Final project on DHL

Air Express market for DHL Express in Ludhiana

Presented By:-

Gagandeep Singh

MBA-2(A)

Under the Guidance of :-Mrs. Shilpa Jain(Faculty, PCTE)

Origin of Logistics

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 different positions.

In ancient Greek, Roman and Byzantine empires, there were military officers with the title ‘Logistikas’ who were responsible for financial and distribution of supplies.

Logistics- An introduction

• 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

Components of Logistics

• Information• Transportation• Inventory Warehousing• Material Handling• Packaging

Introduction of the Group

Deutsche Post DHL brings two powerful brands to the marketplace.

• Deutsche Post•DHL

Vision and Mission

• DHL’s mission is to be the first choice worldwide.

• DHL’s vision is to transform the logistics industry and to deliver beyond customer’s expectations.

DHL- An Introduction

• DHL are the first letters of the last names of the three company founders - Adrian Dalsey, Larry Hillblom and Robert Lynn.

• There are 4 divisions of DHLoDHL Mail DivisionoDHL GLOBAL Forwarding(DGF)oDHL SUPPLY CHAIN DivisionoDHL Express Division

DHL Express India Pvt. Ltd

• An elite international air express service provider in India.

• Provide services from international air express to high-end logistics solutions including repair and return.

• First to provide track-and-trace services in India via email, SMS, Internet.

Services of DHL Express

• DHL Services to Another Country (Exports)

Services to India (Imports)

• BLUE DART

Domestic Services within India.

Export Services – International Express Delivery

• Time Definite – Time-Critical Pickup and Delivery.

• Day Definite – Less Urgent, Cost-Effective Delivery.

Service Delivery Commitment

DHL EXPRESS 9:00 Time-critical: guaranteed next

possible day by 9:00 a.m.

DHL EXPRESS 12:00 Time-critical: guaranteed next

possible day by 12:00 noon

DHLEXPRESS WORLDWIDE Time-sensitive: delivery by end of

next possible day

Time Definite – Time-Critical Pickup and Delivery

DHL EXPRESS 9:00

• Time-critical International shipping needs.

• Money-back guarantee and proactive delivery notification.

• Standard booking procedure and customer support.

DHL EXPRESS 12:00

• Guaranteed door-to-door delivery before 12:00 noon on the next possible business day.

• Time-critical international shipping needs.

• Money-back guarantee with proactive delivery notification available on request.

• Standard booking procedure and customer support.

  DHL EXPRESS EASY STUDENT

• Time definite express.

• Multiple Shipment Tracking.

• 24-Hour Customer Service Helpline.

Day Definite – Less Urgent, Cost-Effective Delivery

• For international door-to-door delivery within a certain number of days.

• Less urgent and typically heavier shipping needs.

• Limited pickup and delivery locations.

OPTIONAL SERVICES

• SII (Shippers Interest Insurance) • Packaging

• Dangerous Goods• MSDS• Fumigation

• Non-Standard Pickups & Deliveries• Remote Area Service

STRENGTHS WEAKNESSES

Strong Brand Image

Globalism

eServices and

technology

Corporate symbiosis

Tie up with BLUE DART

High Prices

Not as well known as in USA as

UPS and FedEx

OPPORTUNITIES THREATS

Expansion Globally

Joint-Ventures

Increase In The Number

Of Manufactured Goods

Relations With Foreign

Countries

Economic Slow-down

Fuel prices can go up

SWOT ANALYSIS

Financial Ratios Analysis

Current Ratio = Currents Assets Current Liabilities

  Ratio2007 2008 2009

Current

Ratio

1.048 1.016 1.308

  Year

Liquid Ratio = ( Current Asset – Debtors – Bills receivables) Current Liabilities

2007 2008 2009

Liquid

ratio

1.048 0.9823 0.57

Ratio  Year

Absolute Liquid Ratio = ( Liquids assets – stocks – Prepaid Expense) Current Liabilities

2007 2008 2009

Absolute

Liquid

ratio

1.048 0.981 0.548

Ratio  Year

Earning per share = Net profit for equity shareholders No. Of equity share

2007 2008 2009

Earning

per share

1.15 -1.40 0.53

RatioYear

Pay out ratio = Dividend per equity share *100 Earning per equity share

2007 2008 2009

Pay out

ratio

78.25 - 112.6

Ratio(%)Year

Trend analysis of Net profit of Deutsche Post DHL (in € m)

