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CONTENTS
INTRODUCTION........................................................................................................... 3
DHL......................................................................................................................... 3
LOGISTIC SYSTEM.................................................................................................... 5
OPERATING SYSTEM.................................................................................................... 7
The vission.............................................................................................................. 7
The strategec analysis............................................................................................ 7
The planning........................................................................................................... 7
SECURITY AND THREAT CONTROL.............................................................................. 9
Logistics Security Systems, CCTV & Access Control................................................9
STRATEGY ROLE OF THE SYSTEM..............................................................................10
Formulating & implementing supply and waste chains strategy...........................10
Decision-making................................................................................................. 10
Resource Management....................................................................................... 10
Production Planning and Control........................................................................11
Warehousing...................................................................................................... 11
Warehouse Management.................................................................................... 11
Warehouse Operations....................................................................................... 11
Administrative Operations.................................................................................. 11
Warehouse Supporting Activity (examples)........................................................12
ADVANTAGE.............................................................................................................. 13
DISADVANTAGE......................................................................................................... 15
CONCLUSION............................................................................................................ 16
APPENDIX................................................................................................................. 17
Figure 1. DHLs Headquarter................................................................................. 17
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INTRODUCTION
DHL
DHL is present in over 220 countries and territories across the globe, making it the most
international company in the world. With a workforce exceeding 325,000 employees, they
provide solutions for an almost infinite number of logistics needs. DHL is part of the world's
leading postal and logistics Group, Deutsche Post DHL Group and encompasses three divisions:
DHL Express, DHL Global Forwarding, Freight and DHL Supply Chain.
In 2009, DHL laid out their goals for the future in their Strategy 2015, including vision
and mission for company. The vision emphasizes that they want to be The Logistics Company
for the World. This goes beyond the simple fact that, as a global company, they are present in
over 220 countries and territories, or that they are often the very first logistics company to enter
new markets. It also extends beyond their unique ability to offer a wide range of logistics
solutions, encompassing everything from international express deliveries, to warehousing, to
customs brokerage, to freight forwarding to mention just a few areas in which we are active. The
vision is they want to be the logistics provider people turn to their first choice not only for all
their shipping needs, but also as an employee or investor. The vision is further underlined in their
mission statement: Excellence. Simply Delivered. This means that they want to simplify the
lives of the customers. They make the customers, employees and investors more successful.
DHL have also announced their new "Strategy 2020: Focus.Connect.Grow.", which
outlines the priorities for the coming years, and emphasizes the goal to be the company that
defines the logistics industry. Strategy 2020 integrates their beliefs as laid out in Strategy 2015,
such as always striving to be Provider, Employer and Investment of Choice, and it reiterates their
commitment to the world as a responsible company. Among the focus areas of Strategy 2020 we
intend to further expand our logistics services in the world's emerging markets.
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They strongly believe that pursuing all of these goals is inthe interest of all of their
stakeholders: customers, employees, investors and the planet as a whole. They add value to
peoples interaction with them, whether with excellent services or products, by engaging the
employees and nurturing their talents, or by being a solid, long-term investment on the stock
market. They can show concern for the world and a communities with a various corporate
responsibility programs under the motto of Living responsibility.
DHL are deeply proud of the contribution they can make in a daily work. Everything that
is moved from one place to another needs the aid of logistics but behind this simple truth one
finds millions of stories. As the logistics company for the world, they form the backbone of
trade, ensuring that whatever needs to be delivered, gets delivered. A shipment placed in their
trust may include life-saving medicines, or a birthday present from a friend, or hold a companys
entire existence in the form of a prototype. They not only deliver parcels and packages, and make
sure containers arrive at ports: deliver prosperity, transport health, power growth, deliver joy.
LOGISTIC SYSTEM
Logistics is the management of the flow of things between the point of origin and the
point of consumption in order to meet requirements of customers or corporations. The resources
managed in logistics can include physical items, such as food, materials, animals, equipment and
liquids, as well as abstract items, such as time, information, particles, and energy. The logistics of
physical items usually involves the integration of information flow, which is material handling,
production, packaging, inventory, transportation, warehousing, and often security. The
complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated
simulation software. The minimization of the use of resources is a common motivation in
logistics for import and export.
According to the Council of Logistics Management, logistics includes the integrated
planning, control, realization, and monitoring of all internal and network-wide material, part, and
product flow, including the necessary information flow, industrial and trading companies along
the complete value-added chain (and product life cycle) for the purpose of conforming to
customer requirements. Logistics is the process of planning, implementing, and controlling the
effective and efficient flow of goods and services from the point of origin to the point of
consumption.
Academics and practitioners traditionally refer to the terms operations or production
management when referring to physical transformations taking place in a single business location
(factory, restaurant or even bank clerking) and reserve the term logistics for activities related to
distribution, that is, moving products on the territory. Managing a distribution center is seen,
therefore, as pertaining to the realm of logistics since, while in theory the products made by a
factory are ready for consumption they still need to be moved along the distribution network
according to some logic, and the distribution center aggregates and processes orders coming
from different areas of the territory. That being said, from a modeling perspective, there are
similarities between operations management and logistics, and companies sometimes use hybrid
professionals, with for ex. "Director of Operations" or "Logistics Officer" working on similar
problems. Furthermore, the term supply chain management originally refers to, among other
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issues, having a global vision in of both production and logistics from point of origin to point of
production. All these terms may suffer from semantic change as a side effect of advertising.
