http://www.slideshare.

net/AyeshaShoukat99/principle-of-management-47960946
http://www.slideshare.net/shafiqabdullah/dhl-presentation?next_slideshow=1
please see above link
DHL
How it all begin
Just months after mans first landing on the moon in 1969, DHL begins operating the first
international door-to-door express delivery service in the world. It all started out of chance in a local
food store of San Francisco. The idea came out during the meeting of two friends Mr. Adrain Dalsey
and Mr. Larry Hillblom in July 1969. Dalsey was a sales person and Hillblom was a flying courier,
thinking about his recent $3,000 stock market earnings for investment. Lets start a new company.
was the idea that came into their minds. A real estate associate Lynn joined them, and DHL began its
first courier service between the West Coast of America and Hawaii.
It is on the basis of the owners names the name of the organization was suggested.
Dalsey Hillblom Lynn

DHLs first customers were the shipping companies, that required a service of early delivery of the
shipping documents to reach their clients before the shipment it self, to make it easy and less time
consuming. The banks that used companys services of overnight delivery to beat the postal system
and to ensure a safer transport of documents and cheques worth million of dollars.
By the time passing the rapidly growing network of enthusiastic customers in the USA, DHL begins to
meet demands for an international service by opening territories in the Far East and Pacific Rim.
DHLs success provokes an envious response from rival companies and it has to fight a legal battle to
stay in business. But this doesnt stop further expansion: a separate company, DHL International
Ltd., is established to focus on meeting the ever-increasing demand for international door-to-door
deliveries.
The start of 80s marks a focus upon reliability, control, ease of billing, and flexibility of service:
qualities which DHL meets customer needs to this day. To make sure the increasing size of DHL can
still be managed effectively; a team of internal global strategies is formed to co-ordinate worldwide
activities.
After thirty years of expansion there is few new territories left for DHL to move into. Instead the
company concentrates on improvement by opening new service centers, forging new business
partnerships and introducing new technology.
The company has its head quarters situated in Brussels, Belgium. Though its an American based
company, still it has its head office in Europe due ownership specific reasons.
Around the world, the people at DHL remain committed to providing the fastest, most reliable and
flexible door to door express delivery service their customers can buy. For more than thirty years DHL

has set the pace in their industry. As their customers needs have changed, as they have been among
the first to enter new markets such as China or Eastern Europe, DHL has developed innovative
logistics solutions which both support their business and help them increase the value they offer. And
today that means much more than simply ensuring that time sensitive documents, packages or freight
arrive safely, on time, every time. More than ever DHL works in partnership with their customers
often as an integral part of their business supply chain. Over the past three years it had invested more
than US $ 1.5 billion worldwide in their people and additional state of the art handling, distribution
and information systems, transportation equipment and facilities. That investment provides their
entire customers with access to unrivalled infrastructure for the transfer of goods at a reasonable cost.
So now DHL can do even more to make express delivery easier. For some customers DHL now handle
a number of critical business functions from start to finish. For others their express logistics facilities
increase efficiency quite substantially, creating benefits which can be passed to their customers. DHL
aims to be acknowledged as world leader in express delivery, establishing industry standards of
excellence for value and money. Nobody words harder to anticipate customer delivery needs than
DHL does. Nobody understands those needs or the importance of promises made to customers better
than DHL does. Its that understanding which forms the bedrock of DHLs customers continued
satisfaction and their own success. So customer can be sure that if it matters to them, it matters to
DHL.
Leading The Way In Air Express
DHL business, the first of its kind was founded in 1969 by three Americans, Dalsey, Hillbom and Lynn
in response to delivery problems in the ocean cargo industry. By ensuring the delivery of paperwork
before a consignment arrived in dock, DHL significantly reduced turnaround and total transit times.
The vision grew to include the provision of worldwide express delivery service for large or small
shipments by the most efficient means possible.
Exceeding Expectations
The benefits to DHLs customers and their own customers were immediate. They have had a lasting
effect on the way they continue to develop their services. Their customers expect the fastest possible
transit times for their shipments; that every aspect of working with them will be straight forward; and
that they will provide practical logistics solutions which help them achieve their commercial goals.
DHL remains committed to exceeding those expectations wherever possible.
Global Solutions
As DHLs markets have expanded, so the importance of technology in answering customer needs has
grown at an exhilarating pace likewise the need to develop individual, global solutions for a growing
number of businesses with sites and customers throughout the world. For customers in the hi-tech
industry for instance, or car manufacturers operating just-in-time methodology, the ability to
transport samples or parts to the right place at the right time whenever necessary is critical to their
success.
Heavy weight Capabilities

