DHL Final MIS perspective

8/3/2019 DHL Final MIS perspective

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Background Global market leader of the international express and

logistics industry.

Founded in1969

byA

drian

Dalsey, Larry

Hillblom,

Robert Lynn in San Francisco. 2002- Purchase of Airborne Express, bridged last gap in

its US/American network.

2007- DHL Innovation Center, an R&D center, opened todevelop innovative products from the logistics trends.

2008- DHL opened the European air hub at Leipzig/HalleAirport in Germany to provide greater connectivity toglobal growth markets.


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Number of Employees: around 285,000

Number of Offices: around 6,500

Number of hubs, warehouses, terminals:more than450 Number of Aircrafts: 420

Number of Gateways: 240

Number of Vehicles: 76,200 Number of Countries & Territories: more than 220

Shipments per Year: more than 1.5 billion

Destinations Covered: 120,000

Global reach


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Business model Briefly summed up to be -linking customers

packages to their destinations.

With new technology, this business model hasnt changedmuch. They have improved efficiency, expanded the networkand reduced costs, with the help from IT.

They operate under four specialist divisions:

1. DHL Express2. Global forwarding, freight

3. Supply Chain, Corporate Information Solution

4. Mail


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1. DHL EXPRESS Global provider of international road-, air- and rail-

based courierand express services for business and

private customers. Through the three product lines- Same Day, Time

Definite and Day Definite, they offer the customers amulti-faceted product portfolio meeting all transport time

requirements.


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2. GLOBAL FORWARDING, FREIGHT

This division comprises international airand oceanfreight as well as European overland transportationservices.

This business unit stands for flexible, individualized

solutions: national and international full-container-load and less-than-container-load services - via road,rail or intermodal transportation.


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3. SUPPLY CHAIN,CORPORATE INFORMATION SOLUTIONS

The main segment of their customer base consists of

the corporate clients, that includes over 75% of theworld's largest quoted non-financial enterprises.

To its customers, DHL provides outsourcing of:

After joining forces with Exel in 2005, they can nowprovide cutting edge solutions to logistics problems.

FreightForwarding

Warehousing Distribution Transport Supply ChainManagement


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SupplyChain

Model


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4. MAIL On an international level, DHL Global Mail provides

mail and communication services with directconnections to more than 200 countries around theworld as well as offering integrated solutions forcorporate communications.


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Core Business processes1.Taking orders-Itisaprocesswhichrequiresthemtoacceptpackagesfromthecustomers.Thecustomerscanavailthisservicebygoing

directlytoanyDHLcentre,bybookingapick-upor

throughonlineexpressshipping.

2.Sending packages-Afteracceptingthecustomersorder,thenextstepistosetupascheduleforthepackagetobedeliveredaccordingtothecustomersdestinations.

3.Delivering packages-Thelaststepismakingtheactualdeliveryofthepackage.Thisstephastheleastscopeforautomationsinceinformation

systemscannotbesubstitutedforlabor.


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IT service management

Globally, they have adopted common language,

processes and tools, along with skilled people toensure that IT services are being managed effectivelyusing internationally recognized IT InfrastructureLibrary (ITIL) and ISO/IEC20000.


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IT service management- Tools offered :

PlanView

This project toolprovides visibilityof their projectactivities at aglobal level withprojectdocumentationavailable to a

global audience,promotingshared learning.

S

martView

A global web-basedinformation toolthat can provideenhancedvisibility to DHLinternal

processes suchas customerservice, reportingand analysis.

T

imeSmart

Businessforecasting andstaffproductivity toolthat visualizescost, productprofitabilityanalysis and

options aboutstore inventory,productivitymanagementand on-shelfavailability.


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IT service management

DHL Toolbar

A convenient anddirect link fromthe customers

Internet ExplorerBrowser to DHL'son-line trackingservice.

DHL ExpressSMS

Allows mobilephone users totrack the

progress of singleshipments.

DHL ExpressWAP

Allows access toDHL trackingshipment

anywhere and atany time aroundthe world.

Exels Stock Inventory Management System (SIMS) utilizes scan and

radio frequency technology (RFID) to provide full stock visibility.

The Tracking toolsoffered to their customers are:


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Main competitors

UPS- Founded in 1907 as

a messenger company inthe US, UPS has growninto a $49.7 billioncorporation. It is a

leading provider ofspecializedtransportation, logistics,capital, and e-commerceservices.

FedEx- Founded in 1971,

FedEx soon grew tobecome one of DHLsmost fierce competitorsworldwide. It is more

internationally focusedand a bigger threat toDHL in markets outsidethe US.


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Comparative Advantages

They have effectivelyutilized their informationsystem to provide supplychain management(SCM) and logisticssolutions to their clients.

This hasenabled themto capture themajority of the

corporateclients.

This in turn

has lead toeconomiesof largescaleproduction.


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Marketing strategy Systems integration

Their regional integration hubs provide the capability for any-to-any systems integration, using industry standards and tools that

interface internal, external and customer applications. They achieve global co-ordination and value creation forcustomers through:

Economies ofscale, driving

down unit costs

Reducedimplementationtimes and risk

by using provensolutions

Any-to-anyintegration

Inter-regionalcompatibility

Industry-recognizedintegration

standards

Guaranteedavailability

through high-

availabilitydesigns


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MANAGEMENT TEAM

A network of projectmanagement offices

supports theirproject managers

and teams,delivering services

such as training,mentoring,continuous

improvement,reporting and

support

They work with asmall number of

leadingapplication

partners to ensure

that all portfolioproducts meet strictrequirements

around functionalityand support

All IT products andservices are

deployed in a highavailability, robust

and scalable

environment in thecontext of rigorousservice management

and certifiedsupport procedures.

Regionalcompetency centersare responsible for

the in-houseproduct expertise

to sell, implement,support anddevelop each

product.


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DHL Bangladesh1. Started operations in Bangladesh in 1979. Its main businessconsists of carrying and delivering time sensitive documents and

parcels worldwide, to and from Bangladesh.

2. Almost all clients are corporate clients, walk in customers accountfor a small portion of the business volume. DHL is mostly used bycustomers in Bangladesh, who are willing to spend more for urgent or

important package deliveries to destinations outside the country

3. Very few or no customers in Bangladesh avail services through theDHL website and so the customers cannot take advantage of the parceltracking tools.


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Competitors in BangladeshFor internal document

mailing and parcelservices, the market ismainly dominated by

Sonar Courier orSundarban Courier .

The government basedparcel service throughthe General Post Office

(GPO) also providescheaper solutions forcustomers sendingpackages out of the

country.

Express One is areseller for DHL

and has theiroperations inBangladesh.


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Conclusion: Is DHL a digital firm?

The business model ofDHL is such that it cannotcompletely transform into

a digital firm. Someportions of their core

business processes (suchas, delivering packages)

would still have to beconducted under theprevious system. But they

have used InformationSystems to effectively

manage and maintain theirhuge network

In a global businesswhere time-

shifting and space-shifting is a

necessity, without

any IT aid, it wouldhave beenimpossible for

them to serve thelarge number of

corporate

customers.

DHL realizesthe importance

of IT to helpthem grow and

survive in thelong run.


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THANKYOU

Documents

DHL Final MIS perspective