This project report is basically to understand various phases of logistics and supply chain with reference to DHL Company.
It can be referred by the one working on a project pertaining to logistics and supply chain subject.
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A small project report to study logistics and supply chain in details
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A PROJECT REPORT
SUBMITTED TO
SCHOOL OF MANAGEMENT
UNDER
“To Study Logistics & Supply Chain Management in detail with
reference to DHL Company”
PROPOSED TO BE SUBMITTED IN
IN PARTIAL FULFILLMENT TO AWARD THE DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION
PREPARED BY
KUMAILRAZA MUNI (2017-B-06012000)
FOR THE COURSE
Introduction to Logistics & Supply Chain Management (MGT314)
SUBMITTED TO
Prof. CHINMOY GOSWAMI
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CERTIFICATE
This is to certify that this project report is submitted to AJEENKYA D Y PATIL UNIVERSITY,
SCHOOL OF MANAGEMENT, PUNE and is a Bonafide record of work done by
KUMAILRAZA MUNI (2017-B-06012000) of INTRODUCTION TO LOGISTICS &
SUPPLY CHAIN MANAGEMENT (MGT314).
This is to declare that the work presented in this report falls under the “Learning Activity” used
in classroom for the practical exposure to the knowledge and shall be marked based on work by
the individual subject rubrics.
All help received to the student from various sources (Primary & Secondary) have been duly
acknowledged.
Prof. Chinmoy Goswami
Subject Teacher
Introduction to Logistics & Supply Chain Management
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EXECUTIVE SUMMARY
INTRODUCTION OF COMPANY: -
DHL Supply Chain, part of the EUR 56.6bn DPDHL Group, is the world’s leading contract
logistics provider. Combining value-added and management services with traditional fulfilment
and distribution, our customized, integrated logistics solutions drive efficiency, improve quality
and create competitive advantage.
DHL Supply Chain offers specialist, proven expertise within the Automotive, Consumer,
Chemicals, Energy, Engineering & Manufacturing, Life Sciences & Healthcare, Retail and
Technology sectors. As today’s global markets grow, our innovative logistics solutions are ready
to help.
OBJECTIVES OF COMPANY: -
We make our customers, employees and investors even more successful
We always pay respect to our associates and perform well at the same time
We facilitate and simplify the life of our customers
We contribute to making the world a better place.
REASONS TO SELECT DHL: -
DHL is one of the leading company of logistics and supply management.
DHL provides a variety of ready-to-go solutions, technologies and assets and thus study
of this will lead to an increment in knowledge about logistics and supply chain
management.
PROCEDURES TO CARRY OUT THIS PROJECT: -
Selecting any company involved in logistic and supply chains business in India.
Analyzing sources available for information about that company.
Drafting a project report on basis of that information.
CONCLUSION: -
This project will help us to understand the Pros & Cons of logistics business and also scope
available in this sector.
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INTRODUCTION TO LOGISTICS & SUPPLY CHAIN MANAGEMENT
The supply chain management (SCM) profession has continued to change and evolve to fit the
needs of the growing global supply chain. With the supply chain covering a broad range of
disciplines, the definition of what is a supply chain can be unclear. Often times SCM can be
confused with the term logistics management.
DEFINITION OF SUPPLY CHAIN MANAGEMENT: -
Supply chain management encompasses the planning and management of all activities involved
in sourcing and procurement, conversion, and all logistics management activities. Importantly, it
also includes coordination and collaboration with channel partners, which can be suppliers,
intermediaries, third party service providers, and customers. In essence, supply chain
management integrates supply and demand management within and across companies.
SUPPLY CHAIN MANAGEMENT – BOUNDARIES AND RELATIONSHIPS: -
Supply chain management is an integrating function with primary responsibility for linking
major business functions and business processes within and across companies into a cohesive
and high-performing business model. It includes all of the logistics management activities noted
above, as well as manufacturing operations.
DEFINITION OF LOGISTICS MANAGEMENT: -
Logistics management is that part of supply chain management that plans, implements, and
controls the efficient, effective forward and reverses flow and storage of goods, services and
related information between the point of origin and the point of consumption in order to meet
customers' requirements.