Increasing our heavyweight capabilities, particularly multiple piece shipments, has been another key
element in DHLs successful response to customers changing needs. Investment in improved ground
coverage, hubs, IT and DHL air network plays a significant role. For instance, more fast direct routing
has enabled DHL to provide heavyweight services from the US to Guadelajara and between Brussels
and Gothenburg, at the same time increasing DHL already high service standards for smaller
shipments.
Working with CUSTOMERS
To raise DHL global response even further DHL created a Network Global Account programme.
Working closely with specific DHL customers whose businesses are truly global, the management
teams prime responsibility is to develop and implement solutions appropriate for worldwide
operations. The benefits to DHL customers are many and varied, depending on customers individual
needs and the particular solutions developed. In any situation, however, by working to achieve more
efficient distribution, costs in the supply chain are reduced and overall customer service improved.

Chronology
1969
Adrian Dalsey, Larry Hillblom and Robert Lynn (D,H, and L) create an entirely new industry. DHL is
founded and begins operations. Starting door-to-door express service, its first courier route was
between the West Coast of America and Hawaii.
1970
DHL is the first international express delivery company to introduce on-board couriers making
customs clearance quicker.
1971
Expansion in the Pacific Basin continues with service to the Philippines.
1972
Service to Japan, Hong Kong, Singapore and Australia is initiated.
1973
DHL uses its substantial experience and expertise in the international air express industry to expand
into Europe.
1976
The Expansion of the USA Postal Monopoly to Cover Electronic Commerce, written by DHL founder
Larry Hillblom, is published and helps prevent the US Postal Service having a monopoly covering
electronic commerce.
DHL begins service to the Middle East and establishes a strong presence in Saudi Arabia.
1977
Service to Latin America is initiated.
1978
DHL introduces DHL 1000, the first word processor to handle both English and Arabic languages.

DHL begins service to Africa.

1979
DHL successfully challenges the postal monopoly in the US, allowing it to ship time-sensitive
documents.
1983
DHL introduces Laser Net the first track and trace system making DHL the largest IBM System 36
customer in the world.
DHL is the first to bring international air express service to the Eastern European countries. DHL
opens its U.S. hub in Cincinnati International Airport.

1984
DHL succeeds in getting the French postal monopoly on letters abolished.
1985
DHL opens its first European hub in Brussels (Belgium), - still the largest express industry sorting
centre outside of the USA.
1986
DHL signs an historic agreement with the Chinese government to establish a joint venture between
DHL and Sinotrans.
DHL forms a joint venture with the Peoples Republic of China and is the first to bring international
air express services to that country.
1987
DHL challenges the Italian postal monopoly and customs procedures ensuring that its business is free
from postal tariffs and delays.
1988
DHL Net, a high-speed global communications network used for shipment tracking, is established.
1989
Brussels hub is expanded into a superhub to keep up with rapid growth in international shipments.
1990
DHL sets up its first Express Logistic Centres (ELCs) giving customers the opportunity to provide next
morning delivery of inventory anywhere in the world.
DHL forms a strategic business alliance with Japan Airlines, Lufthansa, and trading company Nissho
Iwai.
1991
DHL establishes a computer link with HM Customs at London Heathrow Airport cutting clearance
times by up to 50%. It becomes the model for other countries. DHL is the first air express network to
re-establish service to Kuwait after the Gulf War.
1992
Service to Albania, Faroe Islands, Greenland, Estonia, Latvia and Lithuania is introduced.
1993
Special service ECX is launched for the newly formed European Single Market.

DHL announces a 4-year $1.25 billion worldwide capital spending program. The investment is to be
made principally in handling systems, automation, facilities and communications and computer
technology.

