Deutsche post dhl

Operation's Presentation | CMBA7 | June 02 2016
Deutsche Post DHL
1Operation's Presentation | CMBA7 | June 02 2016
FACILITY
LOCATION OF
DHL :-
LEIPZIG / HALLE

INDEX
• INTRODUCTION
• CHALLENGES TO DHL
• KEY CONCEPTS ADOPPTED BY DHL
• SOLUTIONS
• CONCLUSIONS
Operation's Presentation | CMBA7 | June 02 2016
2

INTRODUCTION
Operation's Presentation | CMBA7 | June 02 2016 3
ADRIAN DALSEY LARRY HILLVLOM ROBERT LYLN

HISTORY
• In 1970s Larry hillblom started running courier services between
sanfransisco and los Angeles
• Hillblom along with 2 friends Adrian dlisey and Robert Lynn started
company in 1969
• bought a 1969 Plymouth duster
• They offered to fly bills of lading from sanfransisco to Honolulu
• First few employees were max kroll and blanche kroll
• In 1970s Company expanded to east Asian countries like Philippines,
japan Hong Kong , Singapore, and also to Australia.
• DHL opened a major distribution hub in Cincinnati. In 1983
• In 1985 European hub opened in Brussels

HISTORY
• Within three years DHL managed to almost double the customer
base by starting operations in close to 20 new African nations
including chad , Mozambique and morocco & also in china and middle
east .
• By 1990 they acquire the Baltic market
• 1996 they opened its Asia pacific hub in manila, the Philippines
• DHL expanded to countries that could not be served by any other
delivery service, including Cuba, the Soviet Union, Eastern
Bloc, Iraq, Iran, China, Vietnam and North Korea

OVERVIEW OF THE CASE
• €300 million invested by the company
• Leipzig/ halle project got the project excellence award in late 2009
• Project was instituted by the German project management association
(GPM)
• They were having the onerous task of dealing responsibility with natural
resources & of convincing the local population to accept the flight
operations.
• To meet the challenge , dhl said that in addition to its emphasis on building
excellent operational facilities
• Location deciding of this hub dhl authorities focus on optimally locating its
facilities but they also plaaned for the company’s long term future.

• According to ken Allen , ceo express division dhl , he says “the express
sector is one of the major drivers of global trade and we are
excellently positioned to capitalize on this through our services which
meet our customers domestic and international transport
requirements , anywhere around the world”
• DHL considered the economic growth of the region also entering into
its contractual agreements and kept in mind the environmental steps
• At the opening time dhl ceo Frank appel pointed out Leipzig/ halle is a
really special place for the future of the company
• This project was contributing in economic growth of the region and
also kept in mind the environmental steps

BASIC STRATEGIES
1.knowing the
customers and solving
their problems
2.expanding the
business
3.creating the win-win
situation for all
stakeholders.

MILESTONE
• Asia's most trusted brands in the air freight/ curious service category.
• Air freight forwarder award
• Best training learning and development award.
• Elected customer service provider.
• Europe and middle east excel award.
• Express logistics provider.
• Global 3PL
• International express operator
• Logistics provider.

PROBLEM DESCIPTION OF THE CASE
• Project team had the onerous task of dealing with natural
responsibility with natural resources and convincing the local people
to accept the flight operations as well as remaining focused on the
interests of the company.

• Lack of well-trained handling staff and too little manpower.
• To train huge number of new personnel

• DHL could not expand its night flight operations at the existing dhl hub
in Brussels, Belgium.
• The installation of the automated sorting facility as well as the planning
and coordination between the individual operational level process.

• Wastage of fuel due to highway traffic problems, which damaged the
economy by wasting work time and affecting the environment
heavily.
• Dozens of local residents staged a protest at the inauguration over the
potential increase in noise levels at night

Leipzig
strategic
fit
Used
Boeing
757 SF
Dynamic root
planning.
Sorting
facilities
Optimization
of transport
facilities

1. Optimization of transportation facility
• Up to 300kms-road transport.
• Between 300-600kms rail transport.
• Above 600kms-air transport.
• Eliminated empty and half loaded flight
2. Used Boeing 757SF
• 77% less noise pollution
• 20% less fuel consumption

3.Dynamic route planning: Telematics
software
Satellite based navigation system.
• Analyzed information concerning traffic lights, construction sites.
• Organized probable meeting of delivery drivers.
• Exchange of parcels and route was merged.

SORTING FACILITY
1. Apron to the hub
• 150,000 parcels received each night.
• Containers shoved over steel floors imbedded with rollers.
• Hazardous goods and the bulky items were automatically sorted .
2. Sorting section
• Sorted items sent to reload section using conveyor belts.
• Divided into parcels and documents using scanners.
• Parking scheme which prevented parcels from knocking into one another.
• Programing of the route.
3. Flyer sorting
• Documents were separated from the parcels.
• Automatically placed in red bags.
• Documents for 500 destination were sorted by flyer sorter.

4. Reloading the parcels and documents
• Sorted parcels and documents were sent to the reload area.
• In this section containers for different destination were loaded again.
• Control scan was executed to check the intended destination.
• In house hub team to guaranty optimum loading.
5. Customs and hospital sections.
• To special treatments.
• Pre-marked custom items.
• Individual checking by custom inspectors.
• Hospital area – damaged parcels or documents were treated separately.

Why Leipzig?
• A location with a future guarantees success in competition
• Situated in the heart of Europe and boasting excellent transport connections, the
new hub is the perfect logistics springboard for internationally operating
companies
• direct connections to the growth markets
• establishment of additional flight capacity and virtually no restrictions on
nighttime flights
• Platform for stronger growth- In choosing Leipzig/Halle, DHL selected a location
with the requisite conditions to successfully handle the everincreasing volume of
shipment
• High-performance logistics attract business –
• In the long term, the DHL aviation hub offers sufficient capacity to handle the
increased volume of shipments

• . Companies from growth sectors such as IT and telecommunications as
well as the automotive, pharmaceutical and machine building industries all
benefit from having a high-performance airfreight hub near their sites.
Thanks to 24-hour operation with takeoffs and landings 365 days a year
• “Hub and spokes” – Integration into the DHL network---
• DHL serves destinations in more than 220 countries and territories around
the world
• r, direct connections do not exist between all of the airports in these
countries – that would require a vast number of flights as well as creating
capacity utilization problems due to the varying volume of goods for
transport on different routes
• items are pooled at certain central points, re-sorted, consolidated into
sensible loading units and then transported onward to their final
destination

• Leipzig/Halle is a main node in this system of hubs and spokes,
serving as a European hub in the international Express network.
• . Regularly scheduled flights depart each day from the new airfreight
hub to approximately 50 destinations in Europe, Asia and the United
States.
• . DHL regards economic success and socio-ecological responsibility as
two sides of the same coin.
• Fast and environmentally friendly:- When selecting a mode of
transport for rapid moving of goods and documents, DHL always
chooses the carrier that satisfies customers’ quality demands while at
the same time generating the lowest costs and producing the least
emissions.

• . By using modern technologies such as solar cells and a cogeneration
unit for combined heat and power, the Leipzig/Halle hub is focusing
on the use of renewable energies as well as enhancing energy
efficiency in buildings and systems
• Using of Boeing 757-SF aircrafts which leads to 77% reduction in noise
pollution , reduction in CO2 emission and fuel consumption per ton
of freight by around 20%
• Use of soundproof windows, ventilators, windows etc. to prevent
noise pollution!

•Experience the world of DHL

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