LOGISTICS MANAGEMENT – BOUNDARIES AND RELATIONSHIPS: -
Logistics management activities typically include inbound and outbound transportation
management, fleet management, warehousing, materials handling, order fulfillment, logistics
network design, inventory management, supply/demand planning, and management of third
party logistics services providers.
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SCOPE OF STUDY: -
The scope of study is confined to DHL company which is into logistics and supply chain
management industry. Also, to learn the different characteristics and supply chain needs of
various industry.
OBJECTIVES OF STUDY: -
To know about logistics industries.
To have a thorough understanding of how logistics and supply industries work.
To know the effectiveness of logistics management at DHL.
COMPANY INFORMATION
DHL (Dalsey, Hillblom and Lynn) International GmbH is an American and German courier,
parcel, and express mail service which is a division of the German logistics company Deutsche
Post DHL. Deutsche Post DHL is the world's largest logistics company, now in over 220
countries and territories worldwide, particularly in sea and air mail. The company delivers over
1.3 billion parcels per year.
The company was founded in the United States in 1969 and expanded its service throughout the
world by the late 1970s. The company was primarily interested in offshore and intercontinental
deliveries, but the success of FedEx prompted their own intra-US expansion starting in 1983.
DHL Express's global headquarters are part of the Deutsche Post headquarters in Bonn.
Headquarters for the Americas are located in Plantation, Florida, USA, while its Asia-Pacific and
emerging markets headquarters are located in Singapore, Malaysia, Hong Kong, and China. The
European hub is in Leipzig, Germany.
Most of DHL Express' business is incorporated as DHL International GmbH.
Major competitors include FedEx, UPS and national post carriers such as United States Postal
Service (USPS) and Royal Mail. However, DHL has a minor partnership with the USPS, which
allows DHL to deliver small packages to the recipient through the USPS network known as DHL
Global Mail, now known as DHL e-commerce. It is also the sole provider for transferring USPS
mail in and out of Iraq and Afghanistan.
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DHL MISSION: -
Our Mission consists of four major elements:
We make our customers, employees and investors even more successful
We always pay respect to our associates and perform well at the same time
We facilitate and simplify the life of our customers
We contribute to making the world a better place.
We are convinced that achieving these goals also is in the interest of our stakeholders: customers,
employees and investors. Cooperation with DHL Parcel guarantees our customers' complete
satisfaction with our services of the highest quality.
DHL VISION: -
DHL's vision is to be The Postal Service for Germany and The Logistics Company for the
World.
It isn't just a simple statement that, as a global company, we are active in over 220 countries and
territories or that we are often the first logistics company to enter new markets. What our vision
says is that we want to be a logistics company that people want to come back to - we will be their
first choice not only for all shipping needs but also for career and investment opportunities.
THE COMPANY WITH A GOAL: -
All items transported from one place to another need some logistical help - however behind this
simple truth there are millions of stories. As a logistics company we are the basis of trade,
because we deliver everything that needs to be delivered. Not only do we deliver parcels but
also, we deliver well-being, we transport health, we energize development and we bring joy. And
by connecting people, DHL plays an important role in improving lives.
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IMPORTANCE OF LOGISTICS MANAGEMENT
Logistics management plays a vital part in operating your supply chain. How smoothly your
logistics work will make a huge impact on your supply chain as a whole. With the correct
logistics management in place, you can save time and money and deliver superior customer
service. Logistics management is extremely important if your business is to be successful. It
involves careful control of the goods both leaving your business premises and entering them,
thus keeping your company running smoothly as a whole.
It helps in Cost Reduction and Profit Maximization
It leads to Efficient Flow of Manufacturing Operations
It provides, maintain and sharpen the competitive edge of an enterprise
It helps in making a sound inventory management
DHL IN IMPORT & EXPORT
DHL Express is the international specialist in shipping, with extensive knowledge and
experience of dealing with customs topics worldwide. For your peace of mind, we provide a
wide range of customs support for standard as well as non-routine customs-clearance processes.
By making sure that clearance is a smooth and efficient process, we ensure your shipments arrive
as quickly as possible, and leave you free to focus on your core business.
