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DHLWorldwide Express: The Express
Division ofAirfreight Limited
Submitted To:
Prof. Rajesh Poonia
Submitted By:
Manpreet Kaur(11404239)
Ishan Gupta (11404408)
IndianAir Express Industry
 Year 1998 :
 FedEx entered India on its own
 TNT & United Parcel Services (UPS) entered
India
 Blue Dart showing good growth
 Elbee – total solution provider for logistics
 DHL India in profits but in dilemma…
Dilemma faced by DHL
 How to run the two segments of business, domestic
and international?
 What should be the thrust, documents or packages?
 What should be response to the recent moves by the
competitors, Blue Dart and Elbee and to entry of
FedEx and TNT?
 What should be future relationship between AFL and
DHL?
Airfreight Ltd.(AFL)
 Started in 1867 by Guzder Family
 Business of transportation of goods
 1978 – DHLWW (DHL Worldwide)
approached AFL for Express business in India
 AFL will do pick – ups and deliveries on
behalf of DHLWW
 AFL realized huge potential market being left
untapped
Rise of Express Industry in India
 DHL – separate division set up by AFL in
1979
 Entry of major competitors helped in mass
awareness
 Speed Post – express version of Department of
Posts launched in 1986
 Export boom in international business
 Various divisions set up by AFL for handling
logistics
DHL India & DHLWW
 DHLWW didn’t own any equity in AFL
 DHL India was allowed to use name DHL and
logo without paying any royalty
 DHL India used IT and Communication
network used by DHLWW
 DHLWW trained employees of DHL India
 Although not being a subsidiary, DHL India
enjoyed all benefits as if it was a subsidiary
DHL India
 1995 – Seven regional headquarters
Mumbai(2), Delhi (2), Calcutta, Bangalore
& Madras
 DHL prided themselves on customer service
 Benchmarks to ascertain customer service –
call time, quality of call, waiting time, hold time,
operational efficiency, transit time analysis
 Continuous monitoring of consignments to spot delays
 Shipping dummy shipments through competitors
Human Resource Policies
 Recruitment
 Training
 Performance Management
 Compensation
 Other Issues
 1% of gross revenue spent on training
Marketing & Sales Organization
of DHLIndia
 14,000 customers in India – 2,000 of them
accounted for 80% of revenue
 Classification of customers – A,B,C & D
 Global account Programme – started by DHL
India & DHLWW
 1995 – Jumbo Box introduced – movement of
parcels upto 25 kgs quickly
 1996 – Smaller box named Junior Jumbo
introduced
DHL India’s use of IT
 Sophisticated telephone management system
 Two–way wireless sets and pagers to communicate with
field staff
 Excellent software – recording movement of
consignments through bar codes
 Track and trace feature
 Data base of all customers – recording customer details
through ID number for consignment
 Wide Area Network (WAN) installed between offices at
Mumbai, Delhi, Calcutta, Madras and Bangalore
Competitors & their strategies
 Blue Dart – found niche & offered specialized
services. Concentrated mainly on domestic &
parcel segment
 Elbee – Integrated logistics business. Owned
aircrafts to keep up efficiency of delivery
 EMS – Speed Post – new rate of ₹.20 for
letters within 200 kms range. Introduction of
“metro” & “Rajdhani” channels to ensure
quick transmission of letters.
Future plans of DHLIndia
 Planning to get ISO 9000 accreditation
 Improving delivery of inbound consignments by
reducing transit time
 Strategic alliance with different Airlines to control
line haul costs.