Year Net

Profit(€m)

Trend

2005 2,448 100

2006 2,282 93.22

2007 1,873 76.51

2008 –1,979 -80.84

2009 693 28.30

2005 2006 2007 2008 2009

-100

-50

0

50

100

150

Net Profit- Trend

Net Profit- Trend

Graphical Representation

Trend analysis of Revenue Deutsche Post DHL (in € m)

Year Revenue(€ m) Trend

2005 44,594 100

2006 60,545 135.77

2007 54,043 121.19

2008 54,474 122.16

2009 46,201 103.60

Graphical Representation

2005 2006 2007 2008 20090

20

40

6080

100

120

140160

Revenue- trends

Revenue- trends

Year Earning per

share(€)

Trend

2005 1.99 100

2006 1.60 80.40

2007 1.15 57.79

2008 –1.40 -70.35

2009 0.53 26.63

Trend analysis of Earning per share Deutsche Post DHL (in €)

2005 2006 2007 2008 2009

-80-60-40-20020406080100120

Earning per share(€)

Earning per share(€)

Graphical Representation

Introduction to Project

EXPRESS INDUSTRY

Signifies the value addition made through the time definite delivery

It is totally a new age service

The Express division transports via fixed routes and uses standardized workflows.

The quality of their services and the satisfaction of their customers are crucial in determining their success.

DHL Express(Global)Head Office: Bonn, Germany

Revenue: Approx. 10.3 billion euros (as

stated in the annual report 2009)

Shipments: Approx. 842 million

Network: 120,000 destinations served in

more than 220 countries and

territories

Employees: Approx. 100,000

Customers: Over 8 million

Vehicles: Approx. 62,000

Facilities: Approx. 4,500

6 Major DHL Air Hubs: Hong Kong, Leipzig, Bahrain,

Lagos, Miami, Cincinnati/

Northern Kentucky Airport (CVG)

Source: -www.dhl.com

Head Office: Mumbai, India

Year of Establishment: 1979

Ownership: DHL is 100% owned by

Deutsche Post

Domestic Business: DHL has 81.03% stake in Blue

Dart Express India

Shipments: Over 7.7million [2008]

Network: International – 220 countries &

territories

Employees: 1500

Customers: 35000

Vehicles: 300

Facilities: 353 Retail Express Centres &

30 Offices across India

Hubs/Gateways: 5 [Bangalore, Chennai, Delhi,

Kolkata and Mumbai]

Commercial Flights: Close to 75 flights utilized per

day

DHL Express (I) Pvt. Limited

Industry Trends

1991 3.5% Market Share (International Air

Cargo)

2005 11.0% Market Share

International 81.4% of the world’s freighters are used by Air Express Operators

Source: Boeing: World Air Cargo Forecast 2007

Size of Industry 4,175 cr

Average Annual

Growths

17.2% (Estimated)

India

Source: Blue Dart internal estimation

Major Players in India

• DHL Express• FedEx• UPS• TNT• ARAMEX• PAFEX• Blue Dart etc.

Need of the Study

• To describe the characteristics of Air express market in the region under study.

• To increase the market share of DHL express in the region.

Objectives

1) To identify the business prospects for DHL Express in Ludhiana City.

2) To study the factors which affect the choice of the service provider.

3) To know the level of satisfaction provided by DHL Express service in Ludhiana

Research Methodology

Research design

The research design of this research is descriptive.

Universe : All the exporters or importers using Air Express service in the world.

Population : All the exporters or importers using Air Express service in Punjab.

Sampling unit : In this study the sampling unit is every single exporter or importer experiencing air express

services in Ludhiana City.

Sample size: The sample size for this research is 70

.

Sampling techniques• In this research study, convenience sampling is opted.

Data Analysis and Interpretation

Yes No0

10

20

30

40

50

60

70

8070

0

Aware of DHL, as a Service Provider in Air Cargo

Aware of DHL, as a Service Provider in Air Cargo

Fig 4.2 - Awareness of DHL as a service provider in Air Cargo.