1994
DHL opens new facilities for gateways and customer service centres in Athens, Bombay, Delhi, Hong
Kong, Kuala Lumpur, Moscow, Osaka and Sydney. DHL opens a regional distribution centre in
Bahrain, making it one of the largest international air express sort centres in the world. This
expansion enables faster shipment processing and earlier delivery to 16 countries in the Middle East.
DHL celebrates its 25th anniversary.
1995
DHL launches its corporate website www.dhl.com
1996
DHL becomes the first air express company to receive ISO 9002 for its Hub and airline operations at
the US Hub in Cincinnati, Ohio. A state-of-the-art automatic sort system is introduced at DHLs
Brussels Hub.
1998
Deutsche Post becomes a shareholder in DHL.
1999
An investment of Euro 1.3 billion to purchase a new fleet of Boeing 757s, means DHL now operates the
quietest and most advanced air express network in the world.

2001
New technology for shipment tracking was introduced. i.e .m-track. While this technology has made
shipment tracking more easy. SMS is sent to trace the shipment where customers get automatic reply.

Mission statement
DHL will become the acknowledged global leader in the express delivery of documents and package.
Leadership will be achieved by establishing the industry standards of excellence for quality of services
and by maintaining the lowest cost position relative to our service commitment in all market of the
world.
Achievement of the mission requires:
Absolute dedication to understanding and fulfilling our customers needs with the appropriate mix of
services, reliability, products and price for each customer.
Ensuring the long-term success of business through profitable growth and reinvestment of earnings.
An environment that rewards achievement, enthusiasm and term spirit, and which offers each person
in DHL superior opportunities for personal development and growth.
A state of art worldwide information network for customer billing, tracing, tracking and management
information and communications.
Allocation of resources consistent with the recognition that we are one world wide business.

A professional organization able to maintain local initiative and local decision making while working
together within a currently managed network.
The evolution of our business into new services, markets or products will be completely driven by our
single-minded commitment to anticipating and meeting the changing needs of our customers.

Departments in DHL

Human resource and administration Department

Service Department
IT Department
Finance Department
Sales and marketing Department

Location
The process of determining the geographical area for a firms operation:
Factor must be sensitive to location.
Factor must have impact on the companys ability to meet its goal.

Whenever the service organization choose a new location, it involves a series of steps.
Identifying the important location factors and categorize them as dominant and secondary.
Consider the different cities and narrow choice to specific location in city.
Collect data on alternatives from location consultants, state development agency and chambers of
commerce.
Analyze the data collected beginning with quantitative factors. Factors that can be measured in dollar
such as annual transportation cost (inbound and outbound shipment).
Bring the qualitative factors pertaining to each site into the evaluation. Qualitative factors cannot be
measured in dollar terms, such as quality of life.

DHL in Pakistan
DHL is a Pvt. Ltd. Company and is registered under companies ordinance 1984. Major portion of
shares is held by the Local investors while DHL international has 49% shares in the ownership.
There are five country managers. These country managers are looking after their areas of work. These
country managers are directly answerable to the Director. Whenever critical decisions are made. A
meeting of country management team is held and the important decisions are taken with consensus.
DHL Multan Region Office
Site specific features
Dominant factors
Proximity To Customers

Their potential customers are the exporters. And they have their units and offices in industrial area.
So their office in Cantt. is near to their potential customers. LCs documents from the branches in
Cantt.
Transportation cost
Their outbound transportation cost is minimum. Because the airport is near to their office. They sent
cargo on their own vehicles.

Location of competitors
Their competitors are Fed Express & TCS. Their offices are on the Kalma Crossing.
Site specific factors
Most expensive area of Multan is Cantt. Secondly their customer come on cars and cargo come on
wagon. So, traffic flow is also good there.
Secondary factors
It may also include qualitative factors. They have a very good repute in market. The quality of life in
Cantt. is good. They want area that will be helpful to maintain their image. So, Cantt. is really helpful
to them.

