DHL India faces a dilemma on how to manage its domestic and international business segments and whether to focus on documents or packages. Increased competition from players like Blue Dart and the entry of FedEx and TNT into the Indian market have added challenges. DHL India enjoys benefits from its relationship with DHL Worldwide like brand recognition, but it is not a subsidiary. It aims to strengthen its position with ISO certification and alliances while improving delivery and repositioning as a total logistics provider.

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