Yes No0

5

10

15

20

25

30

35

40

45

50

25

45

Used DHL as a Service Provider

Used DHL as a Service Provider

Fig 4.3 - Have you ever used DHL

DHLFe

dEx TNT

UPS

Aramex

Schien

ker

Chrobinso

nAgil

ity K&NOthers

0

5

10

15

20

25

30

35

25

31

27

30

4

0 0 0 0

15

Existing Service Providers

Existing Service Providers

Fig 4.4 - Your present service providers

Door 2 Door Door 2 Airport Airport 2 Airport0

10

20

30

40

50

60

70

62

10

2

Type of Services

Type of Services

N=68

Fig 4.5 - Which type of services do you use

USA Europe Asia Rest of World0

5

10

15

20

25

30

35

40

45

50

38

46

17

12

Lanes of Trade

Lanes of Trade

N=68

Fig 4.6 - Which are your major lanes of trade

Air Sea0

10

20

30

40

50

60

70

80

68

12

Mode of Logistics

Mode of Logistics

N=68

Fig 4.7 - Which mode of logistics you opt for

Doc's 0-10 kg 10-20 kg 20-100 kg 100-300 kg >300 kg0

5

10

15

20

25

30

10

28

14

22

12

16

Weight Category of Shipment

Category of Shipment

N=68

Fig 4.8 - What is the weight category of your shipments

Door 2 Door Door 2 Airport Airport 2 Airport0

1

2

3

4

5

6

5

1

0

Type of Services Used

Type of Services Used

N=6

Fig 4.9 - Which type of services do you use

USA Europe Asia Rest of World0

0.5

1

1.5

2

2.5

3

3.5

2

3 3

2

Lanes of Trade

Lanes of Trade

N=6

Fig 4.10 - Which are your major lanes of trade

Air Sea0

1

2

3

4

5

6

7

6

1

Mode of Logistics

Mode of Logistics

N=6

Fig 4.11 - Which mode of logistics you opt for

Doc's 0-10 kg 10-20 kg 20-100 kg 100-300 kg >300 kg0

0.5

1

1.5

2

2.5

0

2 2

1 1 1

Weight Category of Shipment

Category of Shipment

N=6

Fig 4.12 - What is the weight category of your shipments

Price Transit Time Clearance Formalities

Paper work Personalized Service

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

1.08

2.74

3.23

3.833.97

Factors for choosing a Service Provider

Factors for choosing a Service Provider

N=70

Fig 4.13 - What factors do you consider the most important while choosing a service provider

H Satisfied Satisfied Neutral Dissatisfied H Dissatisfied0

2

4

6

8

10

12

14

5

12

8

0 0

Experience to accessibility and responses(through phone and E- Mail)

Experience to acessibility and responses

N=25

Fig 4.14 - Rate your experience for the accessibility and responses through phone and E- Mail

H Satisfied Satisfied Neutral Dissatisfied H Dissatisfied0

2

4

6

8

10

12

14

16

3

15

7

0 0

Representative ‘s Ability to resolve the issue

Representative Ability to resolve the issue

N=25

Fig - 4.15 Rate the representative’s ability to resolve the issues

H Satisfied Satisfied Neutral Dissatisfied H Dissatisfied0

5

10

15

20

25

32

20

0 0

Overall Experience about Clearance Dept.

Overall Experience about Clearance Dept.

N=25

Fig 4.16 - Rate your overall experience about clearance department

H Satisfied Satisfied Neutral Dissatisfied H Dissatisfied0

2

4

6

8

10

12

14

16

18

16

8

10 0

Experience about Shipment Delivery

Experience about Shipment De-livery

N=25

Fig 4.17 - Rate the experience about shipment delivery at your doorstep

Results

• The heavy parcel and sample shipments are important from business point of view

• TNT, UPS & FedEx are most preferred brands along with DHL

• Price is the most important factor for the selection of service provider.

• Present customers of DHL are extremely satisfied with the services.

• Besides Air Express service being costly the people are ready to avail it

Recommendations

• DHL should work on pricing strategy in this region.

• The field sales managers may be given more

authority in offering flexible prices

• Skilled management graduates should be hired to make the repute of the company

• Effective advertisements should be there to promote DHL more and more amongst the potential users

Conclusion

• According to the survey findings DHL has huge potential in Ludhiana. The annual expenditure on air services is significant and DHL can capitalize on this by following potential customers.

The study also concludes that those of whom have used or are using the Services of DHL rate DHL Air Express as one of the best in the industry.

Queries

THANK YOU