Capacity
Their maximum capacity is 8870 tons approximately on their own aircrafts carriers. And with the help
of agreements with other International Airline Companies they can handle upto 15,000 tons
Number of countries/territories
Europe/Africa

130

Asia Pacific/Middle East

40

The Americas

58

Total

228

Number Of Offices

Europe/Africa

1,350

Asia Pacific/Middle East

3,424

The Americas

1,165

Total

5,939

Number of Employees

Europe/Africa

32,037

Asia Pacific/Middle East

17,732

The Americas

18,963

Total

68,732

Number of Courier Vehicles

Europe/Africa

7,266

Asia Pacific/Middle East

4,026

The Americas

4,034

Total

16,326

Number of Owned/Leased Aircrafts

Europe/Africa

Asia Pacific/Middle East

122

The Americas

125

Total

254

Number of Hubs & Sub-Hubs

Europe/Africa

16

Asia Pacific/Middle East

The Americas

17

Total

36

Forecasting
Forecasting is the prediction of future event used for planning purpose.
There are two types of forecasting methods.
Qualitative methods.
Quantitative methods.
Qualitative methods
Qualitative methods include judgement methods which translate the opinion of managers, experts opinion into quantitative estimates.
Quantitative methods
Casual method
Time series analysis
Casual method use historical data on independent variables. Time series analysis relies heavily on historical demand data to project the future size of demand and recognizes
seasonal trend and patterns.

A key factor in choosing the forecasting method is the time horizon.

Dhl forecasting method
DHL makes the forecast monthly by using the Trend Adjusted Exponential Smoothing Method.
And then combine each month forecast to get the Annual Forecast.
They do the forecast in start of the year for their operating plan.
Aggregate planning
Aggregate plan concerns with all types of product manufacturing.
In services organization it is called staffing plan.

Staffing plan
It present the number of type of employees needed to meet the objectives of the annual plan.
Planning process
Determining demand requirements
Identifying alternatives, constraints and costs
Implementing and updating the plan
DHL hires a large number of employees for its package sorting hub. The work is hard and routine, and the hours are long. The high level of productivity demanded by DHL
occasionally generates complaints from Teamsters Union members. When faced with the alternatives of hiring full-time or part-time employees so that they can train them and,
by means of thoroughly researched process and job designs, instill a strong sense of teamwork and job satisfaction. Although the work is demanding, DHL typically has many
more applications than openings when it recruits employees.

Supply Chain Management

Supply chain management is just as important for service provider as for manufacturer. Service providers must purchase the equipment, supplies and services they need to
produce their own service.
In DHL buying the equipment and supplies depends upon two things.
Level of expense
Emergency
Level of Expenses
Limitation is given for purchasing from petty cash to service centre manager. It is up to Rs. 2000.
If the level of expense is more than this then head office provides the required equipment and supplies.
In Multan office they need four computers. It is provided by IT Department. Computers came from Karachi.
Emergency
It also depends upon emergency. If they need the equipment urgently then service centre manager takes the quotation from market and scanned it to head quarter. The
quotation that proves by head quarter they make the purchase accordingly to that.

Process of delivering
Their service is doen door to door. From pick up till delivery of shipment it involves a series of steps.
1. Pickup scan

Security check
Documents
Airway bills (two copies one is given to customers and other with the shipment).
Check time.
2. Check in scan
Station reaching time. Here operations takes place with shipment.
Two types of shipments.
Documents
Commercial Shipments
Documents Commercial Shipments
Weight measure Invoice
Box Form E
Packing Weight measure
Jacket fits at the top of box Box
Packing
Jacket fits at the top of box
Airway bill and other relevant documents placed there.

1. Forward it to gateway
Pick Up Scan
Processing.
Custom Check
Custom clearance
2. Next Forward
Hub or destinations. Depends upon the earlier availability of flighty.

3. Reached there
Custom arrival
Custom process
Custom clearance
Then send to gateway.
From gateway to station.
1. Check in scan
With courier at time. Deliver it to the door of customer (hand over to party).

International document tariff for accounts customers (non-dutiable)

Weight in (KG)

Rate Zone In US $

Zone 1

Zone 2

Zone 3

Zone 4

Zone 5

Zone 6

Zone 7

0.5

26

26

27

31

32

32

33

1.0

42

42

45

50

53

53

54

1.5

55

57

61

67

72

72

73

2.0

57

59

64

70

75

75

76

2.5

60

62

67

74

79

79

80

3.0

63

65

70

77

82

83

84

Add. 0.5 Kg

International parcel tariff for accounts customers (dutiable)

Weight in (KG)