Our step-by-step forms help you easily understand what information is needed for customs-
dutiable shipments. DHL quickly guides you through the creation of this all-important
paperwork.
SERVICES OF DHL IN EXPORT & IMPORT
IN EXPORT: -
Shipment pickup within 90 minutes
Customs export clearance
Up to two delivery attempts
Money-back guarantee
Storage up to 7 days in the destination country
Delivery to residential addresses
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IN IMPORT: -
Flexible worldwide pickup
Money-back guarantee
Third country traffic possible
Import-oriented online shipping system "DHL - Import Express Online"
Delivery to residential addresses
COMPETITORS OF DHL: -
DTDC
FedEx
Royal Mail
XPO Logistics
United Parcel Service
All Cargo
WHY DHL IS BETTER THAN OTHER COMPANIES?
Express delivery of items at DHL Service Points
Ownership of five different airline subsidiaries
Operations are carried out with a total of 96 aircraft and another 21 aircraft on orders
Offers a wide range of support services
Delivers to sanctioned countries such as North Korea
Delivers over 1.3 billion packages yearly
DHL leads in global sea and air mail shipments
ADVANTAGES & DISADVANTAGES OF DHL: -
Massive international presence in approximately 220 countries
Air delivery services
Sea delivery services
Door-to-door delivery
No pickup fees
More limited presence in the U.S.
Occasional extra charges or surcharges
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SWOT ANALYSIS OF DHL
STRENGTH: -
Large Network: DHL has a network of over 220 countries, making it the largest global freight
career. This gives DHL an advantage over the other global players. Effective communication and
excellent in-house consultancy have helped DHL expand its reach.
Innovation: DHL projects itself as a thought leader in the logistics industry. It has structurally
invested into trend research and solution development, It has developed a DHL Innovation center
which provides a platform where customers and stakeholders can engage with DHL experts.
Strong Brand Equity: DHL is ranked 77 on the best global brands ranking by Inter brand in
2016 with a brand valuation of 5708 $m.
WEAKNESS: -
Limited market share growth: Being a very competitive market, market share growth becomes
difficult especially considering numerous small and large local competitors.
Requires heavy investment: It is an investment driven industry and thus to set up and expand,
heavy investment is required and return on investment is not immediate.
Dependence on external agencies: Due to such a wide network, DHL is depended on over various
other local private agencies with which it collaborates. This has a direct impact on the efficiency
of DHL and thus coordination becomes very important.
OPPORTUNITIES: -
Emerging Markets: DHL has set its foot in almost all the emerging markets but it needs to expand
to utilize the potential in such markets. They need to focus on its customer-
focused international supply chain.
Inorganic Growth: DHL, being a big name in the industry to acquire several local players to
expand its reach in its target markets.
E-commerce: Increase in electronic shopping presents an opportunity to tap this market as well.
E-commerce is considered as the future of shopping and so it becomes important for DHL to be
present in this platform as well.
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THREATS: -
Competition: FedEx and UPS are DHL’s prime competitors and are giving DHL a tough fight in
all the markets. Various local brands also possess a threat for DHL in its specific territory.
Economic Slowdown: Logistics is one of the industries which is hit the hardest when it comes to
Economic slowdown.
Declination of traditional services: Traditional services such as letter and posts have declined
due to the advent of technology in developed as well as developing economies.
Local players: A major threat to DHL is that the brand suffers against local courier players which
might be operating at lower and penetrative prices. These local players are also able to give
excellent service.
LEARNING FROM THE PROJECT
On completion of this project, I learnt various operations involved in logistics and supply
chain management.
Difference between logistics management and supply chain management.
Efficiency in operations carried out by DHL.
Competition involved in this sector.
CONCLUSION
It can be concluded that DHL is one of the leading company in logistic and supply chain
management. It has a large network over the world and thus help MNCs in carrying out various
operations across globe. Although competition is huge in this sector but yet DHL succeeded in
delivering over 1.3 billion packages yearly.
Thus it can be stated that Logistics and Supply Chain Management plays a vital role in
functioning of any business.
BIBLIOGRAPHY
WEBSITES: -
https://www.dhl.com/in-en
https://www.marketing91.com/swot-analysis-dhl