven, pre-integration with other supply chain partner systems - including visibility and

control.



Our Global Coverage

DHL is the world’s number one contract logistics provider. We have a major contract logistics

presence in over 60 countries across all regions of the world. With this footprint we leverage:

International expertise across industry sectors

A commitment to deliver consistently excellent operations in every geography

Common processes for project management and continuous improvement.

Challenges of DHL

• High customs costs.

• Slow market.

• Liberalization and under-developed distribution channels.

• fragmented markets,

• political volatility,

• growing population with limited income,

• language and communication issues and

• Large socio-economic divisions within populations.

supply chain of dhl

Services

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