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Bachelor of Management Studies Semester V Submitted In Partial Fulfillment of the requirements For the Award of Degree of Bachelor of Management Studies By Kamlesh Pandey 9426 J.V.M s DEGREE COLLEGE OF B.M.S. Plot No.6, Sec-1, Airoli Node, Navi Mumbai-708
DECLARATION
I, Mr. KAMLESH PANDEY the student of J.V.Ms Degree college of BMS hereby assure that, I have completed this project on Logistic System In DHL in the academic year 2009-2010, the information
ACKNOWLEDGEMENT
A compendium is never the work of one individual more a combination of ideas, suggestion and
contribution involving many hands. My debts are too numerous to be acknowledge individually. A large number of individuals have contributed directly and indirectly in the completion of this project. I am extremely thankful to Ms. Hema Kadukar. It is pleasure to express my gratitude for the assistance received from them. Hence I would like to take this opportunity to thank them wholehearted for helping me in preparing this project.
Kamlesh Pandey
COMPANY STRENGTHS Strong Brand Image: In 1997, DHL became the global
express transportation company to obtain simultaneous systemwide ISO 9001 certification in international quality standards. DHL has also developed their own quality system that matches their customers standards.
revenues, for information technology. DHL also has excellent eServices that provide access to systems that ensure customers have control and visibility of their supply chains at all times. Products can be tracked, queried and ordered online.
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 competitors services.
Table of contents
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1.1 1.2 1.3 1.4
INTODUCTION TO LOGISTICS 1
Meaning of logistics Origin and Definition of Logistics.. Importance of logistic management Logistics Management and Supply chain .. 1 3 4 6
BACKGROUND OF DHL..
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10 11 12 14
2.1 History of DHL .. 2.2 The world's largest express and logistics Network 2.3 The DHL Indian Profile . 2.4 Product and services of DHL .
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23 24 25 26 27 27 27
28 4.3 Implementation Services .. 29 4.4 Performance Management 4.5 Outsourcing Projects . 30 4.6 Innovation of Supply Chain development . 4.7 Solution for Customize end to end logistic worldwide . 31 33 30
TRANSPORTATION ...
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37 38 40 44 45
5.1 Transportation functionality . 5.2 Principles .. 5.3 Transportation Infrastructure 5.4 OPTIMIZATION OF LOGISTICS WITH DHLROAD AND RAIL. SOLUTIONS .... 5.5 Air and ocean freight solutions ..
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48 48 49 49 50 50 50 50 51 51 52
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Multi User Centers .. Strategic Part Centers (SPC) Express Logistics Centers (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 .
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7 VALUE-ADDED SERVICES 56
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 . 56 58 59 60 60 61 63 64 65
INTRODUCTION
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, inve ntory, 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.
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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 professiona l 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.
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("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 from their base to a forward position. In ancient Greek, Roman and Byzantine empires, there were military officers with the title Logistikas who were responsible for financial and distribution of supplies. The Oxford English dictionary defines logistics as: The branch of military science having to do with procuring, maintaining and transporting material, personnel and facilities. The 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.
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business.
Buying and or selling takes place only when goods are physically moved into and or away from the market.
y Take away logistical support trade and business will collapse
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.
3. 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 tha t of availability of product and service in terms of time, place and quantity.
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4.Leads to customer satisfaction Through superior customer service. Organizational objectives of [Productivity],Q [Quality],C [Cost],D [Delivery],E P
[Employee
Morale],F [Flexibility],S [Safety],H [Health],E [Environment] are set to meet customer expectations.
Strong logistics support enables a company to move towards JUST IN TIME production system for survival in a highly competitive market
6.Logistics wins or loses wars y British lost American war of independence due to poor logistics y Rommel was beaten in the desert by superior logistics of Allies
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their actions to deliver a product to market. Also traditional logistics focuses its attention on activities such as procurement, distribution, maintenance, and inventory management. Supply chain management acknowledges all of traditional lo gistics and also includes activities such as marketing, new product development, finance, and customer service. In the wider view of supply chain thinking, these additional activities are now seen as part of the work needed to fulfill customer requests. Effective supply chain management requires simultaneous
improvements in both customer service levels and the internal operating efficiencies of the companies in the supply chain. Customer service at its most basic level means consistently high order fill rat es, high on-time delivery rates, and a very low rate of products returned by customers for whatever reason. Internal efficiency for organizations in a supply chain means that these organizations get an attractive rate of return on their investments in inventory and other assets and those they find ways to lower their operating and sales expenses.