 Specific focus on pharmaceutical & automobiles
industry
 Repositioning as total logistics solution providers
 New opportunity in Repair & Return business
Conclusion
 DHL India had advantage of being associated
with DHLWW
 Competition was getting intense in this industry
with entry of new players
 DHL India was seen primarily as express
company, but they want to reposition themselves
as “Complete Logistics Solution Provider”
Company
 Strong IT development is key to success in future,
hence Company is keen on developing strong IT
Systems & softwares
Dhl worldwide express

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Dhl worldwide express

  • 1. DHLWorldwide Express: The Express Division ofAirfreight Limited Submitted To: Prof. Rajesh Poonia Submitted By: Manpreet Kaur(11404239) Ishan Gupta (11404408)
  • 2. IndianAir Express Industry  Year 1998 :  FedEx entered India on its own  TNT & United Parcel Services (UPS) entered India  Blue Dart showing good growth  Elbee – total solution provider for logistics  DHL India in profits but in dilemma…
  • 3. Dilemma faced by DHL  How to run the two segments of business, domestic and international?  What should be the thrust, documents or packages?  What should be response to the recent moves by the competitors, Blue Dart and Elbee and to entry of FedEx and TNT?  What should be future relationship between AFL and DHL?
  • 4. Airfreight Ltd.(AFL)  Started in 1867 by Guzder Family  Business of transportation of goods  1978 – DHLWW (DHL Worldwide) approached AFL for Express business in India  AFL will do pick – ups and deliveries on behalf of DHLWW  AFL realized huge potential market being left untapped
  • 5. Rise of Express Industry in India  DHL – separate division set up by AFL in 1979  Entry of major competitors helped in mass awareness  Speed Post – express version of Department of Posts launched in 1986  Export boom in international business  Various divisions set up by AFL for handling logistics
  • 6. DHL India & DHLWW  DHLWW didn’t own any equity in AFL  DHL India was allowed to use name DHL and logo without paying any royalty  DHL India used IT and Communication network used by DHLWW  DHLWW trained employees of DHL India  Although not being a subsidiary, DHL India enjoyed all benefits as if it was a subsidiary
  • 7. DHL India  1995 – Seven regional headquarters Mumbai(2), Delhi (2), Calcutta, Bangalore & Madras  DHL prided themselves on customer service  Benchmarks to ascertain customer service – call time, quality of call, waiting time, hold time, operational efficiency, transit time analysis  Continuous monitoring of consignments to spot delays  Shipping dummy shipments through competitors
  • 8. Human Resource Policies  Recruitment  Training  Performance Management  Compensation  Other Issues  1% of gross revenue spent on training
  • 9. Marketing & Sales Organization of DHLIndia  14,000 customers in India – 2,000 of them accounted for 80% of revenue  Classification of customers – A,B,C & D  Global account Programme – started by DHL India & DHLWW  1995 – Jumbo Box introduced – movement of parcels upto 25 kgs quickly  1996 – Smaller box named Junior Jumbo introduced
  • 10. DHL India’s use of IT  Sophisticated telephone management system  Two–way wireless sets and pagers to communicate with field staff  Excellent software – recording movement of consignments through bar codes  Track and trace feature  Data base of all customers – recording customer details through ID number for consignment  Wide Area Network (WAN) installed between offices at Mumbai, Delhi, Calcutta, Madras and Bangalore
  • 11. Competitors & their strategies  Blue Dart – found niche & offered specialized services. Concentrated mainly on domestic & parcel segment  Elbee – Integrated logistics business. Owned aircrafts to keep up efficiency of delivery  EMS – Speed Post – new rate of ₹.20 for letters within 200 kms range. Introduction of “metro” & “Rajdhani” channels to ensure quick transmission of letters.
  • 12. Future plans of DHLIndia  Planning to get ISO 9000 accreditation  Improving delivery of inbound consignments by reducing transit time  Strategic alliance with different Airlines to control line haul costs.  Specific focus on pharmaceutical & automobiles industry  Repositioning as total logistics solution providers  New opportunity in Repair & Return business
  • 13. Conclusion  DHL India had advantage of being associated with DHLWW  Competition was getting intense in this industry with entry of new players  DHL India was seen primarily as express company, but they want to reposition themselves as “Complete Logistics Solution Provider” Company  Strong IT development is key to success in future, hence Company is keen on developing strong IT Systems & softwares