Rate Zone In US $

Zone 1

Zone 2

Zone 3

Zone 4

Zone 5

Zone 6

Zone 7

48

48

48

54

54

59

68

54

54

55

62

63

68

77

60

60

62

69

71

77

86

67

67

69

76

80

86

95

73

73

77

83

88

95

104

79

79

84

91

97

104

113

Add. 1 Kg

General sales tax: general sales tax (GST) is charged as per sales tax act.
Transit time zone:
Zone A Next Day
Zone B 2nd Day
Zone C 3rd Day
Zone D 4th Day
Above transit times are based on cut off times applicable to courier pickup and are reflective of actual working days and contents being shipped.
Terms and conditions of carriage
All services provided by DHL, are subject to terms and conditions, as stated on the reverse side of the shippers copy of the DHL Airwaybill.
Insurance
Insurance is available on all shipments at a premium of 2% of the declared reconstruction value of the shipments.
Volumetric weight:

Where the shipment exceeds the standard size, the weight will be calculated as:
Height width length (cm)/6000
The calculated weight will compared to the actual weight and the higher of the two be charged.

International destinations
(jumbo junior, jumbo box and mega box)

Zone 1

Zone 2

Zone 3

Zone 4

Bahrain

USA

Hong Kong

Kuwait

United Kingdom

Singapore

Qatar

Canada

Australia

Saudi Arabia

Austria

Indonesia

UAE

Belgium

Korea, South

Oman

Germany

Malaysia

Jordan

France

New Zealand

Lebanon

Netherlands

Taiwan

Syria

Spain

Thailand

Yemen

Denmark

Vietnam

Italy

Sri Lanka

All other DHL

Switzerland

Bangladesh

Destinations

Cyprus

China

Turkey

India

Andorra

Myanmar

Ireland

French Polynesia

Norway

Philippines

Sweden

Pacific Islands

Finland

Brunei

Marshall Islands

Bhutan

Laos

Maldives

Nepal

US $ tariff for jumbo junior, jumbo box and mega box

Middle East

N. America & Europe

Asia

Rest of the World

705

795

896

1026

1135

1285

1436

1576

1634

1795

2005

2215

Zone

Jumbo

JuniorFlat

fee

upto

10

kgsAdditional kgs

Jumbo BoxFlat fee upto 25 kgsAdditional

kgs

Mega BoxFlat fee upto 35 kgsAdditional

kgs

Jumbo junior: 41 (L) r 34 (W) r 25 (H) cm (Max. weight allowed 15 kgs).

Jumbo Box: 45 (L) r 48(W) r 40 (H) cm (Max. weight allowed 40 kgs).
Mega box: 53 (L) r 48(W) r 57 (H) cm (Max. weight allowed 50 kgs).
Terms and conditions
Junior jumbo, jumbo box and mega box must not contain DHL prohibited or restricted commodities. No reduction in charges for shipments weighing less than 10, 25 and 35
kilograms sent in a jumbo junior box, jumbo box and mega box respectively.
Transit times
Zone 1 48 hours
Zone 2 48-72 hours
Zone 3 48-72 hours
Zone 4 96 hours
Above transit times are based on cut off times applicable to courier pickup and are reflective of actual working days and contents being shipped.
International destinations (heavy parcel express)

Zone 1

Zone 2

Zone 3

Zone 4

Bahrain

USA

Hong Kong

Kuwait

United Kingdom

Singapore

Qatar

Canada

Australia

Saudi Arabia

Austria

Indonesia

UAE

Belgium

Korea, South

Oman

Germany

Malaysia

Jordan

France

New Zealand

Lebanon

Netherlands

Taiwan

Syria

Spain

Thailand

Yemen

Denmark

Vietnam

Italy

Sri Lanka

All other DHL

Switzerland

Bangladesh

Destinations

Cyprus

China

Turkey

India

Andorra

Myanmar

Ireland

French Polynesia

Norway

Philippines

Sweden

Pacific Islands

Finland

Brunei

Marshall Islands

Bhutan

Laos

Maldives

Nepal

Duty charged by destination customs is paid by the consignee

US $ tariff for heavy parcel express

HPXHeavy Parcel Express

Destination

Up to 50 kgs

Additional kg

228

252

276

300

Maximum weight upto 500 kgs.

Terms and conditions

Heavy parcel express, must not contain DHL prohibited or restricted commodities. No reduction in charges for shipment sent using this service.
Transit times
Zone 1 48 hours
Zone 2 48-72 hours
Zone 3 48-72 hours
Zone 4 96 hours
Above transit times are based on cut off times applicable to courier pickup and are reflective of actual working days and contents being shipped.