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Company Profile
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INFORMATION
DHL is the global leader in logistics - with more highly experienced professionals at more locations in more count ries 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 Customs Brokerage. They are the first choice for companies looking for end
to end logistics solutions and high quality servicing capabilities. Aft er 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 worldwide market leader, but because they strive to deliver globally consistent services of the highest quality,
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Facilities:
DHL India has an outstanding reputation in the market for providing a reliable, fast and easy-to-use service. DHL offersHighly trained and professional staff, committed to being responsive to all customers needs
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 into and out of the country.
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Import Express:
This service is a single window solution for all importing needs. DHL Import 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.
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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 emb argoes and sanctions, 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.
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INTEGRATED LOGISTICS
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 interrelated efforts, inventory flow and information flow.
Inventory flow
Suppliers
Physical distribution
Manufacturing support
Customers
Information flow
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Inventory Flow
The management of logistics is concerned with the movement and storage of materials and finished product s. From the initial purchase of a material or component, the logistical process adds value. By moving inventory when and where needed. Thus the material gains value at each step. 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:
DHL is completely service oriented therefore it does not have its own material movement but that of the customers the sender, the receiver and also the intermediateries. That means it only involves physical
distribution and procurement. Procure ment also includes the material needed for packaging such as paper, moulded trays and boxes, wooden crates, standard containers wraps, plastic inlays etc. The materials or the goods collected from the senders (including papers, documents,
physical goods like clothing, household good, chemicals, exotic animals etc) are weighed, checked for condition, and depending upon its various characteristics it is packed. The goods are then dispatched to their destinations. There is no value addition to the material it self but it is done 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
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about 2 days whereas as a super fast delivery would be done in about 9 hours)
Information flow
Information flow identifies specific locations within a logistical system that have requirements. Information also integrates the three operating areas. The primary objective of developing and specifying requirements is to plan and execute integrated logistical operations. Logistical information involves two major types of flows: 1. 2. Coordination flows Operation flows
Strategic objectives:
Strategic objectives detail the nature and location of customers, which are matched to the required products and services to be performed .
For DHL
It implies estimating the time requires for collecting the goods from the door step of the sender and then estimating the time for the goods to reach the final customer .
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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 desti nation.
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2. Operational flows
The second aspect of information requirements is concerned with directing operations to receive, process, and ship inventory as required supporting customer and purchasing orders. Operational requirements deal 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.
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Explanation:
The supply chain is the network of organizations that are inv olved through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of ultimate consumer.( in detail mention above)
For DHL:
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Good design is at the heart of an effective supply chain solution. DHL has developed a reputation for consistently developing innovative solutions that streamline operations and improve control. T heir in-house teams have contributed to the solutions design of some of the world's leading brands and enabled to win key contacts. DHL solutions design team offers a wide portfolio of expertise and services, from logistics network strategy, transport des ign, warehouse design and simulation, through to operational improvement and inventory analysis International Supply Chain Extended Supply Chain Services Implementation Services Outsourcing Projects
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Give visibility of the upstream supply chain, and enable earlier decision making Create a more agile supply chain, better able to respond to changes in consumer demand Reduce lead times, inventories, and associated storage costs
Customer-focused solutions are built up from the following core services:
Origin services
management,
including:
vendor
management;
supplier
Global forwarding, including: air/ocean/road/ra il freight forwarding and management; European managed transport Destination management, including: port and demurrage management; customs brokerage; de-consolidation and pre-retail services; port to distribution centre transportation; direct store delive ry (US only) Supply chain visibility and management, including: purchase order management; RFID product tracking; exception management; planning and forecasting; inventory management. Global forwarding services are provided across all major routes.
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Reverse Logistics
Services Logistics Inbound to Manufacturing Medical device distribution Distribution to stores Management Engineering Response
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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.
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Enabling a robust and cost-effective supply chain Providing the necessary visibility so tha t the location of all components within the supply chain is known to all supply chain participants Reduce inventory and investment costs Improve delivery times Co-ordinate multiple components more efficiently
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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 outl ets at high levels of service. These solutions are built from several core services: reverse logistics collections; sortation; proces sing;
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.