OPERATING SYSTEM
The logistics works is important to recognize the importance of a dynamic balance between
the minute details and the main elements involved in a product. The Role of Logistics is to
maintain that balance. Once the firm realizes the importance of logistics it is necessary that the
firm make full and efficient use of logistics. The first step is to create a buyer value for the
customer and a strategic value for the firm.
The customer is the most important asset for a company. Hence it is important for a firm to
have a clear understanding of what the customer demands and to keep up to the customers
expectations. Once a company has a clear understanding of its customers requirements it must
devise a strategy on how to use logistics to achieve it. This means that the company has to have a
clear understanding or assessment of companys strategic direction.
The vission includes the systematic development of an organizational in regarding the key inputs
to the logistics planning process as well as identification of the potential alternative logistics
approaches. This is an important step for the following reasons:
Helps to define a strategic direction to the company and also to get a clear understanding
the role of logistics in it.
Have a look at the various factors that would affect the strategy of the company.
Define alternative strategies and also the scope of the planning effort.
The strategec analysis involves taking a look at the various components involved in the process
and selecting the best logistics process among the alternatives. These components, which are to
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be reviewed, are revealed during he first step. This may include revamping the entire process to
assessing how a single component can be used more effectively.
The planning involves the assembling of a plan that outlines the mission and goals for the
logistics function and the programs and activities to achieve these goals. Logistics planning is an
iterative process. The plans have to be redefined every year to improve the quality of
performance.
The managing change involves effective management to implement enhanced ways of
conducting business. The management should keeping changing the plans in accordance with the
change in the market and also coach the organization to effectively embrace this change.
Logistics Manager
Logistics Analyst
Logistics Engineer
Logistics Controller
Logistics IT-Specialist
Logistics Supervisor
Resource Management
This group includes planning and implementation of procurement all necessary resources and
inventory control.
Materials Manager
Packaging Manager
Purchasing Officer
Purchasing Clerk
Operations Manager
Warehousing
This group includes warehouse management and material handling.n It is characterized by
activities: unloading, receiving, inspecting, storing, safekeeping,relocating, picking, packaging,
consolidating, loading, trans-loading, cross docking.
Warehouse Management
Warehouse Manager
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Warehouse Supervisor
Warehouse Operations
Warehouse Operator
Forklift Driver
Order Picker
Administrative Operations
Maintenance Supervisor
Maintenance Operator
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ADVANTAGE
1. Decrease in Costly Errors:
Logistics automation features such as integration to the commodities via the ERP system and
access to the address book, as well as automatic storage and entry of fuel surcharges and
accessorial, the customer not worry about keying in the wrong information. These kinds of
manual data entry errors will lead to increase shipping costs such as having to pay for
shipping twice or paying a higher freight rate due to entering an incorrect commodity freight
classification.
2. Increased Customer Service:
With logistics automation features in a DHL such as real time freight tracking, auto pick-up,
proper insurance and freight accounting built to custom specifications, the customer are
empowered to know exactly how much the freight will cost and when the freight will arrive
at its destination through automatic notifications.
3. Access to Real Time Freight Data and Analysis:
When the customer have access to real time freight data and the ability to run reports, they
are better served at making better business decisions based on their trends and history. In the
long run, creating such a bad stigma so they can save money on the front end of shipping,
could hurt them over and above the freight savings by not being able to gain new customers
or possibly losing customers. Access to valuable data at their fingertips with the push of a
button empowers them to see the total cost of your decisions and mitigate future expensive
bad decisions.
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4. Organizational Control:
With logistics automation features in a DHL the customer are able to regain control over
freight management, freight costs, and risk, by using the DHL' rules engine, which is based
on optimized plans and routing guides. A DHL is flexible enough to accommodate custom
company business rules, yet powerful enough to force all users, both internal and external, to
follow the policies that ensure efficient and cost effective shipping. The systems usability
must be such that controls can be designed and implemented by logistics experts with
decades of hands-on experience in logistics, rather than by computer technicians.
5. Scalability and Speed:
With such powerful logistics automation features in DHL there are no additional resources
needed to manage logistics, freight, and transportation departments, even as business grows
and ships more freight. As the company grows and ships more freight, a DHL allows the
customer to easily input new users into the system and manage them easily. Furthermore,
with a great freight accounting automation feature within the DHL, all freight invoices can be
consolidated into one weekly invoice, no matter how many shipments each location has,
making your CFO or controller's job much easier to manage.
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DISADVANTAGE
1. Loss of control
One particular disadvantage is the loss of control a client has by working with third party
logistics. Eminently in outbound logistics when the 3PL provider completely assumes the
communication and interacting with a firm's customer or supplier. By having a good and
continuous communication with their clients, most 3PLs counter and try to charm away such
doubts. Some 3PLs even paint the clients logos on their assets and vest their employees like the
clients ones.
2. IT
The IT systems of the provider and the client must operate together.
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CONCLUSION
Logistic is the process of planning, implementing and controlling the efficient, effective
flow of goods 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.
Logistics exists to satisfy customer requirements by facilitating relevant manufacturing and
marketing operation. The main responsibility of logistic is the geographical positioning of raw
materials, work in process and finished inventories at the lowest possible cost. Creating logistics
value is costly. Logistics accounts for one of the highest costs of doing business. Logistics
expenditure normally ranges from 5% to 35% of sales depending on the type of business.
Logistics very important for any business to success but it is expensive.
APPENDIX
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Figure 2. DHLs
International Logistics
Import-Export Activities
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REFERENCES
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