Competitive priorities
DHLs competitive priority is on time delivery. On time delivery measures the frequency with which deliver time promise are met.
Their mot is Latest Pickup and Earliest Delivery.
What they do is they have agreement with almost all international airlines in the world. They give priority to their shipments. e.g. If someone want to send his shipment to
America from Multan they choose the earliest flight available then send it to their Hub. Form Hub it will directly go to America on their own courier Aircraft.

Quality
Quality ensures that it will meet specification. It is really very difficult to measure the quality of services. Because services is intangible.
In DHL quality is measured through on time delivery and information about the shipment status.
Previously they are offering only one track e-track. But now they are also offering m-track.
E-Track
in e-track customer know about the shipment status through internet. Just go to their number web site enter the airway bill of shipment. And it will tell you about the latest
status.
When the shipment release from its host airport the sort system relays information back to the computer in the control room. As each shipment is recognized, its arrival is
acknowledged and this date is transmitted back to the country from which it has been sent.
Within seconds the customer service agents in the country know that the shipment has been sorted. They are also updated when the shipment has been allocated its onward
flight number. When that flight leaves with the shipment on board the system once again updates DHL computers world wide. But in the whole procedure the customer must
have access to computer and internet.

M-Track
but now with the help of m-track they give more comfort to customer. By using mobile phone at any where in the world they know about the status they know about the status of
their shipment.
Another fast and convenient tracking tool

DHL m-track offers yet another way to track your shipments via wireless network. This is DHLs latest innovation designed for use with any kind of mobile phone, that supports
sending/receiving of text message (SMS).
SMS stands for short message services exchanges between the SMS-Center of the Mobile Telecommunication Operator and the Customer. SMS is the most widely deployed
wireless technology used in GSM, CDMA & TDMA networks across the world. Short Messages is an easy, cost effective and convenient way of communicating limited
information between mobile users and via SMS centres.
DHL m-track is ideal for they busy executives who needs to access the status of their DHL shipments at any time, whether in or out of the office.
DHL m-track reuses the DHL web track applications to provide DHL shipment tracking for single airway bills. Like DHL itself, it is reliable and accessible.
Efficient and cost effective
DHL m-track costs only the minimal charges for the initial Short Message (SM) to request shipment status information.
The changes vary from country to country from network to network and from subscription to subscription, but the cost for international SM is usually the same as a local SM. As
our valued customer, your shipment status will be delivered free of charge, sponsored by DHL.
Access DHL m-track any time, anywhere
These days, users generally access DHL information services through a PC or other fixed terminals with internet access. DHL m-track allows you to access a DHL service
wherever you mobile phone can make a GSM call. You will benefit from greater service access 24-hours a day, form almost.
Track your shipments wherever you are
Using DHL m-track is as simple as sending any other short message.
Just follow these steps to track a shipment.
Select Send SMS from the mobile phone menu.
Key in a DHL airway bill number.
Send the message to the DHl m-track phone number: +44 7720 33 44 55 (DD HH LL on the mobiles keypad).
The latest shipment status of up to 160 characters per message will be received within 10-60 seconds.

TQM
Leader ship in action
Total Quality Management (TQM)
As the acknowledged global leader in express distribution and logistic services, DHL is continuing to set industry-leading standards for Total Quality Management.
TQM is not any technique. It is basically a philosophy. It revolves around one thing customer satisfaction.
How this customer satisfaction will achieve.
1. It will achieve through:
Employee involvement.
Continuous improvement.
For employee involvement DHL gives the training to its employees with the passage of time.
Their Human Resource Department arranges the training for their employees. Almost twice a year they offer training to their employees.
Awards and rewards
They also give rewards to stations. If station achieve their revenues up to certain level. Then reward in cash is given to station which is distributed among the employees
according to their position.
Continuous Improvement

This will be achieved though:

Understanding customers needs and expectations.
Exceeding their promises and commitments.
Defining new industry service levels.
This will be supported by continuing their investment in people, technology and infrastructure within the region.
This will be maintained by the systems and procedures that are in place throughout our organization to optimize quality, reliability and consistency in their activities.
They must all be dedicated to this mission. DHLs reputation depends on all of them working as a team to satisfy and retain the single most important person in their business.