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2. 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 multi-cultural 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.
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Performance Management:
Performance management is a key part of the supply chain. Measured elements are reviewed as a system, as each component interacts with all the other parts around it. Performance measuring not only records historical performance but also provides early indication of any service slippage. In this second role, the measures provide a valuab le contribution to DHL's Continuous Improvement Programme.
Outsourcing Projects
Outsourcing involves DHL taking over and managing previous in-house logistics operations, including:
Distribution centers Transport operations Back-office functions Supply chain management functions After sales services
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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 analysis allows 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.
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DHL Solution
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Warehousing
Order management, quality control, outbound fulfillment, reverse and return logistics and other services. Industry-specific local transnational. Network and planning and optimization and fleet
Outsourcing
Distribution
Take-over and management of inhouse logistics including distribution, transport, back-office, supply chain and after sales.
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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.
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TRANSPORTATION
Transportation is the most visible of all functions of logistics and high contributor to logistics cost. We can see trucks, containers and wagonloads 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 transportation function 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 the transportation process. Such product, commonly referred to as in-transit inventory, is becoming a significant consideration as a variety of supply chain strategies such as just in time and quick response practices reduce manufacturing and distribution center inventories.
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Transportation uses financial resources because internal expenditures are necessary for private fleets or external expenditures are required for commercial or public transportation. The major objective is to move product from an origin location to a prescribed destination while minimizing temporal, financial and environmental 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]
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Principles
There are two fundamental principles guiding transportation
management and operations. They are economy of scale and economy
of distance.
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.
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important considerations when evaluating alternative transportation strategies or operating practices. The objective is to ma ximize the size of the load and the distance that is shipped while still meeting customer service expectations.
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Transport Infrastructure
Transportation infrastructure consists of the rights-of-ways, vehicles, and carrier organizations that offer transportation services on a for-hire or internal basis. The nature of the infrastructure also determines a variety of legal and economic characteristics for each mode or multimodal system. A mode identifies the basic transportation method or 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 Wor ld 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 railroads, motor carrie rs 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
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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, and navigable rivers. In every country, fewer system miles exist for inland water than any other transportation mode. The main advantage of water tr ansportation 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, diesel-towed 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 adjac ent, 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.
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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 to days 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 time-sensitive service requirements.
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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.
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Whether you need to forward door-to-door, airport-to-airport or port-to-port freight, DHL Danzas Air & Ocean offers a comprehensive range 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 create the right logistics solution for your business. DHL Danzas Air & Ocean is in pole position to lead the future of air and ocean freight logistics and sets high standards in quality and security
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Air Freight
DHL Danzas Air & Ocean offers a range of fast and cost -effective airfreight services for your most time-sensitive freight with door-to-door or airport-to-airport services, fixed schedules on all main routes and reliable connections to all other destinations.
DHL Air Freight products include:
Air First
Whether door-to-door or airport-to-airport, Air First guarantees priority on the first flight out and forwarding within two days 24hours a day, 7-days a week, and 365-days a year. Combines price and time considerations for both door-to-door and airport-to-airport service. Your shipment will arrive at the airport of any major marketplace around the world within only three days. Creative routing solutions via major gateways can save you even more money while adding only 1-2 days over our Air Premier Service. Chartering additional airfreight capacity is part of everyday business especially if there is limited commercial lift, for new product launches, during peak seasons or for oversized cargo. Our specialists create solutions to get your goods through on time. Combine the speed of airfreight and the lower cost of ocean freight and youll benefit from our strength and experience in both. Plus, real-time tracking at every step of the way.
Air Premier
Air Value
Sea/Air
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Warehouse Management Solution Inventory Optimization Special warehouse solution Outsourcing Projects
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a.
We
manufacturers to hold inventory at local level, whilst avoiding expensive, dedicated storage solutions. These fa cilities can receive products from both local and global manufacturing sites, providing downstream distribution.
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b.
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 facilities offering: order processing outsourced repair facilities custom final assembly kitting services
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The Warehouse Management System (WMS) records all events and actions in the receipt, handling and storage of products and orders in a warehouse environment. The WMS also accurately records the location of inventory whilst stored in the warehouse.
Our Prologs WMS manages all critical processes in the warehouse, and is also an important support for varied transport and distribution concepts (planning, time controlling, booking of transport capacity,
b)
c)
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d)
e)
Cross Docking
Cross-dock operations are facilities where shipments are received from one mode of transport and transferred to another mode, or where shipments complete one leg of a journey prior to commencement of another journey. Shipments are consolidated or deconsolidated. Product received into the facility is not taken into inventory.
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3. Inventory Optimization:
Through effective inventory management, inefficiencies can be driven out of the supply chain, overall costs reduced and high service levels achieved. 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 management software that calculates 'line item risk profiles' that measure the variability 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
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Shared-user Warehousing
Our shared-user facilities are designed to meet the needs of organizations of any size. Currently, we provide shared-user services to leading manufacturers and retailers of medical supplies, con sumer products, industrial equipment, chemicals and technology.
Through sharing of DHL's resources, such as space, labour, equipment and transportation, customers benefit from synergies that considerably reduce supply chain costs. This environment returns significant value to a small business requiring distribution operations without long term lease or capital commitments, or a large enterprise handling a new acquisition, product launches or seasonal overflow.
Campus Solutions
We pioneered the campus mode l to provide regional customers with a flexible 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 North and South America, Europe and select locations in Asia, allowing for expedited transit times to large concentrations of consumers.
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warehousing and delivery of service parts, based on demand pull. Vendor hubs are usually located in close proximity to the manufacturing facility.
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 and taxes.
Shared-user Warehousing
Our shared-user facilities are designed to meet the needs of organizations of any size. Currently, we provide shared-user services to leading manufacturers and retailers of medical supplies, consumer products, industrial equipment, chemicals and technology.
Through sharing of DHL's resources, such as space, labour, equipment and transportation, customers benefit from synergies that considerably reduce supply chain costs. Consequently, the customer can increase efficiencies throughout their distribution network and maintain a higher level of service to their customers.
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Outsourcing Projects
Outsourcing involves DHL taking over and managing previous in -house logistics operations, including:
Distribution centers Transport operations Back-office functions Supply chain management functions After sales services
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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:
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a. Beverage manufacturing:
Blending, mixing and filling of hot and cold fill beverages and concentrates in the following types of containers:
Plastic bottles (PET) and glass containers (10 oz up to 128 oz) Shelf-stable containers (paperboard, plastic cup a nd bag-in-a-box)
Site selection/development Facility and systems design New facility start-up and operation
c. Other services:
Packaging and raw material sourcing, procurement and asse mbly Batch/quality control tracking via digital easy -to-trace coding system Full range of secondary packaging services
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2. Product Assembly
Postponement, quick response and mass customization are breakthrough business strategies enabled via packaging services. Integrating packaging operations into distribution centers streamlines fulfillment reducing cost, enhancing product visibility and control, and improving speed-to-market and flexibility in the supply chain.
Postponement
components
packaging
primary,
secondary
and
specialty
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, club
store packs, clamshells and printed and unprinted film over -wraps
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Kitting is the addition of items such as accessories and batteries to the product pack. Pre-assembling is completion of a finished product from component 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 dispatched from 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 promotional items ready for retail display.
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RECOMMENDATION
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Conclusion
Logistics is one the most important and integral part of any organisations strategy and function. When the logistical process is carried out accurately then not only the company reduces the production cost but a lso improves the efficiency and customer satisfaction. Overall logistics management 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 delivers it. With a network spanning 200 countries and with its private fleet of airplanes, mobile vans, cargo ship carriers & even rail way automotives in some countries DHL can handle any type of goods. Not only has that with international network there come the hassle of documentation and paperwork, standard packaging and other formalities to adhere to. But DHL has its own department which looks into the international laws and other formalities. In the end what matters is delivering well in good condition at the door step of the customer. A happy and satisfied customer makes the business grow. Competitors have come and gone but DHL has been able to keep its No 1 position intact. This is because of its dynamic nature and attitude of maintaining good customer relations. Logistics management is important for every organization but more so DHL. We have tried to incorporate all the facets of logistics which propel DHL to be the best delievery and carriage -service around the world. No wonder that DHL is head and shoulders above all of its competitors!
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BIBLIOGRAPHY
a) Logistics and Supply Chain Management - Written by Martin Christopher b) Indian Logistics Industry (2008) published by Cushman & Wakefield c) BUSINESS LOGISTICS BARDI d) Elements of Logistics Management- S.D.APHALE
Websites:
1. www.google.com
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